Compliance
Key Compliance Priorities for the ROI Filing Season Post One, Big, Beautiful Bill
With the One, Big, Beautiful Bill changing deductions, exemptions, and reporting thresholds, here’s what U.S. taxpayers must know now to comply and avoid penalties.
By NomadicTax Research Team • 5-8 min read • February 24, 2026
## Overview: What Changed Under the One, Big, Beautiful Bill (OBBB)
Passed in July 2025, the OBBB introduced sweeping changes to **deductions**, **credits**, **reporting thresholds**, and **exemptions**, many of which begin affecting returns filed in 2026.([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))
## Top Compliance Areas to Watch
- **Tip and Overtime Deductions**: Workers in tip-based jobs or those earning overtime now may deduct qualified tips or overtime under specific SSN/ITIN and income limits. Reporting via W-2, 1099, or Form 4137 required.([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-of-2025-provisions?utm_source=openai))
- **Additional Standard Deduction for Seniors**: Individuals age 65 and older can claim an extra $6,000 deduction from 2025 through 2028. Phased out if MAGI exceeds set limits.([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-of-2025-provisions?utm_source=openai))
- **Higher Inflation-Adjusted Limits**: Standard deduction, alternative minimum tax exemptions, estate exclusion, etc., all increased.([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))
## Reporting & Threshold Updates
- **Foreign Earned Income Exclusion increased to $132,900** for tax year 2026.([irs.gov](https://www.irs.gov/individuals/international-taxpayers/figuring-the-foreign-earned-income-exclusion?utm_source=openai))
- **Housing Exclusion limits also increased** accordingly.([irs.gov](https://www.irs.gov/individuals/international-taxpayers/figuring-the-foreign-earned-income-exclusion?utm_source=openai))
- **Expiration of Clean Energy Credits**: Certain clean vehicle and home energy credits will expire end of September or December 2025. This affects claims in 2025 returns.([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions?utm_source=openai))
## Common Compliance Risks & Avoidance Strategies
| Risk | What Can Go Wrong | How to Avoid It |
|------|-------------------|------------------|
| Missing valid SSN/ITIN deadlines | New rules require valid SSN/ITIN for dependents, credits | Collect or verify IDs well before filing deadline (April 15, 2026) |
| Underreporting digital asset income | Income from crypto, NFTs, etc., must be reported even without a 1099 | Keep records; answer the digital asset question on Form 1040.([irs.gov](https://www.irs.gov/newsroom/prepare-to-file-in-2026-get-ready-for-tax-season-with-key-updates-essential-tips?utm_source=openai)) |
| Claiming expired energy credits | Using credits that expired mid-2025 gives IRS scrutiny | Ensure the property was placed in service before the effective expiration dates.([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions?utm_source=openai)) |
## Example: John, Senior Worker in Tips Sector
John, age 66, works as a server. His earnings include $12,000 in tips and $30,000 in base wages in 2025. His MAGI is $80,000:
- He will claim the **$6,000 senior deduction**.([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-of-2025-provisions?utm_source=openai))
- He may deduct his **qualified tips**, up to the $25,000 cap, but only if properly reported and not filtered through an SSTB exclusion. His modified AGI must be under $150,000.([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-of-2025-provisions?utm_source=openai))
- He cannot use energy credits that expired in late 2025 or clean vehicle credits for vehicle acquired after Sept 30, 2025.([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions?utm_source=openai))
## Action Plan to Be Compliant
1. Review draft returns early to identify applicable deductions under OBBB.
2. Gather all required SSN/ITIN documentation for dependents.
3. Keep receipts for tips, overtime, digital asset sales.
4. Confirm energy property dates to claim valid clean energy credits.
5. If unsure about foreign income or treaty issues, consult IRS publications 54, 514, or a tax professional.
Staying informed of thresholds, eligibility, and documentation under these new laws will help ensure smooth filing seasons and avoid costly mistakes.