Regulatory Analysis
Effective July 10, 2025, Alaska HB 123 became law without the Governor’s signature. The legislation provides for a reduction in the Vehicle Rental Tax rate from 10% to 9% of the total fees and costs charged for the lease or rental of a passenger vehicle not arranged through a vehicle rental platform under AK Statutes 43.52.020.
On July 4th, President Trump signed the “One Big Beautiful Bill,” which dramatically alters Form 1099-K, 1099-MISC and 1099-NEC reporting thresholds, effective for payments made after December 31, 2025. Section 70432 of the “One Big Beautiful Bill” significantly changes Form 1099-K reporting requirements for third-party settlement organizations. Previously, under the American Rescue Plan Act of […]
The Social Security Administration has released its W-2 electronic reporting specifications for tax year 2025. Publications EFW2 and EFW2C provide reporting specifications and directions for filing original and corrected electronic W-2 forms with the federal government, and the specifications for tax year 2025 have been released. Each year, the Social Security Administration adjusts the annual […]
On May 20, 2025, Governor Ferguson signed SSB 5314, comprehensive legislation modifying the state’s capital gains tax under RCW 82.87.020. The bill addresses various aspects of the state’s relatively new capital gains tax. Among its provisions, Section 15 establishes new 1099-B reporting requirements for brokers and barter exchanges, effective January 1, 2026. This marks a […]
Connecticut has temporarily suspended its mandatory withholding requirement for lump sum retirement distributions from July 1, 2025, through December 31, 2026. Under HB 7287, which passed on June 23, withholding on lump sum distributions will be voluntary during this period, consistent with other retirement distributions. The legislation maintains Connecticut’s existing definition of lump sum distributions […]
Georgia recently revised its 2025 Employer’s Withholding Tax Guide, introducing several significant changes to withholding obligations. Key updates include a reduced income tax withholding rate and an extended appeal period. Employers should also review the guide for revised due dates and mailing addresses. Beginning July 1, 2025, employers and the Georgia Lottery Commission must withhold at […]
Maryland recently enacted bill HB 352. The legislation provides, effective July 1, 2025, that businesses which use a digital service across multiple states may submit to the vendor a multiple point of use certificate to allocate and pay tax only on the portion of the service used in Maryland. Additional guidance may be found here.
New Mexico lawmakers recently passed HB 218, which changed the dates of the annual back to school tax holiday to the last weekend of July. This year, the holiday takes place from July 25, 2025 to July 27, 2025. Certain retail items will be eligible for a tax exemption during this time subject to certain […]
On June 18, 2025, the IRS released revised 2025 Instructions for Form 1099-DA (Digital Asset Proceeds from Broker Transactions). The updates provide detailed guidance for brokers electing to use the ‘optional reporting method’ to report aggregate sales of qualifying stablecoins or specified non-fungible tokens (NFTs) to customers. Brokers are not required to report acquisition dates […]
Effective January 1, 2026, Illinois will exempt food for human consumption through a repeal its 1% sales tax. This exemption will not apply to alcoholic beverages, cannabis-infused products, soft drinks, candy, or prepared foods meant for immediate consumption. Coinciding with the repeal, municipalities will have the option to impose their own 1% grocery tax, replacing […]
Beginning January 1, 2026, Illinois will eliminate the 200-transaction threshold for establishing economic nexus for sales tax purposes. Going forward, both remote retailers and marketplace facilitators will be subject to economic nexus rules based solely on whether their cumulative gross receipts from sales to Illinois purchasers exceed $100,000 over the previous 12 months. Remote retailers […]
On June 16, 2025, Illinois enacted Public Act 104-0006, introducing a series of tax amnesty programs designed to help taxpayers resolve outstanding liabilities while avoiding penalties and interest. A general tax amnesty program will take place from October 1, 2025, through November 15, 2025. This initiative allows taxpayers to settle outstanding tax liabilities for periods […]
Alabama has established new income tax exemptions for qualifying nonresident workers under House Bill 379, signed by Governor Ivey on May 13. Under the new Section 40-18-2.2, nonresidents working 30 or fewer days in Alabama annually may qualify for exemption if they work in multiple states and their home state provides similar reciprocal tax treatment. […]
Massachusetts lawmakers recently set the date for the annual sales tax holiday. The 2025 holiday will take place August 9th and 10th. During the holiday, the state’s 6.25% sales tax is suspended for most retail items priced under $2,500. For more information on the announcement of the annual sales tax holiday in Massachusetts click here.
The IRS officially announced intentions to fully retire its Filing Information Returns Electronically (FIRE) system during December 2026. Effective for tax year 2026 forms filed in 2027, electronic information return filing will transition to the Information Returns Intake System (IRIS). There is still no timeline for the retirement of the Affordable Care Act Information Return […]
On June 12, 2025, the IRS released Notice 2025-33, which modifies Notice 2024-56 and extends certain transitional relief to brokers of digital asset sales. Most notably, no backup withholding will be required on digital asset transactions in 2025 or 2026. Other relief is related to tax year 2027 reporting, is narrower, and applies only to […]
The IRS officially announced intentions to fully retire its Filing Information Returns Electronically (FIRE) system during December 2026. Effective for tax year 2026 forms filed in 2027, electronic information return filing will transition to the Information Returns Intake System (IRIS). There is still no timeline for the retirement of the Affordable Care Act Information Return […]
The Colorado Department of Revenue recently released the July 2025 local sales tax changes. Among the changes were new state-administered districts to supplement funding for related fire and ambulance services in the districts through the levy of sales tax. The following Fire Protection Districts were added: Berthoud FPD Cortez FPD Eagle River FPD Frederick-Firestone FPD […]