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Tax Coda

Penalty Relief for Reporting Tips and Overtime Under the One Big Beautiful Bill

IRS Notice 2025-62; IR-2025-110, Nov. 5, 2025

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Tax Coda
Nov 06, 2025
∙ Paid

The IRS will not impose penalties on employers or payors for failing to separately report cash tips or qualified overtime compensation for tax year 2025, treating the year as a transition period under the One Big Beautiful Bill (OBBB).

Purpose of the Notice

For 2025, the IRS and Treasury are providing penalty relief for employers and payors that cannot ye…

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