Regulatory Analysis
The IRS added a new webpage explaining that 1099-DA will be excluded from the Combined Federal/State Filing Program for Tax Year 2025. The IRS previously announced this in various other communications, like IRIS working group meetings. The IRS explicitly notes: filers are responsible for meeting state 1099-DA reporting obligations outside of the CF/SF program. See […]
The IRS updated the 2025 Instructions for Form 1099-DA to include a new section, “De minimis rules for certain sales.” The new section provides information on de minimis reporting rules for PDAP (Processor of digital asset payment) sales and optional reporting methods. These rules are not new; the previous version of the instructions omitted them. […]
The New Mexico Taxation and Revenue Department has released new Form TRD-41431 (Workers’ Compensation Fee Return and Employees’ Quarterly Wage and Withholding Report). Effective for reporting periods beginning January 1, 2026, all taxpayers who withhold New Mexico tax from wages, pensions, and annuities are required to file Form TRD-41431. Previously, only employers with more than […]
Effective January 1, 2026, Chicago has increased the rate of its Personal Property Lease Transaction Tax from 11% to 15%. Further changes can be found here.
Ohio HB 186, signed by the governor on Dec 19, 2025, cancel’s the expanded August 2026 sales tax holiday as a part of a legislative package aimed at restructuring property taxes in the state. Historically, the sales tax holiday is over a two week period and broadly encompassing. More information may be found here.
The Canada Revenue Agency (CRA) has released the 2025 edition of Guide T4061(E), NR4 – Non-Resident Tax Withholding, Remitting, and Reporting. The primary change for tax year 2025 is the launch of the Non-Resident Withholding Tax online portal services. In October 2025, the CRA expanded its secure portal services to include online access to non-resident […]
Chicago will reduce its Motor Vehicle Lessor Tax from $2.75 per rental period to $0.50 per rental period. This tax is imposed on the lease of motor vehicles within Chicago on a daily or weekly basis and is charged per the rental period in the lease agreement. This change is effective on January 1, 2026. […]
Beginning January 1, 2026, Chicago will impose a new retail liquor tax of 1.5% on the sale of alcoholic beverages purchased for consumption off the premises where the alcohol was purchased. Further changes can be found here.
The New Mexico Taxation and Revenue Department has released FYI-330, updating guidance on income and withholding information returns and filing methods. Beginning January 1, 2026, all employers must submit annual income and withholding statements (Forms W-2, W-2G, and 1099-R) electronically, regardless of employee count. Filers should note that the Department no longer requires notification that a […]
The IRS has updated Form 8809, used to request filing extensions for information returns including Forms W-2, 1099, 1042-S, and 1095. The most notable update is the addition of the Information Return Intake System (IRIS) as a filing option for automatic 30-day extensions. IRIS will fully replace the FIRE system in January 2027. The IRS […]
The IRS has released Publication 4163 (Rev. 12-2025) for Modernized e-File (MeF) business returns processed in 2026. This publication outlines electronic filing requirements and guidance for returns filed through the IRS Modernized e-File (MeF) platform. There were several key changes in this recent update to the publication, which include the following: Puerto Rico form discontinuation: […]
Effective January 1, 2026, the state level discount available for timely filed sales and use tax returns in Colorado has been removed. This discount is termed as a “service fee” in Colorado. Please note, this change does not impact local level service fees in Colorado. This change is included in the Colorado Department of Revenue’s […]
Effective January 1, 2026, the Colorado Waste Tire Fee on the sale of new motor vehicle and trailer tires will increase to $2.00 from $0.50.
Earlier this year the Washington state legislature enacted Engrossed Substitute Senate Bill 5801 (Chapter 417, Laws of 2025) changing a number of taxes and fees related to motor vehicles and other forms of transportation. As part of this law the additional 5.9% sales tax imposed on retail car rentals of 30 days or less will […]
The California State Controller’s Office (SCO) has issued a warning about a phishing scam targeting unclaimed property holders. Fraudulent emails impersonating Controller Malia M. Cohen are requesting sensitive reporting data, including NAUPA files, UFS-1 forms, and property owner personally identifiable information (PII). Sovos clients should be vigilant and know how to recognize these scams. What the Scam Looks […]
The Colorado Department of Revenue published local sales and use tax changes effective January 1, 2026. Changes include rate increases and newly imposed sales taxes in jurisdictions such as Pagosa Springs. More information concerning the January 1, 2026 local changes may be found here.
The Hawaii Department of Taxation has released the 2026 edition of Booklet A, Employer’s Tax Guide, with income tax withholding rates, methods, and tax tables effective as of December 5, 2025 for withholding on wages paid January 1, 2026 and thereafter. Effective January 1, 2026, Hawaii will adopt the 10 or more electronic filing threshold […]
Revenu Québec has released the 2025 Guide to Filing the RL-1 Slip (RL-1.G-V) for reporting employment and other income. The guide covers tax year 2025 and accounts for legislative changes through October 31, 2025. The most significant changes for 2025 relate to security option reporting following the federal announcement deferring the increase to the capital […]