“These decisions are intended to avoid disruptions during the tax filing season and to give the IRS, business, and tax professionals enough time to implement the changes effectively,” the agency said.

The IRS asked employers and payroll providers to continue using existing procedures when it comes to reporting and withholding taxes.

As for tax year 2026, the IRS said it was working to update forms and develop new guidance.

The new changes will include how overtime pay and tips are reported. The IRS said it plans to coordinate with payroll providers, tax professionals, and employers to ensure a smooth transition to the new rules.

Although there is no change in information returns or withholding tables, the OBBB has multiple provisions providing tax relief for Americans effective this year.

For one, the OBBB eliminates taxes on tips, according to a July 14 statement from the IRS.

Employees and self-employed individuals can deduct tips from their tax returns, provided their occupations are listed by the IRS as customarily receiving tips. The IRS must publish a list of these occupations by Oct. 2.

The maximum annual deduction allowed in this case is $25,000, which phases out for taxpayers whose modified adjusted gross income is more than $150,000.

Secondly, the OBBB eliminates taxes on overtime.

“Individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay,” the IRS said.

The maximum overtime deduction for a taxpayer is $12,500 per annum, which is phased out as income rises.

To claim the deduction, taxpayers are required to include their Social Security numbers on their tax returns. Married individuals must file jointly to claim the deduction. For joint filers, it goes up to $25,000.

Third, the car loan interest tax has been canceled by the OBBB.

“Individuals may deduct interest paid on a loan used to purchase a qualified vehicle, provided the vehicle is purchased for personal use and meets other eligibility criteria,” the IRS said, adding that lease payments do not qualify for this benefit.

To be considered a qualified deduction, the interest must be on a loan that originated after Dec. 31, 2024. The vehicle must have undergone final assembly in the United States.

Fourth, Americans aged 65 and older can claim a tax deduction of $6,000, which is in addition to the existing standard deduction for this demographic. The deduction phases out for seniors with a modified adjusted gross income of more than $75,000.

These four tax relief provisions are effective from 2025 through 2028.

Rising Tax Collections, New Commissioner

For fiscal year 2024, which ran from Oct. 1, 2023, to Sept. 30, 2024, the IRS collected more than $5.1 trillion in revenues, a roughly 9 percent increase from the previous fiscal year.

This was the first time that the agency’s collections crossed the $5 trillion mark.

“The IRS processed more than 266 million returns and other forms from individuals, businesses, and tax-exempt organizations; received almost 4.6 billion information returns; and issued close to $553 billion in refunds to individual and business taxpayers during FY 2024,” the agency said.

The IRS is slated to get a new chief after Trump replaced commissioner Billy Long, a White House official told The Epoch Times. Long was confirmed to the post less than two months ago.

Long said he will now act as U.S. ambassador to Iceland.

“It is [an] honor to serve my friend President Trump and I am excited to take on my new role as the ambassador to Iceland,” Long said in an Aug. 8 post on social media platform X.

“I am thrilled to answer his call to service and deeply committed to advancing his bold agenda. Exciting times ahead!”

Treasury Secretary Scott Bessent will serve as acting commissioner of the IRS.

https://www.zerohedge.com/political/irs-announces-no-changes-withholding-tables-information-return-forms-2025