Monthly Tax Update
October is here, and more due dates to review. First, the due date applies to companies and taxpayers with payroll; they must file and pay their tax liability for Form 941 (Federal) and Form RT-6 Unemployment with the Florida DOR by November 2, 2026, because October 31 falls on a Saturday.
Moreover, companies that are closing their businesses need to file the final Forms 941, 940, and RT-6. I see some businesses receiving IRS letters with penalties for not filing payroll forms two years ago.
Also, you need to keep your tax records for at least 4 years. The next due date is October 15, 2026, which is the due date for the personal tax returns. Taxpayers need to include Form K-1’s from their partnerships and/or S-Corporations with the due date last September 15, 2026.
It is important to file your tax return even if you owe money to the IRS. Some taxpayers delay filing their taxes after the due date to avoid the IRS starting collection on their balance due. It is important to remember that there are two penalties: one for not filing on time, including extension by October 15, 2026, and the second for not paying your tax liability by April 15, 2026. That is why I recommend filing the tax return even if you owe taxes to the IRS, and in this way avoid unnecessary extra penalties of about 5% per month of the amount due. Perhaps for personal tax returns with tax liability under $50,000, the IRS will, in most cases, grant an installment agreement of up to 72 months. It is crucial to set up automatic monthly payments for the installment agreement to prevent missed payments and cancellations.
Now, I will provide an update on subcontractor payments for 2026. The federal reporting threshold for Form 1099-NEC (Non-employee Compensation) increases from $600 to $2,000 per payee for payments made on or after January 1, 2026 under the One Big Beautiful Bill Act (OBBBA). The new Form 1099-NEC for 2026 includes separate individual address entry boxes and new fields to report cash tips, Treasury Tipped Occupation Codes and overtime compensation.
Last, starting January 1, 2026, most food and beverages provided to employees on-site or for the employer's convenience are 0% deductible under a provision taking effect under the Tax Cuts and Jobs Act. This includes meals provided so employees stay on-site during shifts, subsidized employer-operated eating facilities, meals ordered when staff work extra hours, and breakroom coffee, snacks and drinks. Nevertheless, company events are still 100% deductible.
More good business tax stuff next month. Remember, this is a very brief overview. It is your responsibility to discuss any tax and financial changes with your professional advisor for assistance in evaluating your situation.
For details and specific assistance in applying the general information in this article, call us at your earliest convenience or contact your tax advisor. Provided by Pedro L. Baldeon, E.A., 321-632-5726, a member of the National Society of Tax Professionals.
