e-News for Small Business Issue 2026-01

The 2026 filing season starts Monday Jan. 26, 2026. The IRS reminds all business and individual taxpayers that the new tax law provisions of the One, Big, Beautiful Bill could impact federal taxes, credits and deductions. Form 1040 filers should file their tax returns and pay any taxes by Wednesday, April 15, 2026.

IRS.gov has online tools and resources taxpayers can use before, during and after filing their federal tax return. Visit One, Big, Beautiful Bill Provisions for information that could help lower tax bills and potentially increase refund amounts.

Guidance issued on the new deduction for car loan interest

Guidance is available on the “no tax on car loans” provision under the One, Big, Beautiful Bill. This deduction applies to interest paid on cars purchased after Dec. 31, 2024. The new tax benefit is for both taxpayers who take the standard deduction and those who itemize deductions.

Businesses that receive $600 or more from any individual interest, for any calendar year, on a qualified passenger vehicle loan must comply with reporting requirements.

See the news release for more information about eligibility requirements for taxpayers and lenders. Treasury and the IRS request feedback on proposed regulations by Feb. 2 through Regulations.gov.

IRS has answers to questions about One, Big, Beautiful Bill

Don’t miss deductions that could reduce taxable income and increase refunds due to the One, Big, Beautiful Bill. Some of the tax law provisions for individuals include deductions for seniors, no tax on tips, overtime and car loan interest.

The following resources available to help taxpayers find answers to tax questions:

IRS.gov/Help: Variety of resources to answer some of the most common tax questions
IRS.gov/ITA: Interactive Tax Assistant provides answers on several tax topics based on input
IRS.gov/Forms: Find forms, instructions and publications on the most recent tax changes
Publication 17: Explains tax law

Check out the news release for more information.

Standard milage rate for business use increases for 2026

The standard mileage rate for vehicles driven for business will increase by 2.5 cents in 2026. The mileage rate for vehicles used for medical purposes will decrease by half a cent, reflecting updated cost data and annual inflation adjustments.

The updated standard mileage rates for the use of a car, van, pickup or panel truck will be:

72.5 cents per mile driven for business use
20.5 cents per mile driven for medical purposes
20.5 cents per mile driven for moving purposes for certain active-duty members of the Armed Forces and certain members of the intelligence community
14 cents per mile driven in service of charitable organizations
Use of the standard mileage rates is optional; business taxpayers may instead choose to calculate the actual costs of using their vehicle

See the news release for guidance on vehicles owned and used for business versus a leased vehicle.

Tax relief issued for State of Washington disaster victims

Businesses and individuals in the State of Washington affected by severe storms, straight-line winds, flooding, landslides, and mudslides that began on Dec. 9, 2025, may be eligible for tax relief.

These taxpayers now have until May 1, 2026, to file various federal business and individual tax returns and make tax payments.

Other tax news

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

Updated FAQs on Limitation on the Deduction for Business Interest Expense
Updated Premium Tax Credit FAQs
Proposed regulations reflecting changes to the threshold for backup withholding on certain payments made through third parties
Prepare to file in 2026: Get Ready for tax season with key updates, essential tips

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