IRS Commissioner Long to be replaced. President Trump is removing Billy Long from his role as IRS commissioner just weeks after his Senate confirmation, reports The New York Times. Long, a former Republican congressman and auctioneer, had little tax policy experience beyond promoting a tax credit flagged by the IRS for fraud risk. In his brief tenure, he traveled to meet agency staff, placed two top officials on leave, and granted early Friday departures. Long is expected to be nominated to an ambassadorship, while Treasury Secretary Scott Bessent serves as acting commissioner. Long’s departure leaves the IRS with its seventh leader this year.
No withholding changes for 2025 under OBBBA. The IRS will keep existing Form W-2s, 1099s, 941s, and current withholding tables in place for tax year 2025, despite changes under the One Big Beautiful Bill Act (OBBBA), the agency announced. Employers and payroll providers should continue current reporting and withholding procedures. The agency will release new guidance and updated forms, including changes to reporting tips and overtime pay, for Tax Year 2026. Its goal is to minimize disruption during filing season and allow more time for implementation.
Colorado calls special session over OBBBA budget gap. Colorado Governor Jared Polis (D) has called lawmakers back to Denver on August 21 to address a projected $783 million deficit following the passage of the OBBBA, reports Tax Notes. The law is expected to cut state revenues by $1.2 billion this fiscal year and hundreds of millions more in later years. Proposed responses include extending and expanding state decoupling from certain federal deductions and reviewing laws on foreign tax havens. The governor also ordered a hiring freeze through year-end.
New York Comptroller warns of multi-year budget gaps, also related to OBBBA. A new report from New York Comptroller Thomas DiNapoli (D) projects a cumulative $34.3 billion budget gap over three years, driven in part by reduced federal funding under the OBBBA. Tax Notes reports the law could cost New York $750 million in fiscal 2026 and up to $3.4 billion annually in following years.
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