Compliance
Navigating One, Big, Beautiful Bill: New Compliance Reliefs & Reporting Duties
Recent IRS guidance under the One, Big, Beautiful Bill gives relief and clarity on reporting requirements — crucial for businesses and payers.
By NomadicTax Research Team • 5-8 min read • November 18, 2025
## What Is The “One, Big, Beautiful Bill” (OBBB)?
The One, Big, Beautiful Bill is a sweeping U.S. tax reform law passed recently, introducing major changes including: **new information reporting requirements, excise taxes, and corporate minimum tax measures**. Compliance burdens increased substantially. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
## New Reliefs & Guidance Announced
- **Penalty relief for tax year 2025** for employers and payors due to new reporting requirements involving cash tips and qualified overtime under the OBBB. ([stayexempt.irs.gov](https://www.stayexempt.irs.gov/newsroom?utm_source=openai))
- **Transitional guidance** under section 6050AA regarding interest on specified passenger-vehicle loans, which grants leniency for 2025 reporting obligations and postpones penalties. ([irs.gov](https://www.irs.gov/irb/2025-45_IRB?utm_source=openai))
- Publication of **Revenue Procedure 2025-32**, setting inflation-adjusted items for 2026 under OBBB (including tax rate schedules, standard deductions, and child tax credit maximums) to reflect new law changes. ([irs.gov](https://www.irs.gov/irb/2025-45_IRB?utm_source=openai))
## Key Compliance Areas to Focus On
| Requirement | What Payers / Employers Need to Do |
|------------------------------|--------------------------------------|
| Reporting cash tips & overtime pay | Understand thresholds and what qualifies; comply to avoid penalties. Relief offered for 2025, but full compliance expected going forward. |
| Interest on passenger vehicle loans | Under section 6050AA, statements must be made available to individuals for vehicle-loan interest received; avoid penalties if you comply per guidance. |
| Inflation-adjusted thresholds | Update payroll, tax filing practices to reflect 2026 amounts: standard deduction, lot sizes, etc. |
## Practical Action Steps
1. Review payroll systems and compensation practices to ensure overtime and tips are classified and reported correctly.
2. Prepare statements for Section 6050AA reporting; set up IT system or process to track vehicle-loan interest.
3. Train staff in tax/preparation departments on upcoming 2026 thresholds (standard deductions, credit amounts) to avoid misfiling.
4. Monitor IRS bulletins and procedures; these transitional reliefs generally cover 2025, but compliance expectations for 2026 are firm.
## Example Scenario
**Scenario:** John owns a restaurant and pays staff tips + overtime. Under OBBB, he must report qualified overtime and cash tips properly (Form 8027 etc.), with penalties relaxed for 2025 if he follows guidance. For 2026, stricter compliance will apply. John also offers vehicle loans to employees; he must provide a statement of interest paid by end of 2025 to avoid penalties under §6050AA.
## Takeaway
If you’re impacted by OBBB, now is the time to align your internal controls and reporting practices — the reliefs are helpful but temporary. Solid compliance in 2025 will set you up to avoid larger penalties and issues in 2026 and beyond.