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Part 1: The Ultimate 2026 Small Business Tax Compliance Checklist

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Compliance Overview

Review 2026 IRS updates. Implement "One Big Beautiful Bill" (OBBBA) standards. Maintain federal compliance. Use this checklist for small business tax planning.

Asset Depreciation

  • Claim 100% Bonus Depreciation. Permanent status restored. Apply to qualifying property. Deduct full cost in year one.
  • Utilize Section 179. Limit set at $2.56M. Phase-out starts at indexed thresholds. Coordinate with bonus depreciation for maximum benefit.
  • Verify Property Eligibility. Review equipment, software, and furniture. Document purchase dates. Confirm "placed in service" status before year-end.

Income Deductions

  • Apply Permanent QBI Deduction. Section 199A remains active. Calculate 20% deduction for pass-through entities.
  • Check Phase-Out Ranges. Single/Head of Household: $201,750 – $276,750. Married Filing Jointly: $403,500 – $553,500.
  • Monitor SSTB Limitations. Verify Specified Service Trade or Business status. Adjust tax preparation for small business strategies accordingly.

Entrepreneur reviewing tax compliance documents

Information Reporting

  • Update 1099-NEC/MISC Thresholds. New minimum: $2,000.
  • Issue Forms Electronically. Use efile 1099 services.
  • Collect Form W-9. Verify contractor TINs. Maintain records for four years.
  • Report All Income. Exceeding threshold is not the only reporting trigger. Record all payments regardless of form issuance.

Payroll Requirements

  • Adjust Social Security Wage Base. Set at $184,500 for 2026.
  • Update Withholding Tables. Align with OBBBA tax brackets.
  • Separate Tip/Overtime Reporting. Use new W-2 boxes. Track qualified tips up to $25,000.
  • Implement Payroll Setup Services. Automate deductions. Ensure local, state, and federal alignment.

Small business owner managing operations

Expense Tracking

  • Apply 72.5 Cents/Mile. Use the 2026 standard mileage rate. Maintain contemporaneous logs.
  • Permanent Excess Business Loss Rules. Apply limits to all business structures. Carry forward excess losses as NOLs.
  • Calculate Business Interest Deduction. Limit at 30% of EBITDA. Review debt financing costs.
  • Document Schedule 1-A Deductions.
    • Track qualified tips.
    • Record qualified overtime.
    • Log car loan interest for business vehicles.

Corporate Transparency

  • File BOI Reports. Submit to FinCEN.
  • Update Beneficial Ownership. Report changes within 30 days.
  • Confirm Registered Agent. Maintain Registered Agent Services. Ensure 24/7 availability for service of process.

Financial data and payroll spreadsheet

Strategic Planning

  • Review LLC Compliance. Re-evaluate entity structure for 2026 IRS updates.
  • Verify Notary Needs. Authenticate legal documents.
  • Evaluate Insurance Coverage. Check life, renters, and car insurance requirements.
  • Download Checklists. Access the Free 2026 Tax Checklist.

Direct Actions

  • Schedule Tax Preparation. Secure 2026 filing dates.
  • Update Payroll Systems. Integrate new wage bases.
  • Review FinCEN Status. Confirm BOI filing completion.

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