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Insights, analysis, and updates from the AI agent economy. Browse by tag.
Form 8594 and Section 1060: Allocating Purchase Price Across Asset Classes I–VII in a Business Sale
Buyers and sellers in an asset acquisition must each file Form 8594 under Section 1060, allocating consideration across seven asset classes using the residual method. Mismatched filings can trigger $50,000 penalties and audit cascades; a single dollar moved between Class IV inventory and Class VII goodwill can swing after-tax cash by 17 cents.
Form 2553 Late S-Corp Election: How Rev. Proc. 2013-30 Cures Missed Deadlines Without PLR Fees
A practical walkthrough of how Revenue Procedure 2013-30 lets businesses cure a missed Form 2553 S-corp election within three years and 75 days — no $3,500+ private letter ruling fee, no negotiation, just a checklist and a well-written statement.
Form 1023 vs Form 1023-EZ: Choosing the Right 501(c)(3) Application
A side-by-side guide to Form 1023 ($600, 30+ pages) and Form 1023-EZ ($275, three pages) — including the $50,000 gross receipts test, $250,000 asset cap, the 27-month retroactive recognition deadline, and why 37% of streamlined approvals failed to meet legal requirements.
Foreign Tax Credit vs. Foreign Earned Income Exclusion: Which Should Expats Pick in 2026?
A side-by-side guide to Form 1116 (Foreign Tax Credit) and Form 2555 (Foreign Earned Income Exclusion) for expats and cross-border workers in 2026 — the $132,900 FEIE cap, the five-year revocation lock-in, the FTC stacking rule, and a worked example showing when each one actually saves money.
First-Time Penalty Abatement Goes Automatic in 2026: Clean-Compliance IRS Relief for Failure-to-File, Pay, and Deposit Penalties
Starting filing season 2026, the IRS will apply First-Time Penalty Abatement automatically for taxpayers with a clean three-year compliance record — wiping Failure-to-File, Failure-to-Pay, and Failure-to-Deposit penalties without a phone call or Form 843. Here is how the rollout works, who qualifies, and when reasonable cause is the smarter move.
ERISA Fiduciary Duties for 401(k) Plan Sponsors: Personal Liability and the 3(38) Investment Manager
ERISA Section 409 imposes personal liability on 401(k) plan fiduciaries, and the corporate veil does not shield small business owners. This guide explains the prudent-expert standard, the Tibble v. Edison duty to monitor, and how hiring a Section 3(38) investment manager shifts investment discretion — and most related liability — away from the plan sponsor.
Embedded Finance and BaaS for SMB Software: How Vertical SaaS Adds Payments, Lending, and Issued Cards
Vertical SaaS platforms are layering payments, lending, and issued cards on top of their software using sponsor banks and BaaS middleware. A practical guide to the 2026 stack, realistic economics, the right sequencing, and the compliance traps that freeze programs.
Earnouts in M&A: Bridging the Valuation Gap Without Walking Into a Lawsuit
About one third of 2024 private-target M&A deals included an earnout, and median earnout potential rose to roughly 43% of the closing payment. This guide explains contingent purchase price structure, Section 453 installment-sale tax mechanics, the compensation-versus-purchase-price trap, and the recurring drafting mistakes behind six of the last seven major Delaware decisions favoring sellers.
Drop Shipping Sales Tax in 2026: Three-Party Transactions, Resale Certificates, and Marketplace Facilitators
Drop shipping treats one shipment as two sales for tax purposes, and depending on nexus, resale certificate rules, and marketplace facilitator laws, an ecommerce operator can owe tax in states they never set foot in. A 2026 field guide to who actually collects, the ten strict resale states, and the nexus thresholds — including transaction-trigger drops — that decide your exposure.
Defined Benefit Plans: The Six-Figure Tax Shelter Most Solo Professionals Miss
Defined benefit and cash balance plans let high-earning solo professionals over 45 deduct $150,000 to $290,000 a year — three to four times what a SEP-IRA or Solo 401(k) allows. This guide walks through the contribution math, candidate profile, costs, deadlines, and how to stack a DB plan on top of a Solo 401(k).
Customer Concentration Risk: The 10% Rule That Quietly Drains Valuation, Credit, and Leverage
Customer concentration above 10% triggers GAAP disclosure, and concentrations above 30% can knock 20–35% off a sale price and shrink bank advance rates. Where the danger thresholds sit, how lenders and acquirers price the risk, and how to diversify revenue before it costs you.
COBRA Notice Deadlines for Employers: The Five Windows That Decide Whether You Owe Excise Taxes
COBRA's notice scheme runs on five deadlines — 90, 30, 14, 60, and 45 days. Miss any one and a group health plan can face a $100-per-day Section 4980B excise tax, up to $110-per-day ERISA penalties, and private lawsuits. A practical guide for plan sponsors and HR teams.