Regulatory Analysis
Kansas re-released its K-99CSV specifications with a 1099-DA format, making it the first state to post custom 1099-DA (digital asset transactions) electronic filing specifications for tax year 2025 reporting. Kansas requires brokers to file Form 1099‑DA if the form reports Kansas income tax withholding or is required to be filed with the IRS. Kansas generally […]
Maine Revenue Services has finalized its electronic file specifications for tax year 2025 Forms 1099 and W-2G information returns. MRS expects to conform with the IRS transition to the Information Return Intake System (IRIS) XML format for Form 1099s beginning with forms issued for tax year 2026, due in 2027. This change aligns with the […]
The Ohio Department of Taxation has released updated electronic filing specifications for tax year 2025 covering Forms 1099-R, 1099-NEC, and 1099-MISC. All specifications follow the IRS Publication 1220 layout and share a February 2, 2026 filing deadline. The specifications include changes to the reporting thresholds for Forms 1099-NEC and 1099-MISC. Ohio now only requires reporting […]
The Social Security Administration (SSA) has revised publications EFW2 and EFW2C, respectively providing electronic filing direction for forms W-2 and W-2c. The revised publications, effective for tax year 2025, make a number of biographic and contact elements required where the specifications previously did not require them. The following elements are now required for electronic filing […]
Earlier this year, Manitoba passed their budget for 2025-2026, which includes provisions to impose the retail sales tax on cloud computing services (e.g. SaaS, IaaS, PaaS). Examples of such services include software subscriptions, data storage services, and remote computer processing services. More information may be found in Bulletin 033.
Effective January 1, 2026, House Bill 218 introduces four changes to New Mexico withholding tax reporting: Quarterly Reporting Expansion. All employers and payers must file quarterly returns reporting employee and payee compensation and New Mexico income tax withheld. Previously, this requirement applied only to employers with more than 50 employees who did not file unemployment […]
Effective January 1, 2026, Illinois will exempt food for human consumption from sales tax by repealing the state’s 1% grocery tax. This exemption will not apply to alcoholic beverages, cannabis-infused products, soft drinks, candy, or prepared foods intended for immediate consumption. Coinciding with this repeal, municipalities and counties may impose their own 1% grocery tax […]
The state of Hawaii increases its rental motor vehicle surcharge by $0.50 annually on January 1 of each year. Effective January 1, 2026, Hawaii will increase the surcharge rate from $7.00 per day (or any portion of a day) to $7.50. The scheduled rate increases are slated to end in 2027.
Colorado legislation HB 1154, will replace the 0.1% Telecom Relay Surcharge on prepaid wireless services with a Prepaid Disability Access Fee at a rate of $0.08. Beginning January 1, 2026, the fee will fund telephone services for those with disabilities.
Beginning December 1, 2025, Illinois will implement its PaintCare Recovery Program. The program will impose various fees on the sale of architectural paint in the state. Find out more information here.
The Arkansas Department of Finance and Administration has released electronic file specifications for tax year 2025 W-2 and 1099 information returns. Notably, the mandatory electronic filing threshold for W-2s decreased from 125 employees to 75 employees starting with tax year 2025 reporting. The due date for electronically filing 2025 W-2 information shifted from January 31, […]
The IRS released Notice 2025-62 on November 5, 2025, providing penalty relief for tax year 2025 regarding new information reporting requirements under the One, Big, Beautiful Bill Act (OBBBA). While OBBBA created income tax deductions for qualified tips and qualified overtime compensation and requires separate reporting of these amounts on Forms W-2, 1099-MISC, 1099-NEC, and […]
The Internal Revenue Service has released the 2025 instructions for Forms 1094-B and 1095-B (health coverage reporting) and Forms 1094-C and 1095-C (applicable large employer reporting). These forms are used by providers of minimum essential coverage and applicable large employers to report coverage information to the IRS and covered individuals. The most significant change makes […]
Maryland will increase its Tire Recycling Fee from $0.80 to $1.00 per tire. The fee increase will take effect on January 1, 2026. More information may be found here.
Maryland will begin imposing a $5 fee on each new tire sold as a part of new or used vehicle, trailers, farm equipment, similar machinery. The fee will be implemented on January 1, 2026. More information may be found here.
Haines Borough voters recently approved an ordinance granting an annual sales tax exemption period for non-prepared food items from October 1 through March 31, initially beginning January 1, 2026. The exemption applies borough wide. More information may be found here.
In Juneau, voters recently approved Proposition 2. Effective November 20, 2025, essential foods and essential residential utilities will be exempt in the Alaskan local. Proposition 2 was a citizen’s initiative petition to amend Juneau’s sales tax code to create new sales tax exemptions. Specifically, essential food defined by the Food and Nutrition Act of 2008 […]
The IRS is set to implement Form 1099-DA beginning with the 2025 tax year, requiring brokers to report digital asset transactions including cryptocurrency sales and exchanges. This new information return represents a significant expansion of federal reporting for the digital asset industry. Most states have yet to announce their positions on whether they will require […]