Compliance
Maintaining Compliance with the New Excise & Reporting Rules under OBBB
The One, Big, Beautiful Bill introduces new excise tax obligations and information reporting rules. Here's how businesses can stay compliant without penalties.
By NomadicTax Research Team • 5-8 min read • November 19, 2025
## Overview of OBBB Reporting & Excise Changes
Under the OBBB, businesses face new **information reporting requirements** (car loan interest, excise taxes on remittance transfers, etc.) and increased enforcement. The IRS has issued transitional relief but compliance risk remains high. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
## Key Requirements & Deadlines
| Requirement | What’s New | Due / Effective Date |
|---|---|---|
| **Car loan interest reporting** | Lenders must report car loan interest received under OBBB. Some lenders get transitional penalty relief if compliant in first three quarters of 2025. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))| Effective from tax year 2025, penalty relief via Notice 2025-57 applies during transitional period. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))|
| **Remittance transfer excise tax** | Penalties for failures to deposit reduced during first three quarters of 2026 for remittance providers. Notice 2025-55 provides guidance. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))| First three calendar quarters of 2026. |
| **Corporate Alternative Minimum Tax (CAMT)/AMT** | Interim guidance affecting domestic transactions and consolidated groups. ([irs.gov](https://www.irs.gov/irb/2025-43_IRB?utm_source=openai))| Applies to taxable years under OBBBA; effective dates vary. |
| **Definition of “rural area” for Opportunity Zones** | Updated criteria under § 1400Z−2(b)(2)(C)(ii) for qualifying rural areas. ([irs.gov](https://www.irs.gov/irb/2025-43_IRB?utm_source=openai))| Guidance effective now; must be applied when filing. |
## Action Steps for Business Owners
- Conduct a **compliance audit** to identify all contracts involving car financing and remittance transfers.
- Update accounting and reporting systems or software to capture info needed (e.g. lender reporting obligations, correct classifications).
- Train staff on the revised definitions and thresholds—for example, “qualified tips” under OBBB have specific limits and income phase-outs. ([irs.gov](https://www.irs.gov/irb/2025-42_IRB?utm_source=openai))
- Monitor Notices from IRS (notices like 2025-46, 50, 55 etc.) for updates that clarify or adjust obligations. ([irs.gov](https://www.irs.gov/irb/2025-43_IRB?utm_source=openai))
## Example Case
A remittance transfer provider who earlier underpaid deposit requirements may be liable for penalties. But with **Notice 2025-55**, that provider can avoid failure-to-deposit penalties for the first three quarters of 2026 if they meet reasonable cause. Implementing strong internal controls and using the deposit safe harbor can help. ([irs.gov](https://www.irs.gov/irb/2025-43_IRB?utm_source=openai))
## Risk Mitigation & Best Practices
- Ensure legal counsel reviews all contracts signed before and after OBBB effective dates.
- Maintain detailed documentation of reasons for delays or difficulties—could qualify as “reasonable cause.”
- Use advisory services to perform mock filings or test reporting under the new rules before deadlines.
- Avoid leaving compliance until the last minute—some rules are effective immediately or have short grace periods.
**Bottom line:** With new reporting, excise, and information obligations under OBBB, businesses must act now to adapt systems and avoid costly missteps.