When ADP invited me to join Dan Hood, Amy Miller and Kelly Phillips Erb for a deep dive into the One Big Beautiful Bill (OBBBA) and today’s tax-policy whiplash, one theme kept coming up again and again:
Chaos always creates opportunity, but only if we’re willing to step into the advisory role our clients need.
This year’s tax landscape isn’t “business as usual.” Between new deductions, temporary provisions, confusing reporting requirements and inconsistent IRS guidance, small businesses and employees are overwhelmed. And when people are overwhelmed, they go to Google, TikTok or their POS provider, not their accountant.
That’s the risk. And also the opportunity. Because, as this panel made crystal clear, OBBBA isn’t really about compliance. It’s about conversation.
Here are seven takeaways from the session that took place as part of ADP’s Accountant Summit:
1. Complexity Has Become Client-Facing
Amy, ADP’s senior director of government affairs, laid out the biggest headline items:
A new overtime deduction, but only for the premium portion and only under FLSA definitions
A return to full domestic R&D expensing
A new deduction for voluntary, customarily tipped occupations, capped and income-limited
However, most clients think these deductions are much simpler than they actually are.
As Amy put it:
“It’s not as straightforward as employers and employees think it is.”
And she’s right. The media messaging (“no tax on tips!”) is dramatically oversimplified. If accountants aren’t the ones explaining the nuance, the internet will — and we all know how that goes.
2. Advisory Begins Where Misconceptions Live
Kelly, the Tax Girl herself, brought up the most important truth of the entire panel:
“People think they understand these deductions, but many of them don’t.”
She pointed out:
Many employers think they can “raise” overtime rates to double time to maximize deductions. They can’t.
Many businesses think they can reclassify staff into newly “tippable” jobs. They can’t.
Some employees believe they’re now guaranteed a refund. They aren’t.
Kelly also highlighted that business decisions made for temporary deductions can create long-term compliance problems. And that’s exactly where accountants need to step in. Not just to say “no,” but to say: “Let’s figure out what you can do that makes sense for your business over the next five years, not just the next five months.”
That’s advisory.
3. IRS Guidance is Loosely Written, and Clients Will Need a Translator
One of the biggest surprises? IRS guidance for 2026 planning is… generous. Draft instructions openly use phrases like “Do your best.” That should terrify taxpayers and motivate accountants. Loose rules lead to inconsistent reporting, misclassification and algorithmic mismatch.
And as I shared in the session:
“The IRS will have more data than ever before. And once they have it, they’re going to use it.”
This is the year to help clients:
Reconcile POS systems with payroll
Ensure reported tips match historical patterns
Avoid red-flag fluctuations that algorithms will immediately catch
Document internal processes
Understand the trade-off between paycheck withholding and year-end refund expectations
The firms that help clients think proactively and not act defensively will win.
4. Tips, Service Charges & Industry Confusion are an Advisory On-Ramp
Amy outlined how the IRS will define qualified tips, including:
Cash
Card-charged tips
Voluntary tip-sharing arrangements
But not:
Mandatory service charges
Large-party auto-gratuity
Fees imposed by the restaurant
Then, Kelly raised the point almost no one is talking about: service-heavy industries like country clubs, spas and salons may need to fundamentally rethink their pricing model to remain competitive in the labor market.
That’s not a tax return conversation. That’s a strategy conversation.
This is exactly where firms can stretch into true advisory without needing a consulting department or hiring a strategist. You already know the POS systems, the payroll feed, the industry dynamics and the credit calculations. You’re the only one with that complete 360° view.
5. OBBBA Turns Credits into a Gateway Drug for Advisory
I said this during the panel, and I’ll repeat it here:
This bill is a stair-step into advisory for firms that have always stayed “compliance-only.”
Take restaurant credits:
You can project expected tips
You can calculate potential credits
You can compare reported vs. expected tips
You can prepare clients for audit exposure
You can create training for staff on reporting best practices
You can charge for this because it’s real, tangible value
This is how advisory starts — with something you’re already doing, enhanced. Not a pitch deck. Not a new department. Not a brand-new offering. Just a deeper level of service rooted in the work you already know.
6. The Profession Is Changing and Advisory is No Longer Optional
Dan asked a great question during the session: Are firms actually ready for this shift?
My answer on stage is the same answer I’ll give here: They don’t have a choice.
AI is swallowing the grunt work. Automation is collapsing the old billing model. Clients expect explanations, not just deliverables.
And OBBBA (like PPP before it) is creating pressure that moves firms toward communication, interpretation and strategic clarity. That’s the future of the profession. And it’s where accountants will create the most trust, differentiation and revenue in the next three to five years.
7. So What Should Firms Do Right Now?
→ Talk to every client in tipped or overtime-heavy industries
Restaurants, salons, clubs, hospitality, delivery, event staffing.
→ Reconcile POS + payroll before Q2
This alone will prevent 90% of IRS mismatch notices.
→ Create quick education for clients’ employees
A 1-page “What This Means for Your Paycheck” wins enormous goodwill.
→ Offer a 2026 planning call
It doesn’t have to be complex. It just has to start the conversation.
→ Price advisory separately from compliance
Even a small planning fee differentiates value and sets expectations.
Complexity Creates Connection
This bill is more than a compliance change. It’s an invitation for CPAs to step closer to clients, to become clearer communicators, to lead through uncertainty and to bring human judgment back into a world drowning in information overload.
During tax season, clients need more than deliverables. They need your leadership. That’s where advisory lives. And that’s where the future of the profession is heading.
