#audit

Audit

Independent audit and assurance engagements — SOC 2, financial statement audits, internal controls testing, evidence collection, and audit readiness for service organizations and growing businesses

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May 16, 202612 min read

Step Transaction Doctrine: How the IRS Collapses Multi-Step Tax Plans

The step transaction doctrine lets the IRS treat a sequence of formally separate steps as one taxable transaction. This guide explains the three tests courts apply — end result, mutual interdependence, and binding commitment — the landmark cases (Gregory v. Helvering, Court Holding, Kimbell-Diamond), the 2026 transactions most exposed (1031 drop-and-swaps, pre-sale entity conversions, gifts before the estate exemption sunset), and the documentation habits that keep multi-step plans defensible.

Mike Thrift

tax-planningtax-compliancereal-estate

May 15, 202613 min read

ASC 815 Hedge Accounting for Private Companies: Document Swaps and Forwards Without Wrecking Earnings

ASC 815 requires derivatives to be marked to market through earnings unless you elect hedge accounting at inception. A guide to the three hedge models, the simplified approach for private companies, and the documentation mistakes that turn a clean economic hedge into quarterly earnings volatility.

Mike Thrift

accountingfinancial-reportingrisk-management

May 15, 202613 min read

Form 8275 Disclosure Statement: Defeating the 20% Section 6662 Accuracy-Related Penalty

Form 8275 lets taxpayers disclose debatable tax positions with the IRS to defeat the 20% Section 6662 accuracy-related penalty when a position has at least a reasonable basis. Covers when to use Form 8275 versus Form 8275-R, what counts as adequate disclosure, timing rules, and Section 6694 preparer-penalty protection.

Mike Thrift

tax-compliancetax-preparationcpa

May 15, 202613 min read

Functional Expense Allocation for Nonprofits: Form 990 Part IX, ASU 2016-14, and How to Defend Your Program Ratio

A practical guide to splitting nonprofit costs across program, management, and fundraising — covering ASU 2016-14 requirements, Form 990 Part IX, time studies, square-footage methods, the three-test joint cost rule, and the written cost allocation plan auditors expect to see.

Mike Thrift

nonprofitexpense-allocationfinancial-reporting

May 15, 202615 min read

Section 199A Rental Real Estate Safe Harbor: How Landlords Log 250 Hours, Avoid the Triple Net Lease Trap, and Lock In the 20% QBI Deduction

Revenue Procedure 2019-38 lets landlords treat rental real estate as a trade or business for the 20% QBI deduction if they log 250 hours of qualifying services, keep contemporaneous records, avoid triple net leases, and file a signed election — now permanent under the 2025 One Big Beautiful Bill Act.

Mike Thrift

real-estatetaxtax-planning

May 15, 202615 min read

Section 4958 Intermediate Sanctions: How Nonprofit Boards Avoid 25% and 200% Excise Taxes on Excess Benefit Transactions

Section 4958 imposes 25% and 200% excise taxes on excess benefit transactions between public charities and disqualified persons, with a 10% manager tax on knowing approvers. Following three procedural steps creates a rebuttable presumption of reasonableness that shifts the burden of proof to the IRS.

Mike Thrift

nonprofittax-complianceexecutive-compensation

May 15, 202613 min read

Section 6603 Deposits: Stop IRS Interest on Disputed Tax Without Giving Up Appeal Rights

A Section 6603 deposit freezes IRS underpayment interest on contested tax while preserving your appeal, Tax Court, and withdrawal rights. This guide covers the written designation under Rev. Proc. 2005-18, when a deposit beats a payment, LIFO withdrawal mechanics, and the procedural traps that turn planned deposits into accidental payments.

Mike Thrift

taxtax-compliancetax-planning

May 15, 202613 min read

Section 6603 Deposits: Stop IRS Interest Without Conceding the Audit

A Section 6603 deposit halts interest on a disputed IRS liability without paying the tax, conceding the position, or forfeiting Tax Court access. Revenue Procedure 2005-18 spells out the mechanics—a written designation that names the tax, year, amount, and basis for disputability.

Mike Thrift

taxtax-compliancetax-planning

May 15, 202614 min read

Segregation of Duties When You Only Have Three Employees: A Practical Internal Controls Playbook for Small Businesses

A working blueprint for splitting authorization, custody, recording, and reconciliation across a three-person business — including the compensating controls that stop the $141,000 median fraud loss that hits small companies hardest.

Mike Thrift

small-businessfraud-preventionbookkeeping

May 14, 202616 min read

SSARS 21 Compilations, Reviews, and Preparations: Picking the Right CPA Engagement Without Overpaying for Assurance

A practical guide to AR-C 70 preparation, AR-C 80 compilation, and AR-C 90 review engagements — what each delivers, typical fee ranges, and how private companies match the right tier to lender, surety, and investor requirements without paying for unused assurance.

Mike Thrift

cpacompliancefinancial-statements

May 14, 202613 min read

ASC 740 Income Tax Provision for Private Companies: A Controller's Playbook for Current, Deferred, and the New ASU 2023-09 Disclosures Effective 2026

How private-company controllers build the ASC 740 income tax provision—current and deferred components, valuation allowances, UTBs, and the new ASU 2023-09 disclosures that take effect for fiscal years beginning after December 15, 2025.

Mike Thrift

taxfinancial-reportingcompliance

May 14, 202613 min read

ASC 740 for Private Companies: A 2026 Guide to the Income Tax Provision and ASU 2023-09

How private company controllers can build a clean ASC 740 income tax provision in 2026 — current and deferred tax, Schedule M-1 reconciliation, valuation allowances, uncertain tax positions, and the new ASU 2023-09 disaggregated income-taxes-paid and qualitative rate disclosures.

Mike Thrift

taxtax-compliancefinancial-reporting

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