Developments and Trends in Tax Withholding and Reporting
Employers may get more flexibility under proposed regulations the IRS issued on August 11, 2026, addressing dependent care assistance programs and employer Trump account contribution programs. The proposed rules implement provisions of Public Law 119-21 (commonly known as the One, Big, Beautiful Bill Act), which created Trump accounts and Trump account contribution programs.
The…
On April 10, the IRS released final regulations to implement and provide guidance regarding new Section 224, enacted as part of the One Big Beautiful Bill Act (P.L. 119-21). Section 224 allows single filers who earn up to $150,000 annually or married couples who earn up to $300,000, to deduct up to $25,000 in qualified…
In Notice 2025-62, released on November 5, the IRS provided temporary relief to employers and payors for failing to comply with certain reporting requirements added to the Internal Revenue Code by the One, Big, Beautiful Bill Act (OBBBA) in conjunction with sections 224 and 225 of the Internal Revenue Code (see prior coverage).…
On September 19, 2025, the IRS published proposed regulations to implement and provide guidance regarding new Section 224, enacted as part of the One Big Beautiful Bill Act (P.L. 119-21). The proposed regulations define qualifying payment methods, jobs that customarily receive tips, and exclusions from the deduction.
Section 224 would allow single filers who earn…
Signed into law by President Trump on July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) (H.R. 1) adds section 6050AA to the Internal Revenue Code to adopt new information reporting requirement requiring businesses receiving interest on car loans from individuals to report specified information to the IRS (presumably on a new form in…
The House today passed the Senate-passed version of the One Big Beautiful Bill Act (H.R. 1) (“OBBBA”), which includes a number of major tax provisions, including a number of provisions that would affect withholding and information reporting obligations (see prior coverage here, here, here, here, here, and here—note that…
After being passed by the House of Representatives, this year’s reconciliation bill (H.R. 1) moved to the Senate, which passed its own version of the legislation today, July 1. The Senate bill would preserve without significant change many tax-related items from the House bill. There are several provisions, however, where the Senate bill…
After being passed by the House of Representatives, this year’s reconciliation bill (H.R. 1) moved to the Senate, which passed its own version of the legislation today, July 1. The Senate bill would preserve without significant change many tax-related items from the House bill. There are several provisions, however, where the Senate bill…
After being passed by the House of Representatives, this year’s reconciliation bill (H.R. 1) moved to the Senate, which passed its own version of the legislation today, July 1. The Senate bill would preserve without significant change many tax-related items from the House bill. There are several provisions, however, where the Senate bill…
On May 20, 2025, the Senate unanimously passed S. 129, the No Tax on Tips Act (the “Senate Bill”) which differs in several substantive ways from the “No Tax on Tips” provision included the House reconciliation bill (H.R. 1) passed by the House of Representatives (the “House Bill”) (see prior coverage). …
