North America

Regulatory Analysis

Posted July 17, 2025 by Sindi Basha
“One Big Beautiful Bill” Raises 1099 Reporting Thresholds

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 […]

Read more
Posted July 17, 2025 by Jesse Rooney
Social Security Administration Releases 2025 W-2 and W-2C Electronic Specifications

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 […]

Read more
Posted July 15, 2025 by Sindi Basha
Connecticut Temporarily Suspends Mandatory Withholding on Lump Sum Retirement Distributions

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 […]

Read more
Posted July 14, 2025 by Edit Buliczka
Bulgaria: Euro adoption set for 2026

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 […]

Read more
Posted July 7, 2025 by Bradley Feimer
Maryland Allows Multiple Points of Use Certificates for Digital Services

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.

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 Kelly Muniz
Poland: KSeF 2.0 Legislative Process Advances Rapidly

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 […]

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 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 May 23, 2025 by Sindi Basha
IRS Updates Instructions for Form 1099-R/5498

The IRS recently updated Instructions for Form 1099-R/5498 for tax year 2025. Form 1099-R is used to report distributions of $10 or more from retirement plans, IRAs, annuities, pensions, insurance contracts, disability payments, and charitable gift annuities. Form 5498 is used to report information about Individual Retirement Arrangements (IRAs) maintained for a person, including contributions, […]

Read more
Posted May 23, 2025 by Mariadelc Aguilar
CHILE: B2C transactions over US$5,000 require formal identification of the buyer.

The tax authority established that as of September 1st, 2025, sales made to end consumers for amounts greater than CLP$5,186,253.15 must be identified in the electronic receipt issued to the purchaser of such goods and services. For such purposes, the name and surname, RUT, form of payment, in addition to clearly informing the goods and […]

Read more
Posted May 22, 2025 by Kellianne Munichiello
Arizona Lowers Gambling Withholding Rate to 2.5%

On May 13, 2025, Arizona Governor Katie Hobbs signed Senate Bill 1274, known as the “Tax Corrections Act of 2025,” into law. One of the key provisions of this legislation is a significant change to the Arizona income tax withholding rate for gambling winnings. Previously, Arizona required income tax withholding on gambling winnings at 20% […]

Read more
Posted May 15, 2025 by Victor Duarte
Oman: Tax Authority Advances e-Invoicing Implementation Plans

In a strategic push toward digital transformation, the Sultanate of Oman is preparing to roll out a national electronic invoicing (e-invoicing) system as part of its broader efforts to modernize tax administration. This initiative, led by the Tax Authority, aims to simplify compliance, reduce administrative burdens, and align Oman’s tax systems with international digital standards. […]

Read more
Posted May 15, 2025 by Inês Carvalho
France: New Formats and Profiles of Invoices and Lifecycle Statuses

The French authorities have published the official standards issued by AFNOR (the French Association for Standardization) regarding the structure and format of invoice messages and their lifecycle statuses. These standards aim to harmonize data exchanges within the French e-invoicing ecosystem. They define the required formats and technical specifications for message flows between Partner Dematerialization Platforms […]

Read more
Posted May 15, 2025 by Inês Carvalho
Bulgaria: SAF-T Schema and Guidelines Published

The Bulgarian National Revenue Agency (NRA) has published the official SAF-T XML schema and accompanying technical documentation in preparation for the upcoming SAF-T mandate, scheduled to start in January 2026. A 30-day public consultation is also announced. The NRA invites stakeholders to submit their proposals, opinions and comments via e-mail. The Bulgarian SAF-T mandate will […]

Read more
Posted May 13, 2025 by Joanna Hysi
Serbia Published Rulebook on E-Delivery Notes

On 8 March 2025, the Ministry of Finance of the Republic of Serbia published the Rulebook on Electronic Delivery Notes (Pravilnik o elektronskim otpremnicama) in the Official Gazette RS No. 21/2025. This follows the adoption of the Law on Electronic Delivery Notes (Zakon o elektronskim otpremnicama), which was published in Official Gazette RS No. 94/2024. […]

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