First year depreciation deduction guidance, IRS Advisory Council annual report, tax incentives for Qualified Opportunity Zones, Filing season reminders, and other news

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e-News for Small Business




January 27, 2026





Issue Number:  2026-02

Inside This Issue

* Guidance available on additional first year depreciation deduction [ #First ]
* IRS Advisory Council issues annual public report [ #Second ]
* Revisions to Qualified Opportunity Zones in rural areas enhance tax incentives [ #Third ]
* Online tools and resources available for 2026 tax filing season [ #Fourth ]
* Other tax news [ #Fifth ]

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*  Guidance available on additional first year depreciation deduction*
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The IRS issued guidance [ [link removed] ] on first year depreciation deduction under the One, Big, Beautiful Bill. This deduction applies to taxpayers with eligible depreciable property acquired *after January 19, 2025*.

There’s also guidance on:


* Certain qualified sound recording productions property that may be eligible for deduction.
* Interim guidance for taxpayers who generally rely on existing first year depreciation deduction regulations.
* Rules on depreciable property that may be eligible for first-year depreciation deduction and the amount of allowable deduction.

For more about tax provisions under the OBBB, see One, Big, Beautiful Bill Provisions [ [link removed] ] on IRS.gov.

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*  IRS Advisory Council issues annual public report*
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The IRS Advisory Council issued its annual report with recommendations to the IRS on a range of new and continuing issues in tax administration. It includes recommendations on 29 issues addressing topics related to IRS operations, taxpayer service, compliance and administrative issues.

For more information on key issues addressed in the report, check out the news release [ [link removed] ].

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*  Revisions to Qualified Opportunity Zones in rural areas enhance tax incentives*
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IRS guidance [ [link removed] ]on Qualified Opportunity Zone investments in rural areas under the One, Big, Beautiful Bill [ [link removed] ] clarifies the definition of “rural area” and the application of the substantial improvement threshold for certain improvements to property located in a QOZ comprised entirely of a rural area.


* A rural area is any area other than a city or town with a population greater than 50,000, and any urbanized area contiguous and adjacent to a city or town with a population greater than 50,000.
* The substantial improvement threshold for required additions to the basis for property in these QOZs was reduced from 100% to 50%.

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*  Online tools and resources available for 2026 tax filing season*
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 The IRS reminds business and individual taxpayers of new tax law provisions of the One, Big, Beautiful Bill could impact federal taxes, credits and deductions. Taxpayers should take steps now to prepare for filing taxes:


* Create or access your Business Tax Account [ [link removed] ] or Individual Online Account [ [link removed] ]
* Gather and organize records
* Review and understand reporting documents and requirements

Taxpayers who do not have a bank account are encouraged to open one [ [link removed] ] so they can receive refunds by direct deposit [ [link removed] ].

More information on how to prepare can be found in IRS Tax Tip, Next steps to Get Ready for 2026 tax filing season [ [link removed] ].

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*  Other tax news*
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The following information may be of interest to individuals and groups in or related to small businesses:


* Supplemental basic allowance made December 2025 for housing payments to members of the military are not taxable [ [link removed] ]
* New updated safe harbor explanations available for retirement plan administrators [ [link removed] ]

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Tax Resources for Small Business

Small Business Self-Employment Center [ [link removed] ]

Small Business Forms & Instructions [ [link removed] ]

Small Business Tax Workshops, Meetings and Seminars [ [link removed] ]

Webinars for Small Businesses [ [link removed] ]

E-file Employment Tax Forms [ [link removed] ]

Businesses with Employees [ [link removed] ]

Self-Employed Individuals Tax Center [ [link removed] ]

S Corporations [ [link removed] ]

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Other Resources

IRS Home Page [ [link removed] ]

A-Z Index for Business [ [link removed] ]

Forms, Instructions & Publications [ [link removed] ]

Filing Your Taxes [ [link removed] ]

Pay Online [ [link removed] ]

Taxpayer Advocate Service [ [link removed] ]

Retirement Plans for Small Entities and Self-Employed [ [link removed] ]

Tax Information for Charities [ [link removed] ]
and Other Non-Profits [ [link removed] ]

State Government Websites [ [link removed] ]

SSA/RS Reporter [ [link removed] ]

IRS Social Media [ [link removed] ]

 







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