#compliance

Compliance

Navigate regulatory compliance and maintain audit-ready financial records

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May 14, 202612 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

May 14, 202613 min read

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.

Mike Thrift

trustestate-planninglegal

May 14, 202613 min read

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.

Mike Thrift

trustestate-planningfiduciary

May 14, 202612 min read

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.

Mike Thrift

tax-compliancepayrollhealth-insurance

May 14, 202616 min read

Form 6166 and Form 8802: How U.S. Residents Cut Foreign Withholding by Certifying Tax Residency

Form 6166 is the IRS letter that lets U.S. taxpayers claim treaty rates on foreign royalties, dividends, and services. This guide walks through the Form 8802 application, eligibility rules, common rejection traps, and the timing required to get withholding right at the source.

Mike Thrift

international-taxtax-compliancetax-planning

May 14, 202611 min read

Form 8865 Foreign Partnership Reporting: The Four Categories of Filers, the $10,000 Penalty, and How U.S. Persons Stay Off the IRS Radar

Form 8865 is the U.S. information return for foreign partnership interests, with $10,000 per-partnership per-year penalties for non-filing. This guide breaks down the four filer categories under Sections 6038, 6038B, and 6046A, the constructive ownership rules that catch most surprise penalties, and the schedules each category must include.

Mike Thrift

taxinternational-taxpartnerships

May 14, 202613 min read

Form 8865 Foreign Partnership Reporting: The Four Categories of Filers, $10,000 Penalty Trap, and How U.S. Persons Stay Compliant in 2026

Form 8865 makes U.S. persons report controlled foreign partnerships, property contributions, and 10-percentage-point interest changes. Missing it triggers $10,000 per partnership per year, plus a 10% foreign tax credit haircut and stacking 30-day penalties up to $50,000.

Mike Thrift

tax-complianceinternational-taxpartnerships

May 14, 202612 min read

Form 8975 and Schedule A: A Practical Guide to U.S. Country-by-Country Reporting for Multinationals in 2026

U.S. multinational groups with $850 million or more in consolidated revenue must file Form 8975 with one Schedule A per tax jurisdiction. This guide walks through the four-part threshold test, the Schedule A line items, the Pillar Two transitional safe harbor that now relies on CbCR data, and the five filing mistakes that most often trigger audits in the 2026 cycle.

Mike Thrift

tax-complianceinternational-taxtransfer-pricing

May 14, 202615 min read

Form 8975 Country-by-Country Reporting in 2026: The $850M Threshold, Schedule A Mechanics, and the Pillar Two Safe Harbor

U.S. multinationals with $850M+ in consolidated revenue file Form 8975 with Schedule A per jurisdiction. In 2026 the report also gates the OECD Pillar Two transitional safe harbor at a 17% simplified ETR — making CbC data accuracy a strategic, not clerical, priority.

Mike Thrift

tax-complianceinternational-taxtransfer-pricing

May 14, 202614 min read

Loan Covenants for Small Business Borrowers: How DSCR, FCCR, and Tangible Net Worth Decide When a Performing Loan Can Be Called

Loan covenants—DSCR, fixed charge coverage, tangible net worth, and leverage limits—can put a small business borrower in default while every payment is current. A practical breakdown of affirmative, negative, and financial covenants, cure periods, waiver requests, and what to negotiate before signing a credit agreement.

Mike Thrift

loanssmall-businessbusiness-loans

May 14, 202612 min read

The $141,000 Wound: How Small Businesses Catch Occupational Fraud Before It Ends Them

How small businesses can detect and deter occupational fraud — using the ACFE fraud triangle, segregation of duties, surprise audits, management review, and proactive data monitoring — with a 90-day plan tailored to a 20-person organization.

Mike Thrift

fraud-detectionfraud-preventionsmall-business

May 14, 202613 min read

PEO vs CPEO vs ASO vs EOR: 2026 Small Business HR Outsourcing Guide

How small businesses should choose between a PEO, CPEO, ASO, or EOR—covering co-employment mechanics, the FICA wage base restart trap that doubles Social Security tax on a mid-year switch, joint-employer lawsuits under the FLSA and Title VII, and the contract terms to verify before signing.

Mike Thrift

payrollsmall-businesscompliance

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