(607NewsNow) — As we step into a new year, both business owners and individual taxpayers have a prime opportunity to connect with a trusted advisor and set the tone for a successful tax season.
At Sprague & Jackson, we believe that building the connection early, reviewing your past, and mapping your future are key to unlocking savings and avoiding surprises. This year, there’s an additional layer of importance: the sweeping tax changes under the One Big Beautiful Bill Act (OBBBA) passed in 2025. Understanding how these changes affect you will give you a real advantage as you plan for 2026
1. Get your books in order
For business owners, January means more than just glancing at last year’s receipts, it’s about preparing your books for action. Make sure your income, expenses, payroll records, and sales tax filings are accurate, organized, and easily accessible. At Sprague & Jackson, we offer a unified service encompassing bookkeeping, payroll, and sales tax management. Having everything under one roof ensures that when tax season arrives, you can file confidently without scrambling at the last minute. Proper organization now saves time, reduces stress, and helps avoid costly mistakes.
2. Review and amend past returns
Did you leave potential savings on the table in previous years? January is the perfect time to have Sprague & Jackson review the past three years of returns. With OBBBA, some rules have changed, and we want to ensure you didn’t miss deductions, credits, or reporting opportunities under prior rules. Where amendments make sense, we’ll help you file them so you can maximize refunds and minimize liabilities. It’s not enough to focus on “just this year”, optimizing past returns can improve your overall financial picture.
3. Plan for fourth quarter and 2026 (and beyond)
Early planning pays off. For business owners, that means setting up fourth-quarter estimates, reviewing retirement plan contributions, and anticipating changes to avoid underpayment penalties or last-minute tax shocks. For individuals, it means projecting income, charitable donations, and retirement contributions, including 401(k)s and HSAs. OBBBA has made several tax provisions permanent and altered deduction limits, so planning now helps you take full advantage of available opportunities.
4. Understanding OBBBA: What changed and why it matters
The One Big Beautiful Bill Act, signed into law July 4, 2025, introduces several major changes affecting both individuals and businesses:
· Many individual tax cuts from the 2017 Tax Cuts & Jobs Act (TCJA) were made permanent.
· The lifetime exclusion for gift and estate tax increased permanently, which is significant for business owners and high-net-worth families.
· The State and Local Tax (SALT) deduction cap was temporarily raised, and adjustments were made to itemized deductions.
· New deductions were introduced, including interest on qualified vehicle loans and overtime pay for 2025–2028.
For individuals, this means reviewing your filing status, itemized versus standard deductions, charitable giving, and retirement contributions to align with the new structure. Business owners should understand how permanent business deductions, payroll, and reporting requirements affect planning for 2026.
5. LLCs, S Corps, and retirement strategies
If you operate as an LLC or are considering S Corp election, January is an ideal time to evaluate your structure under these new rules. Sprague & Jackson can help determine whether switching, or staying the same, makes the most tax-efficient sense. Additionally, if you haven’t maxed out retirement accounts like SEP IRAs, 401(k)s, or HSAs, now’s the time. OBBBA changes may affect contribution limits, tax impacts, and timing, so early action is crucial.
At Sprague & Jackson, we prioritize creating meaningful connections with our clients. From the moment you reach out in January through the final return filed, we guide you every step of the way. Reviewing past returns, leveraging the new law’s benefits, and strategizing for 2026 ensures you save more and stress less. Don’t settle for cookie-cutter solutions, partner with us for personalized tax expertise.
For a more personalized tax consultation, reach out today to Sprague & Jackson. Call or visit www.sprjac.com for more information!
