News & Insights

IRS Grants Penalty Relief for 2025 for New Tip and Overtime Reporting Rules

The Internal Revenue Service (the “IRS”) has issued Notice 2025-62 (the “Notice”), providing penalty relief for tax year 2025 in connection with the implementation of the new information reporting requirements related to the deductions for qualified tips and qualified overtime compensation that were added to the Internal Revenue Code (the “Code”) by Public Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known as the One, Big, Beautiful Bill Act (the “OBBBA”). Specifically, the Notice provides relief from the penalty under Section 6721 for failure to file correct information returns and the penalty under Section 6722 for failure of employers and other payers to furnish correct payee statements separately reporting cash tips, qualified overtime compensation, or the occupation of the person who received the tip, as required under the OBBBA. This temporary penalty relief applies because the IRS will not issue new forms for 2025 and recognizes that many employers may lack systems or data to meet these new reporting requirements. ...read more

New IRS Regulations Modify Interest Capitalization Requirements for Property Improvements

On October 2, 2025, the IRS and Treasury Department issued final regulations (TD 10034) (the “Final Rules”) simplifying the interest capitalization rules for improvements that constitute the production of designated property under §263A(f) of the Internal Revenue Code. The Final Rules eliminate the “associated property rule,” which previously required capitalization of interest on property temporarily withdrawn from service or not yet placed in service, and make conforming amendments for consistency. These changes were issued in response to the Federal Circuit’s decision in Dominion Resources, Inc. v. United States, 681 F.3d 1313 (Fed. Cir. 2012), which invalidated portions of the associated property rule as inconsistent with the avoided cost principle underlying §263A(f). Effective October 2, 2025, the Final Rules apply to tax years beginning thereafter. ...read more

The One Big Beautiful Bill Act Brings on Significant Tax Reform

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (H.R. 1), passed by the U.S. House of Representatives just a day earlier through a dramatic 218-214 vote. This comprehensive tax bill reshapes federal policy across nearly every major sector of the American economy, with significant focus on corporate and individual tax reform. The OBBBA makes many expiring provisions of the Tax Cuts and Jobs Act (“TCJA”) permanent, and also significantly accelerates the termination of many credits created under the Inflation Reduction Act (“IRA”). ...read more

Archer Adds Leading Tax Attorney Bozena Diaz

Archer & Greiner announced today that Bozena (Bonnie) M. Diaz has joined the firm’s Hackensack office as a partner in its Business Counseling and Tax Groups. Bonnie, who joins from Cullen and Dykman LLP in New York, where she served as Chair of the Tax Department, advises clients on a comprehensive range of general and transactional tax issues related to domestic and international mergers, acquisitions, spinoffs, joint ventures, and more. ...read more