Hot off the press! Our latest newsletter covering the 2026 Annual Information Returns (Forms 1099, W-2s, and more) is now available here. Key Updates for 2025: 1099s, Worker Classification, and New Tax Deductions Staying compliant with tax regulations is more important than ever—especially with evolving rules around Forms 1099, worker classifications, and new deductions for […]

The demand for long-term care facilities in the United States continues to rise, along with the costs. Someone who turns 65 today has roughly a 70% chance of eventually requiring long-term care services, according to the latest data from the U.S. Department of Health and Human Services. Moreover, 20% of seniors will need it for […]

The volume of corporate litigation is an ongoing concern, in any economy. In recent years, there has also been a global trend to hold individuals accountable for their actions. For stockholders, employees, customers and clients who feel they have been wronged, finding the guilty party and holding them accountable can often be accomplished by filing […]

Determining the right successor for your family business can be more complex than it first appears. Sometimes what looks good on paper doesn’t play out well in reality. When the time comes to transition ownership and management to your chosen successor, what should you do if it seems like he or she isn’t ready or […]

If you’re unlucky enough to suffer a personal theft loss, you may be entitled to a federal income tax deduction. Or you may not. The rules are complex, but there’s some good news: Last year’s One Big Beautiful Bill Act (OBBBA) makes claiming these write-offs a little easier in the near future. Ground Rules Theoretically, […]

Suppose you’ve been doing business with a company that owes you money for your products or services. Things get so bad that you file a lawsuit to force them to pay up. But then you receive a notice that the customer has filed for bankruptcy. What now? Let’s explore some of the rights and responsibilities […]

Client Background A regional contractor approached Hedman Partners LLP to assist in the adoption of ASC 842, Leases. The company had experienced rapid growth over the past several years and now required reviewed financial statements to secure financing for continued growth and expansion. The company maintains fleets of leased vehicles for its employees, leases several […]

Any business owner in the manufacturing sector knows firsthand that inventory management is much more than tracking boxes on shelves. It’s at the heart of your cost structure, your pricing, and your profits. Yet, two of the most common (and costly) inventory costing mistakes are often hiding in plain sight. Let’s break down why these […]

As we wrap up the year, we want to keep our clients, colleagues, and friends informed about significant tax law changes that may impact your 2025 planning. The recently passed One Big Beautiful Bill Act (OBBBA) brings several updates affecting both individuals and businesses: Key Highlights: For Individuals: SALT Deduction: Increased to $40,000 (with phase-downs for […]

One of the costliest — yet easily prevented — disasters for any business is the failure to secure ownership of its intellectual property (IP). Under the law, ownership of copyrights and inventions may actually belong to employees or independent contractors unless there’s a legally defensible written agreement to the contrary. U.S. copyright laws, as well […]

For some time now, individuals age 70½ and older have been able to transfer funds directly from a traditional IRA to an IRS-approved charity. However, with the enactment of the One Big Beautiful Bill Act (OBBBA) earlier this year, these qualified charitable distributions (QCDs) have become an even tax-savvier way to give to charity. If […]

Client Background A manufacturing company approached Hedman Partners LLP with persistent concerns about the accuracy and transparency of their inventory costing. Challenges Before Hedman Partners LLP Engagement 1. Limited systematic cost tracking • Manual processes resulted in missed allocations and inconsistent application of costs. 2. Uncertain overhead rates • Lack of confidence in calculated rates […]

One reason many people disdain the budgeting process is that they associate budgets with restraint — that is, not spending money for something because it’s not in the budget. However, if you’re calling the shots, you can blow your budget as much as you want on the spending side. And there are times when it’s […]

Starting in 2026, Trump Accounts will provide another tax-favored way to save for a child’s future. Introduced under the One Big Beautiful Bill Act (OBBBA), these accounts are similar to traditional IRAs, but they’re only for U.S. citizens under age 18. Here are answers to some common questions. How Do Trump Accounts Work? Parents of […]

With years of experience serving the unique needs of growing companies, our team in Valencia, CA delivers personalized solutions, including: Client Accounting and Advisory Services (CAAS) Tax Planning & Compliance Outsourced CFO & Controller Services Business Consulting and Succession Planning Assurance & Audit We understand the challenges that come with rapid growth, tax compliance, and […]

Running a business is complex. With employment-related claims and lawsuits on the rise, management must have a basic understanding of numerous federal, state and local laws. Here are three cases that illustrate some employer liability trends. Case 1. Giving a positive reference could cost millions. This court case, involving reference checks about a drug-addicted physician, […]

The One Big Beautiful Bill Act (OBBBA) rolls back federal income tax rules that required businesses to capitalize certain research and experimental (R&E) expenses. The rollback provision is effective for the 2025 tax year, but it’s available only for domestic R&E costs. There’s also some retroactive relief for domestic R&E expenses that were capitalized for […]

Does every single one of your customer support reps fully understand how their department makes money for your business? Is the administrative staff harboring a few bright ideas about how to increase the bottom line? It’s easy for employees to view their jobs narrowly and forget that they each contribute to the financial health of […]

A federal tax law change that took effect in 2026 limits the deduction for gambling losses. Under the new rule, taxpayers can generally deduct only 90% of qualifying gambling losses, up to the amount of their gambling winnings. As a result, some taxpayers may owe tax on gambling income even if their total winnings and […]

How Do We Self-Correct a Failure to Enroll a New Employee in Our Automatic 401(k) Plan Contributions? Question: Our 401(k) plan satisfies the nondiscrimination safe harbor under the Internal Revenue Code by requiring an automatic deferral of 3.5% for each new employee who doesn’t affirmatively elect a different percentage (or zero), and by providing a […]

If you’re a contractor, manufacturer or another type of business that deals with hazardous materials, you’re probably already mindful of the legal and practical steps you need to take to safeguard your employees and facilities. On the other hand, if your working environment is a typical office, you might assume you’re largely off the hook […]

Many companies choose not to combine real estate and other assets into a single entity. Perhaps the business fears liability for injuries suffered on the property. Or legal liabilities encountered by the company could affect property ownership. But there are valid and potentially beneficial tax reasons for holding real estate in a separate entity as […]

Qualified small business (QSB) stock has received very favorable federal income tax treatment for many years. Starting in 2025, the One Big Beautiful Bill Act (OBBBA) enhances the QSB rules even more. Here’s what you need to know to take advantage of this tax-saving opportunity. What’s Special About a QSB Corporation? QSB corporations are a […]

If you’re about to ask for a business loan, expect to deal with the issue of covenants — constraints lenders impose on your company to keep it operating within specified financial ratios and to prevent it from taking certain actions. These clauses are meant to help the lender mitigate risk and get its money back. […]

Section 529 plans are most commonly used as a tax-favored way to save and pay for college expenses. You might be reluctant to open a 529 account for your child because you’re not sure he or she will pursue a college degree. Or maybe you’re too focused on paying tuition for an expensive K-12 school […]

If you’re building up a small business but haven’t yet needed to borrow funds to expand or smooth out cash flow irregularities, you’re doing something right. Or if you have borrowed and everything went smoothly, kudos again. Otherwise, keep in mind that anticipating the need for credit well in advance will put you in a […]

The holiday season is right around the corner, and that’s when many charitably inclined people start to think about year-end donations to their favorite charities. When planning your charitable contributions, don’t forget about the potential tax breaks for your generosity. The tax rules for these breaks have changed somewhat under the One Big Beautiful Bill […]

Question: What is surprise balance billing? And what does our group health plan have to disclose about it? Answer: Balance billing occurs when a provider bills a covered individual for charges disallowed by the plan because the charges exceed the plan’s allowed amount. It occurs only with out-of-network providers since in-network providers have agreed to […]

When you got married, you knew it was for “better or worse.” But you might not know about laws that hold you responsible if your spouse cheats on a tax return. Married couples filing jointly should be aware that: You are both responsible for tax, interest and penalties — even after a divorce or the […]

Individual taxpayers faced significant tax planning uncertainty for the first six months of the year. Many provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) were scheduled to expire at the end of this year. However, after the One Big Beautiful Bill Act (OBBBA) became law in July, the federal tax rules for […]

Many owners of pass-through businesses and self-employed individuals have taken advantage of the Section 199A qualified business income (QBI) deduction. Created by the Tax Cuts and Jobs Act (TCJA), this break was scheduled to expire after 2025, making its future uncertain and hampering tax planning. The tax and spending legislation known as the One Big […]

Location, location, location. You know how important it is for your company. That’s why when establishing a new location, whether because you’re launching a new business or expanding or relocating an existing one, you’ve got to research factors such as foot traffic, vehicle traffic and occupancy rates of the neighboring buildings. But if you don’t […]

If your business is picking up steam, you may be looking to expand your workforce to meet the demand. Here’s a practical idea: Hire employees who qualify for the Work Opportunity Tax Credit (WOTC). The credit is available for workers who represent one of the “target” groups specified by law. There’s no limit on the […]

Prudent businesses often choose to lease rather than buy equipment, vehicles and facilities. Leasing can be advantageous but the type of agreement you sign is important. When presented with lease options, you’ll find the ones with the longest terms are generally the cheapest. But you might want to opt for a short-term version instead. Why? […]

The One Big Beautiful Bill Act (OBBBA) introduces three potentially valuable tax breaks for individual taxpayers that weren’t previously available. And you don’t have to itemize deductions to take advantage of them. Do you qualify? Read on and find out. 1. Deduction for Some Tip Income: The Basics Before the OBBBA, tip income was fully […]

How many Baby Boomer employees (those born between 1946 and 1964) will be leaving your organization in the next five years? When retiring employees clear out their desks and walk out the door for the last time, they often leave with fond memories — as well as vast amounts of intellectual property stored in their […]