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Received an IRS Notice? Here’s What to Do Next

Getting a letter from the IRS can make your stomach drop a little. Most people see that envelope and immediately think they’re in trouble or assume they’re being audited. That’s usually not the case.

The IRS sends notices for all kinds of reasons. Sometimes there’s a difference between the income reported on your tax return and information the IRS received. Other times they may be looking for additional documentation, notifying you of a balance, questioning a credit or deduction, or making an adjustment to a previous return.

Whatever the reason, the first thing I tell people is: don’t ignore it, but don’t panic either.

Take the time to read the entire notice and make sure you understand what the IRS is actually saying. Look at the tax year involved, the amount they say you owe, why they believe an adjustment is necessary, and most importantly, the date by which they expect a response.

And remember, just because the IRS says you owe additional money doesn’t necessarily mean they’re correct.

Before you send a payment or agree to a change, compare the notice with your tax return and your records. There may be documentation that clears up the issue, or the discrepancy may be something that can be explained. Responding too quickly without understanding what happened can sometimes make an otherwise manageable situation more complicated.

The other mistake I see is waiting too long. An IRS notice sitting unopened on the kitchen counter isn’t going to disappear. There are usually specific deadlines for responding, and missing them can limit your options or lead to additional penalties and interest.

If you understand the notice and know exactly what the IRS needs, you may be able to handle a simple matter yourself. But if the notice involves a larger balance, income discrepancies, multiple tax years, an examination of your return, or something you simply don’t understand, that’s when getting professional help can make a big difference.

As an Enrolled Agent, I can communicate with the IRS on behalf of my clients when appropriate, review what they’re requesting, help determine whether their position is correct, and work through the next steps with you. You don’t have to try to figure out complicated IRS correspondence on your own.

One last thing: be cautious if you receive an unexpected text message, email, or phone call claiming to be from the IRS. Scammers know that mentioning the IRS gets people’s attention. If something doesn’t seem right, don’t provide personal or financial information until you’ve verified that the communication is legitimate.

If you’ve received an IRS notice and aren’t sure what it means or what you should do next, bring it to us. At TaxPointe, we’ll help you understand what you’re dealing with and determine the best way to respond.

Sometimes that IRS envelope is a relatively simple issue. Sometimes it needs more attention. Either way, it’s much better to know what you’re dealing with than to spend weeks worrying about it.

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The September 15 Tax Deadline Is Coming: What Business Owners Need to Know

September 15 is coming up quickly, and for many business owners it is an important tax deadline that can be easy to forget about once the spring tax season is behind us.

If you own an S corporation or are part of a partnership and filed an extension earlier this year, September 15 is generally the deadline for getting that business return filed. For calendar-year S corporations, that means Form 1120-S, and for partnerships, it means Form 1065.

When an extension is filed in the spring, September can feel like it is a long way off. Then summer gets busy, the months go by, and suddenly the extended deadline is right around the corner. If your return still needs to be completed, now is the time to make sure your bookkeeping is caught up and your tax preparer has everything needed to finish the return.

This is especially important for S corporations and partnerships because the business return may also affect the owners’ personal tax returns. These businesses generally issue a Schedule K-1 to each shareholder or partner. That information is then used when preparing the individual’s tax return. When the business return is delayed, it can hold up the personal return as well.

September 15 is also the third estimated tax payment deadline for 2026. This is something many small business owners, independent contractors and self-employed individuals need to pay attention to because taxes aren’t always automatically withheld from the income they receive.

Now is also a good time to look at how your business has actually performed this year. The income you expected at the beginning of 2026 may be very different from where you are today. Maybe business has been better than expected, you picked up a few large clients, or you added another source of income. On the other hand, business may have slowed down or you may have had some significant expenses that weren’t anticipated earlier in the year.

Those changes can affect how much you should be paying in estimated taxes. Rather than automatically assuming the amount you calculated months ago is still appropriate, it can be worth taking another look at the numbers.

Another thing I see people misunderstand is what a tax extension actually does. An extension gives you additional time to file your return, but it generally does not give you additional time to pay taxes that were already due. If you filed an extension and haven’t looked at your tax situation since then, you may want to find out where things stand before the September deadline arrives.

If you owe more than you expected, don’t ignore the return because you are worried about paying the balance. Filing the required return and dealing with what is owed is generally a much better approach than allowing the problem to grow. Depending on the circumstances, there may also be options available when someone cannot pay a tax balance in full.

Even if September 15 isn’t a filing deadline for your particular business, September is a good time to take a look at your taxes. We are far enough into the year to have a pretty good idea of how the business is performing, but there are still several months left before the end of the year.

That gives us time to look at income and expenses, estimated payments, payroll, retirement contributions, upcoming purchases and other financial decisions before December 31. There may be things we can address now that we won’t be able to change once the year is over.

This is one of the reasons I encourage business owners not to think about taxes only during tax season. By the time we are preparing a return next year, we are looking backward at decisions that have already been made. When we review things before the end of the year, we have an opportunity to plan ahead.

If you have a September 15 deadline, don’t wait until the last few days to start pulling everything together. Make sure your bookkeeping is current, check whether your tax preparer is waiting for anything from you, and take care of any unanswered questions now.

And if you’re not sure whether the September 15 deadline applies to you, that’s something we can help you determine.

At TaxPointe, we work with individuals and business owners throughout the year to help them stay on top of their tax obligations and avoid unnecessary surprises. If you have an extended return that still needs to be filed, need help with your estimated taxes, or simply want to review where you stand heading into the last few months of 2026, contact TaxPointe and we’ll be happy to help.

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Made a Mistake on Your Tax Return Here’s What to Do Next

Filing your taxes can feel like a big relief, especially once you finally hit submit and know they are done for the year. But what happens if a few days or even a few weeks later you realize you made a mistake?

Maybe you forgot about a 1099, entered the wrong amount somewhere, missed a deduction, or received another tax document after you already filed. It happens more often than you might think, and fortunately, most tax return mistakes can be corrected.

The first thing to determine is whether the mistake actually requires you to amend your return. The IRS can automatically correct some simple math errors and may contact you if additional information is needed. However, if you reported the wrong income, filing status, deductions, credits, dependents, or other information that changes your tax liability, you may need to file an amended return.

For most individual taxpayers, corrections are made using Form 1040-X, Amended U.S. Individual Income Tax Return. This allows you to show what was originally reported, what needs to be changed, and the reason for the correction.

One mistake that should not be ignored is forgetting to report income. Employers, banks, investment companies, and other businesses generally send copies of tax documents such as W-2s and 1099s to the IRS as well. If the income reported on your tax return does not match the information the IRS receives, there is a good chance they will eventually notice the difference.

If correcting the mistake means you owe additional taxes, it is usually better to take care of it sooner rather than later. Depending on the circumstances, interest and penalties can continue to add up while the balance remains unpaid.

On the other hand, you may discover that the mistake means the IRS actually owes you more money. Perhaps you forgot a deduction, missed a tax credit, or reported something incorrectly that resulted in paying too much tax. Filing an amended return may allow you to claim the additional refund, although there are deadlines for doing so.

It is also important to remember that changing your federal tax return could affect your state return. If you need to amend your federal return, your state taxes should be reviewed at the same time to determine whether another correction is necessary.

If you have already received a notice from the IRS about the mistake, don’t automatically send in an amended return. The IRS may have already made an adjustment or may simply need additional information from you. Filing another return while the IRS is already working on the issue could make things more complicated.

The biggest thing to remember is that discovering a mistake on your tax return does not automatically mean you are in serious trouble. Mistakes happen. What matters is recognizing the problem, determining whether it needs to be corrected, and taking care of it properly.

If you discover an error on a tax return you have already filed and aren’t sure what to do next, TaxPointe can help. Our team can review your return, determine whether an amendment is necessary, and help you make sure the issue is handled correctly.

Have questions about a tax return you’ve already filed? Contact TaxPointe today to speak with our team.

This information is provided for general educational purposes and is not intended as individualized tax advice.

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3 Valuable Tax Deductions Small Business Owners Should Know About

One of the biggest misconceptions I hear from small business owners is that if an expense helps their business, it’s automatically deductible. Unfortunately, tax law isn’t always that simple. There are plenty of legitimate deductions available, but knowing which ones apply to your business—and keeping the proper documentation—is what makes the difference.

Here are three deductions that I encourage every business owner to be familiar with.

The first is the home office deduction. If you operate your business from home and have a space that is used regularly and exclusively for business, you may qualify to deduct a portion of your home expenses. That can include things like utilities, internet service, insurance, and in some cases a portion of your mortgage interest or rent. The word “exclusively” is the one that matters most. A dedicated office is very different from working occasionally at the kitchen table.

Another deduction that is often overlooked involves equipment and technology purchases. Computers, printers, office furniture, software subscriptions, and many of the tools you rely on every day may qualify as deductible business expenses. I’ve had clients apologize for “forgetting to mention” a new laptop or several thousand dollars’ worth of equipment they purchased during the year. Those details matter, and bringing them up during tax preparation can make a real difference.

Finally, many business owners don’t realize they may qualify for the Qualified Business Income (QBI) deduction. Depending on your business structure and taxable income, this deduction can allow eligible business owners to deduct up to 20% of their qualified business income. It’s one of the more valuable tax benefits available today, but it isn’t available to everyone and the rules can become complicated as income increases. That’s why it’s important to review your individual situation rather than assume you do or don’t qualify.

The common thread with all of these deductions is good recordkeeping. Save your receipts, keep your bookkeeping current, and don’t wait until tax season to start thinking about your expenses. The more organized you are throughout the year, the easier it is to identify deductions that can legally reduce your tax bill.

Every business is different, which is why there isn’t a one-size-fits-all checklist. A deduction that’s appropriate for one business may not apply to another. Taking a little time to review your situation before the end of the year can often lead to opportunities that would otherwise be missed.

If you’re not sure whether you’re taking advantage of every deduction available to your business, let’s have a conversation. I’d much rather help you plan ahead than tell you after the fact what could have been done differently.

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How to Reduce Your Chances of an IRS Audit

Let’s start with the good news most people will never be audited by the IRS. That said, there are a few things that can make your tax return stand out, and they’re usually much easier to avoid than people think.

One of the biggest mistakes I see is people forgetting to report all of their income. The IRS receives copies of your W-2s, 1099s, investment statements, and other tax documents, so if something is left off your return, their computers will usually catch it. It doesn’t have to be intentional for it to create a problem.

Another common issue is claiming deductions that can’t be supported. I’m all for taking every deduction you’re legally entitled to—that’s my job but it’s important to be able to back those deductions up if you’re ever asked. Keeping receipts, mileage logs, invoices, and good records throughout the year can make a huge difference.

Business owners sometimes get themselves into trouble by mixing personal and business expenses. Having a separate business bank account and credit card makes tax preparation much cleaner and helps avoid mistakes that could raise questions later.

I also tell my clients not to guess. If you’re missing information or aren’t sure whether something is deductible, it’s always better to ask before filing than to estimate. A five-minute conversation can often prevent a much bigger headache later.

Something else people don’t realize is that filing late doesn’t help if you owe money. Even if you can’t pay the entire balance, filing your return on time is almost always the better option. The IRS has payment plans available, but late filing penalties can add up quickly.

Before any return leaves my office, I always recommend taking one last look to make sure everything is accurate. A simple typo, a missing tax form, or incorrect banking information can create delays or unnecessary notices that are easily avoided.

At the end of the day, the best way to reduce your chances of an audit is simply to file an honest, complete, and well-documented tax return. Most audits happen because something doesn’t match the information the IRS already has or because the numbers raise questions. When your return is prepared carefully and supported by good records, you can file with confidence instead of worrying about what might happen later.

If you’re ever unsure about a deduction, have questions about your business expenses, or just want another set of eyes on your tax return, that’s exactly what we’re here for. At TaxPointe, we work with our clients year round not just during tax season to help them stay organized, minimize surprises, and make tax time as stress-free as possible.

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Why I Always Recommend a Mid-Year Tax Check-In

One thing I hear all the time is, “I’ll worry about taxes when tax season gets here.”

I understand why people think that way. Once April is behind us, most business owners are focused on running their business, serving customers, and trying to grow. Taxes are usually the last thing on anyone’s mind.

Ironically, that’s exactly why this is one of my favorite times of year to sit down with clients.

By the middle of the year, we have enough information to see how your business is performing, but there’s still plenty of time to make adjustments that can have a real impact on your tax bill. Waiting until January often means we’re simply documenting what already happened instead of helping you make decisions that could save money.

Every year I meet with business owners who are surprised by how much their income changed. Sometimes business is booming, which is wonderful until they realize they weren’t setting aside enough for taxes. Other times, revenue is lower than expected, and they’ve been making estimated payments based on a much stronger year. Neither situation is ideal, but both can usually be addressed when we catch them early enough.

I also like to use this time to review bookkeeping and expenses. It’s amazing how often I find deductions that aren’t being tracked consistently. Whether it’s mileage, software subscriptions, business meals, or equipment purchases, small expenses have a way of adding up over the course of a year. Good records today make tax season much less stressful later.

Another conversation we often have is about upcoming purchases. If you’re planning to replace equipment, buy new computers, or invest in your business before the end of the year, timing can matter. There are often opportunities to structure those purchases in a way that provides better tax benefits, but those conversations need to happen before the purchase—not after.

One of the biggest misconceptions about tax planning is that it happens when you prepare your tax return. In reality, tax preparation is looking backward. Tax planning is looking ahead.

That’s why I encourage my clients to think of me as more than someone who files returns once a year. My job is to help you make informed financial decisions throughout the year so there are fewer surprises and more opportunities.

If you’ve never had a mid-year tax review, I think you’ll be surprised how valuable it can be. Even if we don’t make major changes, you’ll have a much clearer picture of where your business stands and what to expect when tax season arrives.

Planning ahead is almost always less expensive—and far less stressful—than trying to fix things after the year is over.

If it’s been a while since we’ve talked, or if your business has changed this year, I’d love to sit down with you and review where things stand. A simple conversation now can often make a meaningful difference by the time we prepare your next return.

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The Mid-Year Tax Checkup Every Small Business Should Schedule Before August

When most people think about taxes, they think about January, February, and April. By the time summer rolls around, taxes are usually the last thing on anyone’s mind. Business owners are focused on serving customers, managing employees, and keeping everything running smoothly. I completely understand that, but after more than 20 years of working with small businesses, I’ve learned that July is actually one of the best times of the year to sit down and review your finances.

I often tell my clients that tax planning shouldn’t begin when you’re gathering documents for your tax return. By then, most of the important financial decisions have already been made, and there isn’t much we can do to change the outcome. The real opportunities to save money happen while the year is still in progress, which is why I recommend scheduling a mid-year tax checkup before August.

One of the first things I like to look at is how the year is actually going compared to what we expected back in January. Has your revenue grown faster than anticipated? Have expenses increased more than expected? Maybe you’ve hired additional employees, purchased new equipment, or expanded into a new market. Sometimes business owners are pleasantly surprised by how well they’re doing, while others discover they’re spending more than they realized. Either way, it’s much better to know where you stand now than to wait until next spring.

If your business is having a great year, that’s certainly something to celebrate, but it can also mean your tax liability is going to be higher than you planned. Finding that out in July gives us several months to prepare instead of discovering it after the year has already ended. On the other hand, if your income is lower than expected or you’ve experienced higher operating costs, we may be able to adjust your estimated tax payments so you’re not sending more money to the IRS than necessary throughout the year.

Estimated tax payments are one of those things many business owners set up once and never think about again. They simply continue paying the same amount every quarter because that’s what they’ve always done. Unfortunately, businesses aren’t static. Sales fluctuate, expenses change, and sometimes an unexpected opportunity or challenge can completely reshape the financial picture. Taking a fresh look at your estimated payments halfway through the year can help avoid unpleasant surprises and ensure you’re paying an amount that actually reflects your current situation.

A mid-year review is also the perfect opportunity to talk about larger business purchases. Maybe you’ve been thinking about replacing aging equipment, upgrading your computers, purchasing a company vehicle, or investing in software that will improve efficiency. One of the biggest misconceptions I hear is that you should wait until December and buy something simply to create a tax deduction. While timing certainly matters, I believe every purchase should make good business sense first. Understanding the tax implications before making a significant investment allows you to plan strategically instead of making rushed decisions during the final weeks of the year.

Payroll is another area that’s worth reviewing. If you’re a business owner paying yourself through the company, is your current compensation still appropriate? Have you hired new employees or started offering bonuses? Small changes throughout the year can affect payroll taxes and your overall tax strategy, and they’re much easier to address now than after year-end. The same is true for retirement planning. Many business owners are surprised to learn how much flexibility they have when it comes to retirement contributions. Looking at your numbers in the middle of the year gives us a better idea of what contribution levels may make sense before December arrives, allowing you to reduce taxable income while investing in your future.

I also encourage clients to use this time to make sure their bookkeeping is current and accurate. Good bookkeeping isn’t just about preparing a tax return; it’s one of the most valuable tools you have for making smart business decisions. If your financial records aren’t up to date, it’s difficult to know whether you’re truly making money, where your biggest expenses are, or whether your cash flow is as healthy as it appears. I’ve had clients come into my office convinced they were having their best year ever, only to discover that unpaid bills or overlooked expenses painted a very different picture. I’ve also seen business owners who were worried because cash felt tight, but once we reviewed the numbers together, it became clear the business was performing much better than they thought.

Another advantage of a mid-year tax review is that it gives us the chance to catch small issues before they become expensive problems. Something as simple as a bookkeeping error, an incorrect payroll entry, or a missed filing can snowball over several months if no one notices. Taking the time to review everything now can save both money and stress later.

One thing I always remind my clients is that tax planning isn’t about finding secret loopholes or complicated strategies that only large corporations can use. In most cases, it’s about making informed decisions throughout the year and understanding how today’s choices will affect tomorrow’s tax return. That’s why I believe proactive planning is so much more valuable than reactive planning. When we meet in the middle of the year, we still have time to make meaningful adjustments. Once the calendar turns to January, our focus shifts from planning to reporting.

If you haven’t looked closely at your financials since filing your last tax return, this is the perfect time to do it. A mid-year tax checkup can give you a clearer picture of where your business stands, help you avoid unnecessary surprises, and identify opportunities that might otherwise be missed. It doesn’t have to be a long or complicated process, but it can make a significant difference in how you finish the year.

At TaxPointe, I enjoy helping business owners understand the story behind their numbers. My goal isn’t simply to prepare tax returns; it’s to help my clients make confident financial decisions all year long. If it’s been a while since we’ve reviewed your business together, let’s schedule a mid-year tax checkup before August. You’ll head into the second half of the year with a better understanding of your finances and a plan that’s designed specifically for your business.

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IRS Mileage Rate Increase for 2026

If you own a business in Nevada and spend time driving to meet clients, visit job sites, attend networking events, or travel between business locations, the IRS mileage rate increase for 2026 is good news.

The IRS recently announced that the standard mileage rate for business use has increased to 72.5 cents per mile for 2026, up from 70 cents per mile in 2025. While a 2.5-cent increase may not sound significant, the additional deduction can add up quickly over the course of a year.

For many Las Vegas, Henderson, and Reno business owners, driving is simply part of doing business. Contractors travel between job sites, real estate professionals spend their days showing properties, consultants meet clients throughout the valley, and service businesses often spend hours on the road every week. Every qualifying business mile driven in 2026 is now worth a larger deduction than it was last year.

Let’s look at a simple example. If your business drives 15,000 qualifying business miles during 2026, the standard mileage deduction would be $10,875. Under the 2025 rate, that same mileage would have produced a deduction of $10,500. That’s an additional $375 deduction without driving a single extra mile. For businesses that routinely travel throughout Southern Nevada, those savings can become meaningful.

One of the biggest misconceptions I encounter is what actually qualifies as business mileage. Driving from your home to your regular office is generally considered commuting and is not deductible. However, driving from your office to a client meeting, traveling between job sites, visiting suppliers, attending business events, or traveling to temporary work locations may qualify as deductible business mileage.

Another common mistake is failing to keep adequate records. Many business owners attempt to estimate their mileage at tax time, but the IRS expects documentation that supports the deduction. Maintaining a mileage log that includes the date, destination, business purpose, and miles driven can help protect your deduction if questions ever arise. Fortunately, there are numerous mobile apps available today that make mileage tracking much easier than it used to be.

The IRS also allows taxpayers to choose between the standard mileage method and the actual expense method in many situations. The actual expense method allows you to deduct a percentage of your vehicle expenses, including fuel, insurance, repairs, maintenance, registration fees, and depreciation. Depending on the vehicle and how it is used, one method may produce a larger deduction than the other.

What many business owners don’t realize is that choosing a vehicle deduction method can have long-term consequences. The decision should be evaluated carefully because certain depreciation methods and elections can affect your ability to use the standard mileage rate in future years. That’s why it is important to review your options before simply assuming one method is better than the other.

The increase in the 2026 mileage rate reflects the continuing costs associated with operating a vehicle, including fuel, insurance, maintenance, repairs, and depreciation. The IRS reviews these expenses annually and adjusts the rate accordingly. The new rate applies to gasoline, diesel, hybrid, and fully electric vehicles.

For Nevada business owners, vehicle deductions often represent one of the most valuable tax-saving opportunities available. The key is understanding the rules, keeping accurate records, and choosing the deduction method that provides the greatest benefit for your specific situation.

At TaxPointe, we help Nevada business owners identify legitimate deductions, improve recordkeeping, and develop tax strategies designed to minimize tax liability while remaining fully compliant with IRS requirements. If you’re unsure whether you’re maximizing your vehicle deductions, now is a great time to review your tax strategy before more miles accumulate.

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Business Vehicle Tax Deductions

One of the most common questions I get from business owners is, “Can I write off my vehicle?”

The short answer is yes. The longer answer is that there are several ways to do it, and the best choice depends on your specific situation. Over the last two decades, I’ve seen business owners save thousands of dollars by structuring their vehicle deductions properly, and I’ve also seen others make expensive mistakes because they followed advice from social media or listened to a friend who claimed they could “write off the whole truck.”

The truth is that vehicle deductions can be extremely valuable, but they must be handled correctly.

Let’s walk through what business owners need to know.

The first thing to understand is that the IRS only allows deductions for the business-use portion of a vehicle. If you use a vehicle 100% for business, you may be able to deduct 100% of the qualifying expenses. If you use the vehicle 60% for business and 40% for personal activities, only the business portion is deductible. Keeping accurate mileage records is critical because the IRS expects documentation supporting the business-use percentage.

Most business owners will choose between two methods for deducting vehicle expenses: the standard mileage method or the actual expense method.

The standard mileage method is often the simplest approach. For 2026, the IRS allows a deduction of 72.5 cents per business mile driven. If you drive 15,000 miles for business during the year, your deduction would be $10,875. In many cases, this method is easy to administer because you simply track your business mileage rather than collecting every gas receipt, repair invoice, and insurance statement.

Many small business owners are surprised to learn that the standard mileage rate already includes expenses such as fuel, maintenance, insurance, depreciation, and operating costs. However, certain business-related parking fees and tolls may still be deducted separately.

The actual expense method takes a different approach. Instead of using a mileage allowance, you deduct the actual business percentage of expenses such as gasoline, oil changes, repairs, maintenance, tires, insurance, registration fees, lease payments, and depreciation. This method often produces a larger deduction for business owners driving expensive vehicles or those with significant operating costs.

Here’s where things become interesting.

The choice you make in the first year can have long-term consequences. For many vehicles, if you start with actual expenses and accelerated depreciation, you may lose the ability to switch to the standard mileage method later. This is one of the reasons I encourage clients to run both scenarios before making a decision. What seems like the larger deduction today may not be the most advantageous strategy over the life of the vehicle.

Another area that generates a lot of attention is Section 179.

Many business owners have heard that they can purchase a truck or SUV and write off the entire cost immediately. While there is some truth to that statement, there are important limitations.

To qualify for a Section 179 deduction, the vehicle generally must be used more than 50% for business purposes. Vehicles with higher gross vehicle weight ratings often qualify for larger first-year deductions than standard passenger cars. Certain vehicles over 6,000 pounds GVWR may qualify for substantially larger deductions under Section 179 and bonus depreciation rules than lighter passenger vehicles.

This is why you often hear business owners discussing heavy-duty pickup trucks, cargo vans, and larger SUVs near year-end. In some cases, these vehicles may generate significant first-year tax deductions when used primarily for business purposes. However, purchasing a vehicle solely for the tax deduction rarely makes financial sense. Spending $80,000 to save a fraction of that amount in taxes is still spending $80,000.

I frequently tell clients that the vehicle should make business sense first and tax sense second.

Another misconception involves luxury vehicles.

Many business owners assume they can purchase a luxury car through their business and deduct the entire cost immediately. In reality, passenger vehicles are subject to various depreciation limitations and luxury auto rules. The IRS has historically imposed caps on deductions for many passenger vehicles, making the write-off less dramatic than people expect. Larger qualifying vehicles may offer greater first-year deductions, but every situation should be analyzed individually.

The decision becomes even more important when you’re considering whether to buy or lease.

A leased vehicle may provide predictable monthly deductions and lower upfront costs. Purchasing a vehicle may create opportunities for depreciation and Section 179 deductions. Neither option is universally better. The correct answer depends on cash flow, expected business mileage, vehicle replacement cycles, and long-term business goals.

For self-employed professionals, real estate agents, contractors, consultants, mortgage lenders, and service businesses, I often find that the standard mileage method provides excellent value while keeping recordkeeping relatively simple. For businesses operating large trucks, specialized work vehicles, or expensive commercial equipment, the actual expense method frequently produces a larger deduction.

One factor that business owners consistently underestimate is mileage tracking. A vehicle deduction is only as strong as the records supporting it. In an audit, estimates and guesses generally don’t hold up. Modern mileage-tracking applications make this process easier than ever, and maintaining accurate records throughout the year can save a tremendous amount of stress later.

My recommendation after more than twenty years of helping business owners navigate tax planning is straightforward: don’t assume the biggest vehicle deduction is always the best strategy. The goal is to maximize your after-tax wealth, not simply generate the largest deduction.

Sometimes that means taking advantage of Section 179. Sometimes it means using standard mileage. Sometimes it means purchasing a vehicle, and sometimes leasing is the smarter move.

The best approach is to review your expected business mileage, business-use percentage, income projections, and future growth plans before making a purchase decision. A little planning before signing the paperwork can often save far more money than trying to fix the tax consequences after the fact.

If you’re considering purchasing a vehicle for your business this year, let’s discuss the numbers before you buy. The right strategy can save thousands of dollars. The wrong one can leave valuable deductions on the table.

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What the 2026 Tax Law Changes Mean for Small Business Owners

Over the past twenty-plus years of preparing tax returns and helping business owners navigate changing tax laws, I’ve learned that the headlines rarely tell the whole story.

Every time Congress makes changes to the tax code, business owners start hearing rumors. Someone says taxes are going up. Someone else says there are huge new deductions available. Before long, people are making business decisions based on incomplete information.

The reality is that most tax law changes create opportunities for some taxpayers and challenges for others. The key is understanding how those changes apply to your specific situation before the end of the year rather than finding out about them when it’s time to file your return.

As we move through 2026, there are several changes that small business owners should be paying attention to. For many of my clients, the biggest opportunities involve equipment purchases, business structure reviews, retirement planning, and taking a closer look at how taxable income is being managed throughout the year.

One of the conversations I’ve been having more frequently lately involves business owners who have delayed upgrading equipment, vehicles, computers, or machinery because they weren’t sure what the tax treatment would be. With the return of more favorable depreciation rules, many businesses may find that 2026 presents an opportunity to invest back into the company while also creating meaningful tax savings. That doesn’t mean anyone should buy something simply for the deduction. I’ve always told my clients that spending a dollar to save thirty cents is still spending a dollar. However, when a purchase already makes good business sense, favorable tax treatment can certainly make the decision easier.

Another area that continues to create significant savings opportunities is the Qualified Business Income deduction. Many small business owners have heard of it, but surprisingly few fully understand how much it can impact their tax liability. Depending on how your business is structured and how much income you’re generating, this deduction alone can make a substantial difference. Over the years I’ve seen many business owners focus heavily on finding additional write-offs while overlooking planning opportunities that could save them even more.

I’ve also noticed that many growing businesses eventually reach a point where their original business structure may no longer be the most tax-efficient option. What worked well when a business was generating modest income may not be the best choice after several years of growth. This is particularly true for sole proprietors and single-member LLC owners who have experienced increasing profits. Every situation is different, but reviewing your entity structure periodically is one of the simplest ways to identify potential tax savings.

One thing that has not changed during my career is the importance of planning ahead. In fact, it has become even more important. The IRS continues to use more sophisticated technology to identify discrepancies, unusual deductions, and reporting issues. Good recordkeeping has never been more valuable than it is today. The business owners who maintain organized records and work with a tax professional throughout the year generally experience far fewer problems than those who only think about taxes when filing deadlines arrive.

Perhaps the biggest misconception I encounter is the belief that tax planning and tax preparation are the same thing. They are not. Tax preparation is looking backward and reporting what already happened. Tax planning is looking ahead and making decisions that can improve future outcomes. Most meaningful tax-saving strategies occur before the year ends. Once January arrives, many of those opportunities are gone.

That’s why I encourage business owners to review their situation before year-end instead of waiting until tax season. A conversation in October or November often provides far more value than a conversation in March. Small adjustments involving retirement contributions, equipment purchases, estimated payments, entity structure, or income timing can sometimes produce savings that far exceed the cost of the planning itself.

The tax laws will continue to change, just as they always have. What remains constant is the value of proactive planning. After more than two decades of helping business owners navigate changing regulations, I’ve found that the most successful clients aren’t necessarily the ones with the biggest deductions. They’re the ones who understand their numbers, make informed decisions throughout the year, and view tax planning as an ongoing part of running a successful business.

If you’re a small business owner and you’re unsure how the 2026 tax changes may affect you, now is the perfect time to start the conversation. Waiting until tax season may mean missing opportunities that are available today.

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