Category: News

What Companies Need to Know About the Surge in Investment Scams

Posted on by Aprio

February 25, 2026 | by Aprio

This article was originally published by Aprio on January 22, 2026.

Summary: Fraudsters often use advanced technology, AI, and psychological manipulation to target employees, compromise internal controls, and siphon funds under the guise of legitimate investment opportunities or executive directives.

According to the Federal Trade Commission (FTC), reported losses to fraud jumped to $12.5 billion in 2024. Investment scams accounted for the largest share, with losses reaching $5.7 billion. Scammers are no longer relying solely on poorly worded emails or obvious phishing attempts. Today’s bad actors utilize advanced technology, artificial intelligence (AI), and psychological manipulation to target employees, compromise internal controls, and siphon funds under the guise of legitimate investment opportunities or executive directives.

A compromised employee, a deceived executive, or a manipulated payment process can expose a company to significant financial liability and reputational damage. Understanding the mechanics of investment scams and implementing proactive controls is a critical component of financial governance.

Rising Cost of Investment Scams

While traditional checks and balances once slowed the movement of illicit funds, digital payment methods have accelerated the process. The FTC notes that in 2024, consumers and organizations lost more money to scams involving bank transfers and cryptocurrency than all other payment methods combined.

For business leaders, the risk is twofold. First, there is direct financial loss if company funds are diverted. Second, there is the operational disruption required to investigate the breach, the potential for regulatory scrutiny, and the exposure of control weaknesses that could affect future valuation or audit readiness.

We are also seeing a shift in the global regulatory environment regarding corporate responsibility. For example, recent legislative updates in the United Kingdom have introduced stricter requirements for companies to prevent fraud, potentially holding leadership accountable if they fail to implement reasonable prevention procedures. While regulations vary by jurisdiction, this trend suggests a growing expectation for boards and executives to take a more active role in fraud prevention, regardless of where they operate.

How Modern Investment Scams Infiltrate Organizations

Investment scams often begin with a breach of trust, rather than a breach of software. Scammers frequently target specific departments (e.g., finance, accounting, human resources) using social engineering tactics that exploit the desire to be responsive and efficient.

Imposter Scams

One of the most prevalent tactics involves imposter scams. In these scenarios, fraudsters pose as known and trusted figures: a CEO, a board member, a vendor, or even a bank representative. They may use spoofed email addresses or deepfake audio technology to issue urgent instructions regarding a confidential acquisition, a new investment opportunity, or a vendor payment change.

Consider the scenario of a non-profit organization where a trusted leader believes they have found a lucrative investment opportunity to grow the organization’s endowment. The leader, authorized to move funds, might transfer capital from the organization’s bank account to a mobile payment app, and subsequently to a cryptocurrency exchange, believing they are securing a high return. The reality is that the opportunity is a fabrication, and once the funds are converted to cryptocurrency, recovery becomes difficult and uncommon.

This type of authorized push payment fraud is particularly dangerous because the person initiating the transfer is authorized to do so, bypassing standard cybersecurity alerts.

Role of Technology and Cryptocurrency

Technology companies and platforms are often the unwitting facilitators of these crimes. Scammers leverage legitimate fintech applications, peer-to-peer (P2P) payment platforms, and cryptocurrency exchanges to move stolen funds quickly across borders.

For high-growth and tech-focused companies, this presents a unique challenge. Employees accustomed to moving fast and using modern financial tools may be less suspicious of requests to use non-traditional payment methods. Scammers exploit this comfort level, directing payments via wire transfers, ACH, or crypto under the pretense of modernizing the investment process, avoiding bureaucratic delays.

Why Employees Are Effective Targets

Detecting an investment scam requires looking beyond the transaction itself and to the behaviors and patterns surrounding it. Scammers rely on urgency, authority, and secrecy to override critical thinking. By training teams to recognize common red flags, companies can build a human firewall against fraud.

Behavioral Warning Signs

Scammers often coach their targets on how to respond to internal questions, creating a script that explains away irregularities. Leaders should be vigilant for specific changes in employee behavior or communication styles, such as:

  • Unusual Secrecy: An employee emphasizes that a transaction is highly confidential and should not be discussed with other team members or standard approvers.
  • Urgency and Pressure: There is an intense push to act quickly to secure a deal or avoid a penalty. Scammers know that if a target has time to think, the scheme often fails.
  • Resistance to Protocol: An employee or executive shows frustration with standard verification procedures and attempts to bypass established internal controls to expedite payment.
  • Scripted Responses: If questioned by finance or compliance teams, the individual requesting the payment offers vague, repetitive, or rehearsed answers that do not align with standard business logic.

Transactional Red Flags

Beyond behavior, the details of the transaction often contain clues that something is amiss. Companies should scrutinize any payment request that deviates from the norm. Take for example:

  • Test Transactions: Fraudsters often request an initial transfer to verify the account or process. Once this small amount clears without raising alarms, they follow up with a much larger request.
  • New Payment Methods: A request to send funds via cryptocurrency, gift cards, or to a new bank account that does not match the vendor’s typical profile is a major warning sign.
  • Misaligned Beneficiaries: Payment instructions where the beneficiary’s name does not strictly match the entity known to the company, or where the bank location does not match the vendor’s known geography.
  • Public Information Exploitation: Scams often take advantage of publicly available information about executive travel or company announcements to time their requests, adding a layer of credibility to the impersonation.

Controls and Prevention Strategies

Implementing Effective Financial Controls

  • Dual Approvals: Require two separate approvals for all wire and ACH transfers above a certain threshold. No single individual, regardless of rank, should have the ability to initiate and approve a significant outbound transaction. In addition, a second set of eyes often catches details that the primary initiator might miss due to pressure or distraction.
  • Verification Channels: Establish a strict policy that all changes to payment instructions (e.g., a new bank account number) must be verified through a secondary channel. If a request comes via email, the verification must happen via a phone call to a known contact at the organization, and never the number provided in the suspicious email.
  • Limit Payment Methods: Restrict the use of high-risk payment channels. Corporate funds should rarely, if ever, be transferred via P2P apps or converted to cryptocurrency without an extensive, multi-layer approval process.

Creating a Culture of Skepticism and Support

Employees in Finance, HR, and Executive Administration are often in the first line of defense against investment scams. This means that they are also the most frequently targeted. New hires, eager to please and unfamiliar with company norms, are particularly vulnerable.

Training programs should go beyond basic cybersecurity awareness. They must empower employees to question authority when financial protocols are challenged. An executive assistant should feel supported, not threatened, when verifying the CEO’s urgent request for a wire transfer. Building a culture where verification is praised rather than punished is essential for long-term security.

Immediate Steps When Fraud Is Suspected

Despite even the best controls, sophisticated investment scams can sometimes penetrate defenses. If a suspicious transaction is identified, speed is the critical factor in mitigating loss.

1. Stop or Recall Payments

Immediately contact the financial institution involved. If the funds were sent via wire transfer, request a recall. If sent via other methods, ask the provider to freeze the transaction if possible.

2. Notify Authorities

Report the incident to relevant law enforcement agencies and regulatory bodies. This creates an official record which is necessary for insurance claims.

3. Internal Review and Containment

Conduct an immediate internal review to understand the scope of the breach. Was it a compromised email account? A malicious insider? An external social engineering attack? Isolate affected systems to prevent further loss.

4. Engage Forensic Specialists

Third-party investigations are often necessary to trace complex financial flows, especially those involving cryptocurrency. Forensic specialists can prepare detailed reports for law enforcement, support insurance claims, and provide a clear summary of events for the Board of Directors.

Final Thoughts

Navigating the aftermath of an attempted or successful investment scam requires a partner who brings both technical precision and deep industry understanding.

Let’s Talk!

Call us at (209) 577-4800 or fill out the form below and we’ll contact you to discuss your specific situation.

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This article was written by Aprio and originally appeared on 2026-01-22. Reprinted with permission from Aprio LLP.
© 2026 Aprio LLP. All rights reserved. https://www.aprio.com/insights-events/what-companies-need-to-know-about-the-surge-in-investment-scams-ins-article-adv/

“Aprio” is the brand name under which Aprio, LLP, and Aprio Advisory Group, LLC (and its subsidiaries), provide professional services. LLP and Advisory (and its subsidiaries) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. LLP is a licensed independent CPA firm that provides attest services, and Advisory and its subsidiaries provide tax and business consulting services. Advisory and its subsidiaries are not licensed CPA firms.

This publication does not, and is not intended to, provide audit, tax, accounting, financial, investment, or legal advice. Readers should consult a qualified professional advisor before taking any action based on the information herein.

Tax Reform 2025: What the OBBB Act Means for You and Your Family

Posted on by don@mbn.io

July 17, 2025 | by Atherton & Associates, LLP

I. Introduction

The One Big Beautiful Bill Act (OBBB) ushers in fresh tax measures starting in 2025 that promise to influence the financial landscape for individuals and families across various income levels. Despite language that brands some changes as “permanent,” tax rules are always subject to future legislative adjustments. Consequently, it is critical to grasp these new provisions and plan proactively in order to make the most of the opportunities available right now.

With highlights like deductions for auto loan interest and temporary relief on state and local taxes (SALT), OBBB caters in large part to middle-income taxpayers. But individuals with higher incomes, retirees, and even small business owners will also be affected. Understanding how these provisions interact with your unique financial situation can help you adjust your strategies—from deciding whether to convert funds to a Roth IRA to optimizing charitable contributions—so that you minimize your overall tax burden.

II. Overview of the OBBB Act

One of the primary goals behind the OBBB Act is to alleviate strain on middle-income households facing rising debt and everyday expenses. As a result, provisions such as the above-the-line deduction for auto loan interest, overtime, and tip income stand out as hallmark features. At the same time, other measures address estate transfer planning and support for higher-income earners in key areas like capital gains recognition and entity-level SALT deductions. Nevertheless, no matter the bracket, it’s important to remember that opportunities presented here may be fleeting. Future Congresses can (and often do) revisit these “permanent” laws, making annual or even quarterly reviews of your financial plan essential.

It may seem daunting to keep track of every change. However, treating the new legislation as a window of opportunity can help you preserve more of your wealth through thoughtful planning. Whether you aim to limit your taxable income to qualify for favorable deductions or plan a robust estate strategy that accounts for a bigger exemption, these new laws provide reasons to re-examine your financial position now rather than later.

III. Key Provisions and Their Implications

  1. Top Marginal Tax Rate Unchanged

    Under the OBBB Act, the highest marginal tax rate remains set at 37%. This continuity extends to capital gains rates as well, which stay at 0%, 15%, or 20%, depending on your overall taxable income. For those with significant income from investments, this means that strategies like carefully timing capital gains or performing Roth IRA conversions can continue without the worry that you might suddenly jump into a much higher bracket. Although some predicted a rate hike, the absence of such a change provides a measure of stability for the moment.

  2. Elimination of Personal Exemptions but Addition of a Senior Deduction

    While personal exemptions are now permanently repealed, the Act introduces a new $6,000 deduction specifically for seniors. Although this deduction will help offset tax for older individuals, it does not automatically make all Social Security tax-free. Depending on your other taxable income—such as pensions or retirement account distributions—up to 85% of Social Security can still be taxed. Strategic moves, like staggering the timing of required minimum distributions (RMDs) or transferring some balances into Roth accounts, can help keep more of your Social Security benefits in your pocket.

  3. Auto Loan Interest Deduction with Income Restrictions

    Middle-income earners could benefit from a new deduction that allows up to $10,000 of auto loan interest annually, so long as modified adjusted gross income (MAGI) stays under $100,000 for single filers or under $200,000 for joint filers. This limit phases out for those with higher income levels, making it less meaningful for wealthier taxpayers. However, individuals near the threshold might adjust their income through tactics such as deferring compensation, timing business deductions, or accelerating charitable giving.

  4. Expanded Child Tax Credit

    Parents can expect a modest lift from the Child Tax Credit, which rises to $2,200 per child and will be indexed for inflation going forward. Families at higher income levels should note that the same $400,000 joint-filer phaseout remains in place. While not a dramatic increase, it can still provide some financial breathing room each year as child-related expenses mount.

  5. Temporary Relief for SALT Deduction

    In 2025, the SALT deduction cap jumps from $10,000 to $40,000, offering a temporary but crucial respite for taxpayers in states with higher levies. This elevated cap is set to gradually revert to $10,000 by 2029. If you own a pass-through entity, the entity-level tax workaround remains one of the most powerful strategies to sidestep SALT limitations. However, watch for new deadlines. For example, California’s pass-through entity tax election is scheduled to expire at the end of 2025 unless lawmakers opt for an extension.

  6. Charitable Contribution Deductions Capped at a 35% Benefit

    Under the new law, donors in the 37% tax bracket will be limited to receiving a 35% tax benefit on their charitable contributions. While this may reduce the dollar-for-dollar advantage, there are still ways to optimize your giving. Strategies like donating long-term appreciated stock, establishing a donor-advised fund, or even bunching several years’ worth of contributions can yield a stronger overall tax benefit—despite the new limitation.

  7. Estate & Gift Tax Exemption Extended

    Beginning in 2026, the estate and gift tax exemption jumps to $15 million for an individual (or $30 million for a married couple), granting a larger buffer against federal estate taxes. Since it was previously set to drop to about half that amount, many families will enjoy a broader margin for wealth transfer. Legislative risk remains, though. As a result, forward-thinking estate planning is essential to lock in potential savings and maintain flexibility in the face of possible future changes.

  8. 529 Plan Enhancements and Expanded Qualified Expenses

    In an ongoing effort to encourage education savings, the OBBB Act broadens how 529 plans may be used. More K–12 expenses (such as tutoring) and professional credentialing can now be financed from these accounts without losing tax benefits. Beginning in 2026, up to $20,000 per year may be withdrawn to pay for K–12 tuition. Front-loading 529 contributions can be especially advantageous, as larger deposits have more time to grow and benefit multiple generations.

  9. New “Trump Accounts” for Children

    Children born between 2025 and 2028 may see a $1,000 initial federal contribution into a new kind of tax-deferred account—referred to by many as “Trump Accounts.” While these accounts function similarly to IRAs, the withdrawal rules and requirements remain somewhat unclear. Over time, they could provide comfortable savings for future goals, but the final guidance from the Department of the Treasury will be vital to clarifying how distributions should be managed.

  10. Deduction for Overtime and Tip Income

    For workers who rely on tips or overtime for a substantial slice of their earnings, an above-the-line deduction of up to $25,000 on tips and $12,500 on overtime (capped at $25,000 if filing jointly) applies from 2025 through 2028. This valuable benefit phases out at higher MAGI levels, so those approaching the threshold may benefit from fine-tuning their income flows or deferring certain receipts to maintain eligibility.

 

“These new provisions are exciting, but the real key is synchronizing them with each family’s financial goals. It’s not just about tax-reduction strategies in isolation. It’s about ensuring your overall plan aligns with life events, from purchasing a home to passing on wealth,” says Jackie Howell, Tax Partner at Atherton & Associates LLP.

 

How Atherton & Associates LLP Can Help

Atherton & Associates LLP provides comprehensive support for navigating the OBBB Act’s complexities. Whether you need a structured plan for your estate and trust or require guidance in maximizing deductions for auto loan interest, our multi-disciplinary team stands ready to assist. We help you stay in compliance with evolving laws, while also pinpointing opportunities to manage income and lower your tax exposure.

If you operate a business, our advisors can assess your current entity choice to ensure you benefit from pass-through entity workarounds and other relevant provisions. On the personal side, our team merges practical strategies for retirement income planning, charitable giving, and wealth transfer under the new tax rules. No matter where you find yourself in the income spectrum, we examine your situation holistically to help you make decisions that are flexible enough to adapt to the next wave of legislative shifts.

Conclusion

The OBBB Act has placed a range of new possibilities on the table—some designed to relieve middle-income households, yet also offering benefits to high earners and future generations. From rethinking timing on capital gains to leveraging fresh savings accounts for children, each change invites you to re-examine your financial roadmap. The fact that future congressional action can reshape these “permanent” rules demonstrates just how important it is to remain proactive. We have created a detailed chart to further explore the specific provisions, which you can download here | Provision Chart. By staying updated with each development, you can maximize today’s tax benefits and efficiently prepare for future requirements.

Expert Contributor

Jackie Howell, Tax Partner
Email: jhowell@athertoncpas.com
Jackie has been in public accounting since 2010, focusing on tax compliance, planning for individuals, and multi-state taxation for businesses. Her experience spans diverse industries, enabling her to craft tailored solutions for complex tax scenarios.

Let’s Talk!

Call us at (209) 577-4800 or fill out the form below and we’ll contact you to discuss your specific situation.

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2025 Business Tax Law Update

Posted on by don@mbn.io

July 17, 2025 | by Atherton & Associates, LLP

 

Embracing Change: How OBBA’s Business Tax Updates are Reshaping Financial Strategies

Congress recently passed the One Big Beautiful Bill Act (OBBB), ushering in significant changes to business taxation beginning in 2025. The legislation aims to stimulate domestic investment, manufacturing, and employment while simplifying certain compliance burdens. While many provisions are labeled “permanent,” business owners should treat them as opportunities to act during a favorable planning window—as future Congresses retain the power to modify or repeal them. Below is a summary of the most impactful changes, along with planning insights. 

Shape 

Bonus Depreciation – 100% Expensing Returns 
The OBBB Act permanently reinstates 100% bonus depreciation for qualified property placed in service on or after January 19, 2025, including certain plants that are planted or grafted. This allows immediate expensing of eligible purchases like machinery, vehicles, and leasehold improvements. The change provides a major cash flow advantage for capital-intensive businesses and aligns with broader goals to boost domestic productivity. 

Shape 

Section 179 Expensing Expanded 
The maximum Section 179 expensing limit increases to $2.5 million, phasing out when total qualified purchases exceed $4 million. This update expands access to immediate expensing for small and midsize businesses investing in equipment, software, and tangible personal property. When paired with bonus depreciation, the increased limits offer substantial year-one tax savings for growing companies. 

Shape 

R&D Expensing Restored for Domestic Innovation 
Starting in 2025, businesses can once again immediately deduct domestic research and experimental (R&E) expenditures under Section 174. Foreign-based research must still be amortized over 15 years. 
Businesses with less than $31 million in average annual gross receipts may retroactively apply this change back to 2022, and all taxpayers can accelerate remaining amortized R&D costs over a one- or two-year period for 2022–2024 expenses. This change removes a major barrier to innovation for small and midsize companies investing in U.S.-based R&D. 

Shape 

Section 163(j) Relief: EBITDA Deduction Restored 
For tax years beginning after December 31, 2024, the limitation on business interest expense under IRC Section 163(j) reverts to being calculated using EBITDA rather than EBIT. This means businesses can again add back depreciation and amortization, increasing the amount of interest they can deduct—especially beneficial for capital-heavy industries such as manufacturing, construction, and real estate. 

For example, a company with $2 million in EBITDA and $600,000 of annual interest expense may deduct the full $600,000 (30% of EBITDA). Under the EBIT rule (which excludes depreciation and amortization), its adjusted taxable income might be only $1.3 million—limiting the deduction to $390,000 and deferring $210,000 of interest. The return to EBITDA helps restore that lost deduction. 

Businesses with average gross receipts under $30 million (for 2025, indexed annually) are exempt from Section 163(j) altogether under the small business exception, and can fully deduct their business interest without limitation. 

Shape 

Paid Family and Medical Leave Credit Made Permanent 
The Section 45S credit for employer-paid family and medical leave is now permanent, removing uncertainty around renewals and extensions. Employers offering qualifying paid leave can continue to claim a credit of up to 25% of wages paid, which supports workforce retention and promotes competitive employee benefit packages. 

 

Incentives for Manufacturing and Production Property 
A 100% first-year depreciation deduction for “qualified production property,” which generally includes nonresidential real estate used in manufacturing. The IRS has not yet released many detailed public examples for the new OBBB Act special depreciation allowance on qualified production property, which begins in 2025. However, this provision builds on existing bonus depreciation rules outlined in IRS Publication 946 (How to Depreciate Property) and IRS Notice 2022-05, which covers related changes under the Inflation Reduction Act. For example, a manufacturer placing a $5 million new factory wing in service in mid-2025—meeting the qualification criteria—could elect to immediately deduct the entire $5 million cost that year, reducing the property’s basis to zero for future depreciation. If, at any time during the 10-year period beginning on the date that any qualified production property is placed in service by the taxpayer, such property ceases to be used in a qualified way, Section 1245 recapture applies. Official IRS examples and updated guidance are expected to be released in the coming months through updates to Publication 946 and additional IRS notices. 

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Opportunity Zones and New Markets Credit Made Permanent 
The OBBB Act permanently extends both the Opportunity Zone program and the New Markets Tax Credit (NMTC). While the Opportunity Zone definition of “low-income community” is narrowed beginning in 2027, the permanency provides long-term stability for real estate developers, community lenders, and impact-focused businesses seeking to invest in underserved areas. 

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QSBS Gain Exclusion Increased to 100% 
For Qualified Small Business Stock (QSBS) acquired after the OBBB’s enactment: 

  • Gains are 75% excludable if held ≥ 4 years 

  • Gains are 100% excludable if held ≥ 5 years 

This change makes equity investment in qualified startups more attractive and improves after-tax returns for founders, early-stage investors, and employees receiving equity. 

Shape 

Excess Business Loss Limitation Made Permanent 
The Section 461(l) limitation on excess business losses for noncorporate taxpayers, previously set to expire after 2028, is now permanent. Importantly, proposed language that would have restricted carryovers as excess business losses (instead of net operating losses) was not included in the final law, preserving taxpayer flexibility and preserving future deductibility. 

Shape 

 

The One Big Beautiful Bill introduces powerful tax incentives for business investment, hiring, innovation, and long-term planning. While some changes offer clarity, others add complexity or come with income or industry-specific limitations. As always, understanding how these updates intersect with your business goals is key to optimizing your strategy in 2025 and beyond. 

 

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Call us at (209) 577-4800 or fill out the form below and we’ll contact you to discuss your specific situation.

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Key Tariff Strategies for Future-Proofing Your Business

Posted on by don@mbn.io

May 28, 2025 | by Atherton & Associates, LLP

The global trade environment has become increasingly complex due to recent announcements of universal tariff increases and heightened reciprocal rates for certain countries. While the media often highlights the political angles of these changes, businesses must take practical steps to avoid costly pitfalls. Tariffs can alter operating costs, disrupt supply chains, and affect pricing strategies—regardless of a company’s size or industry. Building a proactive plan to address these challenges can make all the difference in maintaining profitability and future-proofing your business.

This article explores what tariffs mean, why they matter, and how you can respond with a forward-looking mindset. By implementing the right strategies today, you can boost your resilience against shifting trade policies in the years to come.

Understanding Tariffs and Their Scope

Tariffs are government-imposed taxes on imported goods. When U.S. businesses import items from overseas—whether raw materials, components, or finished products—they typically pay these taxes at the point of entry. The specific rates vary depending on how a product is classified, its country of origin, and the overall trade climate. Some tariffs are calculated as a percentage of the product’s value (an ad valorem tariff), while others are a fixed fee per unit (a specific tariff).

In the United States, tariffs are not administered by the Internal Revenue Service or the Treasury Department. Rather, they fall under the Department of Homeland Security’s Customs and Border Protection. Its role includes collecting duties, enforcing compliance with customs regulations, and responding to evolving trade policies. Governments impose tariffs for multiple reasons, including generating revenue, protecting domestic industries, and regulating imported goods.

The Impact of Tariffs on Businesses

Although large multinational corporations are often in the spotlight, the scope of tariff impact extends to businesses of all sizes. A company’s reliance on imports, existing contractual obligations, and market dynamics can determine how hard these tax changes hit. There are several key areas of concern:

Supply Chain Challenges. Tariffs can make originally cost-effective supply chains suddenly more expensive. If your business depends on overseas producers, shifting trade rules may leave you scrambling for domestic or alternative international sources. This uncertainty can throw off inventory management, especially if certain products are subject to steep import taxes.

Pricing Adjustments. Higher costs from tariffs might compel you to adjust your pricing strategy. Businesses must decide whether to absorb the added expense—risking margins—or pass it on to customers. Small and medium-sized enterprises in particular may find it difficult to shoulder these added costs, so a carefully crafted approach to raising prices can help preserve customer goodwill.

Financial Reporting Implications. When you’re recalculating cost of goods sold, tariff expenses cannot be overlooked. Accurately attributing these additional fees to your product costs is vital for precise financial reporting and to maintain a realistic picture of profit margins. If your business is publicly traded, transparent reporting on the implications of tariffs is often expected by stakeholders.

Special Considerations for Small Businesses. Smaller companies may feel a disproportionate impact because they often operate on narrower profit margins. Moreover, many small businesses rely on strong, enduring relationships with overseas suppliers, which can be costly to shift or rebuild elsewhere. For certain organizations, adjusting product lines or seeking new supply channels may be necessary to sustain operations in the face of changing tariffs.

Key Strategies for Future-Proofing Against Tariffs

Though trade policies can change quickly, there are several approaches that businesses can adopt to navigate uncertainty and remain resilient. By implementing these strategies, you position your organization to adapt as conditions evolve:

1. Review and Update Existing Contracts and Agreements. Take a fresh look at your current supplier and vendor contracts. Some agreements include provisions that address sudden shifts in tariffs, allowing for renegotiation or flexibility in purchase commitments. You might find “force majeure” clauses or language specific to tariff escalation. Checking these details early can provide a roadmap for making adjustments without facing heavy penalties.

2. Assess Alternative Sourcing and Supply Chain Diversification. If tariffs substantially increase costs, investigate options in lower-tariff jurisdictions or even domestic alternatives. Although moving production or finding new suppliers can be disruptive, in some cases it may be more cost-effective in the long run. Even for businesses that remain dependent on certain imports, diversifying the supply chain to include multiple sources reduces vulnerability to tariff hikes in any one region.

3. Cost Management and Pricing Strategy. Calculating the overall financial impact of tariffs can help guide your decisions on product pricing. Some companies opt for transparent “tariff surcharges” so customers and partners understand these added costs arise from external factors. Striking the right balance between profitability and customer loyalty can be challenging, but a phased or clearly labeled price adjustment can make it more palatable.

4. Leverage Duty Exemptions and Relief Programs. You might qualify for exemptions under trade agreements such as the USMCA if your imports meet specific origin criteria. Duty drawback programs can also offer a rebate if you import goods but subsequently export them. Additionally, operating within a Foreign Trade Zone (FTZ) may allow you to defer or reduce some of your duties until the goods leave the zone. Staying informed about legislative updates and special exemption windows can result in significant savings.

5. Implement Robust Scenario Planning and Compliance Tools. Technology can be a powerful ally in uncertain times. By using predictive analytics or supply chain management software, you can model multiple tariff scenarios and evaluate where costs might spike. This ensures you’re ready to pivot quickly if conditions worsen. The right software can also aid in compliance, reducing the risk of fines for misclassifying products under the Harmonized Tariff Schedule.

6. Seek Expert Guidance. Tariff regulations are highly nuanced, with shifting deadlines and complex definitions. Enlisting a professional who understands international tax policies, supply chain logistics, and customs regulations can be invaluable. An expert may identify hidden cost-saving measures or clarify potential liabilities you hadn’t considered. Act early, before new rules or deadlines take effect, to avoid last-minute scrambling.

Securing Strength Amid Trade Shifts

From increased costs and inventory disruptions to the financial complexities of assigning tariff-related expenses, tariff regulations create pressure points across the entire business landscape. The most resilient organizations are those that move now, assessing vulnerabilities, rewriting contracts, and diversifying their sourcing setups. Thoughtful planning—backed by professional expertise—can turn tariff upheavals into opportunities for renewed efficiency and stronger partnerships.

Acting with a sense of urgency could be the difference between sinking or swimming in our new tariff trade environment. With the right strategies in place and expert advice at your side, you can protect your bottom line and secure success amid ongoing changes in tariff policy.

 

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Client Alert: Major Federal Tax Reform Heads to Senate

Posted on by don@mbn.io

May 27, 2025 | by Atherton & Associates, LLP

Client Alert
House Passes ‘One Big Beautiful Bill’: Key Tax Provisions and Next Steps

May 27, 2025
From the Office of Jackie Howell, CPA, Tax Partner

On May 22, 2025, the U.S. House of Representatives narrowly passed the “One Big Beautiful Bill,” a comprehensive tax and spending package championed by President Trump. The bill now advances to the Senate, where further deliberations are anticipated.

Highlights for Individual Taxpayers

  • Permanent Extension of 2017 Tax Cuts: Permanently adopts the modified federal income tax brackets and reduced rates established by the TCJA, with an inflation adjustment for all brackets except the top 37% bracket.

  • Enhanced Standard Deduction: Makes the expanded TCJA standard deduction permanent, temporarily boosting the standard deduction by $2,000 for joint filers, $1,500 for head of household, and $1,000 for all other taxpayers from 2025 through the end of 2028.

  • Child Tax Credit: Increases and adjusts the credit for inflation, benefiting over 40 million families. From 2025 to 2028, the maximum credit temporarily increases to $2,500.

  • Tax Exemptions: Eliminates federal income tax on tips, overtime pay, and car loan interest for vehicles assembled in the U.S.

Key Business Provisions

  • Qualified Business Income (QBI) Deduction: Increases the deduction to 23% for pass-through entities.

  • Interest Expense Limitation: Increases the cap on business interest deductibility by allowing depreciation, amortization, and depletion to be excluded from adjusted taxable income, effective from 2025 to 2029.

  • Bonus Depreciation: Restores 100% bonus depreciation for qualified property acquired from 2025 through 2029.

  • Research and Development: Allows immediate expensing of domestic R&D costs from 2025 through 2029.

  • Excess Business Loss Limitation: Permanently extends the limitation on excess business losses for noncorporate taxpayers, allowing any unused losses to carry forward to the subsequent year. However, the losses will be taken into account in the computation of the excess business loss for that subsequent year.

Additional Measures

  • SALT Deduction Cap: Permanently raises the state and local tax (SALT) deduction cap to $40,000 with a phased reduction beginning at $250,000 for single filers and $500,000 for joint filers.

  • Senior Deduction: Adds a $4,000 deduction for seniors (65+) from 2025 to 2028, with income caps of $75,000 (single) and $150,000 (joint).

  • Border Security and Defense: Allocates significant funding for border enforcement and national defense initiatives.

  • Social Program Adjustments: Implements stricter work requirements for Medicaid and reduces funding for certain programs.

  • Estate and Gift Tax: Permanently raises the exemption to $15 million, adjusted for inflation.

Fiscal Considerations
The Congressional Budget Office estimates the bill will increase the federal deficit by $3.8 trillion over the next decade. Market reactions have included concerns over rising Treasury yields and potential impacts on the bond market.

Next Steps
The Senate will now consider the bill, with debates expected on various provisions, including the AI regulation moratorium and social program adjustments. Revisions are likely before any final enactment.

Action Items
If the bills passes in the Senate, taxpayers and business owners should consult with their tax advisors to assess how these proposed changes may impact their financial planning and tax strategies.

This alert is for informational purposes only and does not constitute tax or legal advice. Please consult your CPA or tax advisor for personalized guidance.

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