IRS Delays OBBB-Related Information Reporting and Withholding Table Changes Until 2026

In a news release, the IRS announced that it will delay making OBBB-related changes to information reporting and withholding until the 2026 tax year. The IRS highlighted three primary issues that will remain unchanged. Forms W-2, existing Forms 1099, and Forms 941 and other payroll return forms will remain unchanged for the 2025 tax year. Federal income tax withholding tables will not be updated for new OBBB provisions for the 2025 tax year. Employers and payroll providers should continue using current procedures for reporting and withholding. The IRS has stated that it is working on new guidance and updated forms for the 2026 tax year, including changes to how tips and overtime pay are reported. The IRS also stated that in the coming months, they will share information about how taxpayers can claim new OBBB-related benefits prior to the start of the tax filing season. Employers can use any reasonable method when it comes to reporting an individual's tips for the 2025 tax year. For more information on the federal income tax reporting requirements, visit Tax Facts Online. Read More: Link to Q647. Note: Q is updated.