Monthly News & Updates January 2026 | Issue 1-26
| | As we embark on the exciting journey of 2026, we want to take a moment to reassure our valued clients and prospects of our unwavering commitment to excellence. With the LNB Promise, we are dedicated to ensuring that your business sense translates into real savings—both in dollars and cents! As you embrace the New Year, let’s raise a toast to a prosperous 2026 filled with success and joy, because with LNB Accounting by your side, your goals are always “in the ledger.” Together, let’s seize the opportunities that lie ahead and navigate your financial journey with confidence and care. | |
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💡 Honoring Martin Luther King Jr. Day ✨
Today, we pause to honor the life and legacy of Dr. Martin Luther King Jr., a leader whose courage, conviction, and unwavering commitment to justice continue to shape our nation. Dr. King reminded us that progress is not automatic — it requires intention, collaboration, and the moral courage to stand for what is right. His vision of equality, dignity, and shared humanity remains a call to action for each of us in our communities and workplaces. As we reflect on his legacy, may we recommit ourselves to building spaces where every voice is valued, every person is respected, and every community has the opportunity to thrive.
“The time is always right to do what is right.” — Dr. Martin Luther King Jr.
| | | | IMPORTANT IRS DATES FOR JANUARY 2026 | | | Date | Event | Type | | Jan 15, 2026 | Q4 2025 estimated tax payment due | Individuals & Businesses | | Jan 26, 2026 | IRS opens the 2026 tax filing season | Individuals, Businesses & Nonprofits | | Jan 31, 2026 | Issue W‑2s & 1099‑NECs to recipients | Employers | | |
MAJOR CHANGES FOR THE TAX SEASON 2026
A mix of good news and challenges. Prepare accordingly.
| | | Change | Description | | Car loan interest deduction | Taxpayers can deduct interest on new U.S.-made vehicles. | | New senior deduction | Taxpayers 65 and older can claim an additional $6,000 (or $12,000 for qualifying couples). | | New Required Form: Schedule 1‑A | A new two‑page form, Schedule 1‑A, must be filed to claim deductions for: tips, overtime, car loan interest and senior deduction. | | Bigger Refunds for Many Taxpayers | Because of the expanded deductions and extended tax cuts: many filers may see larger refunds or lower balances due. | | New “Trump Accounts” for Children | Parents can open new retirement‑style accounts for children: a $1,000 government contribution for babies born 2025–2028; Up to $5,000 annual contributions allowed starting July 5, 2026. | | Paper Refund Checks Being Phased Out | The IRS is moving toward direct deposit only, as part of a federal modernization initiative. Taxpayers should ensure they have a bank account set up for refunds. | | Filing Process Changes | IRS Direct File program discontinued for 2026 season—taxpayers must use other filing methods. | | More Documentation Required | Taxpayers should expect: more detailed reporting on W2s and 1099s; additional recordkeeping for tips, overtime and car loan interest; possible reliance on personal records due to employer penalty relief. | | |
MAJOR FINANCIAL STATEMENT AUDIT UPDATES FOR 2026
Bottom line: Audits are becoming more costly and more demanding. Be prepared.
| | | Change | Description | | SAS 145 – Understanding the Entity and Assessing Risk (Effective for 2025 YE audits performed in 2026) | Auditors must demonstrate a clearer linkage between identified risks and audit responses. This means that auditees (regardless of the size) need to prepare more documents to support their business environment and IT controls. | | SAS 142 – Audit Evidence (Effective for 2023–2024, but fully impacting 2026 audits) | This standard reshapes how auditors evaluate evidence in a digital environment. This means that auditors now need more scrutiny of client‑provided reports and system‑generated data to assess the reliability of electronic evidence collected from the client such as cloud systems, screenshots, exports, automated workflows. | | SAS 143 – Accounting Estimates (Effective now, but highly relevant for 2026 audits) | Auditors are now required to obtain more documentation supporting fair value measurements, allowances, impairments, revenue estimates. This means that clients now need to expect more work around assumptions, models, and data sources. | | SAS 144 – Use of Specialists and Pricing Services | This affects audits involving valuation, actuarial work, or complex estimates and set stronger requirements for evaluating the competence, capabilities, and objectivity of specialists. Auditors are now also required to collect more documentation around pricing services sued for investments. | | | | | |
