Yeo & Yeo Awarded on USA TODAY’s America’s Most Recommended Tax & Accounting Firms 2026 List

Yeo & Yeo has been awarded on USA TODAY’s list of America’s Most Recommended Tax & Accounting Firms 2026. The award list was announced on February 4, 2026, and can currently be viewed on USA TODAY’s website.

For the third time, USA TODAY and Statista are awarding the titles of “America’s Most Recommended Tax Firms” and “America’s Most Recommended Accounting Firms” through an independent survey based on the number of recommendations received from peers, clients, and additional company data.

Respondents were recruited via an online survey and through a carefully profiled online-access panel. Recommendations from professionals working at tax and accounting firms (peers) and professionals working with tax and accounting firms (clients) were considered in equal measure. Self-recommendations were excluded from the analysis, and multiple quality reviews were conducted before publication. In total, around 3,300 recommendations were considered.

Based on the results of the survey, Yeo & Yeo is proud to be recognized on USA TODAY’s list of America’s Most Recommended Tax & Accounting Firms 2026. This recognition solidifies Yeo & Yeo as an exceptional firm, respected by our peers and valued by our customers. In total, 100 tax firms and 100 accounting firms were awarded, respectively.

Statista publishes hundreds of worldwide industry rankings and company listings with high-profile media partners. This research and analysis service is based on the success of statista.com, the leading data and business intelligence portal that provides statistics, relevant business data, and various market and consumer studies and surveys.

Uncertainty regarding inflation, demand and foreign tariffs has made inventory management even harder for businesses than it was previously. Although there are many unknowns right now, one thing is generally certain: Carrying excess inventory is expensive. If you’d like to trim your buffer stock and maximize profitability, there are effective ways to do it without risking customer service.

Count and compare

Inventory management starts with a physical inventory count. Accuracy is essential for knowing your cost of goods sold and for identifying and resolving discrepancies between your physical count and perpetual inventory records. An external accountant can bring objectivity to the counting process and help minimize errors.

The next step is to compare your inventory costs to those of your peers. Trade associations often publish benchmarks for gross margin [(revenue – cost of sales) / revenue], net profit margin (net income / revenue) and days in inventory (average inventory / annual cost of goods sold × 365 days).

Your company should strive to meet — or beat — industry standards. For a retailer or wholesaler, inventory is simply purchased from the manufacturer. But the inventory account is more complicated for manufacturers and construction firms where it’s a function of raw materials, labor and overhead costs.

Guide to cutting

The composition of your company’s cost of goods will guide you on where to cut. You may be able to reduce inventory expenses by renegotiating prices with your suppliers or seeking new vendors. And don’t forget the carrying costs of inventory, such as storage, insurance, obsolescence and pilferage. Brainstorm ways to mitigate such threats and improve margins. For example, you might negotiate a net lease for your warehouse, install antitheft devices or opt for less expensive insurance coverage.

To lower your days-in-inventory ratio, compute product-by-product margins. You might stock more products with high margins and high demand — and less of everything else. Whenever possible, return excess supplies of slow-moving materials or products to your suppliers.

To help prevent lost sales due to lean inventory, make sure your product mix is sufficiently broad and in tune with consumer needs. Before cutting back on inventory, negotiate speedier delivery from suppliers or consider giving suppliers access to your perpetual inventory system.

Reality check

Right now, many businesses are sitting on strategic stockpiles they purchased to combat marketplace uncertainty. If this is true of your business and you haven’t been able to move goods fast enough, you may want to consider new inventory management methods. We can advise you on such challenges as using software to accurately forecast inventory needs, pricing goods to increase profitability without alienating customers, and modeling the cost impacts of tariffs and other economic variables.

Yeo & Yeo, a leading Michigan-based accounting and advisory firm, has been named a 2026 ClearlyRated Best of Accounting^® Award winner for both Client Satisfaction and Employee Satisfaction. The Best of Accounting Awards are based entirely on independent survey feedback from clients and employees and recognize firms that consistently deliver outstanding service and experience.

Firms earning this distinction demonstrate industry-leading Net Promoter^® Scores (NPS) and satisfaction ratings that far exceed national benchmarks. Earning both awards in the same year highlights a defining strength of Yeo & Yeo: a culture where employee experience and client experience reinforce one another. The firm’s ability to consistently deliver trusted guidance to clients is directly connected to the engagement, growth, and sense of belonging experienced by its people.

That alignment between people and experience didn’t happen overnight. It’s the result of a firm that has intentionally grown and adapted while staying rooted in its values.

For more than 100 years, Yeo & Yeo has served clients through changing regulations, challenging business environments, and shifting expectations. Throughout that time, the firm’s focus has remained constant: listen closely, adapt thoughtfully, and build relationships that endure. This ability to evolve while staying grounded in purpose has defined Yeo & Yeo’s legacy and continues to shape how it serves clients today through its five interconnected companies: Yeo & Yeo CPAs & Advisors, Yeo & Yeo HR Advisory Solutions, Yeo & Yeo Medical Billing & Consulting, Yeo & Yeo Technology, and Yeo & Yeo Wealth Management.

By the Numbers: Client Experience

86.6% of clients rated Yeo & Yeo a 9 or 10 out of 10 for satisfaction, compared to an industry average of 48%.
Yeo & Yeo earned a Net Promoter^® Score of 85.5, more than double the accounting industry average of 38.

“The way we serve clients today looks different from how it did decades ago, and that’s by design,” said Dave Youngstrom, President & CEO of Yeo & Yeo. “We’ve evolved by listening, adding depth, perspective, and connection where clients need it most. Earning this recognition confirms that staying adaptable while grounded in relationships still matters.”

Just as importantly, Yeo & Yeo’s employee survey results reflect a workplace built on belonging, growth, and shared purpose where professionals are empowered to do meaningful work while maintaining balance and well-being. Yeo & Yeo continues to expand benefits in response to employee feedback, ensuring the firm remains aligned with the changing needs of its team. Employees also benefit from access to Boon Health, which provides personalized coaching to support professional development and personal growth. To further promote work-life balance, Yeo & Yeo offers a flexible work environment and hybrid work options, along with initiatives such as half-day summer Fridays that encourage a healthy integration of work and personal life.

By the Numbers: Employee Experience

The firm achieved a Net Promoter^® Score of 58.6%, which exceeds the 50% global NPS standard for an “excellent” employee experience rating.
95.2% of employees say they have the autonomy and authority needed to perform their job effectively.
94.2% of employees say Yeo & Yeo’s leaders are genuinely interested in their well-being.

“Client experience and employee experience are inseparable,” Youngstrom added. “When our people feel supported, challenged, and connected, they’re able to show up fully for clients. This recognition belongs to our entire team and the culture they help shape every day.”

In a business environment marked by increasing complexity, Yeo & Yeo’s results reflect a steady focus on its core values: putting people first, listening intently, building trust, navigating challenges, and supporting communities. These principles have guided the firm through generations of change and will continue to shape its future.

Did your business make repairs to tangible property, such as buildings, equipment or vehicles, in 2025? Such costs may be fully deductible on your 2025 income tax return — if they weren’t actually for “improvements” that must be depreciated over a period of years.

Betterment, restoration or adaptation

In general, a cost that results in an improvement to a building structure or any of its building systems (for example, the plumbing or electrical system) or to other tangible property must be capitalized, with depreciation deductions spread over a few years or longer (depending on depreciation method and property type). An improvement occurred if there was a betterment, restoration or adaptation of the unit of property.

Under the “betterment test,” you generally must capitalize amounts paid for work that’s reasonably expected to materially increase the productivity, efficiency, strength, quality or output of a unit of property or that’s a material addition to a unit of property.

Under the “restoration test,” you generally must capitalize amounts paid to replace a part (or combination of parts) that is a major component or a significant portion of the physical structure of a unit of property.

Under the “adaptation test,” you generally must capitalize amounts paid to adapt a unit of property to a new or different use — one that isn’t consistent with your ordinary use of the unit of property at the time you originally placed it in service.

Immediate deduction safe harbors

Costs incurred on incidental repairs and maintenance can be expensed and immediately deducted. But distinguishing between repairs and improvements can be difficult. A few IRS safe harbors can help:

Routine maintenance safe harbor. Recurring activities dedicated to keeping property in efficient operating condition can be expensed. These are activities that your business reasonably expects to perform more than once during the property’s “class life,” as defined by the IRS.

Amounts incurred for activities outside the safe harbor don’t necessarily have to be capitalized, though. These amounts are subject to analysis under the general rules for improvements.

De minimis safe harbor. Amounts paid for tangible property can be currently deducted for tax purposes if those amounts are deducted for financial accounting purposes or in keeping your books and records. However, a dollar limit applies:

$5,000 if you have an “applicable financial statement,” generally meaning one that’s audited by a CPA, or
$2,500 if you don’t have an applicable financial statement.

Additional rules apply that may limit or eliminate your current deduction for a particular expense.

Small business safe harbor. For buildings that initially cost $1 million or less, qualified small businesses may elect to deduct the lesser of $10,000 or 2% of the unadjusted basis of the property for repairs, maintenance, improvements and similar activities each year. A qualified small business is generally one with average annual gross receipts of $10 million or less for the past three tax years.

A variety of tax-saving opportunities

As you can see, various options may be available to immediately deduct repair and maintenance costs safely. But keep in mind that improvements might also be eligible to be deducted immediately in certain circumstances, such as if they qualify for 100% bonus depreciation or Section 179 expensing. Contact us to discuss what you can deduct on your 2025 return and to start planning for tax-efficient repairs, maintenance and improvements in 2026.

Once considered a temporary workaround, remote auditing is now a permanent part of how audits are planned and performed. Technological advances and evolving workforce expectations have pushed audit firms to rethink traditional, fully on-site approaches. The question isn’t whether remote auditing will continue (it will), but how firms and clients can use it effectively while maintaining audit quality.

How remote auditing gained momentum

The concept of remote auditing didn’t emerge overnight. Even before remote work became commonplace during the COVID-19 pandemic, accounting firms were gradually expanding the use of off-site audit procedures. Many firms invested in staff training and technology — such as cloud computing, secure remote access and videoconferencing tools — to work off-site. Moreover, advanced analytics software and continuous auditing tools enabled real-time testing, reducing reliance on certain traditional manual testing procedures.

These efforts were driven largely by a desire to reduce business disruptions and costs while improving flexibility for both auditors and clients. The pandemic served as a catalyst for the widespread adoption of remote auditing techniques. As firms became more comfortable with these tools, they found that some procedures could be completed just as effectively, if not more so, outside the traditional on-site model.

Why hybrid audits are the new standard

Even with well-established remote capabilities, certain audit areas still benefit significantly from being conducted in person. Auditing standards emphasize that auditors must obtain sufficient appropriate evidence, whether collected on-site or off-site. Your auditor’s risk assessment dictates how and where procedures are performed.

Today, most auditors use a hybrid approach. By combining off-site and in-person procedures, they can balance efficiency with effectiveness. Some examples include:

Internal control testing. Auditors must evaluate whether controls are properly designed and implemented, and if they’re operating effectively. Gaining a full understanding of a company’s control environment can be challenging through virtual meetings alone. In addition, auditors often need to reassess how transactions are processed when employees work remotely or in hybrid settings. Controls that were effective in prior periods may need to be updated or supplemented, and in-person observation can provide critical context.

Fraud-related inquiries. Auditing standards emphasize that inquiries of management and those charged with governance regarding fraud are most effective when conducted face-to-face. On-site discussions allow auditors to observe body language, assess tone and evaluate interpersonal dynamics — insights that are harder to capture through a screen.

Inventory observations. Auditors are required to obtain sufficient appropriate evidence that inventory exists and is in good condition. While technology, such as live video feeds, drones and security cameras, can support this process, these tools have limitations. Observing inventory counts in person, at least for a sample of locations, often remains necessary to verify accuracy and completeness.

Companies that are unwilling to allow in-person procedures in these areas may raise concerns about audit risk. And when auditors decide to use remote procedures, they must apply heightened professional skepticism and be well-trained in using technology effectively.

Remote auditing, together

The future of auditing is flexible, adaptable and often remote. However, maintaining audit quality requires using the right tools in the right situations. The optimal mix of remote and on-site procedures will vary based on a company’s size, industry, systems and risk profile. Contact us to discuss what makes sense for your organization. We’ll work closely with your internal finance and accounting team to design an audit approach that streamlines the process while upholding audit quality.

If your organization sponsors a qualified retirement plan for employees, you’re no doubt aware of the many compliance risks involved. But there’s one requirement in particular that many employers overlook: the written explanation — or “notice” — that employee-participants must receive when withdrawing money from the plan.

In Notice 2026-13, the IRS recently updated its model rollover notices to reflect changes set forth under the SECURE 2.0 Act. Although this update doesn’t require employer-sponsors to materially change their plans, it does affect the proper handling of certain types of distributions and the notices sent to employees about them.

What the law requires

Participants typically take eligible rollover distributions from a qualified plan when they experience a major transition, such as changing jobs, retiring or leaving the workforce. Internal Revenue Code Section 402(f) requires that participants receive a written rollover notice “within a reasonable period” before the distribution — generally no more than 180 days in advance, and at least 30 days before the distribution unless the participant waives that period. The notice must explain:

Their option to roll over the money into another plan or IRA,
The tax consequences of taking the money in cash vs. rolling over,
Any required tax withholding, and
Special rules that may apply to Roth funds vs. non-Roth funds.

As mentioned, the IRS provides model notices for plan administrators (and, in some cases, payors) to use as templates to help ensure compliance. If a notice is missing or inaccurate, it can create compliance and operational risks for the administrator/payor — and potentially the sponsor as well.

Areas of impact

The content of Notice 2026-13 is largely driven by SECURE 2.0, which significantly changed plan distribution rules. For starters, the IRS has updated its two safe-harbor explanations and issued them as two model notices. The first covers distributions from non-Roth accounts, such as traditional 401(k) plans. The second applies to distributions from designated Roth accounts, such as 401(k)s with a Roth option. If an employee is eligible to receive both types of distributions, both notices must be provided.

In addition, Notice 2026-13 addresses four other areas of impact:

1. Expanded exceptions to the early withdrawal penalty. Normally, unless an exception applies, distributions taken before age 59½ are subject to a 10% early withdrawal penalty. SECURE 2.0 expanded the list of exceptions, among other changes, to include certain distributions for:

Emergency personal expenses,
Domestic abuse victims,
Terminally ill individuals,
Qualified disaster recovery, and
Eligible long-term care.

The updated IRS model notices clarify the exceptions and their associated tax treatment to help employees understand their options.

2. Required minimum distribution (RMD) changes. SECURE 2.0 also changed the age at which employees must begin taking RMDs. The starting age is now 73 or 75 (up from 72), depending on the individual’s birth year. Also, lifetime RMDs have been eliminated for Roth accounts held in employer-sponsored retirement plans. The revised model notices no longer explicitly reference age in determining a participant’s required beginning date for RMDs. They also reflect changes to the RMD rules for surviving spouses and the elimination of RMDs for Roth accounts.

3. Higher “cash out” amount. SECURE 2.0 increased the dollar threshold below which a plan may make an immediate lump-sum distribution without a participant’s consent following a qualifying event. The new model notices disclose the higher threshold of $7,000 (up from $5,000), which also applies to automatic rollovers of mandatory distributions.

4. Special rules for “pension-linked” emergency savings accounts (PLESAs). Introduced under SECURE 2.0, PLESAs allow eligible participants in defined contribution plans to build emergency funds they can draw on rather than tapping their retirement savings. The revised model notices now include an explanation of the PLESA distribution rules.

Employer actions

Use of the IRS model notices isn’t required, but they’re generally considered a good place to start. Plan administrators/payors may customize their notices by removing inapplicable sections. Just be sure yours clearly include all required information.

So, where should you go from here? First, confirm that your internal benefits team or third-party administrator/payor is aware of the new model notices and is considering their impact. Second, review who’s responsible for delivering rollover notices, and verify that the issuance process reflects the current rules under SECURE 2.0.

Good for everyone

Clear, accurate rollover notices protect your organization, reduce compliance risk and deliver important information to participants. We can help you review your qualified retirement plan to identify vulnerabilities and align it with your budget and strategic objectives.

Does your family business keep its strategic decisions within the family? It’s common for family businesses to assign relatives to positions of authority and require other employees to defer to them. But “common” doesn’t necessarily mean “good.” Not only is outside input recommended, but it can help reduce the risk of certain problems (such as unaccountability and fraud) and promote long-term financial health. Here’s how your family business might benefit from an advisory board made up primarily of nonfamily members.

A consulting body

An advisory board serves only in a consulting capacity. So it doesn’t carry the fiduciary responsibilities or legal authority of a formal board of directors. Small business advisory boards generally are less formal and enjoy greater freedom to develop creative solutions and suggest new business opportunities.

Advisory boards can also act as mediators. Board members may provide perspective and potential solutions for family disagreements over:

Your company’s strategic direction,
Growth and expansion opportunities,
Mergers and acquisitions,
Loans and other financing initiatives,
Compensation and promotion decisions,
Interpersonal conflicts, and
Succession plans.

Depending on your board’s composition, it may also be qualified to offer opinions on legal, regulatory and complicated financial issues.

Building the base

You’ll want a mix of professionals from varying fields, demographics and backgrounds on your board. One effective way to recruit advisory board members is to network with business, industry, community, academic and philanthropic organizations. You may also want to involve professional advisors, such as your CPA, banker, insurance agent, estate planner or legal counsel. These advisors will likely already be familiar with your company’s goals, issues and operations.

Specify the mix of traits and qualifications — leadership skills, experience, competencies, education, affiliations and achievements — needed in members to fulfill your board’s purpose. Ensure these individuals are willing to make candid observations and provide constructive advice. They must also maintain confidentiality and exercise discretion regarding sensitive business and family matters.

It may be practical for you or another family member to serve as the advisory board’s chair. But as your business grows in size and complexity and the demands on your time increase, consider delegating this responsibility to a board member.

Nail down the details

Other details to work out include the frequency of advisory board meetings. Meeting at least monthly initially will help the group build rapport and become relevant to your business. Once the board is established, quarterly meetings may suffice. However, emergency meetings scheduled on short notice may become necessary at certain points.

Your business should cover advisory board members’ travel costs and pay them for their time. Cash compensation makes sense for family businesses that intend to remain closely held. However, companies planning to go public often issue stock or equity-based compensation (subject to legal and tax considerations).

Impartial perspectives

If your family business doesn’t already have one, consider creating an independent advisory board to provide impartial perspectives on your company’s pressing challenges and opportunities. Contact us to discuss how we can help you design an effective advisory board — or participate as an independent financial advisor to support governance and long-term planning.

Business owners generally experience a range of emotions — including anger, bewilderment and embarrassment — if fraud occurs in their organization. Fraud can feel personal because it may imply management incompetence or misplaced trust. For their part, managers and ordinary employees often fear punishment when fraud is revealed. So they may minimize or rationalize the incident, or simply keep their mouths shut. Such silence can be dangerous.

Emphasize accountability

If you and your managers downplay a fraud incident or try to keep information from employees, it will likely only fuel the rumor mill and lower morale. Silence and inaction (such as failing to upgrade internal controls) can also empower fraud perpetrators. Those bent on theft may feel reassured they won’t be exposed or suffer consequences, even if misconduct is discovered.

When potential fraud comes to light, promptly interview witnesses and gather physical and digital evidence in a way that preserves integrity and chain of custody. Instead of accusing a person who might have enabled the fraud, you should investigate how it was possible. What decisions, controls and signals — for example, inadequate management oversight or infrequent audits — helped facilitate the fraud? Just keep in mind that identifying which management or employee decisions or actions contributed to the incident should be a byproduct of your investigation, not its primary focus.

In the immediate aftermath

Within 24 to 48 hours of learning about a fraud incident, initiate the following actions (potentially with assistance from your attorney or a forensic accountant):

Determine what happened, who did it and how,
Trace the movement of money or data and attempt to recover it,
Identify any red flags management missed,
Assess where internal controls helped — and where they failed, and
Work with your public relations team to decide what information you want to share.

Then prepare a one-page summary that outlines the scheme and the facts you’ve uncovered. Give copies of this document to legal counsel, law enforcement and other third parties that need the information, such as your CPA firm, insurance provider or bank. As your knowledge of the incident evolves, update the summary.

Postmortem and future steps

After you’ve handled the most urgent tasks (including, if applicable, terminating the guilty party), discuss lessons you’ve learned with your managers and put them in writing. If you determine your business needs more effective internal controls, make immediate changes. Also create a log for new fraud incidents and “near misses.” This document should include dates, methods, amounts, root causes and resolutions.

In addition, talk to workers about the threats your business faces. Where appropriate, communicate high-level information about recent incidents and encourage employees to submit tips anonymously via a web-based portal or hotline. You can normalize fraud discussions by sharing a “scam of the month” or recent fraud news. And be sure to praise early reporting of emerging threats and averted incidents.

When to seek help

Despite your best efforts to determine what happened and how policy and procedure changes can prevent it from happening again, some schemes may be too complex to handle internally. Work with your attorney and consider hiring a forensic accountant to investigate. This is particularly critical if you suspect a high-level perpetrator, have significant financial losses, are worried about protecting sensitive customer or employee data, or require an overhaul of internal controls. Contact us for help.

If you own a business or are self-employed and haven’t already set up a tax-advantaged retirement plan, consider establishing one before you file your 2025 tax return. If you choose a Simplified Employee Pension (SEP), you’ll be able make deductible 2025 contributions to it, saving you taxes. Not only is the SEP deadline favorable, but SEPs are easy to set up and the contribution limits are generous. If you have employees, you’ll generally have to include them in the SEP and make contributions on their behalf, which are also deductible.

Deadlines in 2026 for 2025

A SEP can be established as late as the due date (including extensions) of the business’s income tax return for the tax year for which the SEP is to first apply. For example:

A calendar-year partnership or S corporation has until March 16, 2026, to establish a SEP for 2025 (September 15, 2026, if the return is extended).
A calendar-year sole proprietor or C corporation has until April 15, 2026 (October 15, 2026, if the return is extended) because of their later filing deadlines.

The deadlines for limited liability companies (LLCs) depend on the tax treatment the LLC has elected. The business has until these same deadlines to make 2025 contributions and still claim a deduction on its 2025 return.

Simple setup

A SEP is established by completing and signing the very simple Form 5305-SEP, “Simplified Employee Pension — Individual Retirement Accounts Contribution Agreement.” Form 5305-SEP isn’t filed with the IRS, but it should be maintained as part of the business’s permanent tax records. A copy of Form 5305-SEP must be given to each employee covered by the SEP, along with a disclosure statement.

You’ll then make deductible contributions to your SEP account, called a “SEP-IRA,” and, if you have employees, to each eligible employee’s SEP-IRA. Employee accounts are immediately 100% vested. Your contributions on behalf of employees will be excluded from their taxable income. When SEP distributions are taken, likely in retirement, they’ll be taxable.

Discretionary, potentially large contributions

Contributions to SEPs are discretionary. You, as the business owner, can decide what amount of contribution to make each year. But be aware that, if your business has employees other than yourself, contributions must be made for all eligible employees using the same percentage of compensation as for yourself.

For 2025, the maximum contribution that can be made to a SEP is 25% of compensation (or approximately 20% of net self-employed income) of up to $350,000, subject to a contribution cap of $70,000. (The 2026 limits are $360,000 and $72,000, respectively.)

Right for you?

While SEPs are much simpler than most other tax-advantaged retirement plans, they’re subject to additional rules and limits beyond what’s discussed here. To learn more, contact us. We can help you determine whether a SEP is right for you and, if so, assist you with setting it up — and maximizing your 2025 tax savings.

The gift tax annual exclusion allows you to transfer up to $19,000 (for 2026) per beneficiary gift-tax-free, without tapping your $15 million (for 2026) lifetime gift and estate tax exemption. You can double the exclusion amount if you elect to split the gifts with your spouse.

Gift-splitting in a nutshell

Gift-splitting allows married couples to treat a gift made by one spouse as if it were made equally by both spouses. This election can reduce future estate tax exposure and provide greater flexibility in passing wealth to the next generation.

For example, let’s say that you have two adult children and four grandchildren. You can gift each family member up to $19,000 tax-free by year end, for a total of $114,000 ($19,000 × 6). If you’re married and your spouse consents to a joint gift (or a “split gift”), the exclusion amount is effectively doubled to $38,000 per recipient, for a total of $228,000.

Avoid common mistakes

It’s important to understand the rules surrounding gift-splitting to avoid these common mistakes:

Misunderstanding IRS reporting responsibilities. Split gifts and large gifts trigger IRS reporting responsibilities. A gift tax return is required if you exceed the annual exclusion amount or give joint gifts with your spouse. Unfortunately, you can’t file a “joint” gift tax return. In other words, each spouse must file an individual gift tax return for the year in which you both make gifts.

Gift-splitting with a noncitizen spouse. To be eligible for gift-splitting, both spouses must be U.S. citizens.

Divorcing and remarrying. To split gifts, you must be married at the time of the gift. You’re ineligible for gift-splitting if you divorce and either spouse remarries during the calendar year in which the gift was made.

Gifting a future interest. Only present-interest gifts qualify for the annual exclusion. So gift-splitting can be used only for present interests. A gift in trust qualifies only if the beneficiary receives a present interest — for example, by providing the beneficiary with so-called Crummeywithdrawal rights.

Benefiting your spouse. Gift-splitting is ineffective if you make the gift to your spouse, rather than a third party; if you give your spouse a general power of appointment over the gifted property; or if your spouse is a potential beneficiary of the gift. For example, if you make a gift to a trust of which your spouse is a beneficiary, gift-splitting is prohibited unless the chances your spouse will benefit are extremely remote.

Be aware that, if you die within three years of splitting a gift, some of the tax benefits may be lost.

Proper planning required

Whether gift-splitting is right for you and your spouse depends on your estate size and long-term objectives, among other factors. Because the election involves technical requirements and potential implications for future planning, it’s important to carefully evaluate the strategy. We can help ensure that your split gifts comply with federal tax laws.

Payroll fraud schemes can be costly — and for small businesses, devastating. The Association of Certified Fraud Examiners (ACFE) has found that the median loss from payroll fraud schemes is $50,000. However, some long-term payroll frauds, particularly when perpetrated by upper management, have produced losses in the millions of dollars. Can your company afford that? Probably not.

Payroll fraud incidents can also result in bad publicity, weakened employee morale and, potentially, an IRS investigation. It’s critical that your business take steps to protect its payroll function.

Illegal self-enrichment

There are several ways for fraud perpetrators to illegally manipulate payroll to enrich themselves. For example, cybercriminals often target payroll functions. They might use phishing emails to trick your workers into providing sensitive information, such as bank login credentials. This becomes a form of payroll fraud if they divert payroll direct deposits to accounts they control. Criminals might also target you and accounting department managers by sending fake emails from “employees” requesting changes to their direct deposit instructions.

Also watch out for occupational payroll fraud. In the absence of appropriate internal controls, crooked accounting staffers could add invented “ghost” employees to the payroll. The wages of those ghost employees might then be deposited in accounts controlled by the fraudsters.

And any employee who files for expense reimbursement may inflate expenses, submit multiple receipts for the same expense or claim fictitious expenses. This is considered payroll fraud because reimbursements are often added to paychecks. By the same token, workers eligible for overtime who artificially inflate their work hours are also generally considered payroll fraud perpetrators.

Effective internal controls

To prevent payroll fraud — and uncover it quickly if it occurs — implement and enforce strong internal controls. For instance, require two or more employees to make payroll changes, such as increasing pay rates or adding or removing employees. Payroll staffers should be alert for excessive or unusual pay rates, hours or expenses. And if they receive a request to change an employee’s direct deposit information, they should verify the request with the worker before proceeding.

For their part, department managers must closely monitor employee expense reimbursement requests. They should ask employees to explain discrepancies, such as totals that don’t add up or expense claims that lack receipts.

Other effective controls include:

Audits. Regularly conduct payroll audits to detect anomalies. Also audit automatic payroll withdrawals to confirm proper transfers are made.

Training. Educate employees about payroll schemes, phishing attacks and the importance of not sharing sensitive information.

Confidential hotlines. Offer an anonymous hotline or web portal to employees, customers and vendors to report fraud suspicions. Be sure to investigate every report.

Tax responsibilities

Finally, a scheme that’s most often perpetrated by business owners and executives is deliberately failing to pay required payroll tax. Ensure that upper management and payroll department employees understand their tax responsibilities and that no one individual has the ability to divert funds intended for payroll tax to a personal account. Contact us for more information and assistance with internal controls.

To help you meet all of the important 2026 deadlines, we’re providing this summary of when various tax-related forms, payments and other actions are due. Please review the calendar and let us know if you have any questions about the deadlines or would like assistance meeting them.

February 2

Businesses: Provide Form 1098, Form 1099-MISC (except for those with a February 17 deadline), Form 1099-NEC and Form W-2G to recipients.

Employers: Provide 2025 Form W-2 to employees.

Employers: Report Social Security and Medicare taxes and income tax withholding for fourth quarter 2025 (Form 941) if all associated taxes due weren’t deposited on time and in full.

Employers: File a 2025 return for federal unemployment taxes (Form 940) and pay tax due if all associated taxes due weren’t deposited on time and in full.

Employers: File 2025 Form W-2 (Copy A) and transmittal Form W-3 with the Social Security Administration.

Individuals: File a 2025 income tax return (Form 1040 or Form 1040-SR) and pay any tax due to avoid penalties for underpaying the January 15 installment of estimated taxes.

February 10

Employers: Report Social Security and Medicare taxes and income tax withholding for fourth quarter 2025 (Form 941) if all associated taxes due were deposited on time and in full.

Employers: File a 2025 return for federal unemployment taxes (Form 940) if all associated taxes due were deposited on time and in full.

Individuals: Report January tip income of $20 or more to employers (Form 4070).

February 17

Businesses: Provide Form 1099-B, 1099-S and certain Forms 1099-MISC (those in which payments in Box 8 or Box 10 are being reported) to recipients.

Employers: Deposit Social Security, Medicare and withheld income taxes for January if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for January if the monthly deposit rule applies.

Individuals: File a new Form W-4 to continue exemption for another year if you claimed exemption from federal income tax withholding in 2025.

March 2

Businesses: File Form 1098, Form 1099 (other than those with a February 2 deadline), Form W-2G and transmittal Form 1096 for interest, dividends and miscellaneous payments made during 2025. (Electronic filers can defer filing to March 31.)

March 10

Individuals: Report February tip income of $20 or more to employers (Form 4070).

March 16

Calendar-year partnerships: File a 2025 income tax return (Form 1065 or Form 1065-B) and provide each partner with a copy of Schedule K-1 (Form 1065) or a substitute Schedule K-1 — or request an automatic six-month extension (Form 7004).

Calendar-year S corporations: File a 2025 income tax return (Form 1120-S) and provide each shareholder with a copy of Schedule K-1 (Form 1120-S) or a substitute Schedule K-1 — or file for an automatic six-month extension (Form 7004). Pay any tax due.

Employers: Deposit Social Security, Medicare and withheld income taxes for February if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for February if the monthly deposit rule applies.

March 31

Employers: Electronically file 2025 Form 1097, Form 1098, Form 1099 (other than those with an earlier deadline) and Form W-2G.

April 10

Individuals: Report March tip income of $20 or more to employers (Form 4070).

April 15

Calendar-year corporations: File a 2025 income tax return (Form 1120) or file for an automatic six-month extension (Form 7004). Pay any tax due.

Calendar-year corporations: Pay the first installment of 2026 estimated income taxes and complete Form 1120-W for the corporation’s records.

Calendar-year trusts and estates: File a 2025 income tax return (Form 1041) or file for an automatic five-and-a-half-month extension (six-month extension for bankruptcy estates) (Form 7004). Pay any tax due.

Employers: Deposit Social Security, Medicare and withheld income taxes for March if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for March if the monthly deposit rule applies.

Household employers: File Schedule H, if wages paid equal $2,800 or more in 2025 and Form 1040 isn’t required to be filed. For those filing Form 1040, Schedule H is to be submitted with the return and is thus extended to the due date of the return.

Individuals: File a 2025 income tax return (Form 1040 or Form 1040-SR) or file for an automatic six-month extension (Form 4868). (Taxpayers who live outside the United States and Puerto Rico or serve in the military outside these two locations are allowed an automatic two-month extension without requesting one.) Pay any tax due.

Individuals: Pay the first installment of 2026 estimated taxes (Form 1040-ES) if not paying income tax through withholding or not paying sufficient income tax through withholding.

Individuals: Make 2025 contributions to a traditional IRA or Roth IRA (even if a 2025 income tax return extension is filed).

Individuals: Make 2025 contributions to a SEP or certain other retirement plans (unless a 2025 income tax return extension is filed).

Individuals: File a 2025 gift tax return (Form 709), if applicable, or file for an automatic six-month extension (Form 8892). Pay any gift tax due. File for an automatic six-month extension (Form 4868) to extend both Form 1040 and Form 709 if no gift tax is due.

April 30

Employers: Report Social Security and Medicare taxes and income tax withholding for first quarter 2026 (Form 941) and pay any tax due if all associated taxes due weren’t deposited on time and in full.

May 11

Employers: Report Social Security and Medicare taxes and income tax withholding for first quarter 2026 (Form 941) if all associated taxes due were deposited on time and in full.

Individuals: Report April tip income of $20 or more to employers (Form 4070).

May 15

Calendar-year exempt organizations: File a 2025 information return (Form 990, Form 990-EZ or Form 990-PF) or file for an automatic six-month extension (Form 8868). Pay any tax due.

Calendar-year small exempt organizations (with gross receipts normally of $50,000 or less): File a 2025 e-Postcard (Form 990-N) if not filing Form 990 or Form 990-EZ.

Employers: Deposit Social Security, Medicare and withheld income taxes for April if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for April if the monthly deposit rule applies.

June 10

Individuals: Report May tip income of $20 or more to employers (Form 4070).

June 15

Calendar-year corporations: Pay the second installment of 2026 estimated income taxes and complete Form 1120-W for the corporation’s records.

Employers: Deposit Social Security, Medicare and withheld income taxes for May if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for May if the monthly deposit rule applies.

Individuals: File a 2025 individual income tax return (Form 1040 or Form 1040-SR) or file for a four-month extension (Form 4868) if you live outside the United States and Puerto Rico or you serve in the military outside those two locations. Pay any tax, interest and penalties due.

Individuals: Pay the second installment of 2026 estimated taxes (Form 1040-ES) if not paying income tax through withholding or not paying sufficient income tax through withholding.

July 10

Individuals: Report June tip income of $20 or more to employers (Form 4070).

July 15

Employers: Deposit Social Security, Medicare and withheld income taxes for June if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for June if the monthly deposit rule applies.

July 31

Employers: Report Social Security and Medicare taxes and income tax withholding for second quarter 2026 (Form 941) and pay any tax due if all associated taxes due weren’t deposited on time and in full.

Employers: File a 2025 calendar-year retirement plan report (Form 5500 or Form 5500-EZ) or request an extension.

August 10

Employers: Report Social Security and Medicare taxes and income tax withholding for second quarter 2026 (Form 941) if all associated taxes due were deposited on time and in full.

Individuals: Report July tip income of $20 or more to employers (Form 4070).

August 17

Employers: Deposit Social Security, Medicare and withheld income taxes for July if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for July if the monthly deposit rule applies.

September 10

Individuals: Report August tip income of $20 or more to employers (Form 4070).

September 15

Calendar-year corporations: Pay the third installment of 2026 estimated income taxes and complete Form 1120-W for the corporation’s records.

Calendar-year S corporations: File a 2025 income tax return (Form 1120-S) and provide each shareholder with a copy of Schedule K-1 (Form 1120-S) or a substitute Schedule K-1 if an automatic six-month extension was filed. Pay any tax, interest and penalties due.

Calendar-year S corporations: Make contributions for 2025 to certain employer-sponsored retirement plans if an automatic six-month extension was filed.

Employers: Deposit Social Security, Medicare and withheld income taxes for August if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for August if the monthly deposit rule applies.

Individuals: Pay the third installment of 2026 estimated taxes (Form 1040-ES), if not paying income tax through withholding or not paying sufficient income tax through withholding.

September 30

Calendar-year trusts and estates: File a 2025 income tax return (Form 1041) if an automatic five-and-a-half-month extension was filed. Pay any tax, interest and penalties due.

October 13

Individuals: Report September tip income of $20 or more to employers (Form 4070).

October 15

Calendar-year bankruptcy estates: File a 2025 income tax return (Form 1041) if an automatic six-month extension was filed. Pay any tax, interest and penalties due.

Calendar-year C corporations: File a 2025 income tax return (Form 1120) if an automatic six-month extension was filed and pay any tax, interest and penalties due.

Calendar-year C corporations: Make contributions for 2025 to certain employer-sponsored retirement plans if an automatic six-month extension was filed.

Employers: Deposit Social Security, Medicare and withheld income taxes for September if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for September if the monthly deposit rule applies.

Individuals: File a 2025 income tax return (Form 1040 or Form 1040-SR) if an automatic six-month extension was filed (or if an automatic four-month extension was filed by a taxpayer living outside the United States and Puerto Rico or serving in the military outside those two locations). Pay any tax, interest and penalties due.

Individuals: Make contributions for 2025 to certain existing retirement plans or establish and contribute to a SEP for 2025 if an automatic six-month extension was filed.

Individuals: File a 2025 gift tax return (Form 709), if applicable, and pay any tax, interest and penalties due if an automatic six-month extension was filed.

November 2

Employers: Report Social Security and Medicare taxes and income tax withholding for third quarter 2026 (Form 941) and pay any tax due if all associated taxes due weren’t deposited on time and in full.

November 10

Employers: Report Social Security and Medicare taxes and income tax withholding for third quarter 2026 (Form 941) if all associated taxes due were deposited on time and in full.

Individuals: Report October tip income of $20 or more to employers (Form 4070).

November 16

Calendar-year exempt organizations: File a 2025 information return (Form 990, Form 990-EZ or Form 990-PF) if a six-month extension was filed. Pay any tax, interest and penalties due.

Employers: Deposit Social Security, Medicare and withheld income taxes for October if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for October if the monthly deposit rule applies.

December 10

Individuals: Report November tip income of $20 or more to employers (Form 4070).

December 15

Calendar-year corporations: Pay the fourth installment of 2026 estimated income taxes and complete Form 1120-W for the corporation’s records.

Employers: Deposit Social Security, Medicare and withheld income taxes for November if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for November if the monthly deposit rule applies.

Normally businesses must furnish certain information returns to workers and submit them to the federal government by January 31. But this year, that date falls on a Saturday. So the deadline is the next business day, which happens to be Groundhog Day: February 2, 2026.

W-2s for employees

By February 2, employers must furnish and/or file these 2025 forms:

Form W-2, Wage and Tax Statement. Form W-2 shows the wages paid and taxes withheld for the year for each employee. It must be furnished to employees and filed with the Social Security Administration (SSA). The IRS notes that “because employees’ Social Security and Medicare benefits are computed based on information on Form W-2, it’s very important to prepare Form W-2 correctly and timely.”

Form W-3, Transmittal of Wage and Tax Statements. Anyone required to file Form W-2 must also file Form W-3 to transmit Copy A of Form W-2 to the SSA. The totals for amounts reported on related employment tax forms (Form 941, Form 943, Form 944 or Schedule H) for the year should agree with the amounts reported on Form W-3.

1099-NECs for independent contractors

The February 2 deadline also applies to Form 1099-NEC, Nonemployee Compensation. This form generally must be furnished to independent contractors and filed with the IRS if the following conditions are met:

You made a payment to someone who wasn’t your employee,
The payment was for services in the course of your trade or business,
The payment was to an individual, partnership, estate, or, in some cases, a corporation, and
You made total payments of at least $600 to the recipient during the year.

You may have heard that the One Big Beautiful Bill Act, signed into law in 2025, increased the threshold to $2,000. That change goes into effect for payments made this year (that will be reported on the 2026 1099-NECs you’ll furnish and file in early 2027). The threshold will be annually adjusted for inflation beginning in 2027.

Other forms

Your business may also have to furnish a Form 1099-MISC to each person to whom you made certain payments for rent, medical expenses, prizes and awards, attorney’s services, and more. The deadline for furnishing Forms 1099-MISC to recipients is also February 2.

The deadline for submitting these forms to the IRS depends on the filing method. If you’re filing on paper, the 2026 deadline is March 2 (because the normal February 28 deadline falls on a Saturday this year). If you’re filing them electronically, the deadline is March 31.

Furnish and file on time

When the IRS requires you to “furnish” a form to a recipient, it can be done in person, electronically or by first-class mail to the recipient’s last known address. If 2025 W-2 or 1099-NEC forms are mailed, they must be postmarked by February 2.

Don’t cast a shadow over tax filing season by missing the Groundhog Day deadline. Failing to meet applicable deadlines (or include the correct information on the forms) may result in penalties. Contact us with any questions about Form W-2, Form 1099-NEC or other tax forms and the applicable filing requirements. We’d be happy to answer them and help you stay in compliance.

Financial statements aren’t built solely on fixed numbers and historical facts. Many reported amounts rely on accounting estimates — management’s best judgments about uncertain future outcomes. Estimates are inherently subjective and can significantly affect reported results. How do external auditors evaluate whether amounts reported on financial statements seem reasonable?

Understanding management’s assumptions and data

External auditors pay close attention to accounting estimates during audit fieldwork. They review the methods and models used to create estimates, along with supporting documentation, to ensure they’re appropriate for the specific accounting requirements. In addition, auditors examine the company’s internal controls over the estimation process to ensure they’re robust and designed to prevent errors or manipulation.

For instance, they may inquire about the underlying assumptions (or inputs) used to make estimates to determine whether the inputs seem complete, accurate and relevant. Estimates based on objective inputs, such as published interest rates or percentages observed in previous reporting periods, are generally less susceptible to bias than those based on speculative, unobservable inputs. This is especially true if management lacks experience making similar estimates.

Challenging estimates and assessing bias

When testing inputs, auditors assess the accuracy, reliability and relevance of the data used. Whenever possible, auditors try to recreate management’s estimate using the same assumptions (or their own). If an auditor’s independent estimate differs substantially from what’s reported on the financial statements, the auditor will ask management to explain the discrepancy. In some cases, an external specialist, such as an appraiser or engineer, may be called in to estimate complex items.

Auditors also may conduct a “sensitivity analysis” to see if management’s estimate is reasonable. A sensitivity analysis shows how changes in key assumptions affect an estimate, helping to evaluate the risk of material misstatement.

In addition, auditors watch for signs of management bias, such as overly optimistic or conservative assumptions that could distort the financial statements. They also consider the objectivity of those involved in the estimation process, ensuring there’s no undue influence or pressure that could affect the estimate’s outcome.

Auditors also may compare past estimates to what happened after the financial statement date. The outcome of an estimate is often different from management’s preliminary estimate. Possible explanations include errors, unforeseeable subsequent events and management bias. If management’s estimates are consistently similar to actual outcomes, it adds credibility to management’s prior estimates. But if significant differences are found, the auditor may be more skeptical of management’s current estimates, necessitating the use of additional audit procedures.

Why estimates matter

Accounting estimates are a key focus area for auditors because small changes in management’s assumptions can have material effects on a company’s financial statements. Through rigorous testing, professional skepticism and independent analysis, auditors can help promote accurate, reliable financial reporting.

As audit season gets underway for calendar-year businesses, now’s a good time to review significant accounting estimates and address gaps in documentation. Taking these proactive measures can help streamline the audit process and reduce the risk of unnecessary delays. Contact us with questions or for assistance preparing for your audit.

A competitive benefits package can help employers attract and retain talent. And with the passage of last year’s One Big Beautiful Bill Act (OBBBA), you have a new option to consider. The law introduced Trump Accounts (TAs), which the IRS describes as “a new type of individual retirement account (IRA) for eligible children.” The OBBBA also allows employers to contribute to these accounts through TA Contribution Programs (TACPs). In December 2025, the IRS issued guidance that, in part, lays out a framework for sponsoring this benefit.

Purpose and ground rules

Beginning July 4, 2026, eligible parents, guardians or other qualified parties may establish a TA for any child who has a Social Security number and is under age 18 at the end of the tax year. No contributions may be accepted before that date. The accounts are intended to help children build cash reserves for various purposes when they reach adulthood.

Parents, guardians, other qualifying relatives, and governmental and taxable entities (including employers) can contribute up to $5,000 in aggregate annually to an account during the child’s “growth period,” which generally ends before January 1 of the year the beneficiary turns 18. Notably, children who are U.S. citizens born after December 31, 2024, and before January 1, 2029, may qualify for a one-time government-funded “pilot program contribution” of $1,000. This and other exempt contributions aren’t subject to the annual $5,000 limit.

TA contributions aren’t tax deductible. However, contributions and earnings grow tax-deferred as long as those funds remain in the account. During the growth period, distributions generally aren’t permitted except for limited items, such as certain rollovers, returns of excess contributions or distributions following a child’s death. From the end of the growth period on, a TA is treated as a traditional IRA and is generally subject to the same rules as other traditional IRAs.

It’s important to note that TA funds must be invested in exchange-traded funds or mutual funds that track a qualified index of primarily U.S. equities. In addition, the investments must meet other IRS criteria, including limitations on leverage and fees.

Points of clarification

In December, the IRS issued Notice 2025-68. The guidance opens with a statement of intent to propose regulations and provide further guidance on TAs. Specifically relevant to employers, it addresses some key points about TACPs.

For instance, it confirms that employee-participants may begin excluding from income up to $2,500 annually in employer contributions, effective July 4, 2026. (The limit will be adjusted for inflation after 2027.) The guidance clarifies that the employer contribution limit applies per employee — not per dependent. So, participants with more than one dependent are still subject to the $2,500 employer limit, no matter how many dependents they may have.

Another noteworthy point raised by the guidance is that, when making a contribution, employers must notify TA trustees (financial institutions administering the accounts) that it’s:

A TACP employer contribution, and
Excludable from the employee’s gross income.

In addition, employers can allow employees to fund a TACP through pretax salary reductions under a cafeteria plan — but only when those payroll deductions are contributed directly to a dependent’s account. Employees can’t use salary reductions to fund their own TAs because cafeteria plan rules prohibit pretax compensation deferrals for an employee’s benefit.

The guidance indicates that a TACP must be maintained under a separate written plan and directs employers to compliance requirements similar to those for Section 129 dependent care assistance programs. These include nondiscrimination and notice/reporting rules.

The IRS intends to further address how TACPs will coordinate with existing cafeteria plan rules in future guidance. It’s also requested public comments on TAs, which will be considered in drafting the forthcoming proposed regulations.

Further exploration

To be clear, Notice 2025-68 doesn’t provide comprehensive instructions for employers on how to set up TACPs. But a careful reading does reveal the basic framework for this benefit. If interested, perhaps the first issue to address is whether to offer the program on its own or under an existing cafeteria plan. You’ll also need to establish contribution-tracking processes and an employee communication strategy. We’d be happy to help you explore the feasibility of a TACP for your organization.

It’s not uncommon for family members to contest a loved one’s will or challenge other estate planning documents. But you can take steps now to minimize the likelihood of such challenges after your death and protect both your wishes and your legacy.

Family disputes often arise not from legal flaws, but from confusion, surprise or perceived unfairness. By preparing a well-structured estate plan and clearly communicating your intentions to loved ones, you can reduce the risk of misunderstandings that can lead to challenges. There are also specific steps you can take to help fortify your plan against challenges.

Demonstrate a lack of undue influence

Family members might challenge your will by claiming that someone asserted undue influence over you. This essentially means the person influenced you to make estate planning decisions that would benefit him or her but that were inconsistent with your true wishes.

A certain level of influence over your final decisions is permissible. For example, there’s generally nothing wrong with a daughter encouraging her father to leave her the family vacation home. But if the father is in a vulnerable position — perhaps he’s ill or frail and the daughter is his caregiver — a court might find that he was susceptible to the daughter improperly influencing him to change his will.

There are many techniques you can use to demonstrate the lack of any undue influence over your estate planning decisions, including:

Choosing reliable witnesses. These should be people you expect to be available and willing to attest to your testamentary capacity and freedom from undue influence years or even decades down the road.

Videotaping the execution of your will. This provides an opportunity to explain the reasoning for any atypical aspects of your estate plan and can help refute claims of undue influence (or lack of testamentary capacity). Be aware, however, that this technique can backfire if your discomfort with the recording process is mistaken for duress or confusion.

In addition, it can be to your benefit to have a medical practitioner conduct a mental examination or attest to your competence at or near the time you execute your will.

Follow the law for proper execution

Never open the door for someone to contest your will on the grounds that it wasn’t executed properly. Be sure to follow applicable state laws to the letter.

Typically, that means signing your will in front of two witnesses and having your signature notarized. Be aware that laws vary from state to state, and an increasing number of states are permitting electronic wills.

Consider a no-contest clause

If your net worth is high, a no-contest clause can act as a deterrent against an estate plan challenge. Most, but not all, states permit the use of no-contest clauses.

In a nutshell, a no-contest clause will essentially disinherit any beneficiary who unsuccessfully challenges your will. For this strategy to be effective, you must leave heirs an inheritance that’s large enough that forfeiting it would be a disincentive to bringing a challenge. An heir who receives nothing has nothing to lose by challenging your plan.

Be proactive now to avoid challenges later

Other aspects of your estate plan, such as trusts and beneficiary designations for retirement plans and life insurance, could also be challenged. Taking steps now to minimize the risk of successful challenges to any of your estate planning documents can help protect your legacy and provide clarity and peace of mind for your loved ones. We can help you draft an estate plan that will meet legal requirements and accurately reflect your intentions, reducing the risk of challenges.

Yeo & Yeo, a leading Michigan-based advisory firm, is pleased to announce the promotions of two members of the firm’s administration team. David Milka has been promoted to Chief Financial Officer, and Melissa Lindsey has been promoted to Practice Growth Senior Manager. These promotions reflect the firm’s continued investment in strengthening internal operations and positioning the administrative team for long-term growth.

“David and Melissa have demonstrated exceptional commitment and have played instrumental roles in supporting our people and driving firmwide initiatives,” said Dave Youngstrom, President & CEO. “Their promotions reinforce our strategic focus on building a strong internal foundation to support future growth and continue delivering an outstanding experience for our clients and our team.”

Milka joined Yeo & Yeo in 2002 and has grown alongside the firm for more than 20 years, becoming a central leader in how the organization manages its resources and plans for the future. His financial acumen, deep knowledge of the firm, and steady leadership have earned him the trust of partners and team members across the firm’s companies and offices. He transforms benchmarking data and financial reporting into insights that guide major firm decisions. As Chief Financial Officer, he oversees Yeo & Yeo’s financial strategy, budgeting, and core operational support functions, ensuring resources are aligned with the firm’s long-term priorities.

Lindsey joined Yeo & Yeo in 2015 and has become a key leader in advancing the firm’s growth strategy. As Practice Growth Senior Manager, she leads firmwide efforts to align people, services, culture, and client experience in support of sustainable growth. She has led the design of the firm’s Client Experience program, driven service and niche development, and supported M&A integrations as the firm expands its capabilities. Lindsey is also a trusted coach to professionals across the organization, strengthening the firm’s advisory mindset and confidence while ensuring Yeo & Yeo’s value is communicated with clarity and consistency. In this expanded role, she will advance firmwide strategic priorities and lead cross-company growth initiatives that strengthen the foundation of supporting the firm’s people, clients, and long-term success.

These promotions reflect the firm’s commitment to cultivating a high-performing team. By empowering leaders like Milka and Lindsey, Yeo & Yeo reinforces the supportive, growth-minded culture that enables the entire firm to thrive.

The manufacturing industry had a challenging year in 2025, despite some favorable tax developments under the One Big Beautiful Bill Act. Tariff uncertainty and escalating costs were among the factors creating difficulties, and how they’ll play out in 2026 remains to be seen.

To keep your manufacturing company’s cash flow healthy and your business on course despite such complications, you must do the legwork to create an accurate, reasonable budget — and continue to employ smart budgeting practices year-round. Here are five tips for budgeting success.

1. Review your company’s goals

Your budget should reflect the goals you’ve set for the budget period and beyond, especially if you’ll be setting the foundation for long-term goals or taking further steps toward them. Your goals — whether launching a new product, expanding market share or improving efficiency through automation — should influence resource allocation in your budget.

Financial goals are important, too. They must be realistic and attainable. If they’re not, they can lead to a budget that’s more aspirational than useful.

2. Forecast your revenue, expenses and cash flows

Your sales forecast plays a pivotal role in budgeting, so it must be realistic. It not only provides the estimated revenue that will be available to cover the expenses on the other side of the ledger, but also determines estimated production volume (that is, how much will be required to fulfill the expected sales). In turn, you can calculate the amount of raw materials, labor hours, and fixed and overhead costs required. That information will inform pricing decisions.

Don’t overlook your cash flows, because you’ll also need to forecast them. Your budget may project sufficient revenues to cover your costs and leave you with a solid profit margin, but your business can take a hit if you run into an unforeseen cash crunch. You might, for example, need to obtain financing to bridge the gap. Rolling 13-week cash flow forecasts allow you to take into account variables that are subject to rapid fluctuation and prepare for any cash shortfalls.

3. Avoid over-reliance on historical data

Historical data is an essential ingredient when formulating your budget. It can give you valuable information on trends, seasonal variances and areas where you fell short on previous budgets. But you shouldn’t base your upcoming budget entirely on the past (for example, simply increasing all of the prior year’s figures by a set percentage). History isn’t always the best predictor of the future in manufacturing.

You must also collect information on other factors that may affect your revenues and expenses, and adjust your budget accordingly. Examples include industry and market trends, macroeconomic conditions, equipment age and capacity, workforce availability, and relevant legislative and regulatory developments.

4. Solicit stakeholder input

The need for the additional information referenced above is one reason the days of “top-down” budgeting — where executives or senior management devise a high-level budget that department managers must then implement — have largely passed. Savvy manufacturing leaders realize that a more comprehensive, holistic approach is more effective.

Executives, department managers and project managers all should be involved in the budgeting process. It’s too easy for accounting and finance staff to miss critical information that the individuals immersed in day-to-day operations often possess. Involving these people can significantly improve budget accuracy.

5. Make your budget a living document

Budgets shouldn’t be treated as static documents, especially when so much data is now available thanks to artificial intelligence, data analytics and similar technological advances. If you run into supply chain disruptions, shifts in demand or other unexpected circumstances, you don’t have to be tied to a budget that was drafted in a very different environment.

These days, you can easily monitor your budget, comparing it against actual revenues and costs in real time — not just at year-end. When you identify the possibility of notable variances, you can adjust the budget’s figures, implement measures to get back on track (such as cost-cutting) or both.

Get to work

Drafting and implementing a credible budget can improve strategic planning and operations, while also making it easier for your manufacturing company to secure financing. If you have questions about your company’s budget, we can help provide the answers.

Highlights From the Roth Catch-up Contribution Regulations

Key Dates
9/16/2025	IRS released the final regulations on Roth catch-up contributions under SECURE 2.0. Note: SIMPLE IRA plans are not subject to the Roth catch-up regulations.
1/1/2026	New SECURE 2.0 catch-up rules took effect on January 1, 2024, but the IRS delayed compliance until January 1, 2026.
12/31/2026	Plan amendment deadline for qualified plans.
12/31/2028	Plan amendment deadline for union plans and those under collective bargaining agreements.
12/31/2029	Plan amendment deadline for governmental plans and 403(b) plans sponsored by public schools.

Eligible Plans and Participants
401(k), 403(b), governmental 457(b)	New Roth catch-up regulations affect these retirement plans.
50+	Participants age 50 or older can contribute more than the plan limits.
60, 61, 62, 63	Ages at which participants are eligible to make super catch-up contributions
$150,000	Employees age 50 or older that earn $150,000 or more in 2025 Social Security wages (Box 3 of Form W-2) (i.e., “highly paid participants” or HPPs) are required to make any catch-up contributions as Roth contributions (after-tax instead of pre-tax).

Contribution Limits
$24,500 (2026)	General limit on salary deferrals for 2026.
$72,000 (2026)	Annual defined contribution limit.
$8,000 (2026)	Standard catch-up contribution limit.
$11,250 (2026)	Contribution limit for super catch-up contributions.

The final Roth catch-up regulations the IRS issued on Sept. 16 are in effect, detailing SECURE 2.0’s requirements and deadlines for most ERISA-based retirement plans. However, it is important to note that SIMPLE IRA plans and self-employed individuals are not subject to these regulations. Plan sponsors should act now to determine how the new regulations affect their plans and take steps to comply.

The IRS will allow 2026 to be a “gap year,” allowing plan sponsors time to adjust to the new catch-up requirements, since the IRS did not extend the non-enforcement transition period that ends on December 31, 2025. During 2026, plan sponsors will be required to demonstrate a reasonable, good faith interpretation of the SECURE 2.0 changes, but stricter compliance enforcement begins on January 1, 2027.

Most plans must be amended to comply with the new requirements by December 31, 2026, regardless of whether the plan operates on a fiscal year or calendar year basis. The 12-month runway to the new amendment date may seem long, but most plan sponsors will need to coordinate with third parties — such as payroll providers, advisors, legal counsel, or recordkeepers — each with their own priorities and timelines. Additionally, plan sponsors must not only understand how the rules affect their plans but also explain these changes effectively to plan participants.

This article offers five steps for plan sponsors to consider as they implement Roth catch-up contribution requirements. For more information about these regulations, please review IRS Final Catch-Up Contribution Regulations for Salary Deferrals in Retirement Plans: What Employers Need to Know.

1. Identifying Eligible Participants

Are any of the company’s employees eligible for Roth catch-ups or super catch-ups?

Eligibility may not be immediately apparent, and several considerations are at play:

Age: Employees age 50 or older can make additional deferrals to their retirement plans beyond the typical contribution limit. Super catch-ups are available to employees in the calendar year they reach age 60, 61, 62, or 63.
Prior-year wages: Employees whose 2025 Social Security wages exceed $150,000 are considered highly paid participants (HPPs). This is not simply another name for highly compensated employees (HCEs): it’s a completely new classification. In addition, the HPP prior-year Social Security wage limit is a new data point that employers never had to track before. The HPP Social Security wage limit ($150,000) is lower than the 2025 Social Security wage base ($176,100). Thus, employers cannot simply assume that everyone who hits the Social Security wage base cap is an HPP, because others below that level could also be HPPs.
Owners with self-employment income are exempt. The new mandatory Roth “age and wage” catch-up rules apply only to W-2 employees and do not apply to self-employed individuals, including partners and LLC profits or capital interest owners who receive K-1s instead of W-2s.

It’s important for employers to identify employees whose age and salary meet the IRS requirements for mandatory Roth (after-tax) deferrals. As employees reach these milestones, plan sponsors must direct deferrals to the appropriate pre-tax and after-tax funds.

2. Updating Payroll and Plan Systems

What steps should employers take to comply with the new Roth catch-up contribution regulations?

Employers should immediately discuss the new IRS guidance with payroll providers, recordkeepers, and any other critical stakeholders. To help verify compliance with SECURE 2.0 Roth catch-up deferral regulations, employers can take the following steps:

Evaluate the payroll system to determine if it can track employee eligibility.
Establish procedures to accurately process Roth catch-up contributions.
Monitor contribution limits, participant ages, and participant salaries continuously.
Communicate regularly with payroll providers and third-party administrators to assess the efficiency and accuracy of the new processes.

Plan participants may be unaware of changes to their retirement plans. It’s critical to inform participants about how the Roth catch-up provisions may affect them.

3. Communicating with Participants

Do employers need to notify participants of the new Roth catch-up regulations?

Employees who prefer to make pre-tax rather than after-tax contributions to their retirement plan may find the new SECURE 2.0 regulations an unwelcome surprise. Employers are strongly encouraged to inform participants that, based on their age and Social Security wages, their catch-up contributions may automatically be treated as Roth (after-tax) contributions. Communications to plan participants should provide them the opportunity to make an informed decision about their deferral elections.

4. Amending Plan Documents

When should employers amend plan documents?

Conversations about plan amendments should begin immediately. A thorough review of plan provisions will reveal the extent of any changes needed, including those related to the Roth catch-up regulations. For example, what if a company’s current plan doesn’t offer Roth contributions as an option? To allow HPPs to make catch-up contributions, the plan sponsor must amend the plan document to allow Roth contributions from all eligible employees.

Typically, amending an ERISA retirement plan may involve coordinating with other entities, including third-party administrators and payroll providers. Adapting to another organization’s timelines and priorities can extend the process — another good reason to start reviewing your company’s plan now. Doing so can help plan sponsors comply before deadlines approach and reduce errors that may occur if amendments are rushed at the last minute.

5. Remaining Up to Date

How can the company continue to maintain compliance with Roth catch-up regulations?

As these rules evolve, administrative burdens on employers and plan sponsors could shift. It’s important to monitor new guidance or updates from the IRS, as these may require employers and plan administrators to take additional action.

Some content borrowed with permission from BDO USA. Our firm is an independent member of the BDO Alliance USA, a nationwide association of independently owned local and regional accounting, consulting, and service firms.

Yeo & Yeo is pleased to announce the promotion of Mackenzie Doyle, CPA, and Sierra Roy, CPA, from Senior Accountant to Manager. Doyle and Roy are members of the firm’s Assurance Service Line, helping organizations navigate audits and compliance requirements.

Mackenzie Doyle joined Yeo & Yeo in 2021 and has steadily advanced, earning recognition for her strong technical skills and reliability across engagements. Based in the Alma office, she focuses on assurance services for government entities, school districts, and for-profit organizations, with advanced proficiency in employee benefit plan audits. Her work with plans subject to ERISA, including 401(k) and 403(b) audits, has made her a go-to resource for both colleagues and clients navigating complex reporting requirements. Mackenzie holds a Bachelor of Business Administration in Accounting from Northwood University and is a Certified Public Accountant. She is a member of the Michigan Association of Certified Public Accountants and the American Institute of Certified Public Accountants.

Sierra Roy joined Yeo & Yeo in 2021 and is based in the Ann Arbor office. A member of the firm’s Education Services Group, Sierra specializes in assurance services for government entities, school districts, and nonprofit organizations. She has extensive experience auditing under government auditing standards, including single audits and audits conducted in accordance with 2 CFR 200. Known for her strong technical knowledge and thoughtful approach to complex compliance requirements, Sierra is a trusted resource for both clients and colleagues. She holds a Bachelor of Business Administration in Accounting from the University of Michigan–Dearborn and is a Certified Public Accountant. She is a member of the Michigan Association of Certified Public Accountants and the American Institute of Certified Public Accountants.

“Mackenzie and Sierra have consistently demonstrated the technical skill, accountability, and professionalism our clients rely on,” said Jamie Rivette, Principal and Assurance Service Line Leader. “Their promotions reflect their growth, dedication, and readiness to take on greater leadership responsibilities while continuing to deliver exceptional service.”