What should a law firm do at year-end?

Bill and collect what you can, reconcile every bank and trust account, review the year's reports, close the books with your CPA, and file 1099s and W-2s.

When should a law firm start its year-end close?

Early November. The final close happens in January, once December statements arrive.

What is the 1099 threshold for 2026?

$2,000 for Form 1099-NEC and most 1099-MISC boxes. Gross proceeds paid to attorneys (box 10) are still listed at $600.

Do I need to send a 1099 to a law firm that's a corporation?

Yes. Payments to attorneys and law firms are reportable even when the firm is incorporated.

What trust account steps should be done at year-end?

Run the December three-way reconciliation, check that no client balance is negative, zero out closed matters, handle old balances under your state's rules, and complete any annual trust certification.

How long should a law firm keep trust records?

The ABA's model rules suggest five years after the representation ends. Your state may require longer.

Law Firm Year-End Close Checklist for 2026

A step-by-step law firm year-end close checklist for 2026, covering trust reconciliation, billing, collections, the new $2,000 1099 threshold, and the reports to run.