IRS

The Internal Revenue Service has provided reporting relief from the requirement to include a code “Y” on a 2025 Form 1099-R when reporting qualified charitable distributions from an IRA. The use of the new code for 2025 is now optional. Instructions for Forms 1099-R and 5498 indicated that use of the code in 2025 was required.

The Internal Revenue Service has issued Revenue Ruling 2025-21 which contains the applicable federal rates (AFR) for November 2025.

The Internal Revenue Service (IRS) has issued final regulations implementing catch-up contribution requirements introduced by the SECURE 2.0 Act of 2022 (SECURE 2.0). These final regulations follow the proposed regulations released in January 2025, as detailed in a previous Washington Pulse.

The Internal Revenue Service has issued a draft 2026 Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments. Form W-4P is used to withhold federal income tax from periodic retirement plan and IRA payments. Periodic payments are installment payments taken at regular intervals over a period of more than one year.

The Internal Revenue Service (IRS) has released draft Instructions for Form 8915-F, Qualified Disaster Retirement Plan Distributions and Repayments. Form 8915-F is used to report certain qualified disaster distributions and repayments of qualified disaster distributions, including 2021 and later disasters.

The Internal Revenue Service has provided draft Instructions for Form 5498-ESA, Coverdell ESA Contribution Information, for the 2026 tax year. Form 5498-ESA is used to report Coverdell education savings account beneficiary and custodian/trustee information, tax identification and account numbers, annual contributions, and rollovers.

The Internal Revenue Service has issued draft Form 5498-ESA, Coverdell ESA Contribution Information. Form 5498-ESA is used to report Coverdell education savings account beneficiary and custodian/trustee information, tax identification and account numbers, annual contributions, and rollovers.

The Internal Revenue Service has released a draft Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information. This form is used to report annual contributions, rollovers, fair market value, and taxpayer-specific information for these accounts, which are designed for the accumulation of funds for healthcare expenses, in association with high deductible health insurance plans.

The IRS has released a draft 2026 Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions.

The Internal Revenue Service has issued Notice 2025-47, which contains updated guidance on factors used in certain defined benefit (DB) pension plan minimum funding and present value calculations.