Regulatory Analysis
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 […]
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 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 […]
The IRS has released a draft 2026 Form W-2 that introduces significant changes to support the One Big Beautiful Bill Act (OBBBA) overtime and tips tax deduction provisions. The draft form adds a new reporting field to report the occupation of tipped employees and three new Box 12 codes to report Trump Account contributions, qualified […]
Maine has released draft specifications for the electronic filing of the form with the state for tax year 2025. There are a few changes to the specifications, including a new field for reporting employee-paid paid family medical leave contributions in the RS record and a new state specific RT record. In addition, the specifications document […]
The IRS recently released an updated Publication 1141 (General Rules and Specifications for Substitute Forms W-2 and W-3). Publication 1141 provides the IRS and Social Security Administration requirements for the preparation and use of substitute Forms W-2 and W-3 for reporting wages paid during the calendar year. There are several notable updates. First, the guide […]
The IRS has released its revised Publication 1179 (General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns). This publication provides comprehensive guidance for preparing substitute versions of official IRS information return forms. Most notably, the IRS has introduced Form 1099-DA for reporting digital asset transactions from brokers, reflecting […]
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 […]
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 […]
On 8 July, the Council of the European Union adopted the final legal acts paving the way for Bulgaria to join the euro area on 1 January 2026. This decision follows Bulgaria’s successful fulfilment of all economic and legal convergence criteria set out in the Maastricht Treaty. With this decision, Bulgaria is set to become […]
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.
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 […]
Polish authorities are advancing at an accelerated pace toward the implementation of the National e-Invoicing System (KSeF 2.0). Following the second public consultation on the draft simplifying the KSeF system in April, a set of draft regulations were published in late May. On 17 June, a new version of these drafts was published, and the […]
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 […]