It's a Team's Life
Tax Time
Tax Time
Tax season can feel overwhelming for business owners, but with proactive preparation, it becomes manageable. As we navigate 2026, recent legislative changes introduce permanent extensions of key provisions, new deductions, and updated rules that affect businesses. Starting early reduces stress, avoids penalties, and potentially uncovers savings.
The first step is organization. Gather all essential documents well before deadlines. This includes income records (sales receipts, invoices, 1099 forms), expense documentation (receipts for supplies, travel, meals, home office if applicable), payroll records, bank and credit card statements, and prior-year returns. For businesses with employees, ensure accurate W-2 and 1099 issuance by early February. Employers must provide W-2s to employees and file copies with the IRS and SSA.
Maintain meticulous records throughout the year rather than scrambling at year-end. Use accounting software like to track transactions in real time, categorize expenses properly, and separate business from personal finances. This practice minimizes errors and supports stronger deduction claims.
Understand your deadlines based on entity type. For calendar-year businesses:
Partnerships and S corporations (Form 1065 or 1120-S) typically due March 16,
2026 (since March 15 falls on a Sunday). C corporations and sole proprietorships/single-member LLCs often align with April 15, 2026.
Quarterly estimated tax payments help avoid underpayment penalties—key dates include April 15, June 15, September 15, and January 15 (2027) for many. Payroll taxes (Form 941) follow quarterly schedules, with year-end reconciliation.
Leverage tax-saving strategies amid 2026 changes. New laws signed into law for 2026 and beyond makes 100% bonus depreciation permanent for qualifying assets, revives immediate expensing for domestic R&E costs, and boosts Section 179 limits which is ideal for timing capital purchases.
New provisions like deductions for qualified tips and overtime impact payroll reporting. Make sure timekeeping and withholding adjustments reflect these for accurate employee claims. Explore credits for childcare (increased to 40-50%), paid family leave, or energy incentives if applicable.
Consult professionals early. A CPA or tax advisor can review your setup, identify
overlooked deductions, model entity changes, and handle complex legal
interpretations. They help with extensions if necessary.
Finally, stay informed via IRS.gov, Publication 509 (Tax Calendars), and reliable sources for updates. The IRS began accepting 2025 returns January 26, 2026. File electronically for faster processing and refunds.
By organizing records, tracking deadlines, embracing available deductions, and
seeking expert guidance, businesses turn tax season from a burden into a strategic advantage. Start today for a smoother, more profitable 2026.
Here’s to millions of safe, profitable and TAX PREPARED miles.
Kelly Plumb