#compliance

Compliance

Navigate regulatory compliance and maintain audit-ready financial records

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May 12, 202617 min read

The BBA Partnership Audit Playbook: Partnership Representatives, Push-Out Elections, and the Imputed Underpayment Trap You Did Not See Coming

Under the Bipartisan Budget Act centralized audit regime, the IRS assesses partnership tax adjustments at the entity level at the highest individual rate. This guide explains when to elect out under Section 6221(b), how the partnership representative can modify or push out the imputed underpayment under Section 6226, and how to file an administrative adjustment request on Form 8082.

Mike Thrift

partnershipstaxtax-compliance

May 12, 202613 min read

CMMC 2.0 and NIST 800-171 in 2026: A Small Defense Contractor's Certification Roadmap

CMMC 2.0 took effect November 10, 2025, and Level 2 third-party assessments begin November 10, 2026. A practical guide to scope, cost ($80K–$250K over three years), the 14 control families, the POA&M rule, and a 90-day path for small DoD contractors.

Mike Thrift

compliancesecuritysmall-business

May 12, 202614 min read

DCAA Audit Compliance for Government Contractors: SF 1408, Timekeeping, and Incurred Cost Submissions

A practical guide to the three audits every cost-reimbursable federal contractor faces — the SF 1408 pre-award accounting system survey, daily timekeeping compliance, and the Incurred Cost Submission due six months after fiscal year-end — with a 90-day preparation plan and the five most common audit findings.

Mike Thrift

complianceguidessmall-business

May 12, 202611 min read

FIRPTA Withholding: The Buyer's 2026 Guide to Section 1445 and Form 8288

FIRPTA requires US real estate buyers to withhold 15 percent of the gross sale price from foreign sellers and remit it on Form 8288 within 20 days of closing. This guide explains Section 1445, the $300,000 personal residence exemption, the 10 percent reduced rate, withholding certificates on Form 8288-B, and how buyers avoid personal liability with an Affidavit of Non-Foreign Status.

Mike Thrift

real-estateinternational-taxtax-compliance

May 12, 202612 min read

FLSA Exempt vs. Non-Exempt in 2026: The $684 Salary Floor and the Three-Part Test

After the 2024 overtime rule was vacated, the FLSA white-collar salary threshold remains $684 per week ($35,568 per year) in 2026. This guide walks employers through the salary basis, salary level, and duties tests, the safe harbor under 29 CFR 541.603(d), state thresholds that override the federal floor, and the financial exposure of misclassification.

Mike Thrift

payrollcompliancelegal

May 12, 202612 min read

Form 2290 and the HVUT: How Trucking Operators File Heavy Highway Vehicle Use Tax Before the August 31 Deadline

Form 2290 funds federal highway maintenance through an annual excise tax on vehicles with a taxable gross weight of 55,000 pounds or more. Owner-operators and fleets owe up to $550 per truck and must file by August 31 — late filings trigger a 4.5% monthly penalty and DMV registration suspension.

Mike Thrift

taxtax-compliancetax-deadlines

May 12, 202612 min read

Form 5329 and the Missed RMD: How SECURE 2.0's 25%/10% Penalty Rules Work

SECURE 2.0 cut the missed-RMD excise tax from 50% to 25%, and to just 10% if the shortfall is corrected within a two-year window. Form 5329 is how taxpayers claim the reduced rate or request a full reasonable-cause waiver, and the form also starts the IRS's three-year limitations clock.

Mike Thrift

taxtax-compliancetax-planning

May 12, 202615 min read

Form 8027: How Restaurants Apply the 8% Tip Allocation Rule and Avoid W-2 Box 8 Surprises

Form 8027 requires large food and beverage establishments to reconcile gross receipts against employee-reported tips and allocate any shortfall below 8% to directly tipped employees on W-2 Box 8. This guide covers the 10-employee filing test, the three approved allocation methods, the tip-versus-service-charge distinction, and the reconciliation discipline that keeps Box 8 empty.

Mike Thrift

restaurantpayrolltax-compliance

May 12, 202612 min read

Form 8867 Paid Preparer Due Diligence in 2026: Avoiding $650-Per-Credit Penalties on EITC, CTC, AOTC, and HOH Returns

Form 8867 due diligence carries a $650 penalty per credit in 2026 — up to $2,600 per return — plus EFIN, PTIN, and OPR risk. A practical breakdown of the four IRC §6695-2 duties, the red flags IRS examiners hunt for, and the file structure that survives a 25-return due diligence visit.

Mike Thrift

tax-compliancetax-preparationcpa

May 12, 202613 min read

Form 941-X Explained: How Employers Correct Payroll Tax Errors, Recover Overpayments, and Stay Inside the Three-Year Statute of Limitations

A practical walkthrough of Form 941-X — when to use the adjustment process versus the claim process, the three-year (or two-year) statute of limitations, the stricter rules for federal income tax withholding, and what to put on Line 43 so the correction holds up under IRS review.

Mike Thrift

payrolltax-complianceirs-reporting

May 12, 202612 min read

Form W-2c and W-3c: How to Correct a W-2 Without Triggering Penalty Cliffs

Form W-2c fixes errors on previously filed W-2s, but the penalty structure stacks behind the original February 2 due date — $60, $130, $340, or $680 per form depending on how late you file. A practical guide to W-2c and W-3c filing, the 10-return e-file threshold, SSA mismatch letters, and reconciling with Form 941-X.

Mike Thrift

payrolltax-compliancew-2-wages

May 12, 202615 min read

Form I-9 and E-Verify Compliance: ICE's March 2026 Fact Sheet and the New Penalty Math

ICE's March 16, 2026 fact sheet reclassifies common Form I-9 errors as substantive violations with no cure period. Paperwork penalties now run $288 to $2,861 per form, and a 500-employee company with a 40% error rate faces six-figure exposure. This guide covers the timing rules, retention windows, E-Verify mandates in eleven states, the alternative procedure for remote verification, and how to run a defensive self-audit.

Mike Thrift

compliancehiringpayroll

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