2026 Tax Changes: What Matters Right Now

Clarity in a complicated moment — what’s changing, what’s still evolving, and how to plan with confidence.

New federal tax provisions are rolling out under H.R. 1, and many individuals and businesses are asking the same question: What do I actually need to be paying attention to right now?

Some changes are already in motion. Others are still being clarified. This page brings together current information, professional insight, and ongoing updates to help you make informed decisions without unnecessary uncertainty.

Professional Insight on the 2026 Tax Changes

As these changes unfold, our partners are closely monitoring developments and sharing practical perspective on what matters most — and what can wait.

Jonathan Gauss

Tax Partner
Tax Changes for Individuals & Businesses

Dan Bledsoe

Tribal Gaming Partner
Tax Changes for Tribal Gaming Operations

What We’re Watching as the Law Unfolds

Legislation of this size doesn’t settle all at once. Below are key areas we’re actively monitoring as additional guidance is released.

Temporary Reporting Relief for 2025
The IRS has announced it will not penalize employers or payers for failing to separately report cash tips or overtime compensation for the 2025 tax year. This temporary relief allows time for payroll systems and reporting processes to adjust as guidance continues to develop.

A Broad Law With Many Moving Parts
Some provisions have firm start dates, while others still require regulatory clarification. Additional updates are expected throughout 2025 and 2026. Awareness and preparation are more important right now than assumptions.

Direct File Has Closed
The IRS has ended its Direct File pilot program. Taxpayers who relied on Direct File will need alternative filing options for the 2025 and 2026 filing seasons.

What This Means for Individuals and Businesses

With so much information circulating — and some of it conflicting — it’s easy to feel unsure about what applies to you. The right next step depends on your situation, timing, and goals.

How We Help Clients Navigate Change

At F&C, Tax & Bookkeeping reflects Good to Know — because the more you understand, the more confident your decisions become.

For our clients, that means clarity in a complicated world. We translate numbers and rules into understanding so leaders can act decisively, avoid surprises, and plan for what’s next with confidence.

Why Clarity Matters Right Now

When rules are shifting, confidence doesn’t come from knowing everything. It comes from understanding what matters most — and having a steady team to help you plan for what’s next.

Questions or Planning Ahead?

If you have questions about how these changes may affect you or your organization — or if you’re looking for a tax advisor who prioritizes clarity and proactive planning — our team is here to help.

Talk with Our Tax Team

Sorting Through the 2026 Tax Changes: What Matters Right Now

By Jonathan Gauss, CPA – Tax Partner

The federal tax landscape is entering one of the most significant transition periods we’ve seen in years. As new provisions begin rolling out under H.R. 1, many individuals and businesses are asking the same question:
“What do I actually need to be paying attention to right now?”
It’s a fair question — and an important one.
 
This legislation is broad, and not everything takes effect at the same time. Some provisions are already in place. Others are still being clarified. And in certain areas, temporary relief has been granted to allow time for systems and guidance to catch up.
 
That kind of phased rollout is common with legislation of this size.

Temporary Reporting Relief for 2025

One of the most immediate updates affects employers and payers.
 
The Internal Revenue Service recently announced it will not penalize employers for failing to separately report cash tips or overtime compensation for the 2025 tax year, even though the law anticipates this reporting in the future.
 
These provisions are part of the new law, but enforcement has been delayed to give businesses time to adjust payroll systems and reporting processes as additional guidance is issued.
 
For many organizations, this relief provides some breathing room — and an opportunity to plan ahead before these reporting requirements become mandatory.

A Broad Law With Many Moving Parts

H.R. 1 is a wide-reaching piece of legislation with provisions that affect individuals, families, and businesses of all sizes.
 
A few key realities are important to keep in mind:
  • Certain provisions have firm start dates.
  • Several areas still require additional regulatory guidance.
  • Further clarification is expected throughout 2025 and 2026.
In an environment like this, the most effective approach is awareness, preparation, and ongoing review — not assumptions based on incomplete information.

Direct File Has Closed

Another notable development is the closure of the IRS’s Direct File pilot program.
 
Nearly 300,000 taxpayers used Direct File during the 2024 filing season, but the program will not continue. Taxpayers who relied on it will need to plan for alternative filing options for the 2025 and 2026 filing seasons.
This change doesn’t affect how taxes are calculated, but it does impact how returns are filed — and it’s something taxpayers should be aware of as they plan ahead.

What Clients Should Focus On Right Now

With so much information circulating — and some of it conflicting — it’s easy to feel unsure about what applies to you and what doesn’t.

At this early stage, the most important priorities are:

  • Knowing that change is coming
  • Understanding that some provisions are still taking shape
  • Planning early rather than reacting later

  • Relying on qualified tax professionals, not speculation or headlines

Tax law complexity isn’t something you’re expected to navigate on your own.

What Clients Should Focus On Right Now

Our role is to monitor developments as they occur, separate confirmed guidance from speculation, and translate complex rules into practical insight.
 
As additional clarification is released, we’ll continue sharing updates in clear, straightforward terms — focused on what matters, what’s changing, and when action may be needed.
 
When the rules are evolving, steady communication and thoughtful planning make all the difference.
Plan Ahead With Confidence

Tax Reporting Changes Impacting Tribal Casinos

Key IRS threshold updates, operational considerations, and planning steps for Tribal Gaming Operations

If you haven’t heard already there are changes coming for Tribal casinos in 2026 in relation to their tax reporting requirements that will have significant impact on their operations.

With its recent release of a draft copy of the Form W-2G, the IRS has indicated that there will be an increase in the reporting threshold from $1,200 to $2,000 beginning in the 2026 tax year, though the specific effective date has not yet been published.  Beginning in the 2027 tax year, the threshold will be adjusted annually based on the Consumer Price Index (CPI). 

Additionally, the instructions for the draft Form W-2G included instructions related to filing for sports wagering winnings, with the threshold of winnings (minus the wager) of $2,000.  This is subject to the 300-to-1 rule, whereby the reporting is not required if the winnings are not more than 300 times the amount wagered.  The tax withholding requirements on sports wagering winnings continues to be at a threshold of $5,000, subject to the 300-to-1 rule (with the withholding rate at 24%).

Legislation passed during 2025 will also increase the reporting threshold for forms 1099-MISC and 1099-NEC to $2,000 from the current threshold of $600, beginning in the 2026 tax year.

Since these are significant changes, there will be several considerations in implementing into your operations including:

  • Discussions with your IT personnel and gaming vendors on a plan for updating your slot machines to the new threshold for both 2026 and in future years when the threshold is adjusted for CPI.
  • Updating policies and procedures for slots, sportsbook, cage, and other areas as necessary to implement for the new reporting thresholds.
  • Educating and training the casino floor and cage managers/supervisors and other key personnel on the new reporting thresholds and how that impacts their day-to-day procedures.
  • Considerations for obtaining information for T31 reporting versus tax reporting on jackpots, qualifying sports wagering winnings, drawings, and other prize giveaways.

How F&C CPAs Can Help

With our extensive experience with the tax reporting requirements for Tribal casinos and Tribal governments, the professionals with F&C CPAs are well positioned to assist with implementing these changes.
Discuss Your Next Steps