Essential Checklist
Stay compliant. Follow these steps. Avoid IRS penalties.
Documentation Requirements
- Collect all 1099-NEC forms.
- Gather 1099-K records from payment processors.
- Verify W-2 data for all employees.
- Secure payroll records for 2026.
- Archive receipts for expenses over $75.
- Download bank statements.
- Reconcile digital ledger accounts.
Deadlines 2026
- January 31: Mail 1099s and W-2s.
- March 15: S-Corp (1120-S) and Partnership (1065) returns due.
- April 15: C-Corp (1120) and Individual (1040) returns due.
- April 15: First quarter estimated tax payment.
- June 15: Second quarter estimated tax payment.
- September 15: Third quarter estimated tax payment.
- January 15 (2027): Fourth quarter estimated tax payment.
Digital Compliance
- Update accounting software.
- Sync bank feeds.
- Validate E-file authorization.
- Review payroll setup.
LLC Compliance
New IRS rules affect LLC structures. Verify status now.
QBI Permanence
The Section 199A deduction is permanent.
- Claim 20% deduction on qualified business income.
- Observe new 2026 income thresholds.
- Single filers: $203,000 threshold.
- Joint filers: $406,000 threshold.
- Consult business formation services for entity reviews.
State Caps
SALT (State and Local Tax) limits updated.
- New cap: $40,400.
- High-income phase-down begins at $505,000 MAGI.
- Monitor state-level passthrough entity taxes.
Registration Duties
- Maintain active Registered Agent status.
- File annual reports with Secretary of State.
- Update Beneficial Ownership Information (BOI) if changes occurred.
- Ensure notary verification for legal documents.
Tax Planning
Strategic navigation of the One Big Beautiful Bill (OBBB). Reduce liability.
Asset Expensing
- Use 100% bonus depreciation.
- Applies to machinery and equipment.
- Applies to qualified business vehicles.
- Must be placed in service by December 31, 2026.
- Review Section 179 expansion limits.
R&D Updates
- Immediate expensing for domestic R&D costs.
- No more five-year amortization for U.S.-based research.
- Track research labor costs separately.
- Document all supply expenses for R&D.
Mileage Rates
- Standard business rate: 72.5 cents per mile.
- Maintain contemporaneous mileage logs.
- Use GPS tracking apps for verification.
- Separate personal and business travel.
Childcare Credits
- Credit limit increased to $500,000.
- Eligible small businesses: up to $600,000 credit.
- Applies to employer-provided childcare facilities.
- Applies to resource and referral services.
IRS Bill Impacts
Specific changes from the OBBBA. Adjust operations immediately.
Payroll Changes
- Social Security wage base: $184,500.
- Self-employment tax rate: 15.3%.
- Adjust payroll services for higher withholdings.
- Review Medicare tax surcharges for high earners.
Tips and Overtime
- Reduced federal tax on qualifying tips.
- Federal tax exemptions for specific overtime pay.
- Update POS systems to track exempt vs. non-exempt income.
- Consult IRS guidelines on worker eligibility.
Retirement Incentives
- Enhanced credits for starting 401(k) plans.
- Offsets for administrative costs.
- Mandatory auto-enrollment for certain new plans.
- Review insurance and benefits packages.
Implementation Steps
- Review: Examine 2026 income projections.
- Audit: Verify all expense categories.
- Update: Adjust payroll software for OBBBA rates.
- Execute: Purchase equipment before year-end for 100% depreciation.
- Submit: File documents early to avoid backlogs.
Support Links
Direct Actions
- Contact MCG Service.
- Schedule consultation.
- Submit documents.
- Ensure compliance.