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obbba 2025-2026 tax changes

One Big Beautiful Bill (OBBBA): 2025–2026 Individual Tax Changes Explained

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Congress passed the 2025 Reconciliation Legislation—informally called the One Big Beautiful Bill Act (OBBBA)—with a mix of immediate (2025) and later (2026+) changes. Below is a simplified guide for individuals, with links to official IRS pages.

For workers: overtime and tips deductions (2025–2028)

  • Overtime: A new above‑the‑line deduction lets eligible workers deduct the overtime premium portion of pay—generally the “half” in time‑and‑a‑half required under the FLSA—up to $12,500 (single) or $25,000 (MFJ). Phase‑outs start at $150k/$300k MAGI. You’ll use the totals your employer furnishes (2025 transition) and watch for W‑2 reporting updates.

New additional deduction for seniors (2025–2028)

Individuals age 65+ may claim an additional $6,000 deduction on top of the standard or itemized deduction, with a phase‑out at higher MAGI and a valid SSN requirement. See the IRS OBBBA provisions overview for limits and eligibility.

Higher SALT deduction cap for many households (starting 2025)

For many taxpayers under specified income thresholds, the cap on state and local taxes increases. IRS materials summarize the change and caveats. See Publication 4011 (Rev. 10‑2025) for a plain‑English summary of itemized deduction updates, including the SALT cap.

Online payments: 1099‑K threshold restored (2025 and beyond)

Third‑party platforms (e.g., PayPal, Etsy) return to issuing Form 1099‑K only when payments exceed $20,000 and 200 transactions in a year. See IRS FAQs and the OBBBA provisions page. IRS news on 1099‑K threshold • OBBBA provisions (Sec. 70432)

New car‑loan interest deduction (2025–2028)

A temporary deduction allows up to $10,000 of interest on qualifying new, U.S.‑assembled vehicles purchased with loans originated after Dec. 31, 2024. The benefit phases out at higher incomes and has VIN/return reporting and lender information requirements. See the IRS overview and Schedule 1‑A draft.

529 plan expansions (mostly 2026)

Starting in 2026, the annual K‑12 withdrawal cap rises to $20,000 and the definition of qualified expenses broadens (e.g., books, online materials, tutoring, and some credentialing costs). Confirm state conformity before withdrawing. See IRS and plan‑sponsor summaries.

Timing matters: 2025 vs. 2026 forms—and a shift to electronic refunds

Some 2025 items use “transition” reporting (e.g., W‑2 box 14 statements for overtime/tips totals) before new boxes/codes are finalized for 2026 returns.

IRS newsroom will post the final instructions. Also, under Executive Order 14247, the IRS is phasing out paper refund checks beginning Sept. 30, 2025; set up direct deposit or IRS Direct Pay/EFTPS now.

What to do now

  • Verify whether your job qualifies for the tips deduction and track tips accurately.
  • Ask payroll to confirm how qualified overtime and tips totals will be furnished for 2025.
  • If buying a new car, confirm U.S. final assembly and keep your VIN and loan docs.
  • If you itemize, revisit the SALT cap math vs. the standard deduction.
  • If you sell online, understand whether you’ll get a 1099‑K (>$20k and >200 transactions per platform).
  • Plan 529 withdrawals with state‑specific rules in mind.

How can Archer Lewis help?

Archer Lewis can help you turn these new OBBBA rules into a clear, practical plan—without missing deductions or creating avoidable IRS headaches. We’ll review your 2025–2028 eligibility for the overtime premium and tips deductions, confirm the right documentation (including any employer “transition” reporting for 2025), and model MAGI phaseouts so you know what to expect before you file. For seniors, we’ll verify the new additional deduction requirements and optimize standard vs. itemized strategies—especially with the updated SALT cap rules. If you’re buying a new vehicle, we’ll help you confirm qualifying U.S. final assembly, organize VIN/loan records, and apply the car-loan interest deduction correctly. We also advise online sellers on 1099-K reporting and help families plan 529 withdrawals with state conformity in mind. Finally, we’ll make sure your refund and payment setup is ready as the IRS shifts away from paper checks.

The New Overtime Tax Deduction (2025–2028): Who Qualifies, How to Claim, and What Employers Must Report

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Starting in 2025, the new overtime tax deduction allows eligible workers to deduct the overtime premium portion of pay from federal taxable income—up to $12,500 ($25,000 if married filing jointly), with phase‑outs beginning at $150,000/$300,000 MAGI. Employers should furnish totals for 2025 (e.g., W‑2 Box 14 or a statement), and a new W‑2 Box 12 code “TT” is slated for 2026 filings. See IRS guidance under the One Big Beautiful Bill Act provisions.

What changed—and why it matters

The new overtime tax deduction, part of the One Big Beautiful Bill Act, lets qualifying overtime be deducted for tax years 2025 through 2028. It targets the extra “half” in time‑and‑a‑half pay required by the Fair Labor Standards Act (FLSA) and is designed to reduce taxes for non‑exempt workers.

Eligibility at a glance

How the deduction works

Only the premium portion of overtime (the “half” in time‑and‑a‑half) is deductible. You must receive a W‑2/1099 or specified statement showing the total qualified overtime for the year—self‑computed estimates from pay stubs aren’t allowed.

Reporting: 2025 vs. 2026

Employer checklist (now → year‑end)

  • Enable payroll tracking for the qualified overtime premium.
    • Decide how you’ll furnish totals for 2025 (e.g., W‑2 Box 14 or a year‑end statement).
    • Coordinate with payroll to support the draft 2026 W‑2 code “TT” and any final instruction changes.
    • Set internal deadlines to compile and verify year‑end totals.

Employee tips (at tax time)

  • Use the qualified overtime total furnished on your W‑2/statement.
    • Remember the annual caps and phase‑out thresholds.
    • Married? File jointly to claim.
    • Keep the employer’s statement with your records.

Quick example

If your regular rate is $20/hour and you worked 200 overtime hours at $30/hour, the deductible portion is the extra $10 (“half”) × 200 = $2,000—subject to the annual cap and income phase‑outs. See FLSA overtime basics.

Documentation matters

The IRS emphasizes accurate reporting. For 2025, rely on the totals furnished by your employer (W‑2 Box 14 or similar). For 2026+, look for Box 12 code “TT.” Employers should retain payroll details supporting the totals, and employees should keep year‑end statements with their returns.

How Archer Lewis can help

We can help you translate these new overtime rules into clear, workable steps—so they don’t get lost in the shuffle of year-end payroll and tax season. For employers, we can review your current payroll setup, help you identify exactly what counts as the FLSA overtime “premium,” and work with your payroll provider to track it correctly for 2025–2028. We’ll also help you decide how to furnish totals to employees (W-2 Box 14, separate statement, or both), and prepare internal guidance so HR, payroll, and finance are all aligned before forms go out.

On the employee side, we can help eligible workers and business owners who receive W-2 pay understand how the new deduction fits into their bigger tax picture. That includes modeling how much benefit the overtime deduction may provide under different income levels, watching for the phase-outs at higher MAGI, and making sure the deduction is properly reported on Schedule 1-A when you file. If you’re married, we can also walk you through how the joint filing requirement interacts with other planning decisions.

If you’re unsure whether your overtime tracking will meet IRS expectations—or you just want a second set of eyes on your forms and statements—your Archer Lewis advisor is here to help. We’ll coordinate with your payroll systems, monitor evolving IRS guidance (including the final W-2 “TT” instructions), and integrate this deduction with the rest of your planning under the One Big Beautiful Bill Act. That way, your team can focus on running the business, while we help you capture every dollar you’re entitled to under the new rules.

Mandatory Electronic IRS Payments: What’s Changing—and How to Get Ready

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The IRS is moving to electronic payments. Paper refund checks for individuals start phasing out on September 30, 2025. For payments you send to the IRS, keep using current options (including EFTPS, IRS Direct Pay, and checks) until the IRS issues further guidance—but it’s smart to switch to electronic payments now. See the IRS news release and the Executive Order for details.

What’s changing (and when)

Refunds go digital first (Sept 30, 2025): Paper refund checks will be phased out and replaced by direct deposit or other secure electronic payment methods, with limited exceptions allowed by law. Guidance for 2025 returns will be published before the 2026 filing season. (IRS news release)

Incoming payments are next: A March 25, 2025, Executive Order directs agencies (including the IRS) to transition federal disbursements and receipts to electronic methods “to the extent permitted by law.” The IRS has indicated that taxpayers should continue using existing payment options until further notice while it finalizes the rules. (Executive Order 14247)

How to pay the IRS electronically now

What about paper checks?

For now, the IRS states you should continue using existing payment options (which currently include checks) until it issues new guidance—but expect a transition toward mandatory e-payments in the future. If you still rely on checks, begin moving to electronic options to avoid last-minute changes. See IRS payment options and the IRS news release.

Accessibility & exceptions

The policy includes limited exceptions and options for those without bank accounts (e.g., prepaid debit solutions or digital wallets). If you need a bank account, resources like FDIC GetBanked can help you find low- or no-cost options. The Taxpayer Advocate Service has also urged the IRS to protect vulnerable taxpayers during the transition.

Action checklist

  1. Set up EFTPS (for businesses, trusts, estates, and individuals who often pay).
  2. Use IRS Direct Pay for one-off individual payments.
  3. Add direct deposit details to your return so future refunds land in your account (see IRS direct deposit guidance).
  4. Verify and update bank info now; don’t wait for filing season.
  5. Watch for IRS guidance on the timeline for mandatory electronic payments you send.

Security tip

Electronic payments reduce the risk of mail theft, but watch for phishing. The IRS never initiates contact by text/email to request payment details. Report suspicious messages to phishing@irs.gov and see how to report tax scams.

How can Archer Lewis help?

Archer Lewis can help you get in front of these changes so they’re one less thing on your plate at tax time. Our team can walk you through which electronic payment options make the most sense for your situation, help you enroll in EFTPS, set up and test bank information, and ensure your refund and payment instructions are correct on your returns. We can also help your internal team update processes and calendars so e-payment deadlines and workflows are clearly mapped out—before the IRS makes them mandatory.

If you’re unsure where to start—or worried about security, access, or how this shift affects your cash flow—let’s talk. Your Archer Lewis advisor can review your current payment habits, identify any risks or gaps, and put together a simple step-by-step plan to transition to secure electronic payments with the IRS. That way, when the rules change, you’ll already be ready.

Draft Schedule 1-A (2025): How the Four OBBBA Deductions Work—and Where They Flow on Form 1040

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The IRS has posted a draft of Schedule 1‑A (Form 1040), creating a single place to compute four new deductions from the One Big Beautiful Bill Act (OBBBA). Below, we explain how the math works, where Modified Adjusted Gross Income (MAGI) fits in, and how your final total lands on Form 1040 line 13b.

Start here: calculate MAGI

Part I of Schedule 1‑A walks you from AGI on Form 1040 line 11b to MAGI by adding back specific items (e.g., excluded Puerto Rico income and foreign earned income). This MAGI figure drives phaseouts for each deduction. See the draft Schedule 1‑A for exact line‑by‑line steps.

The four new deductions (and their formulas)

1) “No Tax on Tips” (Part II) — Cap: up to $25,000 per year. Eligibility: qualified tips in occupations the IRS lists as “customarily and regularly” tipped; employees and some self‑employed may qualify, with joint filing and SSN requirements. Phaseout: starts at $150,000 MAGI ($300,000 MFJ). Formula: after you compute qualified tips and apply the $25,000 cap, reduce the result by $100 for every $1,000 of MAGI over the threshold (lines 8–13).

2) “No Tax on Overtime” (Part III) — Cap: $12,500 single / $25,000 MFJ. Eligibility: only the premium portion of overtime (the “half” in time‑and‑a‑half). Joint filing and SSN requirements apply. Phaseout: starts at $150,000 MAGI ($300,000 MFJ). Formula: after the cap, reduce the result by $100 for every $1,000 of MAGI over the threshold (lines 16–21).

3) “No Tax on Car Loan Interest” (Part IV) — Cap: up to $10,000 per year. Eligibility: interest on loans originated after Dec. 31, 2024, for a personal‑use vehicle (not business), original use by the taxpayer, secured by a lien, and final assembly in the United States with GVWR under 14,000 lbs. VIN reporting required. Phaseout: starts at $100,000 MAGI ($200,000 MFJ). Formula: after the cap, reduce the result by $200 for every $1,000 over the threshold (lines 25–30).

4) “Enhanced Deduction for Seniors” (Part V) — Amount: $6,000 per eligible individual age 65+ (i.e., $12,000 if both spouses qualify). Phaseout: starts at $75,000 MAGI ($150,000 MFJ). Formula: multiply excess MAGI over the threshold by 6%, then subtract that amount from $6,000 (lines 31–35).

Where it lands on your Form 1040

Schedule 1‑A adds the four results and carries the total to Form 1040 line 13b (or line 13c on Form 1040‑NR). That amount reduces your income before tax is computed—these are deductions, not credits.

Draft status and OMB approval

All materials linked here are drafts and “DRAFT—NOT FOR FILING.” IRS drafts can change and must receive OMB approval before final release. Expect minor edits to line numbers or instructions.

What to do now

  • Confirm you (or employees) will receive the info needed for tips and overtime totals in 2025.
  • If planning a vehicle purchase, verify U.S. final assembly and keep VIN and loan documents.
  • If 65+, note the separate $6,000 senior deduction in addition to the standard deduction rules.
  • Track MAGI during the year—phaseouts can eliminate some or all of these benefits.

How Archer Lewis can help

Archer Lewis can help you navigate Draft Schedule 1-A from start to finish—calculating MAGI, modeling phaseouts, and documenting each deduction correctly. We’ll verify eligibility for “No Tax on Tips” and “No Tax on Overtime” (including 2025 transition reporting and 2026 W-2 code updates), confirm vehicle loan/VIN requirements for the car-interest deduction, apply the $6,000 senior deduction where it fits, and ensure your totals flow cleanly to Form 1040 line 13b. If you’d like, we’ll coordinate with payroll, set up a simple record-keeping checklist, and file your return accurately and on time. Reach out to Archer Lewis to get started.

Florida Department of Revenue Repeals Commercial Rents

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Big news for Florida commercial property owners and tenants: the state is eliminating sales tax on commercial rent, starting October 1, 2025. This significant change affects not just base rent, but also Common Area Maintenance (CAM) charges, property tax reimbursements, insurance costs, and other charges typically found in triple net leases. If you’re a landlord, property manager, or commercial tenant in Florida, understanding how this repeal impacts your billing, lease agreements, and tax obligations is critical. Here’s everything you need to know to navigate this transition smoothly.

Under current law (through September 30, 2025), Florida imposes sales tax not only on the base rent but also on additional rent charges commonly found in triple net leases (e.g., CAM, property taxes, insurance, maintenance, utilities) when they are required as part of the rental consideration.

    • Florida Admin. Code Rule 12A-1.070(4)(b) treats these payments as part of the taxable rent.
    • So today, if you’re charging CAM or tax reimbursements under a triple net lease, you must collect sales tax on those items just like on base rent.

Starting October 1, 2025, the repeal eliminates the sales tax on all consideration paid for the use of commercial real property, including:

    • Base rent
    • Percentage rent
    • CAM charges
    • Insurance and tax reimbursements under triple net leases

The Department of Revenue’s Tax Information Publication (TIP 25A01-04, July 25, 2025) confirms that “the repeal applies to all charges subject to tax as rent or license fees for real property,” which includes triple net structures. The repeal also eliminates the county surtax on these charges as of the same date.

What You Should Do Now

  • Landlords and property managers should:
    • Continue collecting and remitting sales tax (and any local surtax) for occupancy periods through September 30, 2025.
    • For occupancy periods on or after October 1, 2025, stop charging sales tax.
    • Update billing systems, lease agreements, and tenant communications to reflect the repeal.
    • File any final returns—even if they are “zero returns”—for the final reporting period. The Department of Revenue will subsequently update your account.
    • Link: The Department of Revenue’s Tax Information Publication (TIP 25A01-04, July 25, 2025)
  • Tenants, especially those in subleased or shared-use arrangements, should:
    • Confirm that invoices no longer include sales tax for periods on or after October 1, 2025.
    • Review lease clauses that reference “applicable sales tax” and adjust mechanisms for automated payments.

Considerations

There are a few scenarios where sales tax returns may still need to be filed for commercial rents:

  • Back Rent
    • If rent is collected after September 30th for a prior period, this rent is still taxable. Sales tax must be collected on only the amounts for the prior period, and a sales tax return must be filed.
  • Property Taxes
    • If a tenant is required to reimburse the landlord for property taxes, this may occur after the last commercial rent sales tax return is required, such as an annual reimbursement for property taxes. Since the property tax reimbursement covers taxable periods, sales tax must be collected, but only on the prorated periods before October 1st, 2025. Alternatively, if property tax is included with the tenant’s rent payment and is remitted on the sales tax return monthly, this additional sales tax return will be unnecessary, as the sales tax has already been remitted.

Tax changes like this don’t have to be complicated. At Archer Lewis, we work alongside Florida property owners and managers to make sense of regulatory shifts and keep your operations running smoothly. We’re not just filing returns—we’re helping you understand what this repeal means for your specific properties, updating your processes, and ensuring nothing falls through the cracks during the transition. From triple net lease adjustments to final return filings and back rent considerations, we’ve got the expertise to guide you through every detail. Reach out today, and let’s make sure you’re positioned to benefit fully from Florida’s commercial rent tax repeal.

Cost Segregation for Vacation Rentals: Maximize Your Tax Savings

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A vacation home can be more than just a personal getaway; it can also be a smart investment when paired with the right tax strategies. One powerful but often overlooked approach is a cost segregation study. This technique allows vacation home owners—especially those using the property as a short-term rental—to accelerate depreciation deductions by reclassifying building components into shorter recovery periods. By doing so, owners can substantially reduce their taxable income in the earlier years of ownership, boosting cash flow and enabling reinvestment in the property or other ventures.

What Is Cost Segregation for Vacation Homes?

Cost segregation breaks down a vacation home into its component parts to identify assets that depreciate faster than the building’s standard 27.5-year schedule for residential rental properties (short-term rental properties are required to be depreciated over 39 years). Items such as flooring, appliances, cabinetry, landscaping, lighting, and even outdoor amenities like hot tubs,  saunas, and outdoor kitchens may qualify for depreciation periods of 5, 7, or 15 years instead of decades. These faster write-offs provide immediate tax relief and improve liquidity for owners, making the vacation home a more financially efficient asset—especially valuable for Airbnb or Vrbo hosts aiming to maximize profitability early in their rental operations.

How the Process Works

The cost segregation study involves several key steps:

  • Engaging Specialists: A qualified team, typically consisting of accountants, tax advisors, or engineers, will review the property, inspect the physical site, and analyze construction documents, purchase agreements, and renovation invoices to identify assets for accelerated depreciation.
  • Asset Classification: The property’s components are categorized under IRS guidelines—personal property assets are depreciated over 5 or 7 years, land improvements over 15 years, and the building itself over 27.5 or 39 years.
  • Tax Adjustments: Once assets are reclassified, tax filings are adjusted accordingly. Often, a form called IRS Form 3115 is used to capture depreciation missed in prior years without filing amended returns.  So, even if the rental property was placed in service in a prior year, you capture all the benefits of accelerated depreciation missed in the tax filing.
  • Applying Bonus Depreciation: Now that bonus depreciation has been made permanent for assets placed in service after January 19, 2025, the tax benefits of a cost segregation will be more valuable than ever.

Financial Benefits of Cost Segregation for Vacation Homes

By accelerating depreciation, vacation home owners can enjoy significantly larger tax deductions during the initial years of ownership. For example, one of our recent studies of a $1.12 million vacation rental found that reclassifying assets into shorter depreciation categories generated a first-year tax saving of nearly $60,000—money that can be reinvested in marketing, upgrades, or additional property acquisitions. This early boost in cash flow not only improves return on investment but also strengthens the financial foundation of the vacation rental business.

Who Should Consider This Strategy?

  • Vacation home owners who rent their properties on platforms like Airbnb, Vrbo, or Booking.com.
  • Properties with significant furnishings, luxury features, or outdoor amenities.
  • Investors planning to hold the property long-term to maximize tax benefits and mitigate depreciation recapture risks.

Risks and Important Considerations

  • Depreciation recapture may increase taxable gains upon sale, so the strategy is most advantageous for owners with medium- to long-term horizons.
  • IRS compliance and documentation are critical to avoid audit risks. Aggressive or poorly documented studies can trigger scrutiny. A properly done cost segregation study is the only way you can substantiate the depreciation of some components of a building using shorter lives.
  • The property must be used for rental or business purposes, not exclusively for personal use.

How Archer Lewis Can Help

Navigating the complexities of cost segregation can be daunting, but Archer Lewis offers expert guidance every step of the way. Our specialists conduct site inspections and thorough document reviews to ensure all qualifying assets are accurately identified and classified according to IRS standards. Archer Lewis assists business and vacation home owners with adjusting current and prior tax filings, including handling IRS Form 3115 submissions for retroactive benefits.

Beyond technical expertise, Archer Lewis provides tailored consultations to align the cost segregation study with the owner’s broader tax planning, financial goals, and estate planning. They prepare clients for potential audits by ensuring robust documentation and defensible methodologies. Additionally, Archer Lewis helps manage accounting logistics so owners can focus on enhancing their vacation rental business while confidently leveraging the full tax-saving potential of cost segregation.

In summary, vacation home owners who use their properties as rental investments can greatly benefit from a cost segregation study. By accelerating depreciation on select property components, owners increase early-year cash flow and reduce taxable income substantially. With seasoned guidance from Archer Lewis, the process becomes streamlined, compliant, and fully optimized to support long-term financial success in the vacation rental market. This strategy transforms a vacation home from just a leisure asset into a potent catalyst for growing wealth and strengthening overall investment returns.

Stop the Scroll: How to Avoid IRS Penalties from Viral Tax Tips

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The recent Accounting Today article highlights a critical issue: bad tax tips and advice on social media have led to over $162 million in IRS penalties for taxpayers who followed misleading tips on credits like the Fuel Tax Credit and Sick and Family Leave Credit. This underscores the dangers of relying on unverified sources for complex tax matters. Here’s why Archer Lewis is your trusted partner to avoid these pitfalls and optimize your tax strategy.

Expertise You Can Trust

  • Professional Guidance: At Archer Lewis, our team, including experienced CPAs, offers expert advice grounded in IRS regulations. Unlike social media influencers, we ensure your claims—whether for the Augusta Rule or business credits—are legitimate and fully documented.
  • Avoid Costly Mistakes: The IRS is cracking down on fraudulent claims with audits, penalties (20-75% of underpaid tax), and even criminal charges. Our professionals help you navigate complex rules, ensuring compliance and minimizing risk.

Tailored Tax Strategies

  • Personalized Solutions: Whether you’re a small business owner eyeing Cost Segregation or exploring the R&D Credits, we tailor strategies to your specific needs, unlike one-size-fits-all social media tips.
  • Proactive Planning: We stay ahead of IRS updates and leverage tools to streamline your financials, ensuring no opportunity is missed and no rule is misapplied.

Comprehensive Support

  • Beyond Tax Filing: Archer Lewis integrates tax planning with broader financial strategies, collaborating with experts to align your tax approach with long-term goals like succession or liquidity planning.
  • AI-Enhanced Efficiency: Our firm embraces AI advancements to automate routine tasks, freeing our CPAs to focus on critical thinking and personalized advice for you.

Stay Safe from Scams

  • IRS Compliance: We guide you through legitimate deductions, backed by IRS Publications (e.g., Pub 535 for business credits), and help you report scams via Form 3949-A to protect your financial integrity.
  • Trusted Reputation: Archer Lewis upholds a commitment to accuracy and client success, ensuring you avoid the $162 million trap others have fallen into.

Take Action Today

Don’t risk penalties from bad advice. Contact Archer Lewis for professional, reliable tax services that protect your finances and maximize your returns.

Timely IRS Guidance Makes Taking the R&D Tax Credit Easier

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IRS issues R&D tax credit guidance in Rev. Proc. 2025-28 on August 28, 2025. Many of the issues and unanswered questions from OBBA have been addressed in this Rev. Proc.

Key Highlights:

  • Most Taxpayers can file “Superseding 2024” returns to take the positions described in the OBBA or Rev. Proc. In lieu of an amended return, even if they did not file an extension.
  • Small businesses (gross receipts under $31M for 2025) filing timely returns on or
    before November 15, 2025, will “be deemed” to have elected OBBBA treatment if
    they deduct R&D expenses on the return. Thus, no need to deduct §174A expenses per OBBBA on an “amended return”.
  • IRC §280C(c)(2) Elections to take the reduced credit on “late elections (or
    revocations)” are permitted adjusting the relationship between R&D deductions and credits. This will require an amended Form 6765 and a statement providing certain information elections.
  • Domestic vs. Foreign Expenses. Domestic R&D: Immediate deductions or
    capitalization available under OBBBA for tax years beginning in 2025. Foreign R&D: Pre- and post-2025 tax year expenses must be capitalized under OBBBA, though method changes are available to align with compliance.

Although rather complex, these changes provide taxpayer-favorable changes and will allow most to take the R&D credit without the whipsaw of non-deductibility of §174A expenses.

Please contact the Archer Lewis team to assist with addressing any client situations you might have related to this guidance.

How Archer Lewis Empowers Startups and Early-Stage Companies to Thrive

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Starting a business is exhilarating, but it comes with its fair share of challenges, especially when it comes to managing finances. At Archer Lewis, we understand the unique needs of startups and early-stage companies. Our tailored financial and accounting services are designed to help founders focus on growth while we handle the numbers. Here’s how we can support your startup’s journey to success.

1. Streamlined Bookkeeping for Clarity and Control

Accurate bookkeeping is the backbone of any successful business. Our team ensures your financial records are up-to-date, organized, and compliant. From tracking daily transactions to managing accounts payable and receivable, we use cutting-edge tools like QuickBooks, NetSuite, and Xero to give you real-time insights into your financial health. Say goodbye to late-night spreadsheet struggles and hello to clarity.

2. Strategic Financial Planning to Fuel Growth

Cash flow is king for startups, and running out of runway is not an option. We work with you to create robust budgets, cash flow forecasts, and financial projections that align with your business goals. Whether you’re preparing for a funding round or scaling operations, our financial planning services help you make informed decisions and stay ahead of the curve.

3. Tax Compliance and Optimization

Navigating tax regulations can be daunting, but we’ve got you covered. Our experts handle federal, state, and local tax filings, ensuring compliance while maximizing deductions. From income and payroll taxes to sales tax obligations, we help you avoid costly penalties and keep more money in your business.

4. Seamless Payroll Management

Your team is your greatest asset, and paying them shouldn’t be a headache. We offer comprehensive payroll services, including salary processing, tax withholdings, and benefits management. By leveraging platforms like Gusto, we ensure your employees are paid on time and your business stays compliant with labor laws.

5. Professional Employer Organization (PEO) Services

Scaling your team comes with HR complexities, but our PEO services simplify the process. As your co-employer, we handle payroll, benefits administration, workers’ compensation, and HR compliance, allowing you to attract top talent while reducing administrative burdens. Our PEO solutions are flexible and cost-effective, tailored to your startup’s needs.

6. Investor-Ready Financial Reporting

Impressing investors requires more than a great pitch—it demands solid financials. We prepare professional balance sheets, income statements, and cash flow reports that tell your startup’s story in numbers. Our reports are clear, accurate, and tailored to meet the expectations of angel investors, VCs, or lenders.

7. Fundraising Support to Secure Capital

Raising capital is a critical milestone for startups, and our deep knowledge of fundraising sets us apart. Our team assists with financial modeling, pitch deck preparation, and due diligence, ensuring your business stands out to investors. Whether you’re seeking seed funding or a Series A round, we help you showcase your growth potential and build trust with stakeholders.

8. Equity and Cap Table Management

As your startup grows, so does the complexity of your ownership structure. We provide cap table management services to track equity, stock options, and grants.  We ensure your equity records are accurate and transparent, giving you peace of mind as you scale.

9. Fractional CFO Expertise for Big-Picture Strategy

Not ready for a full-time CFO? Our fractional CFO services offer strategic financial guidance without the hefty price tag. From managing your burn rate to optimizing your cash runway, we provide the high-level insights you need to make bold, confident decisions.

10. Financial Planning & Analysis (FP&A) for Data-Driven Decisions

To stay competitive, startups need more than just historical data; they need forward-looking insights. Our FP&A services deliver detailed analysis of your financial performance, including variance analysis, scenario planning, and key performance indicator (KPI) tracking. We help you identify trends, optimize resource allocation, and drive profitability, empowering you to make data-driven decisions with confidence.

Why Choose Archer Lewis?

At Archer Lewis, we’re more than just accountants; we’re your partners in growth. Our team combines deep industry expertise with a passion for helping startups succeed. We offer flexible, scalable services that evolve with your business, so you get the support you need at every stage.

Ready to take your startup to the next level?

Contact us today to discover how Archer Lewis can streamline your finances and drive your growth. Let’s build your success story together.

Why Choose Archer Lewis: Your Local Accounting Firm with Nationwide Expertise

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At Archer Lewis, we’re your local accounting team with serious backup when you need it. We combine deep personal relationships with the resources of a national firm—because we believe that’s how businesses get the best support. As a local accounting firm, we’re deeply rooted in our community, offering the personalized service and presence our clients value, backed by the diverse expertise of our nationwide team.

A Local Partner You Can Trust

When you work with Archer Lewis, you’re not just a client, you’re a valued partner. We take pride in being there when you need us, whether it’s for a quick consultation, tax planning, or navigating complex financial decisions. Each one of our clients is very important to us, and our 70-year legacy with our clients is a testament to the special relationships we build. Our local presence means we understand the unique challenges and opportunities businesses in our area face. We don’t just work in your community—we’re part of it. When local businesses thrive, we all do.

  • Face-to-Face Support: We’re here for in-person meetings, site visits, or just a coffee to discuss your goals.
  • Community Focus: As a local firm, we prioritize building long-term relationships based on trust and mutual success.
  • Responsive Service: Need answers fast? Our team is just a call or visit away, ready to provide tailored solutions.

Nationwide Expertise, Local Delivery

While we’re proud of our hometown roots, our reach extends far beyond. Archer Lewis brings together nationwide professionals with specialized skills and industry backgrounds. With hundreds of specialists and enterprise-grade technology in our corner, we can tackle even the most complex challenges, no matter your industry or business size.

  • Diverse Skill Sets: From tax strategy to financial forecasting, our team brings specialized expertise to meet your needs.
  • Industry Experience: Whether you’re in manufacturing, construction, tech, healthcare, or one of the creative industries, our nationwide team has deep knowledge of your sector.
  • Scalable Solutions: As your business grows, we tap into our broader resources to provide the support you need, when you need it.

The Archer Lewis Difference

If it matters to your business (even if it’s just organizing a shoebox full of receipts), it matters to us. Whether you need help with day-to-day bookkeeping or a complex tax strategy, we’re equally invested in your success. Our team works right alongside you, blending the personal touch of a local firm with the resources of a national network. We stay on top of local, state, federal, and international regulatory changes that can impact your business, ensuring you’re always compliant and positioned for success. We get that every decision matters when you’re running a small business. That’s why we take time to really understand your goals and vision. We’re not just keeping your books—we’re helping build your future.

  • Personalized Relationships: We earn your trust in one conversation at a time, understanding your business and its unique needs.
  • Access to Specialists: Our nationwide team includes experts in auditing, compliance, and business advisory services, supported by cutting-edge technology.
  • Seamless Collaboration: Our local and national teams work together to deliver comprehensive, cohesive support.

Partner with Archer Lewis Today

Whether you’re just starting out or ready to scale up, Archer Lewis is here to help. We’re more than just accountants; we’re your partners in success, committed to helping you achieve your goals. Visit us at archerlewis.com to learn more about how we combine local presence with nationwide capabilities to support your business.