IRS Oversight Gap for New OBBBA Deductions

Home Explore Pricing Blog Docs New Tracker

Get the App

Tax Season Is Year-Round

TIGTA reported that the IRS had no post-processing approach for checking claims involving new tips, overtime, senior, and car-loan-interest deductions. The IRS has until December 21, 2026 to develop an approach; taxpayers claiming deductions should retain documentation. This deadline is for planning an approach, not starting audits.

Sources (2)

Updated Oct 27, 2026

Tax Season Is Year-Round

The ‘No Tax on Overtime’ Deduction Will Save a 63-Year-Old Working 55-Hour Weeks About $1,800, Not the $8,000 His Coworkers Will Be Expecting

The IRS starts phasing out the new deduction for tips once a couple’s income passes $300,000, and the overtime deduction phases out at the same point