Key Tax & Bookkeeping Reminders to Start the Year Off Right

Happy New Year from our team at Big Beach Books! January is one of the most important months for staying compliant and getting your financial house in order. Below are the key deadlines and reminders to keep top of mind as we kick off 2026.

Major January Tax Deadlines

January 15 — 4th Quarter Estimated Tax Payment

If you make quarterly estimated tax payments, your final 2025 payment is due January 15. This affects:

• Small business owners
• Independent contractors
• Rental property owners
• Taxpayers with large investment or pass-through income

Making this payment helps you avoid underpayment penalties.

January 31 — 1099-NEC & 1099-MISC Due

If you paid any contractor $600 or more in 2025, you must file the 1099-NEC with the IRS, provide a copy to the contractor, and correctly document their legal name, address, and TIN. If you haven't already, now is the time to:

• Collect W-9s from all vendors
• Review your vendor list for accuracy
• Confirm correct worker classification (contractor vs. employee)

January 31 — W-2 Filing Deadline

Employers must issue W-2s to employees, file the W-3 with the Social Security Administration, and reconcile year-end payroll totals for accuracy. If you ran any bonus payroll in December, confirm it was reported correctly.

Year-End Bookkeeping Cleanup

A clean set of books makes tax season much smoother. In January, we recommend:

• Reconcile all bank and credit card accounts through 12/31
• Categorize expenses properly (meals vs. entertainment, supplies vs. assets)
• Review accounts payable/receivable and clear old balances
• Perform year-end inventory counts (if applicable)
• Download final 2025 statements from banks, lenders, and payroll providers

Mileage & Home Office Reminders

• Capture your January 1 odometer reading if you track business mileage
• Update or review your home office documentation
• Set up your 2026 mileage log (digital or paper)

Plan 2026 Retirement Contributions Early

January is a great time to plan or adjust contributions for SEP IRAs, SIMPLE IRAs, Solo 401(k)s, and Traditional or Roth IRAs. (2025 IRA contributions can still be made until April 15, 2026.) It's also a smart time to evaluate whether a retirement plan should be added for 2026 if your business didn't have one.

Review Entity Structure & Elections

If you're considering an S-corporation election for 2026, the deadline is approaching quickly — March 15 for most businesses. January is also a good time to update business addresses, ownership changes, and state annual reports.

A Few More Start-of-Year Tips

• Review and update your 2026 budget
• Audit subscriptions and recurring charges
• Update payroll withholding if your income or family situation changed
• Confirm your state sales tax annual reconciliation (if applicable)
• Consider opting in to the IRS Identity Protection PIN program to guard against refund fraud
• Gather the documents you'll need for your 2025 return as they start arriving