Bookkeeping and Compliance Requirements for 2025 and 2026

​​The One Big Beautiful Bill Act (OBBBA) introduces structural changes that extend beyond tax savings. OBBBA modifies how financial records must be organized for 2025 and alters federal compliance and reporting requirements beginning in 2026.

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Accurate bookkeeping, updated categorization, and proactive documentation will be critical to reducing filing risk and maintaining clean audit trails under the new rules.

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This page outlines the changes that apply immediately, those that begin in 2026, and the steps that support compliant recordkeeping.

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​Bookkeeping and Compliance Changes Effective for 2025 Filings

• ​Make sure your tax returns are accurate and filed on time.

• Calculate the estimated taxes for small business owners who work for themselves.

• Create tax planning strategies based on personal financial objectives.

• Electronic filing and direct deposit for a faster tax refund

• To prevent interest and penalties, file extensions and estimate your taxes.

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The Tax Season Is Approaching

​Several OBBBA provisions require updates to fixed asset tracking, income categorization, and bookkeeping systems for the 2025 tax year. Key changes include:

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One hundred percent (100%) bonus depreciation restoration
Full expensing for qualifying assets reinstates immediate cost recovery. Asset tagging, placed in service dates, and depreciation schedules must be accurate.

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Section 179 expensing limit increase
The expensing limit increases to $2,500,000. Higher thresholds require correct classification of asset types and real time monitoring of qualified property additions.

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Domestic research and development (R&D) expensing
Domestic R&D costs revert to immediate deductibility. General ledger accounts for research activities should be updated accordingly.

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Permanent Qualified Business Income (QBI) deduction for pass throughs
The QBI deduction becomes a permanent provision. Bookkeeping systems must clearly separate QBI eligible revenue and expenses from non QBI items to support accurate calculations.

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Payroll forms remain unchanged for 2025
Although additional OBBBA payroll rules are coming, no federal payroll form changes apply for 2025.

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These adjustments influence fixed asset accounting, cash flow forecasting, and categorization within the chart of accounts. Early adoption reduces reconciliation issues during filing season.

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Compliance Changes Effective in 2026

​Beginning in 2026, several federal reporting thresholds and deduction rules shift under OBBBA. Notable updates include:

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Form 1099 NEC and 1099 MISC threshold increase
The federal reporting threshold rises from $600 to$2,000. Vendor tracking processes should reflect the updated requirement.

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Form 1099 K reporting threshold reinstated
The reporting requirement reverts to the previous $20,000 and 200 transaction standard. Payment platform activity should be reviewed to identify applicable reporting obligations.

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Meal deduction adjustments
Meal deductibility tightens, requiring updated chart of account categories and accurate separation of deductible and nondeductible meal expenses.

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Energy related credits
Several credits are scheduled to expire unless renewed by Congress. Businesses relying on energy incentives should verify eligibility for 2026 and beyond.

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These updates will reduce reporting volume for some taxpayers but increase the importance of accurate categorization, vendor recordkeeping, and timely documentation.

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Recommended Bookkeeping Actions for 2025 and 2026

​The following steps support accurate filings and reduce compliance risk under OBBBA:

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• Tag fixed assets with correct categories and placed in service dates.

• Maintain clear segregation of meal expense types within the general ledger.

• Separate QBI relevant revenue and expenses from non QBI items.

• Refresh the chart of accounts to align with updated deduction and reporting rules.

• Collect vendor W-9’s early and ensure vendor files are complete before year-end.

• Review payment platforms and contractor payments for 1099 K and 1099 NEC exposure.

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Incremental cleanup efforts during the year significantly reduce errors, omissions, and reconciliation challenges during filing season.

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Request an OBBBA Bookkeeping and Compliance Review

​A technical review of bookkeeping structure, vendor compliance, asset classification, and income categorization ensures alignment with OBBBA requirements for 2025 and 2026.

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A review includes:

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• Asset classification and depreciation schedule verification.

• Chart of accounts evaluation for QBI, meal deductions, and updated categories.

• 1099 NEC, 1099 MISC, and 1099 K threshold analysis.

• Vendor record and W-9 compliance review.

• Assessment of R&D expensing and Section 179 impacts.

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Submit the form below to begin a detailed compliance and bookkeeping assessment. Early adjustments reduce administrative burden and support accurate filings under the evolving OBBBA rules.​

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​Strengthen Bookkeeping and Compliance Under OBBBA

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OBBBA introduces new documentation standards, reporting thresholds, and deduction rules that directly affect bookkeeping for 2025 and 2026. A compliance review identifies required updates, classification adjustments, and process improvements that support stronger filing accuracy.

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This assessment is designed for small business owners, pass-through-entities, and independent professionals preparing for new federal standards.

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Provide business and bookkeeping details to evaluate compliance readiness for 2025 and 2026. The review identifies chart of accounts updates, vendor documentation requirements, and asset tracking improvements that support accurate filings.

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A structured compliance review today reduces risk and improves filing efficiency under OBBBA.