Weekly Business Tax Brief: Rates Hit 5%, Oct. 15 Deadline, New IRS App (Sept. 25, 2026)
The Weekly Business Tax Brief from Madison's Accounting & Tax Services, Buckhead, Atlanta. What happened this week in tax, business, markets and Washington, and what it means for your business. General education, not tax, legal or investment advice.
The short version
Borrowing costs jumped. The 5-year Treasury yield crossed 5% for the first time since 2007, and markets now lean toward a Fed rate increase in October. If you carry a line of credit or a variable-rate loan, plan for higher payments.
October 15 is three weeks out. If you extended your 2025 personal return (or a calendar-year C-Corp return), that is the final deadline.
The IRS launched a new mobile app that lets you see notices, payments and records from your phone.
No shutdown this fall. Congress passed a stopgap funding bill that keeps the government open through December 11.
SBA wants to redefine "small." A proposal would raise size limits in several industries, which matters if you bid on federal contracts.
Tax news: the IRS app and the October 15 deadline
On September 25 the IRS released a new free app that replaces IRS2Go. Beyond refund status, it lets you view notices and letters, make and manage payments, pull tax records and manage your Identity Protection PIN. For owners, the useful part is seeing a notice the day it posts instead of waiting on the mail. It does not replace your IRS online account; it sits on top of it.
If you filed an extension for your 2025 return, the deadline is Thursday, October 15, 2026. An extension gave you more time to file, not more time to pay, so any balance has been building interest since April. Filing on time still matters: the failure-to-file penalty is far steeper than the failure-to-pay penalty. If you cannot pay in full, file anyway and set up a payment plan. Our back taxes page explains how that works.
Next up after that: fourth-quarter estimated tax payments are due January 15, 2027. The full calendar is in Part 5 of our Ultimate Guide to Business Taxes and Structuring.
Markets: why higher rates matter to a small business
On September 23 the 5-year Treasury yield hit about 5.04%, the first time above 5% since 2007, and the 10-year pushed above 5.1%. The trigger was strong business-activity data that raised worries the Federal Reserve may need to raise rates again. By Friday, futures markets put roughly two-in-three odds on an October rate increase. Oil stayed elevated, with Brent near $99 early in the week.
You do not need to watch the bond market, but you should know how it reaches you:
Lines of credit and SBA 7(a) loans are usually tied to the prime rate, which moves with the Fed. Check your loan documents for how often your rate resets.
Cash in reserve earns more when rates are high. Money set aside for quarterly taxes can sit in a business savings or money market account until it is due.
Timing big purchases. If you are financing equipment or vehicles, compare locking a fixed rate now against waiting. Remember that 100% bonus depreciation is permanent for qualifying property acquired after January 19, 2025, so the tax benefit does not expire at year-end.
Next week's data (PCE inflation, the ISM manufacturing survey and the September jobs report) will shape what the Fed does. This is context for planning, not a prediction or investment advice.
Washington: funding, and a new definition of "small"
Congress passed a stopgap spending bill with broad bipartisan support that funds the federal government through December 11, 2026. For owners, that means IRS phone lines, SBA loan processing and federal contract payments keep running this fall. Watch the December date if you depend on any of them.
Separately, the SBA published a proposal in the Federal Register on August 20 to raise small-business size standards in several industries, in some cases by more than ten times (architectural services and custom computer programming are two examples). Size standards decide who qualifies for small-business set-aside contracts, which are about a quarter of federal contracting. If you are a contractor or service firm that bids on government work, the change could let larger competitors into your lane, or let you keep your small-business status as you grow.
What to do this week
If you are on extension, get your documents to your preparer now, not on October 14.
Download the new IRS app or log in to your IRS online account and check for notices.
Pull your loan and credit line statements and note which ones are variable-rate.
Move your tax reserve into an interest-bearing business account if it is sitting in checking.
Need a hand?
Madison's Accounting & Tax Services handles tax preparation, bookkeeping, S-Corp and entity planning and IRS problems for small businesses in Atlanta and across Georgia. Book a free tax appointment and talk to Johnny directly.
Sources: IRS news releases (September 2026); IRS, "IRS launches new mobile app" (Sept. 25, 2026); TheStreet market report (Sept. 23, 2026); Charles Schwab market update (Sept. 25, 2026); NPR on the stopgap funding bill (Sept. 2026); Marketplace on the SBA size-standard proposal (Sept. 23, 2026). This post is general education and not tax, legal or investment advice. Talk to a professional about your situation.
