March 2026 Tax Updates: What You Need to Know

Regulatory shifts continue to reshape the tax landscape. Since the start of 2026, there are three critical updates that impact bonus depreciation, professional authorization management, and business meal deductibility. Here’s what matters for your planning.

Permanent 100% Bonus Depreciation Under OBBBA

IRS Notice 2026–11 provides interim guidance on bonus depreciation changes under the One Big Beautiful Bill Act (OBBBA). The update delivers a permanent 100% first-year depreciation deduction for qualified property acquired and placed in service after January 19, 2025.

Key takeaways:

• Permanent deduction: The prior phasedown schedule is eliminated. Qualified property now receives 100% bonus depreciation with no expiration date.
• Expanded eligibility: Qualified sound recording productions commencing in taxable years ending after July 4, 2025, now qualify for bonus depreciation.
• Election option: Taxpayers may elect to deduct 40% (60% for certain long production period property or aircraft) instead of 100% for property placed in service during the first taxable year ending after January 19, 2025.
• Acquisition date rules: Property acquired pursuant to written binding contracts entered into before January 20, 2025, does not qualify for the permanent 100% deduction.

Taxpayers may rely on this interim guidance for property placed in service before final regulations are published. Elections must be made on a timely filed tax return in accordance with the procedures in Notice 2026-11 and existing IRC Section 168(k) regulations.

Read the full notice

Tax Pro Account Expansion for Business Users

The IRS announced IR-2026–22 on February 9, 2026, expanding Tax Pro Account to support business-level authorization management. This update addresses firms managing larger client volumes through Centralized Authorization File (CAF) systems.

What changed:

• Designated business representatives can now manage CAF access and specify which employees are authorized to act under the business CAF.
• Business CAF numbers can be linked to Employer Identification Numbers through Tax Pro Account.
• Tax professional businesses gain visibility into taxpayer information and authorizations associated with their CAF and existing authorizations.
• Business representatives can view and withdraw authorizations on behalf of the firm.

Sole proprietorships and businesses that do not use CAF systems remain unaffected by this change. The expansion builds on prior enhancements that supported individual practitioners, now extending digital capabilities to business entities.

View the IRS announcement

Business Meal Deduction Changes Effective January 1, 2026

The Tax Cuts and Jobs Act (TCJA) eliminated deductions for certain employer-provided meals under IRC Section 274 beginning January 1, 2026. Understanding the new framework prevents compliance missteps.

What’s now nondeductible (0%):

• De minimis food and beverages associated with an employer-operated eating facility.
• Meals provided for the convenience of the employer under Section 119(a)
• Meals furnished at employer-operated eating facilities described in Section 132(e)(2)

What remains 50% deductible:

• Ordinary and necessary business meals with clients, customers, or business associates.
• Meals incurred by employees traveling away from home for business purposes

Requirements for the 50% deduction:

• The expense cannot be lavish or extravagant under the circumstances.
• The taxpayer or an employee must be present when food or beverages are provided.
• If provided during entertainment, food and beverages must be purchased separately or stated separately on bills, invoices, or receipts.

What remains 100% deductible:

• Meals treated as taxable compensation to employees
• Meals provided at employee recreational or social events (company parties, picnics)
• Meals made available to the public (promotional or goodwill events where more than 50% of consumption is by non-employees)

Review expense policies now to identify which meals fall under the new nondeductible category. Documentation requirements remain critical for substantiating the 50% deduction.

Review IRS guidance on meal deductions

Questions about how these updates affect your tax position? Contact our tax team to discuss the implications for your business.