Individual tax calendar: Key deadlines for the remainder of 2026
Here are a few key tax-related deadlines for individuals for the rest of 2026. JUNE 15: Pay the second installment of 2026 estimated taxes, if applicable. SEPT. 15: Pay the third installment of 2026 estimated taxes, if applicable. OCT. 15: File a 2025 income tax return and pay any tax, interest and penalties due if an automatic six-month extension was filed. DEC. 31: Incur various expenses that potentially can be deducted on your 2026 tax return. Contact us for more information about the filing requirements and to help ensure you meet all deadlines that apply to you.
Material participation: Why it matters for LLP and LLC owners
LLC and LLP owners: Can you deduct your business losses this year? The answer may depend on whether your activity is considered passive according to the IRS’s passive activity loss rules.
Under these rules, you generally can use passive losses only to offset income from other passive activities. If you meet certain “material participation” criteria, however, you may be able to offset LLC or LLP losses against nonpassive income, such as wages, interest, dividends and capital gains — but the rules can be complex, especially for limited partners.
Contact us for guidance on tracking your participation hours, applying the material participation test and maximizing business loss deductions.
Starting a business? 5 things you need to know
If you’ve decided to start a business, congratulations! Your first task will be to raise start-up funds if you can’t fund the business yourself. A thoughtful, detailed business plan can help attract lenders and equity investors. Next, separate your personal and business finances and choose an accounting system to record transactions and generate financial statements. Start tax planning early. The same goes for factoring your new business into your estate plan. Finally, consider offering early employees equity rather than big salaries. We can help you make critical financial decisions and support your operations as your business grows.
Your post-tax-filing checklist
After you’ve filed your 2025 tax return, what’s next? Here are a few to-dos: 1) Check your refund status by going to irs.gov and either logging into your IRS account or using the refund tracker. 2) If you forgot to report some deductible 2025 expenses (or anything else), file an amended tax return to claim those deductions and potentially increase your refund. 3) Store your return and supporting documents in a secure place where you’ll easily be able to find them if needed. 4) Turn your tax focus to 2026 planning. We can help project your income, deductions and credits for the year and propose strategies you can implement in the coming months to reduce your taxes. Contact us to get started.
ACA penalties may still apply — and they’re increasing for 2026
Growing small businesses may trigger the ACA’s play-or-pay provisions. These rules apply to applicable large employers (ALEs), which are those with 50 or more full-time employees, including full-time equivalents (FTEs).
ALEs must offer full-time employees and their dependents minimum essential coverage that’s affordable and provides certain minimum value. For 2026, the penalties for noncompliance generally are 1) $3,340 per full-time employee, excluding the first 30, for not offering coverage, and 2) $5,010 per full-time employee who receives a premium tax credit, for offering coverage that doesn’t meet the affordability and minimum value requirements.
Contact us to discuss your obligations.
What you need to know about filing an extension — and minimizing penalties
If you’re not ready to file your 2025 federal individual income tax return by April 15, you can request an automatic extension. Filing an extension (Form 4868) by April 15 can give you breathing room to file accurately and protect you from the failure-to-file penalty (assuming you file by the extended Oct. 15 deadline).
But it doesn’t extend your deadline for paying tax owed. So you should project and pay any amount due by April 15 to minimize interest and late payment penalties.
Have questions about your situation? Need assistance estimating your tax liability or filing an extension? Contact us. We can help you stay compliant and minimize penalties and interest.
FAQs about the research credit
Companies that engage in research and development activities may qualify for a federal tax credit for some of those expenses. The research credit is complicated to calculate, and not all research activities are eligible. But the tax savings can be significant. Certain taxpayers may even be able to use the credit to offset employer-paid payroll taxes or the owners’ alternative minimum tax obligations.
We can help you navigate the complexities of claiming this credit, including how it works, which costs may qualify and how it interacts with the deduction for research and experimentation costs. Contact us to discuss your business’s eligibility and quantify the potential benefits.
Benefits that help you care for your company’s caregivers
Companies that employ parents of young children and caregivers of adults may want to add dependent care flexible spending accounts (FSAs) to their benefits packages. Doing so can help you attract and retain talent and reduce payroll tax. Employees typically like FSAs because they fund accounts with pretax dollars and use them to pay eligible expenses, including day care and summer day camps. Another idea is to offer child care to employees, either on- or off-site. This may sound costly, but starting in 2026, businesses may qualify for an employer-offered child care tax credit of up to $500,000 ($600,000, small businesses). Contact us for more information.
Are you eligible for mileage deductions?
Are you eligible for mileage deductions? Whether you’re filing your 2025 individual income tax return or planning for 2026, it’s important to know. Employees can’t deduct business mileage, but the self-employed can. And vehicle expense deductions may also be available to individuals who drive for medical, moving or charitable purposes. But many rules and limits apply. The standard business mileage rate is 70 cents for 2025 and 72.5 cents for 2026. The rate for medical or moving mileage is 21 cents for 2025 and 20.5 cents for 2026. The charitable mileage rate is 14 cents for both 2025 and 2026. Or you can claim certain actual expenses. If you’re not sure whether you’re eligible, contact us.
Debt vs. equity: Classification counts when shareholders put money into their corporations
How you capitalize your C corporation isn’t just an accounting matter — it’s a tax-saving opportunity. You can set up funds supplied by shareholders as either capital contributions (equity) or loans (debt).
Future withdrawals by equity investors may result in double taxation. Conversely, repayments of shareholder loans are generally tax-free, while interest payments are taxable to the shareholder and deductible by the corporation. This setup provides a more tax-efficient way to get money out of your company. However, the IRS may reclassify shareholder loans as equity if not properly structured and documented. Contact us to evaluate your options and determine what’s right for your situation.