The One Big Beautiful Bill Act (OBBBA) contains a major overhaul of an outdated IRS requirement. Beginning with payments made in 2026, the new law raises the threshold for information reporting on certain business payments from $600 to $2,000. Beginning in 2027, the threshold amount will be adjusted for inflation.
Murry Guy, CPA
Recent Posts
The New Law Includes a Game-Changer for Business Payment Reporting

Posted by Murry Guy, CPA on Aug 05, 2025
Posted in Business Advisory
Alabama's Back-to-School Sales Tax Holiday Weekend: July 18–20, 2025
The State of Alabama will participate in its 20th annual Back-to-School Sales Tax Holiday Weekend, beginning Friday, July 18, 2025, at 12:01 a.m. and ending at midnight on Sunday, July 20, 2025. During this three-day event, shoppers can purchase a variety of school-related items free of the state’s 4% sales tax.
Posted in News & Events
How to Prepay Expenses Strategically and Report Them Accurately

Posted by Murry Guy, CPA on Jul 14, 2025
In accrual-basis accounting, timing is everything. One core principle of U.S. Generally Accepted Accounting Principles (GAAP) is the matching concept, which requires organizations to recognize expenses in the same period as the revenue they help generate. Prepaid expenses — payments made for goods or services before they’re used — must be handled carefully to conform to this principle. Here’s an overview of the accounting rules for reporting prepaid items and guidance to help you manage them effectively.
Posted in Accounting & Outsourcing
Dos and Don'ts to Help Protect Your Business Expense Deductions

Posted by Murry Guy, CPA on Jun 24, 2025
If you’re claiming deductions for business meals or vehicle expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting out inconsistencies, omissions, and errors in taxpayers’ records, as illustrated by one recent U.S. Tax Court case. (T.C. Memo. 2024-82)
Posted in Business Tax
The IRS Recently Announced 2026 Amounts for Health Savings Accounts

Posted by Murry Guy, CPA on Jun 11, 2025
The IRS recently released the 2026 inflation-adjusted amounts for Health Savings Accounts (HSAs).Employees will be able to save a modest amount more in their HSAs next year.
Posted in Tax Updates, Tax Planning
Hiring Independent Contractors? Make Sure You're Doing it Right

Posted by Murry Guy, CPA on May 20, 2025
Many businesses turn to independent contractors to help manage costs, especially during times of staffing shortages and inflation. If you’re among them, ensuring these workers are properly classified for federal tax purposes is crucial. Misclassifying employees as independent contractors can result in expensive consequences if the IRS steps in and reclassifies them. It could lead to audits, back taxes, penalties, and even lawsuits.
Posted in Accounting & Outsourcing
Old Invoices, New Rules: Tap Into the Power of the AR Aging Report

Posted by Murry Guy, CPA on May 13, 2025
For many businesses, accounts receivable (AR) are more than just a line item on the balance sheet. This account provides a key indicator of potential cash flow, customer relationships and overall financial health. So proactive AR management is critical. The AR aging report has long been a cornerstone of expediting collections and reducing credit risk, but it’s taken on greater significance with the implementation of new accounting rules for recognizing credit losses.
Posted in Accounting & Outsourcing
Some tax sins are much worse than others. An example is failing to pay over federal income and employment taxes that have been withheld from employees’ paychecks. In this situation, the IRS can assess the trust fund recovery penalty, also called the 100% penalty, against any responsible person.
Posted in Accounting & Outsourcing
How a Business Owner's Home Office Can Result in Tax Deductions

Posted by Murry Guy, CPA on Mar 26, 2025
As a business owner, you may be eligible to claim home office tax deductions that will reduce your taxable income. However, it’s crucial to understand the IRS rules to ensure compliance and avoid potential IRS audit risks. There are two methods for claiming this tax break: the actual expense method and the simplified method. Here are answers to frequently asked questions about the tax break.
Posted in Business Tax
Questions About Taxes and Tips? Here Are Some Answers for Employers

Posted by Murry Guy, CPA on Feb 11, 2025
Businesses in certain industries employ service workers who receive tips as a large part of their compensation. These businesses include restaurants, hotels, and salons. Compliance with federal and state tax regulations is vital if your business has employees who receive tips.
Posted in Business Advisory