As we approach the 2026 tax season, the IRS has introduced several important updates to U.S. tax forms for the 2025 tax year. Whether you’re an employer preparing W-2s or a gig worker tracking your 1099s, these changes may affect how you file and report income. Here’s a detailed breakdown of what’s new, what’s revised, and what’s been discontinued.

🔍 Key Highlights at a Glance

🧾 Form W-2 and W-3: Minor Revisions

• W-2 (Rev. 01/07/25): No major changes to layout. Minor text and year updates.

• W-2C & W-3C (Rev. 06/24): Textual updates and revised dates.

• W-3 & W-3SS: Updates to due dates and the OMB number (now 1545-0029).

🗓 Reminder: The deadline to file W-2s and furnish copies to employees remains January 31, 2026.

📬 Big Changes in the 1099 Series

✅ New Form 1099-DA – For Digital Assets

A new addition for 2025, Form 1099-DA will be used by brokers to report transactions involving digital assets (like crypto). This supports the IRS’s increased scrutiny on virtual currency.

🟨 1099-NEC

• Box 3 is now active, allowing additional reporting flexibility.

• Other minor updates to instructions and formatting.

🟥 1099-MISC

• Box 14 is discontinued, meaning fewer reporting obligations for certain types of nonemployee compensation.

• Updated revision date and clearer instructions for recipients.

🔁 Other Revised 1099 Forms

Most of the 1099 forms (including 1099-A, B, C, G, INT, DIV, R, S, SB, etc.) received updates removing the prefix “20” from the calendar year field. Others updated the designation of Copy C to Copy 1/2 for consistency.

🧾 Form 1096

• Reprogramming required to incorporate the new 1099-DA.

• Minor text and form-year updates.

💳 1099-K: A Moving Target

The IRS previously announced that the 1099-K reporting threshold would drop from $20,000 and 200 transactions to just $600, but recent legislative efforts (e.g., the proposed “One Big Beautiful Bill”) seek to revert this to higher thresholds.

For tax year 2025, the expected threshold may drop to $2,500, but this could be reversed before the 2026 filing season. Stay tuned for final guidance from the IRS.

🌐 Other Forms with Notable Updates

• Form 1042-S: New field 7d added, field 13d moved, and several text instruction edits.

• Forms 1097-BTC, 1098, 1098-E/T, 1099-LS, 1099-PATR, etc.: Minor changes such as revised dates, “Copy C” becoming “Copy 1/2”, and text cleanups.

No reprogramming is needed for many of these, but pay close attention to version dates and updated layouts.

❌ Discontinued Forms

• 941-SS and 941-PR are no longer used as of 2024. Employers in U.S. territories must now use the standard Form 941 or the Spanish-translated version available online.

• Several publications were also retired in 2024, including Pub 51, 80, and 179 (English versions).

📌 Key Takeaways for 2025 Filing Season

✅ Use updated versions of all forms, especially those revised in 2024 or 2025
✅ Prepare to issue 1099-DA forms for crypto transactions
✅ Double-check if you need to reactivate Box 3 on 1099-NEC
✅ Eliminate use of Box 14 on 1099-MISC
✅ Be ready to adapt to the final ruling on 1099-K thresholds
✅ Don’t use discontinued Forms 941-SS or PR

👥 Who This Affects

• Employers issuing W-2s, W-3s, and 1099s

• Gig workers and small sellers on platforms like Etsy, eBay, and Venmo

• Crypto traders and those working with digital assets

• Payroll providers and CPAs preparing quarterly filings

🔧 Need Help Adjusting?

Staying compliant means updating your software systems, reprogramming form layouts, and retraining staff where needed. If you need a compliance checklist or custom templates for the new forms, we’re happy to help—just reach out.