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Overview of Benefits under IRC §45E for Small Employer Pension Plans The Internal Revenue Code (IRC) §45E provides significant tax incentives to small employers who establish qualified retirement plans for their employees. These incentives are designed to encourage small businesses to offer retirement benefits, enhancing financial security for employees and providing valuable tax relief for employers. Key Benefits of IRC §45E: 1. Startup Costs Credit (Up to $5,000): Small employers can claim a credit of 50% of eligible startup costs, up to a maximum of $5,000 per year, for the first three years of establishing a qualified plan. This

Introducing Canopy Secure Client Portal We are excited to announce that MillerMusmar CPAs is introducing a new tool called Canopy, designed to enhance the quality of our service. This platform will streamline our processes, improve communication, and make managing your tax and accounting needs more efficient. We look forward to sharing this journey with you! Please take a moment to watch this brief video from our Managing Partner, Joey Musmar, where he introduces Canopy and explains how it will benefit you: You will soon receive an invitation to register. Simply click the link in the invitation to create your

Government contractors are bound by a unique set of accounting standards that are significantly different from those that apply to other private companies. Following the relevant government contract accounting standards is a requirement that ensures taxpayer money is spent responsibly and contractors are fairly compensated.  This guide will explore the fundamentals of government contract accounting, including key regulatory frameworks like the Federal Acquisition Regulation (FAR), Defense Federal Acquisition Regulation Supplement (DFARS), and Cost Accounting Standards (CAS). We’ll also discuss different contract pricing models, cost principles, and how to prepare for DCAA audits.  By understanding these elements, you’ll be much

Every day, government contractors navigate a complex landscape of regulations and compliance requirements and other obligations. When it comes to your company’s retirement plan, the stakes are especially high. How do you balance the need to save for retirement and incentivize key employees with strict budgetary constraints and ever-changing regulatory demands? For government contractors, traditional retirement planning strategies often fall short, leaving you searching for solutions that can maximize tax benefits, manage cash flow effectively, and attract top talent – all while staying compliant with government regulations.  This guide is designed to cut through the confusion and provide you

Government contractors are required to adhere to strict standards regarding their accounting systems, incurred costs, and other contract-related obligations. The Defense Contract Audit Agency (DCAA) plays a key role in this process, as it is responsible for auditing contractors’ compliance with regulations such as the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS). While the DCAA itself does not establish compliance requirements for contractors, its audit practices, manuals, and guidance significantly influence how businesses structure their accounting systems and practices. Understanding these expectations can help contractors proactively align with applicable regulations, maintain audit readiness, and position themselves for

Government contracting is complex, with unique accounting standards and strict compliance requirements. For businesses working with federal contracts, having the right accounting partner is crucial for success and avoiding costly mistakes.  This guide will help you understand: What makes government contractor accounting unique Essential services offered by GovCon accounting firms Key qualities to look for when choosing an accounting partner Whether you’re new to government contracting or looking to optimize existing operations, understanding the role of a specialized government contractor CPA is vital for growth and compliance in the federal marketplace. What Makes Accounting for Government Unique? Government contractor

Federal Acquisition Regulation (FAR) 31.205 is a crucial set of rules for government contractors. It defines which costs can be billed to the government and which can’t. Understanding it is essential for any company doing business with the federal government, as it directly impacts both profitability and compliance.  Broadly, FAR 31.205 helps ensure taxpayer money is spent wisely and that contractors are fairly paid for their work. However, its rules can be complex, especially for new government contractors who are used to private sector practices. What Is FAR 31.205? FAR 31.205 is a section of the Federal Acquisition Regulation

Whether you’re preparing to bid on your first government contract or seeking to expand your existing portfolio, knowing the differences between Fixed Price, Cost Reimbursement, and Time and Materials contracts can significantly impact your business’s strategy moving forward.  Each contract type carries its own set of risks, rewards, and management requirements. For contractors, fluency with these factors allows for more accurate bidding, more effective project management, and potentially even improved profitability. Contract type can also play a role in financial planning, risk assessment, and compliance preparation.  This guide will walk you through the three main types of government contracts,

Government contractors face unique challenges when it comes to tax planning. Unlike typical businesses, they must navigate a complex web of regulations including Cost Accounting Standards (CAS), Federal Acquisition Regulations (FAR), and the Internal Revenue Code. This creates an environment where standard tax strategies may not only be ineffective but could potentially jeopardize contract compliance or profitability.  In this guide, we’ll explore tax strategies specifically tailored for government contractors. From specialized retirement planning structures to navigating R&D tax credits in a government contracting context, we’ll cover key areas where contractors can optimize their tax position while maintaining compliance with

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction preventing the U.S. Department of Treasury from enforcing the Corporate Transparency Act’s (CTA) beneficial ownership information (BOI) reporting requirements. In the case Texas Top Cop Shop, Inc., et al. v. Garland, et al., filed by the National Federation of Independent Business (NFIB), the court found that the CTA is likely unconstitutional, as it exceeds Congress’s authority. Specifically, the court ruled that the CTA does not regulate interstate commerce and is not justified under Congress’s power to enact laws “Necessary and Proper”