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Mike Thrift

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Employee Retention Credit Compliance in 2026: Audit Defense Under the OBBBA Six-Year Statute
·mike

Employee Retention Credit Compliance in 2026: Audit Defense Under the OBBBA Six-Year Statute

A practical 2026 guide for businesses with ERC exposure — the closed voluntary disclosure window, the OBBBA six-year statute on Q3/Q4 2021 claims, the categorical disallowance of late filings after January 31 2024, the promoter penalties reaching back to March 12 2020, and the audit file examiners actually request.

tax-compliance
tax-credits
audit
After ERC Voluntary Disclosure Program 2.0: How Small Businesses Can Still Fix Improper Claims in 2026
·mike

After ERC Voluntary Disclosure Program 2.0: How Small Businesses Can Still Fix Improper Claims in 2026

With the second ERC Voluntary Disclosure Program closed since November 2024, small businesses with overstated Employee Retention Credit claims still have three remedies in 2026: claim withdrawal, self-amendment via Form 941-X, or responding to an IRS recapture letter. The IRS has a six-year audit window open through April 15, 2027 for Q3 and Q4 2021 claims, plus a 20% accuracy-related penalty for erroneous refunds.

tax-compliance
small-business
payroll
ESBT vs QSST: Choosing the Right Trust to Hold S-Corporation Stock
·mike

ESBT vs QSST: Choosing the Right Trust to Hold S-Corporation Stock

A side-by-side comparison of Electing Small Business Trusts (ESBT) and Qualified Subchapter S Trusts (QSST) under Section 1361, including who pays the tax, the 2-month-and-16-day election window, and a worked example showing a $118,000 annual tax swing between the two structures on $1M of K-1 income.

s-corporation
s-corp
trust
ESBT vs QSST: How Trusts Can Hold S-Corporation Stock Without Killing the S Election
·mike

ESBT vs QSST: How Trusts Can Hold S-Corporation Stock Without Killing the S Election

A trust holding S-corporation stock must qualify as a QSST or ESBT under Section 1361 or the S election terminates retroactively. A QSST taxes pass-through income at the single beneficiary's personal rate; an ESBT permits multiple beneficiaries but traps S-portion income at the 37% top trust rate. The election deadline is two months and sixteen days from the triggering event.

s-corporation
trust
estate-planning
First-Party vs. Third-Party Special Needs Trusts: SSI, Medicaid, and the Payback Rule
·mike

First-Party vs. Third-Party Special Needs Trusts: SSI, Medicaid, and the Payback Rule

How first-party (d)(4)(A) and third-party special needs trusts differ — funding sources, the Medicaid payback rule, sole-benefit constraints, the 2024 ISM food change, and the 2026 ABLE age expansion — for families protecting a disabled beneficiary's SSI and Medicaid eligibility.

trust
estate-planning
legal
First-Party d(4)(A) vs. Third-Party Special Needs Trusts: Protecting SSI, Medicaid, and a Disabled Loved One's Future
·mike

First-Party d(4)(A) vs. Third-Party Special Needs Trusts: Protecting SSI, Medicaid, and a Disabled Loved One's Future

A planning guide to first-party (d)(4)(A), third-party, and (d)(4)(C) pooled special needs trusts. Compares the Medicaid payback obligation, the under-65 statutory cutoff, allowable trust disbursements, the 2024 SSA change that removed food from ISM, and how a 2026 ABLE account complements an SNT without replacing it.

trust
estate-planning
fiduciary
Form 1095-C and Section 4980H: 2026 ACA Employer Penalties and Safe Harbors
·mike

Form 1095-C and Section 4980H: 2026 ACA Employer Penalties and Safe Harbors

For 2026, ALEs face a $3,340 per-employee 4980H(a) penalty and a $5,010 per-employee 4980H(b) penalty, with affordability set at 9.96 percent of pay. This guide covers the FPL, W-2, and rate-of-pay safe harbors, line-by-line Form 1095-C coding, and the errors that drive Letter 226-J assessments.

tax-compliance
payroll
health-insurance
Form 3800 General Business Credit: Stacking R&D, WOTC, FICA Tip, and Childcare Credits Under the 25/75 TMT Limit
·mike

Form 3800 General Business Credit: Stacking R&D, WOTC, FICA Tip, and Childcare Credits Under the 25/75 TMT Limit

How Form 3800 aggregates 40-plus business tax credits into one limitation, why the 25/75 tentative minimum tax floor matters, and how eligible small businesses (≤$50M gross receipts) can offset AMT with R&D, WOTC, FICA Tip, and other specified credits.

tax-credits
tax-planning
tax-compliance
Form 6166 U.S. Residency Certification: How Businesses and Individuals Use Form 8802 to Slash Foreign Withholding on Royalties, Dividends, and Service Income
·mike

Form 6166 U.S. Residency Certification: How Businesses and Individuals Use Form 8802 to Slash Foreign Withholding on Royalties, Dividends, and Service Income

Form 6166 is the IRS-issued certificate of U.S. tax residency that unlocks reduced foreign withholding under bilateral tax treaties. Apply with Form 8802 — $85 for individuals, $185 for entities — and one filing covers unlimited countries and certificates, often saving five or six figures per cross-border contract.

international-tax
tax-compliance
tax-planning
Form 6252 and Installment Sales: A Working Guide to Section 453
·mike

Form 6252 and Installment Sales: A Working Guide to Section 453

A practical guide to Section 453 installment sales and Form 6252 — how the gross profit ratio defers capital gains across years, when depreciation recapture forces year-one recognition, how the Section 453A interest charge applies above the $5 million threshold, and when electing out beats deferral.

tax-planning
capital-gains
real-estate
Form 6252 Installment Sales Under Section 453: Spreading Capital Gains and Avoiding the 453A Interest Charge
·mike

Form 6252 Installment Sales Under Section 453: Spreading Capital Gains and Avoiding the 453A Interest Charge

A practical walk-through of reporting installment sales on Form 6252 under IRC Section 453 — computing the gross profit percentage, why depreciation recapture is taxed in year one, the 453A interest charge on notes above the $5M aggregate threshold, the two-year related-party resale rule, and when electing out beats deferring gain.

tax
tax-planning
tax-compliance
Form 8308 and Section 751 Hot Assets: How a Partnership Sale Turns Capital Gain Into Ordinary Income
·mike

Form 8308 and Section 751 Hot Assets: How a Partnership Sale Turns Capital Gain Into Ordinary Income

When a partner sells an LLC or partnership interest, Section 751 can recharacterize a large share of the gain as ordinary income taxed up to 37 percent. Form 8308 is the partnership's required disclosure of that hot-asset gain on Form 1065, with a January 31 furnishing leg and a return-due-date filing leg in 2026.

tax
partnerships
llc
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