North America

Regulatory Analysis

Posted June 25, 2025 by Radhika Akhil
New Mexico Moves Annual Tax Holiday To July

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 […]

Read more
Posted June 24, 2025 by Kellianne Munichiello
IRS Updates 2025 1099-DA Instructions, Clarifies ‘Optional Reporting Method’ Requirements

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 […]

Read more
Posted June 24, 2025 by Emily Morillo
Illinois Will Eliminate Statewide Grocery Tax Beginning January 1, 2026

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 […]

Read more
Posted June 24, 2025 by Emily Morillo
Illinois Will Eliminate 200-Transaction Threshold for Economic Nexus

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 […]

Read more
Posted June 24, 2025 by Emily Morillo
Illinois Schedules General and Remote Retailer Tax Amnesty Programs

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 […]

Read more
Posted June 24, 2025 by Sindi Basha
Alabama Creates New Nonresident Worker Tax Exemptions

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. […]

Read more
Posted June 18, 2025 by Erik Wallin
Massachusetts Announces Dates For 2025 Sales Tax Holiday

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.

Read more
Posted June 16, 2025 by Kellianne Munichiello
IRIS Working Group Announces Timeline for FIRE Retirement

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 […]

Read more
Posted June 13, 2025 by Kellianne Munichiello
IRS Releases Notice 2025-33, Extending Transitional Relief for Digital Asset Sales

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 […]

Read more
Posted June 13, 2025 by Kellianne Munichiello
IRIS Working Group Announces Timeline for FIRE Retirement

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 […]

Read more
Posted June 13, 2025 by Bradley Feimer
Colorado Releases July 2025 Local Sales Tax Changes

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 […]

Read more
Posted June 9, 2025 by Ryan Brady
Connecticut Decreases E911 Fee

In Connecticut, a surcharge is assessed by the Public Utilities Regulatory Authority on all phone lines, including prepaid wireless services, in order to fund E911 services.  Each fiscal year the amount of the surcharge is reviewed.  Pursuant to Public Utilities Regulatory Authority Docket No. 25-01-05, the surcharge has been decreased for prepaid wireless services from $0.73 […]

Read more
Posted June 9, 2025 by Kellianne Munichiello
Alabama Overtime Exemption Ends June 30, 2025

Alabama’s 2025 legislative session ended without extending the overtime exemption from income tax. The overtime exemption expires on June 30, 2025. Overtime compensation paid on or after July 1, 2025 will be subject to Alabama income tax. The Alabama Department of Revenue released a Notice on June 4, 2025, detailing the expiration’s impact on employers. […]

Read more
Posted June 9, 2025 by Ed Surette
Minnesota E911 E988 and TAM Fee

In Minnesota, the Prepaid Wireless E911, TAM and 988 fees are increasing from a combined fee amount of $0.95 to $0.96 effective July 1, 2025. The fee is comprised of 3 parts as follows: E911 Fee – $0.80 TAM Fee – $0.04 988 Fee – $0.12

Read more
Posted June 9, 2025 by Alexander Dunn
Mississippi Reduces Sales Tax on Groceries with HB 1

Earlier this year Mississippi passed HB1 which reduces the state sales and use tax rate on groceries for human consumption from 7% to 5% starting on July 1, 2025. Per the bill, the term “groceries” refers to food or drink for human consumption that is eligible to be purchased with food stamps. Items purchased with […]

Read more
Posted June 9, 2025 by Kellianne Munichiello
Utah Expands 1099-K Reporting Requirements with HB 60

On March 25, 2025, Governor Spencer Cox signed Utah House Bill 60 (HB 60) into law, significantly expanding the state’s 1099-K reporting requirements. HB 60 adds sections 59-1-1801 and 59-1-1802 to the Utah Code, mandating that payment settlement entities file Form 1099-K with the Utah State Tax Commission when two criteria are met: (1) the […]

Read more
Posted June 9, 2025 by Emily Morillo
Maryland Enacts 3% Tax on Data and Information Technology Services; Repeals Exemption for Custom Software

On May 20, 2025, Maryland House Bill 352 was signed into law, enacting a 3% tax on certain data and information technology services and repealing the exemption for specific custom computer software. These changes are effective July 1, 2025. Further information may be found here.

Read more
Posted June 9, 2025 by Andrew Decker
Washington Governor Signs Tax Legislation

Washington’s governor recently signed three pieces of legislation which will have a major impact on retail sales tax in the state. Senate Bill 5794 would repeal the exemption from sales tax (as well as business and occupation taxes) of sales of precious metal bullion and monetized bullion effective January 1, 2026. Senate Bill 5801 makes […]

Read more
See for yourself how the Sovos Compliance Cloud can meet your business' unique tax compliance challenges.
Book a Demo
© 2025 Sovos Compliance, LLC. All rights reserved.
Why Sovos?
Resources
About
Products
Indirect Tax Suite
Information Reporting and Withholding Suite
Specialty Products
Solutions
By Tax or Document Type
By Industry
By Team or Initiative
By Region