Treasury, IRS provide penalty relief for tax year 2025 for information reporting on tips and overtime under the One, Big, Beautiful Bill

IR-2025-110, Nov. 5, 2025

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued guidance providing penalty relief to employers and other payors for tax year 2025 regarding new information reporting requirements for cash tips and qualified overtime compensation under the One, Big, Beautiful Bill.

Transition penalty relief for tax year 2025

Notice 2025-62 provides penalty relief from the new information reporting requirements for cash tips and qualified overtime compensation under the OBBB to employers and other payors for not filing correct information returns and not providing correct payee statements to employees and other payees. 

Specifically, employers and other payors will not face penalties for failing to provide a separate accounting of any amounts reasonably designated as cash tips or the occupation of the person receiving such tips. In addition, employers and other payors will also not face penalties for failing to separately provide the total amount of qualified overtime compensation. The relief is limited to returns and statements filed and provided for tax year 2025 and applies only to the extent that the person required to make the return or statement otherwise files and provides a complete and correct return or statement. 

Treasury and IRS are aware that employers and other payors may not currently have the information required to be reported under the OBBB, or the systems or procedures in place to be able to correctly file the additional information with the IRS, or SSA in the case of a Form W-2 and provide it to employees and other payees. Moreover, the IRS has announced that Forms W-2 and 1099 for tax year 2025 will not be updated to account for the OBBB-related changes. Therefore, tax year 2025 will be treated as a transition period for IRS enforcement and administration of the new information reporting requirements for cash tips and qualified overtime compensation under the OBBB.

While not a requirement to receive the penalty relief provided in Notice 2025-62, employers and other payors are encouraged to provide employees and payees, particularly those in a tipped occupation, with the occupation codes and separate accountings of cash tips, so the employee or payee can claim the deduction for qualified tips for tax year 2025. Likewise, employers and payors are encouraged to provide employees and payees with separate accountings of overtime compensation, so the employee or payee has readily available the information necessary to claim the deduction for qualified overtime compensation for tax year 2025. Employers and payors can make the information available to their employees and payees through an online portal, additional written statements provided to the employees or payees, other secure methods, or in the case of qualified overtime compensation in Box 14 of the employee’s Form W-2.

New reporting requirements under the OBBB

No tax on tips: Certain employees and self-employed individuals who receive qualified tips may deduct qualified tips that are reported on a Form W-2, Form 1099, or reported directly by the individual on Form 4137. Employers and other payors must file information returns with the IRS, or SSA in the case of Form W-2, and provide statements to taxpayers showing certain cash tips received during the year and the occupation of the tip recipient.

No tax on overtime: Certain individuals who receive qualified overtime compensation may deduct the qualified overtime compensation that is reported on a Form W-2 or Form 1099. Employers and other payors are required to file information returns with the IRS, or SSA in the case of Form W-2, and provide statements to taxpayers showing the total amount of qualified overtime compensation paid during the year.

Additional guidance for individual taxpayers that addresses how they can claim the deductions for qualified tips and qualified overtime compensation when they file their tax year 2025 returns is forthcoming.

For more information, please see the One, Big, Beautiful Bill provisions page on IRS.gov.

Nationwide Tax Forum Online launches with new continuing education content

IR-2025-109, Nov. 4, 2025

WASHINGTON —The Internal Revenue Service today announced the launch of the 2025 Nationwide Tax Forum Online, providing tax professionals access to seminars recorded at this year's IRS Nationwide Tax Forum.

The Nationwide Tax Forum Online provides information to tax professionals on current tax law, IRS procedures and essential topics for the upcoming tax season. Each seminar features a 50-minute interactive video presentation synchronized with PowerPoint slides, downloadable resources and full transcripts.

Tax professionals can earn continuing education credit for a fee of $29.00 per credit. Courses can also be reviewed for free.

To access the seminars, a tax professional needs to either have or create an account on the IRS Nationwide Tax Forum Online website. Instructions can be found on the FAQs tab on the website.

New 2025 seminars available online now

The 15 new 2025 seminars available now are:

1. Building a Sustainable Practice Through Ethics.
2. Distributions from Retirement Plans and IRA's: A Crash Course.
3. How to Help Taxpayers Avoid Abusive Tax Promotions and Abusive Return Preparers.
4. Introduction to OPR and Circular 230.
5. Law and Audit – The Due Diligence Process.
6. New Features for Tax Pros: Do Business Faster and Easier with IRS Online.
7. Plenary Session: Tax Law Changes for Tax Year 2025.
8. Retirement Plans Basics 101 for the Practitioner.
9. Stand Out as a Trusted Tax Professional: A Guide to Prepare Accurate Refundable Tax Credit Returns for Your Clients.
10. Taxable Digital Asset Transactions: The Impact of the 1099-DA on Tax Year 2025.
11. Using IRS Digital Tools and Communications Options for Practitioners.
12. Partnerships and Non-resident Alien Withholding: Sections 1446(a) and 1446(f).
13. How to Avoid Processing Delays and Streamline Return Filing.
14. Getting Taxpayers Back on Track: Quickly Resolving Unpaid Tax Debts While Preventing New Ones from Occurring.
15. Disaster Reporting Best Practices – Maximizing Resources from A to Z.

The IRS Nationwide Tax Forum Online is a continuing education provider certified by the National Association of State Boards of Accountancy and the IRS Return Preparer Office.

IRS reminds tax pros to renew PTINs for the 2026 tax season

IR-2025-108, Oct. 27, 2025

WASHINGTON — The Internal Revenue Service today reminds the more than 800,000 paid tax preparers that preparer tax identification numbers must be renewed annually, and the 2026 renewal period is now open.

Anyone who prepares or assists in preparing federal tax returns or claims for refunds for compensation must have a valid PTIN and include it on all returns and claims filed with the IRS. Also, all enrolled agents, regardless of whether they prepare tax returns, must renew their PTINs annually to maintain their active status. PTINs expire on Dec. 31 of the calendar year for which they are issued. All 2025 PTINs will expire on Dec. 31, 2025.

The fee to renew or obtain a PTIN is $18.75 for 2026. The PTIN fee is non-refundable.

How to renew

The IRS encourages tax pros to renew online, which takes less than 15 minutes to complete. A paper option is available, using Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal, however, it can take 6 weeks for processing.

To renew online:

• Start at IRS.gov/taxpros.
• Select the "Renew or Register" button.
• Select "Log in" and enter the user ID and password to access the online PTIN system.
• Select the "Renew my PTIN" button from the main menu.

Once completed, applicants will receive confirmation of their PTIN renewal.

Tax pros can also use the online PTIN system to:

• Check their completed continuing education.
• View the number of 1040 returns filed using their PTIN.
• Review communications from the IRS Return Preparer Office.
• Track their progress for participation in the IRS Annual Filing Season Program.

What’s new for 2026: ID.me sign-in

The IRS Tax Professional PTIN System now uses a new, secure sign-in option: ID.me. ID.me is a trusted technology provider of identity verification and sign-in services, for taxpayers to securely access IRS tools. For tax preparers with a Social Security number, they will be automatically routed to ID.me for identity verification and login. Tax preparers that do not have an ID.me will need to create one to access the IRS Tax Professional PTIN System. Tax preparers that do not have an SSN will continue to use their current sign in process.

IRS issues FAQs on Form 1099-K threshold under the One, Big, Beautiful Bill; dollar limit reverts to $20,000

IR-2025-107, Oct. 23, 2025

WASHINGTON – The Internal Revenue Service today issued frequently asked questions in Fact Sheet 2025-08 regarding the dollar threshold for filing Form 1099-K under the One, Big, Beautiful Bill.

The OBBB retroactively reinstated the reporting threshold in effect prior to the passage of the American Rescue Plan Act of 2021 (ARPA) so that third party settlement organizations are not required to file Forms 1099-K unless the gross amount of reportable payment transactions to a payee exceeds $20,000 and the number of transactions exceeds 200.

Form 1099-K is an IRS information return used to report certain payments to improve voluntary tax compliance. The requirement to file a Form 1099-K can be triggered when payments are received for goods or services through a payment settlement entity.

More information about reliance is available on IRS.gov.

Treasury, IRS provide penalty relief for remittance transfer providers who fail to deposit excise tax under the One, Big, Beautiful Bill

IR-2025-102, Oct. 7, 2025

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued guidance providing deposit penalty relief for the first three quarters of 2026 to remittance transfer providers. Notice 2025-55 provides relief in connection with the new excise tax imposed on certain remittance transfers under the One, Big, Beautiful Bill.

Penalty relief available for the first three quarters of 2026

Treasury and the IRS understand there might be challenges implementing the new law and have determined it is in the interest of sound tax administration to provide limited penalty relief related to remittance transfer tax deposits. 

Notice 2025-55 provides limited penalty relief for remittance transfer providers who fail to deposit the correct amount of remittance transfer tax as required during the first three quarters of 2026. Specifically, these providers may avoid deposit penalties if they:

• Make timely deposits, even if they are incorrectly calculated, and
• Ultimately pay the full amount of any underpayment by the due date of Form 720, Quarterly Federal Excise Tax Return, for the quarter.

Additionally, under today’s guidance, remittance transfer providers may use the deposit safe harbor rules under the Excise Tax Procedural Regulations even if there was an underpayment of required deposits of the remittance transfer tax for the first three quarters of 2026. However, providers must satisfy the reasonable cause standard for deposit penalties.

Remittance transfer tax under the OBBB

Beginning Jan. 1, 2026, remittance transfer providers are required to collect the remittance transfer tax from certain senders, make semimonthly deposits and file quarterly returns with the IRS. The first semimonthly deposit is due Jan. 29, 2026. The 1% remittance tax will apply to certain remittances when the sender makes the transaction with cash, a money order, a cashier’s check or a similar physical instrument.

For more information, refer to One, Big, Beautiful Bill provisions on IRS.gov.

Treasury, IRS provide guidance for Opportunity Zone investments in rural areas under the One, Big, Beautiful Bill

IR-2025-96, Sept. 30, 2025

WASHINGTON— The Department of the Treasury and the Internal Revenue Service today issued guidance on Qualified Opportunity Zone investments in rural areas as provided for under the One, Big, Beautiful Bill.

In 2018, certain economically distressed census tracts in the United States and its territories were designated as Qualified Opportunity Zones by the Treasury Department. Taxpayers who invest in QOZs receive certain tax benefits for their investments as an incentive to improve economic growth and job creation in these underserved communities.   

What’s new under the OBBB

Notice 2025-50 provides clarification on two important One, Big, Beautiful Bill provisions: the definition of “rural area” and the application of the substantial improvement threshold for certain improvements to property located in a QOZ that is comprised entirely of a rural area.

• Under the new law, a rural area means any area other than a city or town with a population greater than 50,000, and any urbanized area contiguous and adjacent to a city or town with a population greater than 50,000. This definition applies to States, the District of Columbia and U.S. territories.

• The OBBB modified the substantial improvement threshold for improvements to property located in a QOZ that is comprised entirely of a rural area. As of July 4, 2025, the substantial improvement threshold for required additions to the basis for property located in these QOZs was reduced from 100 percent to 50 percent.

These changes are intended to offer enhanced QOZ tax incentives for investing in underserved rural areas and to address the unique challenges of rural development. There are currently 8,764 QOZs in the United States, many of which have experienced a lack of investment for decades. The notice released today by the Treasury Department and the IRS identifies 3,309 of those QOZs as comprised entirely of a rural area. A list of all current, designated QOZs is found in Notice 2018-48.

More information

Notice 2025-50 applies to all tangible property located in a QOZ that is comprised entirely of a rural area on or after July 4, 2025, and that has been, or is in the process of being, substantially improved. The Treasury Department and the IRS intend to issue future guidance on the forthcoming round of opportunity zones authorized by the OBBB, including the nomination and designation procedures.

For more information, refer to the One, Big, Beautiful Bill provisions page on IRS.gov.

Notice 2025-53 postpones various time-sensitive deadlines for taxpayers affected by the terrorist attacks in Israel throughout 2024 and 2025. The notice defines the covered area, identifies categories of “affected taxpayers,” and provides a list of the acts postponed. The postponement period is September 30, 2025, to September 30, 2026.  The effect of the separate determination of terroristic action and grant of relief in this notice is to further postpone acts that were postponed by Notice 2024-72 until September 30, 2026. Notice 2025-97 will be in IRB: 2025-43, dated: October 20, 2025.

Notice 2025-49 provides interim guidance regarding the application of the corporate alternative minimum tax (CAMT).  Proposed regulations addressing the application of the CAMT and technical corrections to those regulations (together, the CAMT Proposed Regulations) were published in the Federal Register on September 13, 2024, and December 26, 2024, respectively. Sections 3-10 of Notice 2025-49 provide rules for certain adjustments to adjusted financial statement income (AFSI) and rules for proposed applicability dates and reliance on the CAMT Proposed Regulations.

Notice 2025-49 will be in IRB: 2025-44, dated October 27, 2025

Revenue Ruling 2025-19 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. 

The rates are published monthly for purposes of sections 42, 382, 412, 642, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

Revenue Ruing 2025-19 will be in IRB: 2025-41, dated: October 6, 2025.

IR-2025-91, Sept. 15, 2025

WASHINGTON —The Department of the Treasury and the Internal Revenue Service today issued final regulations addressing several SECURE 2.0 Act provisions relating to catch-up contributions. (Catch-up contributions are additional contributions under a 401(k) or similar workplace retirement plan for employees who are age 50 or older.) The final regulations include final rules related to a SECURE 2.0 Act provision requiring that catch-up contributions made by certain higher-income participants be designated as after-tax Roth contributions.

The final regulations provide guidance for plan administrators to implement and comply with the new Roth catch-up rule and reflect comments received in response to the proposed regulations issued in January.

The final regulations also provide guidance relating to increased catch-up contribution limits under the SECURE 2.0 Act for certain retirement plan participants, in particular employees between the ages of 60-63 and employees in newly established SIMPLE plans.

Final regulations differ from the proposed regulations

While the final regulations generally follow the proposed regulations, changes were made in response to comments received on the proposed regulations. For example, the final regulations permit a plan administrator to aggregate wages received by a participant in the prior year from certain separate common law employers in determining whether the participant is subject to the Roth catch-up requirement.

In addition, the final regulations include changes to certain provisions in the proposed regulations, including those relating to:

• correction of a failure to comply with the Roth catch-up requirement,
• implementation of a deemed Roth election, and
• plans that cover participants in Puerto Rico.

Final regulations generally apply in 2027

The provisions in the final regulations relating to the Roth catch-up requirement generally apply to contributions in taxable years beginning after Dec. 31, 2026. However, the final regulations provide a later applicability date for certain governmental plans and plans maintained under a collective bargaining agreement. The final regulations also permit plans to implement the Roth catch-up requirement for taxable years beginning before 2027 using a reasonable, good faith interpretation of statutory provisions. The final regulations do not extend or modify the administrative transition period provided under Notice 2023-62, which generally ends on Dec. 31, 2025.