Compliance
Ensuring Compliance in the Era of the OBBB: Key Actions for U.S. Businesses
With recent legislative changes like the One, Big, Beautiful Bill, U.S. businesses must update practices to avoid penalties and maintain compliance.
By NomadicTax Research Team • 5-8 min read • November 18, 2025
## Recent Regulatory Changes Impacting Business Compliance
U.S. businesses are directly impacted by multiple IRS rules under the One, Big, Beautiful Bill (OBBB) and related updates:
- **New reporting requirements for car loan interest**: Certain lenders now must report **auto-loan interest** received in 2025. Transitional guidance includes penalty relief for early implementation issues. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
- **Form 1099-K threshold adjustments**: The threshold reverted to **$20,000** under recent guidance. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
- **Interest rates for overpayments/underpayments**: The IRS will maintain rates for Q1 of 2026—7% for individuals (overpayments & underpayments), with corporate variances. ([irs.gov](https://www.irs.gov/newsroom/interest-rates-remain-the-same-for-the-first-quarter-of-2026?utm_source=openai))
## What Businesses Need to Do Now
To avoid surprises and ensure compliance, businesses should:
- **Review reporting obligations** for car loan interest. If you’re a lender or financial institution, you must identify if you're subject to new reporting under OBBB. Check Notice 2025-57 for guidance. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
- **Adjust payments platform settings** to capture Form 1099-K reports correctly where thresholds have shifted. For platforms, aggregators, gig-economy businesses: ensure bookkeeping systems can track when $20,000+ thresholds are met. Failure to report could lead to IRS penalties.
- **Audit your over/underpayment interest exposure**: With rates fixed, however high, accruals should be managed carefully. If underpayments are likely, estimate cash flow impacts.
- **Update payroll/benefit programs**: The employer-provided childcare tax credit has massive ceiling increases. If offering benefits, ensure plan documents are compliant and reporting captures new limits. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai))
## Real-World Example
Consider a startup that provides **payroll overdraft** or **employee perks** including childcare. Previously, childcare benefits exceeding $150,000 weren’t fully creditable. Under OBBB, businesses might qualify for up to $500,000 in credits — worth tens of thousands in savings.
Also, platforms facilitating payment to gig workers need to reconfigure their thresholds for issuing 1099-K forms: previously $600 under other legislation, now with this change $20,000; failure to adapt could trigger both reporting and withholding issues for both platform and user.
## Action Steps Checklist
| Task | Who | Deadline / Priority |
|------|-----|---------------------|
| Assess exposure to car-loan interest reporting | Finance/treasury teams | Immediately (for 2025) |
| Update bookkeeping thresholds for 1099-K | Accounting & software vendors | Before January 2026 filings |
| Evaluate employee benefit programs | HR / Legal | Q4 2025 |
| Recalculate estimated tax payments | CFO / Controllers | For Q1 2026 cash flow planning |
## Conclusion
The OBBB and its accompanying IRS adjustments usher in compliance obligations that require both awareness and action. Businesses that plan ahead—aligning reporting, benefits, and payments with new thresholds—are positioned to avoid penalties and make full use of increased credits and higher limits.
Category: Compliance | TaxHome: Global | Author: NomadicTax Research Team | ReadTime: 5-8 min | Published: true