Client Portal

Things we are (and are not) Thankful for:

There are so many things to be thankful for this holiday season: friends, family, celebration, and much more. But one thing we’re not thankful for? Tax law changes. Well, it depends!

Don’t let these changes put a damper on your holiday cheer. Read below to stay informed on some recent tax law changes and how they may affect your business.

Federal Income Tax

  • H.R.25 — 119th Congress (2025-2026): This proposed bill, also known as the FairTax Act, would replace federal income, payroll, estate, and gift taxes with a federal sales tax beginning in 2027 and eliminates the Internal Revenue Service. Please contact Bill Gagnon at (617) 451-0303 x101 to further discuss the FairTax Act.
  • Remittance Transfer Tax: Beginning January 1, 2026, a 1% federal excise tax will apply to certain cash-based money transfers sent by remittance transfer providers.

State Income Tax

  • QSBS exemption (New Jersey): New Jersey’s FY 2026 budget includes a permanent exemption for Qualified Small Business Stock (QSBS) for tax years beginning on or after January 1, 2026.
  • For more information on this law change, please contact Kim Allen at (617)-451-0303 x106.

Sales & Use Tax

  • Holiday Sales Tax Obligations: Changes in sales volumes and channels can affect your nexus and tax obligations for this year. If your number of transactions or the amount of money in sales exceeds state thresholds, you may be creating nexus in some states and owe sales tax where you did not previously. Additionally, if you establish a physical presence in a state, you will have physical nexus.
  • New Jersey: For fiscal year 2026, New Jersey has exempted certain baby products and sunscreen from sales tax. It has also increased taxes on items like cannabis and sports wagering.
  • District of Columbia: The general sales tax rate will increase from 6.0% to 7.0% starting October 1, 2026.
  • Illinois: As of January 1, 2026, counties and municipalities will be able to impose their own local sales tax of up to 1% on groceries.
  • For more information on these changes, please contact Wayne Britton at
    (857) 216-7807.