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Treasury and the IRS recently issued two notices regarding the new OBBBA qualified tips and qualified overtime for 2025. Notice 2025-62 relieves employers and payors from the reporting obligations associated with qualified tips and qualified overtime for 2025, acknowledging that employers and payors may not have the information or the systems in place to be able to comply with the reporting, and that the IRS did not update the relevant forms for the OBBBA changes. Notice 2025-69 assists taxpayers who receive overtime and tips in calculating the deductions for 2025 in the absence of information reporting from employers and payors and provides hints as to the information reporting that ultimately will be required of employers/payors.
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