Regulatory Analysis
The Arkansas Department of Finance and Administration has released electronic file specifications for tax year 2025 W-2 and 1099 information returns. Notably, the mandatory electronic filing threshold for W-2s decreased from 125 employees to 75 employees starting with tax year 2025 reporting. The due date for electronically filing 2025 W-2 information shifted from January 31, […]
The IRS released Notice 2025-62 on November 5, 2025, providing penalty relief for tax year 2025 regarding new information reporting requirements under the One, Big, Beautiful Bill Act (OBBBA). While OBBBA created income tax deductions for qualified tips and qualified overtime compensation and requires separate reporting of these amounts on Forms W-2, 1099-MISC, 1099-NEC, and […]
The Internal Revenue Service has released the 2025 instructions for Forms 1094-B and 1095-B (health coverage reporting) and Forms 1094-C and 1095-C (applicable large employer reporting). These forms are used by providers of minimum essential coverage and applicable large employers to report coverage information to the IRS and covered individuals. The most significant change makes […]
Maryland will increase its Tire Recycling Fee from $0.80 to $1.00 per tire. The fee increase will take effect on January 1, 2026. More information may be found here.
Maryland will begin imposing a $5 fee on each new tire sold as a part of new or used vehicle, trailers, farm equipment, similar machinery. The fee will be implemented on January 1, 2026. More information may be found here.
Haines Borough voters recently approved an ordinance granting an annual sales tax exemption period for non-prepared food items from October 1 through March 31, initially beginning January 1, 2026. The exemption applies borough wide. More information may be found here.
In Juneau, voters recently approved Proposition 2. Effective November 20, 2025, essential foods and essential residential utilities will be exempt in the Alaskan local. Proposition 2 was a citizen’s initiative petition to amend Juneau’s sales tax code to create new sales tax exemptions. Specifically, essential food defined by the Food and Nutrition Act of 2008 […]
The IRS is set to implement Form 1099-DA beginning with the 2025 tax year, requiring brokers to report digital asset transactions including cryptocurrency sales and exchanges. This new information return represents a significant expansion of federal reporting for the digital asset industry. Most states have yet to announce their positions on whether they will require […]
Following the release of updated Instructions for Form 1099-R/5498 for tax year 2025, the IRS has issued two additional updates modifying reporting requirements. The updated Instructions for Form 1099-R/5498 for tax year 2025 introduced a requirement for annuity issuers to report year-end actuarial values of annuitized contracts in box 8 when payments occurred during the […]
The IRS has released its updated Publication 1220, which provides technical specifications for electronic filing of information returns through the Filing Information Returns Electronically (FIRE) system. Most significantly, the IRS announced on July 2, 2025, that the FIRE system will be retired beginning with Tax Year 2026/Filing Season 2027, with the Information Returns Intake System […]
Earlier this year Washington enacted Engrossed Substitute Senate Bill 5814 (published as Chapter 422, Laws of 2025) which changed the state’s definition of retail sales to include custom software and several newly taxable services. As a result, the retail sales tax and the retailing business and occupation tax will apply to sales of custom software […]
Michigan has explicitly added Form 1099-DA to its Income Record Form Remittance Guide as one of the 1099 forms required by the state. Form 1099-DA must be filed with Michigan whenever issued to a Michigan resident, regardless of where the issuer is domiciled or where the resident’s work or services were performed. The filing requirement […]
The IRS has revised Publication 5717, “Information Returns Intake System (IRIS) Taxpayer Portal User Guide.” The document provides user direction on how to report tax-information filings via the IRIS. The most significant change is the document now states forms 1042-S, 1099-DA, 5498-QA, and 8809 can be filed on the IRIS. Other changes to this document […]
The City and Borough of Sitka Assembly has approved a resolution declaring November 28th & November 29th, 2025, as sales tax free days. This tax holiday applies to all sales made within the City and Borough, except for sales of fuel, alcoholic beverages, tobacco products, marijuana, and any sale which is part of a continuing […]
Massachusetts has established mandatory annual reporting requirements for motor vehicle insurers making payments to repair shops, effective for payments made on or after January 1, 2025. Under 830 CMR 62C.8.2, promulgated August 1, 2025, insurers must file electronic information returns with the Commissioner and furnish copies to repair shops. The regulation requires reporting of all […]
The IRS has released an updated Publication 5718, outlining specifications for the Information Returns Intake System (IRIS) A2A electronic filing process for tax year 2025 returns. This update introduces key technical changes to improve transmission accuracy and expand functionality for additional 1099-series forms. Notably, Form 1099-H has been removed, while Forms 1042-S, 1099-DA, and 5498-QA […]
Louisiana has recently published new guidance regarding sales and use taxes on digital products and services. This guidance provides clarification on the scope of new sales and use taxes imposed in January 2025 under legislative bills HB8 and HB10.
Effective October 1, 2025, the State of Florida will repeal the state sales tax on rent or license fees for the use of real property. The repeal affects a wide range of commercial rental properties, including office and retail spaces, warehouses, and self-storage units. However, this repeal does not apply to parking, docking or storage […]