The Internal Revenue Service (IRS) has announced that it will not make changes to federal income tax withholding tables or key payroll reporting forms for Tax Year 2025, as part of its phased implementation of the newly enacted One Big Beautiful Bill Act (OBBBA).
Signed into law on 4 July 2025, as Public Law 119-21, OBBBA introduces sweeping tax reforms, including new deductions for tips, overtime pay, car loan interest, and seniors. However, the IRS confirmed that for 2025, existing procedures will remain in place to ensure a smooth transition and avoid disruptions during the upcoming filing season.