Compliance
Navigating Compliance Under the One, Big, Beautiful Bill: What Businesses and Tax Pros Need to Know
From remittance tax obligations to reporting for tips and overtime, compliance under the OBBB era introduces both new burdens and relief windows—understand what your business must do.
By NomadicTax Research Team • 5-8 min read • November 16, 2025
## New Reporting & Penalty Landscapes
The One, Big, Beautiful Bill (OBBB) imposes **new reporting obligations** for items like car loan interest, tips, and remittance transfers beginning for tax year 2025 or 2026. Compliance steps are essential for businesses to avoid penalties. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions?utm_source=openai))
In parallel, the IRS has offered **transitional or penalty relief** in certain cases: for remittance transfer providers in 2026, and for car loan interest reporters in 2025. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-provide-penalty-relief-for-remittance-transfer-providers-who-fail-to-deposit-excise-tax-under-the-one-big-beautiful-bill?utm_source=openai))
## Key Compliance Requirements
### Tips, Overtime, and Car Interest Reporting
- Employers and payors must furnish statements showing cash tips (“qualified tips”), overtime that exceeds standard pay under FLSA, and interest on qualified passenger vehicle loans. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors?utm_source=openai))
- Lenders must include vehicle VIN and other details. Only U.S. final assembly vehicles qualify. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions?utm_source=openai))
- Transition relief: for reporting car loan interest in **the calendar year 2025**, some penalties are waived with statements informing individuals of interest received. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions?utm_source=openai))
### Depreciation of Forms & Withholding Tables
- For tax year 2025, **no** changes to withholding tables and many payroll forms (W-2, Forms 1099, 941 etc.) despite OBBB expectations. Employers should continue using existing methods. ([irs.gov](https://www.irs.gov/newsroom/irs-announces-no-changes-to-individual-information-returns-or-withholding-tables-for-2025-under-the-one-big-beautiful-bill-act?utm_source=openai))
- Expect updated guidance for tax year 2026. Begin reviewing when draft forms are released.
### Remittance Transfer Tax Compliance
- Starting **January 1, 2026**, remittance transfer providers must collect a 1% excise tax on certain sender methods (cash, money orders, cashier’s checks, etc.), make semimonthly deposits, and file quarterly returns using Form 720. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-provide-penalty-relief-for-remittance-transfer-providers-who-fail-to-deposit-excise-tax-under-the-one-big-beautiful-bill?utm_source=openai))
- However, penalties for incorrect deposits during first three quarters of 2026 will be relaxed if the full tax is paid by the due date of the quarter’s Form 720. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-provide-penalty-relief-for-remittance-transfer-providers-who-fail-to-deposit-excise-tax-under-the-one-big-beautiful-bill?utm_source=openai))
## Risk Areas & How to Mitigate
- **Phaseout Pitfalls**: Be careful with joint filer AGIs approaching thresholds for senior deduction, tips, or car interest phases. Project income and adjust deductions or income timing.
- **Vehicle “final assembly”** requirement: Buyers need to check the VIN or dealer documentation to ensure final assembly occurred in the U.S. or eligible territory. Vehicles without that will disqualify interest deductions. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions?utm_source=openai))
- **Energy credit timing**: If property is placed in service after expiration, no credit—even if payment was made. Contracts or purchases alone may not suffice. ([irs.gov](https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb?utm_source=openai))
## Sample Compliance Scenario
**Business X – a restaurant**: hires tip earners, lots of cash, overtime work. Under OBBB, Business X must:
- Provide data on tips and occupations to employees.
- Include overtime pay details in employees’ reporting documents.
- Identify which employees are in Specified Service Trade or Businesses (SSTBs), since eligibility differs. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors?utm_source=openai))
**Business Y – remittance transfer provider**: from Jan 1, 2026, issues certain transfers using cash/cash-equivalents, must collect 1% tax, make semimonthly deposits, file quarterly returns. But if they miscalculate early 2026, penalty relief applies if full payment by Form 720 due date. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-provide-penalty-relief-for-remittance-transfer-providers-who-fail-to-deposit-excise-tax-under-the-one-big-beautiful-bill?utm_source=openai))
## Best Practices Checklist
- Conduct a compliance audit of all new reporting obligations under OBBB.
- Train payroll, financing, remittance, and HR staff about reporting details (tips, overtime, vehicle interest).
- Document qualifications for expansible deductions (age, AGI, occupation).
- Coordinate with tax professionals when planning large transactions for 2025-2026.
- Keep lines of communication with IRS or Treasury guidance—watch for proposed regs (e.g. tip occupations).
Compliance after OBBB isn’t just about avoiding fines—it’s about positioning your business to succeed under a more complex ruleset.