Compliance
Compliance Deep Dive: Recent U.S. Policy Changes Tax Professionals Must Know
Tax professionals in the U.S. face vital compliance updates stemming from new rules on 1099-K thresholds, PTIN fees, and remittance transfer taxes—all under the One, Big, Beautiful Bill.
By NomadicTax Research Team • 5-8 min read • November 22, 2025
## What U.S. Tax Pros Need to Know For Immediate Compliance
IRS and Treasury announcements in late 2025 have introduced significant compliance obligations in three areas:
| Topic | What’s New | Effective or Implementation Date |
|---|---|---|
| **1099-K threshold reset** | Under OBBBA, the threshold for reporting payment card and third-party network transactions via Form 1099-K reverts upward to **$20,000**. Frequently Asked Questions have been issued to help taxpayers understand the change. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai)) | Takes effect beginning tax year 2024/2025—returns due in 2025. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
| **PTIN fee reduction** | The Preparer Tax Identification Number (PTIN) renewal fee has been reduced from **$11 to $10**, plus the third-party contractor's fee. Applicable to applications/renewals filed **on or after September 30, 2025**. ([irs.gov](https://www.irs.gov/irb/2025-42_IRB?utm_source=openai)) | September 30, 2025 onward. ([eitc.irs.gov](https://www.eitc.irs.gov/irb/2025-42_IRB?utm_source=openai))
| **Remittance transfer provider relief** | Penalties for late or non-timely deposit of certain excise taxes under section 4475 will be **relieved** for the first three calendar quarters of **2026**, provided providers meet the “reasonable cause” standard. ([irs.gov](https://www.irs.gov/irb/2025-43_IRB?utm_source=openai)) | Guidance for calendar quarters of 2026. ([irs.gov](https://www.irs.gov/irb/2025-43_IRB?utm_source=openai))
## Implications for Tax Professionals & Businesses
- **Documentation & reporting**: Ensure accounting systems can distinguish between payments under $20,000 to avoid unnecessary 1099-K filings—and incorrectly missing ones where still required.
- **Fee budgeting**: PTIN users—especially those renewing or applying post-September 30, 2025—should account for both the new PTIN fee and contractor charges.
- **Policy review & client advice**: Remittance transfer providers must assess whether they satisfy the “reasonable cause” standard to qualify for penalty relief in 2026. Communicate proactively with clients in this sector.
## Example Case
- A CPA preparing returns for a gig economy client who earned $18,000 via payment apps in 2024: because the threshold reset is now in effect, client likely doesn’t need a 1099-K—it avoids overhead. But if another client earned $25,000, ensure those transactions are accurately tracked and reported.
- A tax preparer renewing PTIN in October 2025 should verify fee updated to reflect new rule and avoid surprises by checking contractor fees.
- A remittance transfer provider with a history of late deposits should document reasons (cash flow, transaction error, etc.) so they can meet “reasonable cause” standard for relief.
## Practical Steps to Stay in Compliance
- Update internal **checklists and workflows** to capture these changes—don’t assume thresholds or fees from previous years still apply.
- Monitor **IRS FAQs** and **Notice Q&A documents** for clarifications—recent updates on Form 1099-K and Form W-2/W-4 under OBBBA are critical. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
- Train staff and clients: brief memos, webinars, or updates can help avoid last-minute compliance gaps.
**Wrap up**: Compliance isn’t just keeping rules—it’s actively adapting to changes. These recent developments under the OBBBA span thresholds, fees, and penalties. Meticulous tracking and proactive updates can prevent costly missteps this tax season.