#compliance
Compliance
Navigate regulatory compliance and maintain audit-ready financial records
Dee v. Commissioner: When Is an IRS Audit Still 'Open' for a Whistleblower Award?
In Dee v. Commissioner (167 T.C. No. 1, July 2026) the Tax Court ruled an IRS examination stays legally "open" for whistleblower jurisdiction until formally closed under Rev. Proc. 2005-32 — yet denied Dee an award because auditors had independently found the same $2 million deficiency a month before his tip, which was built entirely from public SEC filings.
DOL Opinion Letter FLSA2026-2: When a "Discretionary" Bonus Isn't — and What It Does to Overtime Pay
DOL Opinion Letter FLSA2026-2 (January 5, 2026) holds that a formula-driven safety and attendance bonus of up to $9.50/hour is nondiscretionary and must be included in the FLSA regular rate — turning a $12/hour base into a $21.50 regular rate and adding $107.50 of overtime pay in DOL's own 50-hour example. Here is the three-part test, which common bonus types fail it, and how to fix the payroll math.
Eiler v. Commissioner: When Winning an FCRA Lawsuit Leaves You With a Tax Bill Bigger Than Your Payout
In Eiler v. Commissioner (167 T.C. No. 3, July 14, 2026), the Tax Court held that $60,050 in contingency attorney's fees from a $64,750 FCRA settlement was the plaintiffs' gross income with no above-the-line deduction, producing an $11,423 deficiency against a $4,700 net recovery. Here's what the ruling means for anyone settling a lawsuit — and for employers who run background checks.
Embedded Insurance at Checkout: A Small-Business Guide to Protection Fees, Compliance, and Bookkeeping
Cover Genius's $100M raise at a $1.9B valuation signals how fast embedded insurance is reaching small merchants. Most Shopify-style protection apps make you an agent under ASC 606, so only the 10–30% commission is your revenue — here's how to verify licensing and book the fees correctly.
Environmental Remediation Contractor Bookkeeping: Job Costing When a State Cleanup Fund Pays the Bill
How environmental remediation contractors should structure job costing when a state UST cleanup fund — not the property owner — is the real payer. Covers the five remediation phases as cost codes, ASC 606 collectibility with fund caps and deductibles, tracking 6-to-8-week reimbursement aging separately from ordinary AR, and the documentation that survives a fund audit.
FASB ASU 2025-12: The APIC-Only Method for Retiring Shares in a Co-Founder Buyout
FASB's ASU 2025-12 (Issue 10) codifies a third method for retiring repurchased shares — charging the full excess over par value to additional paid-in capital, as long as APIC stays non-negative. Here is how the APIC-only, retained-earnings-only, and allocation methods change the balance-sheet impact of a co-founder buyout, and why the choice matters for loan covenants and dividend capacity before the December 15, 2026 effective date.
FASB ASU 2026-01: How Startups Must Now Measure PIK Dividends on Preferred Stock
FASB's ASU 2026-01 requires PIK dividends on equity-classified preferred stock to be measured at the stated contractual rate — not fair value — effective for annual periods beginning after December 15, 2026, with early adoption permitted. Here's what venture-backed startups with PIK preferred provisions should do before their next audit.
The Four-Day Workweek's Biggest Trial Yet Is In. Here's What It Means for Your Payroll
A Nature Human Behaviour trial of 2,896 employees at 141 companies found the four-day workweek cut burnout, held productivity steady, and convinced 90% of firms to keep it. Here's how small businesses handle the payroll side: the 100-80-100 model vs. compressed 4/10 schedules, FLSA overtime rules, California's daily-overtime election process, and the metrics to track in a pilot.
LaRosa v. Commissioner: The Fourth Circuit Opens Innocent Spouse Relief to Erroneous Refunds
In LaRosa v. Commissioner, the Fourth Circuit rejected the Tax Court's rebate/nonrebate distinction and held that an unrepaid erroneous refund counts as "unpaid tax" under IRC Section 6015(f) — meaning taxpayers can seek innocent spouse relief from refund clawbacks. Here is what the ruling means for anyone who signs a joint return.
New Jersey's Medicaid Employer Assessment (A5324): What the First-in-the-Nation Law Means for Your Payroll
New Jersey's A5324, effective July 1, 2026, bills employers $325–$725 per year for each Medicaid-enrolled employee or dependent once 50 or more are enrolled — matched by the state, not self-reported. Here is how the tiered fees work, which workers are exempt now and in 2027, and how to prepare your books for a bill you didn't calculate.
Visa Just Cut Your Chargeback Tolerance by a Third: What the 1.5% VAMP Threshold Means for Small Merchants
On April 1, 2026, Visa's VAMP program cut the merchant fraud-and-dispute threshold from 2.2% to 1.5% in the US, Canada, EU, and Asia-Pacific. Here's how the (TC40 + TC15) ÷ settled transactions ratio works, the 1,500-event monthly floor, the $8-per-transaction penalty, and six concrete steps to stay under the line.
Alaska's Minimum Wage Hits $14 in July 2026: What Small Employers Need to Budget For
Alaska's minimum wage rose to $14 an hour on July 1, 2026 under Ballot Measure 1, with no tip credit allowed and a jump to $15 in 2027 followed by permanent CPI-indexed increases starting 2028.