Regulatory Analysis
On April 10, 2025, President Donald Trump signed House Joint Resolution 25 (H.J. Res. 25) into law, officially nullifying an IRS rule that sought to impose stringent tax reporting requirements on decentralized finance (DeFi) platforms. DeFi platforms are platforms and services that facilitate digital asset transactions without taking custody of assets. The IRS DeFi regulations, “Gross […]
The IRS recently released an updated version of Form 1099-Q (Payments from Qualified Education Programs). This form is used to report distributions from qualified tuition programs (QTPs) under section 529 and Coverdell education savings accounts (CESAs) under section 530. Most notably, a new checkbox has been added to Box 4 and labeled 4b for reporting […]
Today the Spanish Government approved a Royal Decree and made official the new date from which taxpayers, that are not using SII, will be required to issue all their invoices (paper or electronic) using a compliant billing system (also known as SIF/Verifactu). The new date, as expected, is 1 January 2026 The previous date for […]
The Greek authorities have published Decision 1045/2025, implementing regulations under the Greek Tax Procedure Code regarding pre-filled income tax returns. Particularly, the decision regulates the completion and submission of the Statement of Financial Data from Business Activity (Form E3) and the determination of taxable business results based on taxpayer data transmitted to the myDATA platform. […]
On March 11, 2025, the United States House of Representatives passed H.J.Res. 25, which provides for congressional disapproval of the DeFi crypto regulations published on December 30, 2024 (89 Fed. Reg. 106928). On March 4, 2025, the United States Senate passed an identical bill, S.J.Res 3, disapproving of the regulations. Titled “Gross Proceeds Reporting by […]
Croatia has published a Draft Law on the Law on Fiscalisation and opened a Public Hearing from 27 February 2025 to 25 March 2025. The draft law broadens the current Fiscalisation framework by introducing mandatory domestic B2B and B2G e-invoicing and a real-time continuous transaction control (CTC) system for reporting invoice data to the tax authority across B2B, B2G, and B2C transactions. […]
The New York State Department of Taxation and Finance recently published the new Publication 72.5 (Electronic Reporting of NYS-45 Information) for quarterly reporting. Beginning March 21, 2025, Publication 72.5 specifications will be used to file all three parts of NYS-45 in a combined report through NYS-45 Web Upload. The NYS-45 Web Upload is used to […]
Maryland recently released its 2025 Employer Withholding Guide. Changes have been made to reflect the transition to Maryland’s new portal, Maryland Tax Connect (MTC). References to MTC have replaced references to bFile throughout. Three options for filing MW-508 and W-2/1099 through MTC have been added to the guide: Bulk Filer, Transmitter User, or manual key […]
New York recently updated the webpage it maintains for upcoming changes to its withholding requirements. By March 2025, New York intends to significantly overhaul its withholding and wage reporting requirements. The following updates were observed: For NYS quarterly reporting, Publication 72.5 has not yet been released but is expected to be released soon. This publication […]
South Carolina recently released Information Letter 2024-16 (Tax Legislative Update for 2024). The letter includes legislative updates to South Carolina’s income tax withholding rates, effective July 2, 2024, and beyond. Under the new legislation, income tax must be withheld at the maximum individual tax rate – instead of 7%- for the following types of income: […]
Effective January 1, 2025, Louisiana has repealed its graduated income tax rates under RS 47:32(A) and adopted a flat income tax rate of 3%. Although this is not reflected in the applicable statute yet, see HB10. HB10 was signed into law as Act 11 on December 4, 2024. Under LAC 61:1.1525(A), if Louisiana income tax withholding […]
Montana recently released the 2025 Employer and Information Agent Guide. There are several significant changes. Most notably, beginning in 2026, taxpayers required to file form 1099-DA (Digital Assets) with the IRS will be required to file form 1099-DA with Montana. Form 1099-DA is a new federal form that will be used to report digital asset […]
The IRS Recently released an update to Form 945-A, the Annual Record of Federal Tax Liability for the first time since December 2020 and its respective instructions which were last updated in 2022. This form is used for recording tax liability throughout the months of a year. Most of the form changes were removal of […]
The IRS recently published the 2025 version of Form 1042-S and its accompanying instructions. Form 1042-S is used to report income earned by non-resident aliens and withholding applied to said income. NOTE: This is the version of the form and instructions applicable to tax year 2025 reporting, NOT an update to the 2024 version of […]
Montana recently released the 2024 Electronic Filing Specifications for 1099 and W-2. For W-2, Montana conforms to the Social Security Administration’s EFW2 Publication (Specifications for Filing Forms W-2 Electronically). For 1099 forms, Montana conforms to the IRS Publication 1220 Specifications (Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G). Montana’s […]
New Jersey recently released the 2024 NJ-EFW2 (W-2 Electronic Filing Specifications). New Jersey conforms to the Social Security Administration’s EFW2 Specifications, except for the RS Record. New Jersey requires a modified RS Record. Tax year and revision date has been updated throughout the specifications. There are no other changes. The 2024 NJ-EFW2 can be found […]
The IRS recently released the 2024 Instructions for Form 1042 (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons). There are several impactful changes: E-file requirements. For most filers, the administrative exemption from the 1042 electronic filing requirement has expired. For 2024 1042 returns filed in 2025, electronic filing is required for 1) […]
The Polish Minister of Finance (MoF) has officially postponed the obligation to submit the JPK_ST_KR (known as the Polish Standard Audit File – SAF-T). This exemption applies to the tax year starting after 31 December 2024 and ending before 1 January 2026. The JPK_ST_KR is a file containing data from the register of fixed and […]