Introduction
The One Big Beautiful Act has changed how the IRS checks and reviews individual tax returns. This Act does not increase tax rates or create new taxes. Instead, it strengthens how the IRS verifies information already reported by taxpayers. Because of this, individuals must now be more careful while reporting income, deductions, and filing status. Even small mistakes can lead to notices, delays, or additional tax payments.
Stronger Income Matching by the IRS
Under this Act, the IRS compares your tax return with information it already receives from employers, banks, and payment platforms. If the numbers do not match, the IRS may ask questions.
Example:
John works full-time and earns $60,000 in salary. He also does freelance design work and earns $8,000 during the year.
If John reports only his salary of $60,000 and forgets the freelance income, the IRS may still see the $8,000 reported by the platform that paid him. This difference of $8,000 can trigger a notice asking John to explain or correct his return.
Because of this, all income—small or large—must be reported accurately.
Side Income and Online Earnings
Many individuals earn money through side work such as consulting, tutoring, online sales, or digital platforms. Under the One Big Beautiful Act, this income is more visible to the IRS.
Example:
Sarah earns $45,000 from her job. She also earns $4,500 selling products online.
If Sarah reports only her job income, the IRS system may already have records of her online earnings. Even though $4,500 feels small, it must still be included.
Deductions Must Match Records
Deductions are still allowed, but they must be supported by real expenses and proper records.
Example:
David claims $6,000 in medical expenses as a deduction. However, his actual receipts total only $3,500.
If the IRS reviews this, the extra $2,500 may be disallowed, increasing his tax and possibly adding penalties.
This makes it important to keep bills, invoices, and proof of payment.
Filing Status Is Checked More Closely
Your filing status affects how much tax you pay and how much deduction you receive. Choosing the wrong status can cause problems later.
Example:
Emily files as Head of Household and claims a higher standard deduction.
Later, the IRS finds she does not meet the qualification rules. The IRS recalculates her tax using Single status, which increases her tax due and reduces her refund.
Correct filing status is now more important than ever.
More IRS Notices, Even Without an Audit
The Act has increased automated checks. This means more IRS letters asking for explanations or corrections, even if you are not audited.
Example:
Michael files his return correctly but forgets to include one bank interest statement of $350.
He may receive a notice asking him to confirm or update his return.
Responding properly and on time is critical to avoid penalties.
Impact on Salaried Individuals
Even salaried employees must ensure their reported income matches employer records exactly. Any mismatch between Form W-2 details and the tax return may delay refunds.
Example:
If an employer reports income of $52,000 but the return shows $50,000, the IRS may hold the refund until clarified.
Common Mistakes Individuals Make
Some common issues seen after this Act include forgetting side income, overstating deductions, selecting the wrong filing status, and ignoring IRS notices. These mistakes can result in additional tax, penalties, or long delays in refunds.
How Trusty Accounts Helps Individuals
Trusty Accounts reviews your complete income sources, checks deductions against actual records, confirms correct filing status, and prepares returns that match IRS data. If the IRS sends a notice, we help respond correctly and on time.
Our approach reduces errors, avoids unnecessary notices, and gives individuals confidence that their return is accurate and compliant.
Why Professional Support Matters Now
With stronger IRS checks, filing taxes without review increases risk. Professional support helps catch mistakes before filing, ensures accurate reporting, and protects taxpayers from future issues.
Conclusion
The One Big Beautiful Act has made tax filing more precise and data-driven. While tax rules remain mostly the same, expectations around accuracy are much higher. Individuals who report income carefully, maintain records, and seek expert guidance are better prepared for this new environment.
Trusty Accounts supports individuals through every step of this process—helping them file correctly, respond confidently, and stay compliant with peace of mind.