One year later: what tax pros are still learning from OBBBA

Nearly one year after the passage of the One Big Beautiful Bill Act (OBBBA), tax professionals are still navigating the law’s real-world impact on individual and business returns.

For many firms, the 2025 filing season revealed that implementing OBBBA changes was far more complex than simply learning new rules. Practitioners faced a convergence of challenges evolving IRS guidance, expanded due diligence requirements, and clients arriving with assumptions shaped by political messaging rather than statutory language. Understanding the gap between how the law was marketed and what it actually does is now a core competency for any tax professional serving individual clients.

Filing season exposed key challenges

Many tax pros spent the filing season:

• Explaining new provisions to clients such as no tax on tips
• Addressing uncertainty on how to calculate overtime wages or other changes
• Reviewing documentation requirements 
• Reassessing planning opportunities for deductions 

In many cases, the challenge was not just technical compliance. It was helping clients understand how legislative changes applied to their specific situations, a communication burden that remains central heading into 2026. 

Planning conversations

Although filing season has passed, OBBBA planning continues. Several provisions may affect 2026 returns, making proactive client conversations especially important during the remainder of the year. Clients are looking for more than technical explanations. They want practical guidance on estimated payments, deductions, entity decisions and long-term planning strategies. Proactive firms are building structured mid-year review conversations around these priorities:

• Estimated payment review: TCJA permanence and new deductions may change optimal estimated payment amounts. Review Q3 and Q4 estimates for clients with tip or overtime income.
• Entity structure review: Permanent TCJA provisions and full expensing make this a strong time to revisit S-corp elections, qualified business income deductions, and pass-through structuring.
• Documentation protocols: Clients earning tip income need to understand reporting requirements now not at filing time. Ensure proper W-2, 1099, or Form 4137 procedures are in place.
• Open ERC claim review: The OBBBA's restrictions on Q3/Q4 2021 ERC claims filed after January 2025 require immediate attention. Identify and review any outstanding claims.
• Capital investment planning: Permanent full expensing under OBBBA makes year-end equipment and asset purchases more favorable. Begin conversations with business clients now.
• Section 174 retroactive adjustments: Small businesses may have the ability to amend prior returns for R&E costs retroactively expensable to January 1, 2022. Identify eligible clients.

Stay current with NATP

NATP members can attend the OBBBA at One Year webinar on June 29 at no additional cost as part of their membership benefits. Tom O’Saben will cover common implementation challenges from the 2025 filing season, anticipated changes affecting 2026 returns and practical strategies for communicating ongoing OBBBA developments to clients.

For tax pros looking to stay ahead of legislative changes and strengthen client planning conversations, this timely webinar delivers practical insight you can apply immediately.