Accounting & Tax

Article Danielle Camara

If your organization paid tariffs under the International Emergency Economic Powers Act (IEEPA), you may now be eligible to apply for refunds.

What changed
The U.S. Supreme Court recently ruled that certain IEEPA tariffs were unconstitutional, meaning importers who paid them may be able to recover those amounts.
This ruling applies only to IEEPA tariffs. Section 301 and Section 232 tariffs remain in effect.

How to claim refunds
U.S. Customs and Border Protection (CBP) introduced the Consolidated Administration and Processing of Entries (CAPE) tool within the ACE Portal to streamline the process.

  • Submit claims in batches (no manual entry-by-entry filings)
  • Available to importers of record or their customs brokers
  • CBP will recalculate duties and issue refunds accordingly

Who is eligible (Phase 1)

  • Unliquidated entries or those within approximately 80 days of liquidation
  • Entries that are suspended, extended, or under review

Not yet eligible: finalized entries, entries under protest, or those included in drawback claims.

What to do next

  • Confirm access to your ACE Portal
  • Ensure ACH refund details are up to date
  • Identify entries where IEEPA duties were paid
  • Assess Phase 1 eligibility

How We Can Help

While trade and customs matters are highly specialized, we want to ensure you are aware of this development and the potential opportunity it presents. We are available to help you assess your situation and navigate the process.

Depending on your circumstances, you may also wish to consult your customs broker or trade counsel, who can assist with the technical aspects of filing. We are happy to collaborate with your existing advisors to support you as needed.

Get in touch with our team to explore how this applies to your organization.

Article Danielle Camara

Kentucky tax law is changing with the enactment of House Bill 757 (HB 757), an omnibus measure that includes updates to income tax, sales tax and other provisions. The General Assembly passed the bill and delivered it to the governor, who vetoed portions of the legislation. Lawmakers subsequently overrode those vetoes on April 14, enacting the law.

Below is an overview of key provisions.

Income Tax Conformity

Kentucky is a “static” conformity state, meaning it adopts the Internal Revenue Code (IRC) as of a specific date. For taxable years beginning on or after January 1, 2026, HB 757 updates Kentucky’s conformity date to December 31, 2025. This brings Kentucky in line with the federal income tax changes made by the One Big Beautiful Bill Act (OBBBA) enacted last summer.

Notably, however, HB 757 decouples from several taxpayer-friendly provisions in the OBBBA, including the federal deductions for qualified tips, overtime pay, and vehicle loan interest. It also decouples from IRC § 174A and the OBBBA’s amendments to IRC § 163(j).

For federal income tax purposes, Section 174A allows taxpayers to immediately deduct domestic research and experimental expenditures. By decoupling from this provision, Kentucky requires taxpayers to capitalize and amortize these expenditures over a period of five years.

Section 163(j) imposes a limit on the amount of business interest that is deductible. This limit is 30% of a taxpayer’s adjusted taxable income (ATI). The OBBBA restored a previous, more beneficial calculation of ATI that allows taxpayers to add back depreciation, which increases the amount of business interest that is deductible. By decoupling from the OBBBA’s changes to Section 163(j), Kentucky fails to adopt this more favorable calculation.

Sales Tax Changes

HB 757 makes two primary changes to Kentucky’s sales tax laws. First, it alters the state’s economic nexus threshold that determines when out-of-state sellers are required to collect sales tax. Currently, out-of-state sellers without a physical presence in Kentucky are required to collect and remit tax if, in the previous or current year, their gross receipts from sales to Kentucky customers exceed $100,000, or they sold property delivered to Kentucky customers in 200 or more transactions. HB 757 eliminates the 200-transaction threshold, following a recent trend in other states.

Second, HB 757 imposes sales and use tax on data brokering services. Data brokering services are defined as “the act of collecting, aggregating, and analyzing personal data for sale to a third party while possession of the personal data is maintained by the person providing the data brokering services or by the third party.” Sales tax applies regardless of how the charges are billed.

Taxation of Prediction Markets and Fantasy Sports Platforms

HB 757 makes several miscellaneous tax changes. Two notable provisions include the taxation of prediction markets and fantasy sports platforms.

Prediction markets allow players to trade bets on the outcome of real-world events, such as politics or sports. The new law imposes a 14.25% excise tax on the transaction fees of prediction market operators, effective January 1, 2027. Notably, HB 757 states that it is the General Assembly’s intent to tax prediction markets and not to legalize such activities.

A separate provision of the legislation levies a tax on fantasy sports platforms, also effective January 1, 2027. The tax is equal to 12% of entry fees, less winnings paid to participants.

Connect with our tax experts to discuss how these changes may impact your organization.

Article Dean Dorton Admin

As the 2026 filing season approaches, construction companies nationwide face a tax landscape that is both generous in deductions and more complex. Expanded depreciation rules, new accounting flexibility and long-term certainty for pass-through incentives mean smart planning now can improve cash flow and significantly reduce taxable income.   

Here are the top three tax strategies construction business owners should prioritize this filing season. 

1. Maximize Depreciation and Equipment Expensing 

Construction is a capital-intensive business, and the federal tax code increasingly reflects that reality.  

Why It Matters 

The One Big Beautiful Bill Act (OBBBA) permanently reinstated 100% bonus depreciation for qualifying assets placed in service after January 19, 2025. This allows companies to fully expense heavy equipment, vehicles, tools, and more in the year they’re put into use — instead of over many years. 

At the same time, the Section 179 deduction cap has been increased (e.g., up to $2.5 million, with thresholds beginning to phase out at $4 million in 2025 and indexed for inflation in 2026). This expanded threshold gives many construction firms greater flexibility to expense qualifying purchases immediately.  

Practical Tips 

  • Time purchases carefully: Only assets placed in service by year-end qualify for immediate expensing. Plan deliveries, install schedules, and ready-for-use timing accordingly.  
  • Layer Section 179 and bonus depreciation: Use Section 179 to target specific high-priority assets, then apply bonus depreciation to remaining purchases. This approach is especially effective for large trucks, cranes and heavy machinery.  
  • Don’t overlook technology: Certain software, project management tools and digital platforms may qualify for expensing when properly classified. These deductions not only cut your taxable income but also improve cash flow — money you can reinvest into wages, materials, or expansion. 

2. Leverage Specialized Credits and Accounting Flexibility 

Beyond basic depreciation, construction companies can tap into several targeted tax incentives and accounting elections that reduce liability. 

Key Opportunities 

  • Qualified Business Income (QBI) Deduction: Pass-through companies (LLCs, S corps, partnerships) can deduct up to 20% of qualified business income — and this deduction is now made permanent.  
  • Research & Development Credits: Yes, even construction firms can qualify if they innovate — for example, by developing more efficient building processes, materials, or safety systems. These credits directly reduce tax liability dollar-for-dollar.  
  • Energy-Efficient Building Incentives: Deductions like IRC §179D reward energy-efficient design and sustainable upgrades — but many of these incentives are tightening or set to sunset mid-2026, so acting now is crucial.  
  • Revenue Recognition Choices: Construction accounting methods — such as the completed-contract method versus the percentage-of-completion method — can materially affect when income is recognized and taxes owed. Recent law changes give broader flexibility, especially for residential and multi-unit projects. 

Actionable Steps 

  • Work with a CPA who understands construction: Many tax credits and methods require specific documentation and elections. A specialist helps ensure you capture all eligible benefits.  
  • Evaluate contracts annually: Large projects spanning multiple years can benefit from strategic method elections that defer income or accelerate deductions.  
  • Year-Round Planning: Estimated Taxes and Timing of Income 

3. Being proactive about taxes throughout the year — not just at filing time — can yield major advantages. 

Why It’s Critical 

Construction revenue and expenses often don’t align neatly with calendar years. Seasonal revenues, retainage, project delays, and subcontractor timing can create peaks and valleys that complicate quarterly estimations. Improving how and when you recognize income or deductions can significantly reduce year-end surprises and penalties.  

Strategies That Work 

  • Optimize Estimated Tax Payments: Avoid underpayment penalties and preserve cash flow by forecasting profits mid-year and aligning estimated payments with expected liabilities.  
  • Accelerate or Defer Income/Expenses: If you use cash accounting, deferring invoices until January can delay tax liability, while accelerating deductible expenses into the current year can increase deductions. Always balance with cash flow needs.  
  • Maintain pristine documentation: Timely and detailed bookkeeping — especially job cost tracking — not only simplifies tax preparation but supports every deduction and credit you claim.  

Final Thoughts 

The 2026 filing season isn’t just a deadline — it’s an opportunity. With permanent enhancements to depreciation, expanded deduction thresholds, and renewed incentives like the QBI deduction, construction companies have unprecedented tools to shape their tax outcomes. But these opportunities work best when paired with planning, expert advice and rigorous documentation. 

Start conversations with your tax advisor now — not in March — so your 2025 books are positioned to deliver the best possible results when you file in 2026.  

Contact your Dean Dorton advisor to discuss how these strategies may apply to your construction business and to begin proactive tax planning for the 2026 filing season.

Article Danielle Camara

To increase efficiency, reduce costs, and prevent fraud, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) are moving towards fully electronic payments to and from the IRS. This includes both tax payments and refunds issued to taxpayers.

On March 25, 2025, President Trump signed Executive Order 14247, titled Modernizing Payments to and from America’s Bank Account. In response, the IRS issued new Frequently Asked Questions, explaining how the changes affect taxpayers, particularly during the 2025 filing season. Key takeaways are summarized below in a Q&A format.

Individual Tax Refunds

What’s changing with how refunds are paid?

As of September 30, 2025, the IRS generally has stopped issuing paper refund checks to individuals. Direct deposit will be the primary method for issuing refunds. In limited circumstances, certified payments or paper checks may still be issued if no electronic option is available.

Will the transition delay my refund?

Generally, no. Most taxpayers will receive refunds faster through electronic payments methods.

What happens if I don’t include direct deposit information on my return?

Taxpayers should provide direct deposit information when filing a tax return. If banking information is missing or invalid, the IRS still will process the return and send a CP53E notice by mail to the taxpayer’s last known address on record requesting updated information.

The CP53E notice will instruct taxpayers to visit IRS.gov/your-account to create an account and update their banking information or explain why it cannot be provided.

Once the taxpayer responds, the refund will be issued by direct deposit or paper check, as applicable. If the taxpayer does not respond to the CP53E notice within 30 days, the refund will be released as a paper check after six weeks.

Please note that the IRS will only contact taxpayers by U.S. mail, not by phone or text.

Will the IRS continue to issue paper refund checks to deceased accounts?

Yes. There are no changes to how refunds are issued to deceased individuals.

Payments to the IRS

Can I continue to pay the IRS by check or money order?

Yes, for now. The IRS will continue accepting checks and money orders but plans to transition fully to electronic payments. Over time, paper payments will generally be limited to cases involving hardship or legal requirements.

Do I need special technology to make electronic payments?

Generally, taxpayers only need internet access and a bank account or credit or debit card to pay electronically. The FAQs provide links to various electronic payment options for taxpayers. Visit the Payment Options page on the IRS’s website for more information.

How do I know that my payment was received?

Taxpayers who pay electronically will receive an immediate confirmation number and receipt or a confirmation email that can be saved or printed for their records.

Businesses

Will businesses continue to receive refunds by paper check?

The IRS is working to add the direct deposit option to most business tax return types. Paper check refunds for businesses will be phased out over time.

How can businesses make payments to the IRS?

Review the FAQs or visit the Payment Options page on the IRS’s website for information on payment options for businesses.

Miscellaneous

How will these changes affect international taxpayers?

For now, international taxpayers should continue to use existing options to file returns, make payments, and receive refunds. Wire transfers remain available, and the IRS is working to develop secure alternatives for international taxpayers.

Will these changes affect how I file my tax return?

No. No changes are being made to the way that tax returns are filed. Taxpayers will continue to file their tax returns as usual.

For questions on the IRS’s new electronic payment requirements, please contact Dean Dorton.

Article Dean Dorton

Grant management has changed significantly in the last ten years. What used to be mainly an administrative accounting task is now a strategic skill that affects compliance, funder trust, cash flow, and long-term viability. Nonprofits are no longer just asked to report how grant money was spent afterward, but to manage those funds carefully and openly in real time—often across multiple grants, programs, and funding sources simultaneously.

Yet many organizations still rely on outdated accounting systems that were never designed to address today’s grant management challenges. As expectations increase, these limitations become a significant operational and financial risk.

The New Reality of Grant Oversight

Compliance Is More Complex—and Less Forgiving

Updates to Uniform Guidance, higher audit thresholds, increased cybersecurity scrutiny, and expanded oversight of subrecipients have elevated the standards for compliance. Nonprofits must consistently demonstrate proper controls, accurate cost allocations, and timely documentation. Relying on manual processes and static account structures makes this more difficult, leaving organizations vulnerable not only during audits but throughout the entire grant lifecycle.

Transparency and Real-Time Accuracy Are Now Expected

Funders expect continuous insight into how their funds are used—not just at the end of a grant period but throughout. While formal grant reporting might be done semi-annually or annually, grant drawdowns are often a monthly process, and outdated systems cause the greatest strain and risk during this time.

When finance teams rely on spreadsheets or manual reconciliations to prepare drawdowns, the process becomes slow, error-prone, and difficult to validate. In contrast, real-time visibility into allowable costs, remaining balances, and grant restrictions allows organizations to prepare drawdowns more efficiently and confidently, knowing the data is accurate and up-to-date.

Manual Processes Create Risk Around Cash Flow and Revenue Recognition

Legacy systems often face challenges with one of the most complex parts of grant accounting: revenue recognition for conditional funding, which represents the majority of federal grant revenue. Without the ability to accurately track expenses against grant conditions in real time, organizations risk recognizing revenue too early or too late, leading to compliance issues and inaccuracies in financial statements.

Modern grant management processes help ensure that revenue is recognized properly as conditions are fulfilled, while still clearly distinguishing between restricted and unrestricted funds. Achieving this level of precision is difficult—if not impossible—to sustain in systems that rely heavily on manual workarounds.

The Cost of Standing Still

Organizations that continue to operate on outdated accounting platforms face real consequences:

  • Increased compliance risk due to limited controls and manual drawdown preparation
  • Significant time spent each month preparing grant drawdowns and reconciling data
  • Greater exposure to revenue recognition errors for conditional grants
  • Reduced scalability, making it harder to manage multiple or overlapping grants without adding staff

Over time, these challenges can limit growth, strain finance teams, and hinder an organization’s ability to pursue new funding opportunities.

How Sage Intacct Supports Modern Grant Management

Modern cloud-based platforms like Sage Intacct are designed to support the entire grant management lifecycle—not just reporting at the end. Instead of requiring nonprofits to modify their processes to fit rigid account structures, Sage Intacct uses dimensional accounting to track grants, programs, funders, and restrictions in real time.

With Sage Intacct, nonprofits can:

  • Track grant activity and allowable costs continuously, not retroactively
  • Prepare grant drawdowns more efficiently using real-time, validated data
  • Reduce manual reconciliation by tying expenses directly to grant dimensions
  • Support accurate revenue recognition for conditional grants as expenses are incurred
  • Provide leadership and boards with clear, up-to-date visibility into grant balances and funding utilization

This approach shifts finance teams from reactive cleanup work to proactive grant oversight—reducing monthly effort, improving accuracy, and lowering overall risk.

Organizations that modernize their grant management processes often see measurable improvements. Some have cut grant-related preparation time from hours or days to just minutes, while others have increased their capacity to handle more grants without hiring additional staff—simply by gaining better visibility and control over their financial data.

Modernization Is a Strategic Imperative

In today’s funding climate, the ability to accurately manage grants in real time is essential for mission success. Grant drawdowns, compliance, revenue recognition, and transparency are no longer occasional issues—they are constant operational demands.

Switching to a modern platform like Sage Intacct provides nonprofits with more than just improved reporting tools. It boosts their confidence in data, streamlines monthly processes, and creates a financial foundation that supports growth, compliance, and lasting impact.

See the Benefits in Action

Join us for an upcoming webinar to discover how nonprofits are modernizing grant management to increase real-time visibility, streamline grant drawdowns, enhance revenue recognition, and reduce compliance risks. We will share practical insights and examples of how modern financial systems can better support today’s grant-funded organizations.

Register here: Grant Management in 2026: Why Outdated Accounting Systems Put Nonprofits at Risk

Article Danielle Camara

The One Big Beautiful Bill Act (OBBBA), passed in July 2025, introduces changes to tax regulations that significantly affect real estate investors. One of the most important changes is the restoration of 100% bonus depreciation, making cost segregation studies an even more compelling tax strategy. 

What is a Cost Segregation Study and Why Consider It?

An investor can use a cost segregation study to allocate the basis of real property into specific asset classes, allowing for accelerated depreciation deductions for certain asset classes. In fact, any qualified improvement property or personal property will be eligible for 100% bonus depreciation, making it deductible in the year the property is purchased and placed in service. This includes building components and land improvements such as flooring, windows, fencing, and sidewalks. 

Quantifying the Impact

The example below illustrates the tax benefit of depreciation using a cost segregation study for a taxpayer who acquires a $3 million commercial property in 2025.

Tax Benefit without Cost Segregation:

  • Land allocation: $600,000 (not depreciable)
  • Entire building: $2,400,000 – depreciated over 39 years
  • Annual depreciation: $61,538
  • First-year tax benefit (37% bracket): $22,769

Tax Benefit with Cost Segregation and 100% Bonus Depreciation (Restored by OBBBA):

  • Land allocation: $600,000 (not depreciable)
  • Building allocation: $1,800,000 (39-year depreciation = $46,154 annually)
  • Qualified improvements identified by study: $600,000 (immediately deductible)
  • Total first-year deductions: $646,154
  • First-year tax benefit (37% bracket): $239,077

The restoration of 100% bonus depreciation and a cost segregation study transforms a $22,769 first-year tax benefit into a $239,077 benefit, more than tenfold increase. This example demonstrates how investors can accelerate depreciation deductions, reduce their tax liability, increase cash flow, and enhance overall return on investment.

Considerations in Advance

Before initiating a cost segregation study, taxpayers should evaluate their specific tax position and property characteristics to determine the eligibility and potential tax savings. They should also gather available property documentation, including recent appraisals, site maps or surveys, closing documents at time of purchase, and architectural or construction plans. 

Eligible Properties

Properties that are eligible for depreciation are eligible for cost segregation studies, including both residential and commercial properties. While this strategy can be applied broadly, it proves most effective on larger projects since the expected benefit correlates to the total cost of the project.

Timing the Study

Taxpayers can initiate a Cost Segregation Study at three key phases:

  • When purchased or constructed: Investors can commission a study on a newly acquired or constructed property. The study should be completed prior to the filing of the tax return for the year the property was placed in service, allowing for depreciation of the various components according to the classifications as set out in the study.
  • Retroactively: Investors can perform a study on properties placed in service in prior years. However, this requires filing a Form 3115 to claim the depreciation that would have been allowed. Note that bonus depreciation rates were less than 100% in 2023 and 2024, diminishing the benefits. 

In Summary

A cost segregation study is a strategic tax planning tool that allows real estate investors to accelerate depreciation deductions, resulting in significant tax deferrals and increased cash flow, particularly in the early years of ownership. It is especially valuable for newly constructed buildings, renovations, or acquisitions, and may also be applied retroactively. By front-loading depreciation, businesses can reinvest savings, improve ROI, and enhance financial performance.

To explore the applicability of this strategy to your specific situation, please contact Dean Dorton’s real estate team.