Tax Preparation & Filing

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Two things most business owners are still doing the old way. The 1099-NEC filing threshold sat at $600 for a decade; for payments made in 2026 it is $2,000, and it indexes for inflation after that. And a FinCEN rule finalized on 14 August 2026 exempted US-formed companies from beneficial ownership reporting entirely, after two years of firms telling clients to file.

The Corporate Transparency Act itself is unchanged, and two petitions are pending at the Supreme Court for the fall 2026 term. Companies formed outside the US that registered to do business in a state still report. We track this rather than assume it, and we date-stamp what we tell you.

Then there is the part that has nothing to do with the federal return. States do not agree with each other, and they do not agree with the IRS. Economic nexus is the clearest case: New Jersey looks for $100,000 in receipts or 200 transactions, and either one triggers it. New York looks for more than $500,000 and more than 100 sales - you need both. Crossing one state's threshold tells you nothing about the next state's. Many states also decouple from federal depreciation; New Jersey still works from a section 179 definition frozen at 31 December 2002 and caps it at $25,000.

The 1099 change is not permission to stop collecting W-9s. Backup withholding did not change, and a vendor who will not give you a TIN is a problem you want to find in January rather than the following winter.

On the return itself, several things stopped being temporary. The section 199A qualified business income deduction is permanent at 20 percent, and the sunset is gone. For tax years beginning after 31 December 2025 the phase-in range widens to $75,000 single and $150,000 joint, and a new minimum deduction of $400 applies where your qualified business income from actively conducted businesses is at least $1,000. One hundred percent bonus depreciation is permanent for property acquired after 19 January 2025, and the acquisition date controls, not the date you placed it in service.