The IRS and Treasury have released a draft list of occupations eligible for the new “no tax on tips” benefit created by the One Big Beautiful Bill (OBBB). The expansion covers an unexpectedly wide range of workers from bartenders and servers to golf caddies, DJs, and even electricians. For CPAs and payroll teams, these draft rules mark a critical compliance shift that could affect millions of workers nationwide.

What Happened

Why It Matters

Implications for CPAs and Advisors

Looking Ahead

The rules are currently in draft form and open for public comment. Final regulations are expected later this year, but employers and tax professionals should begin preparing now. The scope of occupations included suggests Treasury is casting a wide net, potentially signaling further expansion in future guidance.

Stay Ahead of Federal Tax Shifts

Tax benefits like “No Tax on Tips” can significantly impact both workers and employers but only if compliance is managed correctly.

👉 Try Bizora today to track regulatory updates and guide your clients through evolving tax rules.