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Mike Thrift

Marketing Manager

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11 min read

DOL Independent Contractor Final Rule: The Six-Factor Economic Realities Test and What Small Businesses Must Document in 2026

The 2024 DOL Independent Contractor Final Rule and its six-factor economic realities test still govern FLSA worker classification in private lawsuits despite the May 2025 enforcement pause. Small businesses that misclassify employees face back wages of two to three years, liquidated damages, civil penalties above $2,300 per violation, and IRS payroll tax exposure—risks that clean bookkeeping and contemporaneous documentation are built to defend against.

Mike Thrift

independent-contractorcompliancesmall-business
10 min read

E-Commerce Inventory Accounting With 3PLs and Multi-Channel Fulfillment: How Online Sellers Allocate Landed Costs, Track FBA Reserved Inventory, Reconcile Marketplace Settlements, and Avoid Phantom COGS at Year-End

Multi-channel sellers routinely lose 22 margin points to phantom COGS — unallocated landed costs, FBA reserved inventory, and netted marketplace settlements posted as revenue. A four-step playbook to keep e-commerce books honest from supplier invoice to year-end true-up.

Mike Thrift

e-commerceinventorycost-of-goods-sold
11 min read

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.

Mike Thrift

tax-compliancesmall-businesspayroll
12 min read

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.

Mike Thrift

s-corporationtrustestate-planning
11 min read

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.

Mike Thrift

international-taxtax-compliancetax-planning
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