There’s been a lot of buzz around the sunset of the One Big Beautiful Bill Act. With its recent passing many of the major provisions have been extended, giving individuals and businesses a little more breathing room.
That doesn’t mean you should hit snooze on your tax planning.
Rather, this extension is the perfect time to get proactive. You might not face a tax hike in 2026, but smart planning can still reduce your tax burden. The Tax Cuts and Jobs Act may be getting extended, but the stress of back taxes never goes away–unless you deal with it quickly.
What the TCJA Extension Means
Some of the key provisions extended include:
- Lower individual tax brackets
- Increased standard deductions
- Expanded child tax credits
- The 20% QBI deduction for pass-through businesses
In short: the tax breaks you’ve been enjoying are here to stay.
That means:
- You can still lock in savings today
- You have time to optimize your business structure
- You can strategize without the pressure sunsetting tax breaks
The One Big Beautiful Bill gives you some room to breathe, but it’s not a plan.
Tax Moves Worth Making Now
Time to get strategic. Here’s where smart taxpayers and business owners should focus:
1) Resolve IRS Issues Before They Escalate
IRS enforcement has doubled and unresolved issues will become a nightmare.
- Owe back taxes (personal or business)? The longer you wait, the worse the penalties get. Five Star can help you explore resolution options. Options like: Offers in Compromise, clearing bank levies, and stopping wage garnishments.
- Dealing with a lien or levy? Don’t wait for the IRS to seize assets or garnish wages. Our team can negotiate or prevent enforced collections to get you back in good standing.
2) Review Your Business Entity (and File It Right)
TCJA’s permanent Qualified Business Income (QBI) deduction makes structuring your entity more important than ever.
Are you still operating as a sole prop when an S-Corp might save you thousands?
- Five Star offers corporate tax prep and filing to make sure your business is taxed with your savings in mind.
3) Stop Penalties From Draining You
Late filings, underpayments, or reporting errors can trigger IRS penalties. The catch, many of them are negotiable.
- We work with the IRS on your behalf to reduce or abate penalties, especially for first-time offenses or documented hardships.
The Bottom Line
The OBBA and TCJA extension gives you a window of opportunity. Take advantage of the extension and act now.
Every tax season under the extended TCJA rules is a chance to keep more of what you earn.
👉Schedule your tax review today
