OBBBA Guidance Continues To Be Released

The OBBBA enacted in July includes a number of provisions that are effective starting in 2025 and earlier years. Issuing guidance implementing the OBBBA is a priority for the U.S. Department of the Treasury and the IRS and, despite the federal government shutdown, numerous pieces of OBBBA guidance have been released since the law was enacted.

Crowe observation

Much of the guidance released has been limited to transition relief and interim rules. Comprehensive guidance will take longer to publish, especially in light of IRS furloughs and staff reductions.

Recent OBBBA guidance

Notice 2025-57 provides transition relief for reporting receipt of qualifying automobile loan interest. For tax years beginning after Dec. 31, 2024, and before Jan. 1, 2029, eligible individuals can deduct qualifying automobile interest. Recipients of $600 or more of interest payments on a specified passenger vehicle loan have a new reporting obligation under Section 6050AA. Under the notice, for payments received in 2025, a recipient will meet its reporting obligation if it makes available to the individual making the payment a statement indicating the total amount of interest received in the calendar year on a specified passenger vehicle loan.

Notice 2025-55 provides transition deposit penalty relief for the offshore remittance excise tax enacted by the OBBBA. Generally, for payments beginning on or after Jan. 1, 2026, the new Section 4475 requires remittance transfer providers to withhold and deposit a 1% excise tax on electronic payments from a U.S. sender to a recipient outside the U.S. if the sender uses cash, a money order, a cashier’s check, or similar physical instrument to a person facilitating the electronic transfer. Under Notice 2025-55, the Section 6656 deposit penalty for the first three quarters of 2026 is waived for reasonable cause if the remittance transfer provider makes timely deposits of the applicable remittance transfer tax, even if the deposit amounts are computed incorrectly, and the amount of any underpayment of the tax is paid by the due date for filing Form 720, “Quarterly Federal Excise Tax Return,” for that quarter. The notice further provides that a taxpayer remains eligible to use the deposit safe harbor under Regulation Section 40.6302(c)-1(b)(2) even if the taxpayer failed to make timely deposits in the first three quarters of 2026 if the taxpayer meets the reasonable cause criteria under the notice.

Other OBBBA guidance issued includes:

• Revenue Procedure 2025-50, which provides guidance on rural areas for purposes of qualified opportunity zones.
• Revenue Procedure 2025-28, which provides rules for research expenses.
• Revising the frequently asked questions on employee retention credits.
• Proposed regulations on tips qualifying for deduction.
• Revenue Procedure 2025-32, which provides inflation adjustments.
• A fact sheet on accelerated termination of certain clean energy credits.
• Revising the fact sheet on Form 1099-K, “Payment Card and Third Party Network Transactions.” The OBBBA effectively repeals the $600 reporting threshold for third-party network transactions enacted by the American Rescue Plan Act of 2021 and reinstates the more than 200 transactions and more than $20,000 threshold for reporting.

Looking ahead

There are also important OBBBA deadlines in 2026. Statements by government officials indicate that guidance on some of these provisions, such as changes to international tax rules, are scheduled to be released in November. In the meantime, individuals and businesses should consult their tax advisers to understand the potential impact and benefits of the tax provisions enacted by the OBBBA and prepare to take advantage of the opportunities these provisions present and comply with new tax obligations.