In the wake of the sweeping One Big Beautiful Bill Act (OBBBA), signed into law just one week prior, accounting professionals are scrambling to understand and apply a raft of new federal tax provisions. During a special episode of the Accounting Technology Lab podcast, hosted by Randy Johnston and Brian Tankersley, the hosts welcomed Wolters Kluwer’s tax law expert Mark Luscombe to unpack key tax changes and their implications for practitioners.
Luscombe, a CPA and attorney who has tracked tax legislation for Wolters Kluwer for over three decades, described the legislation as one of the most expansive—and intricate—he’s seen in years. While much of the bill preserves existing provisions from the 2017 Tax Cuts and Jobs Act, it introduces new eligibility restrictions, reporting thresholds, and transitional mechanics that will require careful attention by CPAs.
Watch the Accounting Technology Lab podcast with Randy, Brian and Mark discussing the OBBBA tax provisions:
“The main thrust was to extend expiring TCJA provisions,” Luscombe said. “But many taxpayers may not even notice, since their individual tax situation won’t change much on the surface.” However, that doesn’t mean nothing changed. Key revisions include:
- A sharp increase in the 1099 reporting threshold from $600 to $2,000;
- Reinstatement of 100% bonus depreciation and expanded R&D expensing, albeit with limited retroactivity;
- Expanded business interest deductions by reverting to earlier, more favorable formulas;
- Phase-ins of new rules for overtime and tip income deductions—with caps and definitional constraints;
- Adjustments to Qualified Small Business stock gain exclusions, adding shorter-term holding options at reduced rates;
- Permanent status granted to Qualified Opportunity Zones, with added rural and low-income community focus.
One of the more nuanced elements of the bill is its focus on Social Security number requirements for eligibility. Numerous credits, including the American Opportunity Tax Credit, now require valid SSNs, shifting administrative burdens on families and preparers alike.
The legislation also includes broader international tax provisions—though Luscombe noted the controversial “revenge tax” was removed at the last minute following diplomatic discussions at the G7 summit. The IRS is now expected to issue extensive guidance to interpret and implement these provisions before the 2026 filing season.
Tankersley emphasized the complexity of implementation. “Tax software coders will be under massive pressure this fall,” he said. “Without IRS guidance by October, system accuracy and compliance will suffer.”
Another major impact will come at the state level. “States like California don’t automatically conform to the federal code,” Luscombe said. “We’re going to see a lot of variance, and that’ll create complications in state conformity and planning.”
The trio also discussed the political and procedural oddities surrounding the bill, from the last-minute Alaska-specific carveouts to retroactive effective dates that will require “reasonable methods” for compliance, yet to be defined by Treasury.
Ultimately, Johnston urged listeners to begin reviewing their tech stacks and advisory models now. “There’s too much here to ignore. You’re not going to solve it all in January.”
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Tags: 1099 reporting, america first, bonus depreciation, business interest limitation, business taxes, Income Taxes, international tax, obbba, one big beautiful bill act, overtime and tips, overtime taxes, podcast, qualified opportunity zones, qualified small business stock, research and experimental deductions, Social Security, Social Security taxes, tax bill, Taxes, tcja, trump tax bill, Wolters Kluwer
