Background The One, Big, Beautiful Bill Act (OBBBA), P.L. 119-21, added a new deduction for qualified overtime compensation. Notice 0-69 PD clarifies for individuals how to determine the amount of their deduction for qualified overtime compensation for the 2025 tax year. Q1. What is qualified overtime compensation for purposes of the deduction? A1. Qualified overtime compensation is overtime compensation paid to an individual required under section 7 of the Fair Labor Standards Act (LSA) 29 USC § 207) that exceeds the regular rate at which the individual is employed. For example, if an individual is paid at “one and one-half times” their regular rate for an hour of overtime work as required by the FLSA, the “half” portion of the “one and one-half times” paid for an hour of overtime work is qualified overtime compensation. - For overtime to be required under the FLSA, it must, among other requirements, be paid to an individual who is both covered by the FLSA and not exempt from the FLSA’s overtime requirement (an FLSA overtime-eligible employee). - An individual who is ineligible for overtime under the FLSA does not receive qualified overtime compensation regardless of other laws or circumstances (such as a collective bargaining agreement) providing for overtime pay. - Individuals eligible for overtime under the FLSA generally must receive overtime pay for hours worked in excess of 40 in a workweek at a rate not less than one and one-half times their regular rate of pay. If an individual is eligible for overtime under the FLSA, but the individual’s employer pays more than is required under the FLSA, the qualified overtime compensation is limited to the portion of the overtime that is required by the FLSA that is in excess of the regular rate. For example, if an employer pays double the individual’s regular rate for hours worked over 40 in a workweek, only the one-half portion that is relied upon to comply with the FLSA requirement is qualified overtime compensation.

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Webinars for tax practitioners | Internal Revenue Service Understanding the One Big Beautiful Bill: Business Tax Provisions This free, 120-minute webinar is open to all. After completing this session, participants will be able to: - Identify business tax provisions enacted under the One Big Beautiful Bill Act (OBBB), - Explain revisions to business information reporting requirements, including changes to third-party network transaction rules and increased reporting thresholds for certain payments, - Describe changes to cost recovery and expensing provisions, including special depreciation allowances, increased expensing limits for business assets, and updates to research and fuel expensing rules, - Analyze modifications to business interest deduction rules, including changes to the definition of adjusted taxable income and updated limitation calculations, - Identify updates affecting partnerships and small businesses, including treatment of partnership payments, expansion of the qualified small business stock exclusion, and enhancements to the qualified business income deduction (QBID), - Summarize changes to business-related credits and deductions, including employer-provided childcare credits, paid family and medical leave credits, dependent care assistance programs, and business meal deduction exceptions, - Plus, a live Q & A. Closed captioning will be offered in English. All participants who qualify will receive a Certificate of Completion. Tax Professionals earn up to 2 CE Credits. Category: Tax Law Update Questions? Email us at: cl.sl.web.conference.team@irs.govRegistration Sponsored By: IRS Stakeholder Liaison Date: 3/24/2026Time: 2 p.m. Eastern, 1 p.m. Central, 12 p.m. Arizona & Mountain, 11 a.m. Pacific, 10 a.m. Alaska, 8 a.m. Hawaii Location: Virtual

@Kandace Fryar Since you have submitted an 8821 for processing, go to this link and see if you can request transcripts online for your client: Transcript Delivery System (TDS) | Internal Revenue Service SOR Email Box - Secure Object Repository (SOR) mailbox Instructions to access the Secure Object Repository (SOR) mailbox | Internal Revenue Service