After a whirlwind 2025 that produced what may be the largest tax bill in American history, the coming year looks dramatically different. Tax policy experts are predicting a legislative standstill, a turbulent tax filing season, and lingering questions about how new provisions will work when put into practice.
A Year of Legislative Gridlock
The forecast for 2026 tax legislation is bleak. With Republicans clinging to an impossibly thin House majority of just 218 or 219 seats following recent resignations, passing any significant bills will be extraordinarily difficult. Every single Republican vote would be needed to advance legislation through reconciliation, and as 2025 demonstrated, keeping the caucus unified is no small feat.
While there has been discussion about a potential second reconciliation bill, most observers view this as wishful thinking. If such a bill were to materialize, it would likely focus on technical corrections to lingering Tax Cuts and Jobs Act issues and problems that emerged from the One Big Beautiful Bill Act. One notable concern involves accelerated research credits that did not deliver the benefits lawmakers intended because of unexpected interactions with the corporate alternative minimum tax.
The more pressing concern will simply be keeping the government running. A January deadline looms to avoid another shutdown and, given the contentious relationship between House Republicans and Democrats throughout 2025, even basic funding bills face uncertain prospects. With midterm elections consuming attention in the second half of the year, legislative bandwidth for tax policy will be virtually nonexistent.
A Rough Road Ahead for Taxpayers
The 2026 tax filing season is shaping up to be challenging. The IRS has experienced unprecedented upheaval, losing somewhere between 20 percent and 25 percent of its workforce through a combination of voluntary resignations and reductions in force. Many of these departures came from enforcement divisions, though customer service will also feel the impact.
Leadership instability has compounded these problems. The agency cycled through roughly seven commissioners or acting commissioners in 2025 alone. Former Congressman Billy Long was confirmed as commissioner but lasted less than two months before departing under unclear circumstances. The Treasury Secretary has since taken direct oversight of the agency, and an IRS CEO position was created for the first time in the agency’s history. No new commissioner nominee has been put forward, and there is currently no Senate-confirmed chief counsel either.
For taxpayers who need more than basic return processing, this means longer wait times, fewer answered phone calls, and potential delays. Those filing straightforward W-2 returns seeking refunds will likely fare better than individuals or businesses with complicated situations requiring IRS assistance. Audit rates will decline intentionally, as the current administration has committed to scaling back the enforcement emphasis of the Biden years.
The Justice Department’s Tax Division also has been gutted, losing many qualified litigators who previously maintained an exceptional track record against large taxpayers in court. This erosion of enforcement capability may not immediately move voluntary compliance numbers, but continued cuts will eventually catch up with the system.
Unresolved International Questions
The relationship between U.S. tax policy and the global minimum tax framework under Pillar 2 remains unsettled. Republicans declined to include a retaliatory tax provision known as section 899 in last year’s legislation based on an agreement with G20 nations. If that agreement unravels, there may be pressure to revisit retaliatory measures, though passing such legislation with current House margins seems unlikely.
American companies operating internationally could face pressure in foreign jurisdictions if the United States fails to align with Pillar 2 requirements. While many in Washington believe the international minimum tax framework will collapse, the reality on the ground suggests otherwise, and this disconnect might force future legislative action.
Conclusion
The bottom line for 2026: expect a holding pattern on major tax legislation and brace for a difficult filing season as an understaffed and unsettled IRS works to implement last year’s massive changes.
What to Expect from U.S. Tax Policy in 2026
February 1, 2026 · Blog, News, Tax and Financial News
⏱ 4 min read
After a whirlwind 2025 that produced what may be the largest tax bill in American history, the coming year looks dramatically different. Tax policy experts are predicting a legislative standstill, a turbulent tax filing season, and lingering questions about how new provisions will work when put into practice.
A Year of Legislative Gridlock
The forecast for 2026 tax legislation is bleak. With Republicans clinging to an impossibly thin House majority of just 218 or 219 seats following recent resignations, passing any significant bills will be extraordinarily difficult. Every single Republican vote would be needed to advance legislation through reconciliation, and as 2025 demonstrated, keeping the caucus unified is no small feat.
While there has been discussion about a potential second reconciliation bill, most observers view this as wishful thinking. If such a bill were to materialize, it would likely focus on technical corrections to lingering Tax Cuts and Jobs Act issues and problems that emerged from the One Big Beautiful Bill Act. One notable concern involves accelerated research credits that did not deliver the benefits lawmakers intended because of unexpected interactions with the corporate alternative minimum tax.
The more pressing concern will simply be keeping the government running. A January deadline looms to avoid another shutdown and, given the contentious relationship between House Republicans and Democrats throughout 2025, even basic funding bills face uncertain prospects. With midterm elections consuming attention in the second half of the year, legislative bandwidth for tax policy will be virtually nonexistent.
A Rough Road Ahead for Taxpayers
The 2026 tax filing season is shaping up to be challenging. The IRS has experienced unprecedented upheaval, losing somewhere between 20 percent and 25 percent of its workforce through a combination of voluntary resignations and reductions in force. Many of these departures came from enforcement divisions, though customer service will also feel the impact.
Leadership instability has compounded these problems. The agency cycled through roughly seven commissioners or acting commissioners in 2025 alone. Former Congressman Billy Long was confirmed as commissioner but lasted less than two months before departing under unclear circumstances. The Treasury Secretary has since taken direct oversight of the agency, and an IRS CEO position was created for the first time in the agency’s history. No new commissioner nominee has been put forward, and there is currently no Senate-confirmed chief counsel either.
For taxpayers who need more than basic return processing, this means longer wait times, fewer answered phone calls, and potential delays. Those filing straightforward W-2 returns seeking refunds will likely fare better than individuals or businesses with complicated situations requiring IRS assistance. Audit rates will decline intentionally, as the current administration has committed to scaling back the enforcement emphasis of the Biden years.
The Justice Department’s Tax Division also has been gutted, losing many qualified litigators who previously maintained an exceptional track record against large taxpayers in court. This erosion of enforcement capability may not immediately move voluntary compliance numbers, but continued cuts will eventually catch up with the system.
Unresolved International Questions
The relationship between U.S. tax policy and the global minimum tax framework under Pillar 2 remains unsettled. Republicans declined to include a retaliatory tax provision known as section 899 in last year’s legislation based on an agreement with G20 nations. If that agreement unravels, there may be pressure to revisit retaliatory measures, though passing such legislation with current House margins seems unlikely.
American companies operating internationally could face pressure in foreign jurisdictions if the United States fails to align with Pillar 2 requirements. While many in Washington believe the international minimum tax framework will collapse, the reality on the ground suggests otherwise, and this disconnect might force future legislative action.
Conclusion
The bottom line for 2026: expect a holding pattern on major tax legislation and brace for a difficult filing season as an understaffed and unsettled IRS works to implement last year’s massive changes.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
An activity cost driver is anything that causes a company’s variable costs to either reduce or grow. Since measuring an activity cost driver is a way to streamline the administration of managing production costs, it’s an integral part of activity-based costing.
Examples of activity-cost drivers are warehouse expenses, modifying engineering designs, and retooling, setup, and maintenance costs for machining needs. This can include higher warehouse expenses due to increased rents or leases, which add to the final amount of the product or service’s sales price. Machining costs include initial setups for initial production and ongoing maintenance costs for continued runs. If production needs to be re-engineered to different production parameters, those professional revision costs need to be added to the ultimate product or service cost calculations.
These cost drivers are used as a starting point to project the business’ operational and profitability goals through the use of activity-based costing (ABC), a type of managerial accounting.
ABC accounting is a way to determine the expenses of each output by looking at the inputs used during the company’s operations, be it power for the machinery, Information Technology (IT) needs, or labor.
It’s important to know that one variable expense can impact multiple single activity cost drivers. For example, wage costs and machining expenses can be identified as activity cost drivers in connection with production. The first step is looking at how ABC accounting can determine indirect costs.
Activity-Based Costing Illustration
A business wants to look at how its production space and its lease or real estate and property tax costs are attributable to individual widgets or services, based on the percentage dedicated to the respective product or service. If it’s not allocated properly, determining sales prices and profitability can be negatively impacted.
If a company has two product lines with the same retail prices and production quotas, with direct costs of $700 and $250, it’s important to see how the production area for each product impacts the company’s overall operations. If the first item uses 40 percent of the production area and the second item uses 60 percent of the production area, and the rent is $1,500, the rent needs to be factored in. The first item would see an additional cost of $600 plus the original $700, or a total of $1,300. The second item’s cost would be $900 for the rent and $250 for the item, or a total of $1,150. While the initial direct cost for the first item seems higher than the second item, when factoring in all costs, this time it’s still true – but that’s not always the case.
Once this has been established, and then a company receives a new order, the following illustrates how measuring an activity cost driver, such as performing maintenance on machines after a production run, will cost the company to have it ready for their next order. If it costs a company $200 for machine maintenance and it produces 1,000 widgets, a $0.20/widget cost would be factored into margins and retail pricing.
While this provides an overview of how activity cost drivers work, it is part of a comprehensive approach to how businesses measure their margins and ultimately profitability.
Defining An Activity Cost Driver
January 1, 2026 · Blog, General Business News, News
⏱ 3 min read
An activity cost driver is anything that causes a company’s variable costs to either reduce or grow. Since measuring an activity cost driver is a way to streamline the administration of managing production costs, it’s an integral part of activity-based costing.
Examples of activity-cost drivers are warehouse expenses, modifying engineering designs, and retooling, setup, and maintenance costs for machining needs. This can include higher warehouse expenses due to increased rents or leases, which add to the final amount of the product or service’s sales price. Machining costs include initial setups for initial production and ongoing maintenance costs for continued runs. If production needs to be re-engineered to different production parameters, those professional revision costs need to be added to the ultimate product or service cost calculations.
These cost drivers are used as a starting point to project the business’ operational and profitability goals through the use of activity-based costing (ABC), a type of managerial accounting.
ABC accounting is a way to determine the expenses of each output by looking at the inputs used during the company’s operations, be it power for the machinery, Information Technology (IT) needs, or labor.
It’s important to know that one variable expense can impact multiple single activity cost drivers. For example, wage costs and machining expenses can be identified as activity cost drivers in connection with production. The first step is looking at how ABC accounting can determine indirect costs.
Activity-Based Costing Illustration
A business wants to look at how its production space and its lease or real estate and property tax costs are attributable to individual widgets or services, based on the percentage dedicated to the respective product or service. If it’s not allocated properly, determining sales prices and profitability can be negatively impacted.
If a company has two product lines with the same retail prices and production quotas, with direct costs of $700 and $250, it’s important to see how the production area for each product impacts the company’s overall operations. If the first item uses 40 percent of the production area and the second item uses 60 percent of the production area, and the rent is $1,500, the rent needs to be factored in. The first item would see an additional cost of $600 plus the original $700, or a total of $1,300. The second item’s cost would be $900 for the rent and $250 for the item, or a total of $1,150. While the initial direct cost for the first item seems higher than the second item, when factoring in all costs, this time it’s still true – but that’s not always the case.
Once this has been established, and then a company receives a new order, the following illustrates how measuring an activity cost driver, such as performing maintenance on machines after a production run, will cost the company to have it ready for their next order. If it costs a company $200 for machine maintenance and it produces 1,000 widgets, a $0.20/widget cost would be factored into margins and retail pricing.
While this provides an overview of how activity cost drivers work, it is part of a comprehensive approach to how businesses measure their margins and ultimately profitability.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
If you’re tired of the 9-to-5 grind, then passive income could be for you. While not a get-rich-quick scheme, it’s a way to build systems that contribute to financial stability and extra money. It can even support long-term goals like early retirement. Here’s a high-level look at what it is and how it works.
Types of Passive Income Sources
Investment Income This includes individual stocks or mutual funds, interest payments from corporate bonds, or capital gains from selling securities at a profit. While they all involve risk, these types of investments can compound and grow over time.
Rental Income Depending on where your property is, this could be a cash cow. The money you earn can cover the mortgage, taxes, maintenance, and other miscellaneous expenses. The best part? You could earn a sweet sum of money.
REITs and Crowdfunded Real Estate REITs (real estate investment trusts) and crowdfunded real estate platforms allow you to invest in properties without having to buy them yourself. You earn net rental income in the form of dividends without the headache of managing the property. Not bad, right?
Business Income You earn this money by not actually participating in the operations. For example, you might invest in a restaurant. Others run the daily business while you receive a percentage of the profits. Sweet.
Intellectual Property Royalties Pen a book. Write a song. Create an online course. You’ll reap the rewards long after the work is completed.
High-Yield Savings Accounts Yes, this might yield small returns, but it’s a great way to put your money to work.
What are the benefits? There are many.
Wealth Building When you reinvest your dividends, save and invest your rental profits and royalties, you’ll steadily create a nest egg that will compound and grow, grow, grow.
Financial Freedom While this type of capital building takes time, it can supplement, if not replace, your day job.
Time Flexibility You don’t have to work on this revenue stream every day, which is the beauty of it. It clears up time for you to live your life.
Diversification When you have more than one income source, it can act as somewhat of a safety net, should your main way of earning a living dry up.
Risks and Taxes
While passive income can and does build wealth, it’s not without risks. Markets may fluctuate. Property values might decrease. Companies that are part of third-party crowdfunding could shut down. You’ll also have to pay taxes, as you must report your earnings. Selling stocks or properties can trigger capital gains.
Passive income has pros and cons. Only you can decide how risk-averse or tolerant you are. If this type of investing is for you, the sooner you start, the sooner you’ll create financial security – and freedom.
Sources
https://www.crediful.com/what-is-passive-income/
Passive Income 101
January 1, 2026 · Blog, News, Tip of the Month
⏱ 3 min read
If you’re tired of the 9-to-5 grind, then passive income could be for you. While not a get-rich-quick scheme, it’s a way to build systems that contribute to financial stability and extra money. It can even support long-term goals like early retirement. Here’s a high-level look at what it is and how it works.
Types of Passive Income Sources
Investment Income This includes individual stocks or mutual funds, interest payments from corporate bonds, or capital gains from selling securities at a profit. While they all involve risk, these types of investments can compound and grow over time.
Rental Income Depending on where your property is, this could be a cash cow. The money you earn can cover the mortgage, taxes, maintenance, and other miscellaneous expenses. The best part? You could earn a sweet sum of money.
REITs and Crowdfunded Real Estate REITs (real estate investment trusts) and crowdfunded real estate platforms allow you to invest in properties without having to buy them yourself. You earn net rental income in the form of dividends without the headache of managing the property. Not bad, right?
Business Income You earn this money by not actually participating in the operations. For example, you might invest in a restaurant. Others run the daily business while you receive a percentage of the profits. Sweet.
Intellectual Property Royalties Pen a book. Write a song. Create an online course. You’ll reap the rewards long after the work is completed.
High-Yield Savings Accounts Yes, this might yield small returns, but it’s a great way to put your money to work.
What are the benefits? There are many.
Wealth Building When you reinvest your dividends, save and invest your rental profits and royalties, you’ll steadily create a nest egg that will compound and grow, grow, grow.
Financial Freedom While this type of capital building takes time, it can supplement, if not replace, your day job.
Time Flexibility You don’t have to work on this revenue stream every day, which is the beauty of it. It clears up time for you to live your life.
Diversification When you have more than one income source, it can act as somewhat of a safety net, should your main way of earning a living dry up.
Risks and Taxes
While passive income can and does build wealth, it’s not without risks. Markets may fluctuate. Property values might decrease. Companies that are part of third-party crowdfunding could shut down. You’ll also have to pay taxes, as you must report your earnings. Selling stocks or properties can trigger capital gains.
Passive income has pros and cons. Only you can decide how risk-averse or tolerant you are. If this type of investing is for you, the sooner you start, the sooner you’ll create financial security – and freedom.
Sources
https://www.crediful.com/what-is-passive-income/
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
The way people interact with the web is changing fast. Attention spans are shorter, app fatigue is real, and users no longer want to download, sign up, or navigate complex interfaces just to engage with content. New technologies like frictionless web-based augmented reality (WebAR) are emerging as powerful solutions.
This shift opens great opportunities for creators, brands, and small businesses.
What is Frictionless WebAR?
Every extra step between a user and an experience reduces engagement. Downloading apps, dealing with permissions, updates, and onboarding screens all create friction. However, frictionless WebAR is delivered directly through a web browser. It uses web standards like WebXR and WebGL to deliver digital content without downloads or installations. With a shift in how value is created, communicated, and converted, it is possible to have interactive storytelling, experiential funnels, immersive education, and hyper-local marketing. All this is without the costs and complexity involved in traditional AR.
Transitioning from the attention economy to the experience economy has been driven by content overload from content, ads, and interfaces competing for clicks. As a result:
Users avoid downloading new apps
Click-through rates are declining
Trust is harder to build through a flat screen alone
Static content struggles to hold attention
Frictionless WebAR addresses these barriers.
Users can easily scan a QR code or tap a link and instantly see a product, explore a story in 3D form, or interact with information visually.
From a business perspective, the value lies in zero-friction entry, instant immersion, and seamless connection between physical and digital worlds. This is because WebAR does not require large development teams or app store approvals. It is lightweight, fast, and accessible. This makes it viable not only for big brands but also for solo creators and small businesses.
From Passive Content to Active Experiences
With most digital content, users scroll, read, watch, and move on. Frictionless WebAR is built to turn audiences into participants. Instead of reading about a product, users can see it in a 3D model. Instead of watching a story, they can step inside it. When audiences interact with something in their own environment:
Engagement time increases
Emotional connections deepen
Information is remembered longer
Purchase confidence improves
Practical Opportunities for Creators
For filmmakers, artists, game developers, and content creators, frictionless WebAR transforms static content into dynamic, interactive narratives. For instance, scanning a QR code in a physical comic book brings a character to life. This deepens immersion and extends the narrative beyond the printed book. Other examples include AR-enhanced portfolios that showcase work in 3D, behind-the-scenes experiences tied to a QR code, and interactive course previews.
Creators can also monetize WebAR by offering premium AR experiences, bundling AR with digital products, launching interactive experiences for sponsors, and enhancing membership or community access. This makes WebAR part of a creator’s intellectual property and not just a marketing tool.
Practical Opportunities for Brands
Brands leverage WebAR for immersive marketing. Experiential funnels leverage WebAR, allowing brands to engage customers in ways traditional advertising cannot. A good example is a brand launching a new shoe, and customers can scan a QR code on a poster and “try on” the virtual sneakers to see how they look in real time. Luxury brands can offer “virtual showroom” experiences with interactions that deepen the emotional connection.
The low-barrier interaction means higher engagement rates as potential customers are more likely to participate in an experience that doesn’t demand an app download or login.
Practical Opportunities for Small Businesses
Small businesses often struggle to compete with larger brands online. However, now they can access cost-effective WebAR without native app development. This equalizer offers sophisticated marketing and customer engagement tools without the need for a massive budget or IT team. This saves on resources and enables quick campaigns like seasonal promotions.
Since WebAR works through web browsers, a business can gain detailed analytics, such as user behavior. For instance, getting detailed data on dwell time or how long people engage in the experience can indicate how compelling the content is. Spatial analytics, on the other hand, measure how much time users spend on specific scenes, helping make necessary tweaks to optimize user experience. The data collected helps better understand customers and how they engage with content.
Conclusion
Frictionless WebAR represents a fundamental change in how value is delivered online. For creators, brands, and small businesses, it offers a way to stand out by inviting people into meaningful experiences.
In a crowded digital space, ease of access is a competitive advantage.
What Frictionless WebAR Means for Creators, Brands and Small Businesses
January 1, 2026 · Blog, News, What's New in Technology
⏱ 4 min read
The way people interact with the web is changing fast. Attention spans are shorter, app fatigue is real, and users no longer want to download, sign up, or navigate complex interfaces just to engage with content. New technologies like frictionless web-based augmented reality (WebAR) are emerging as powerful solutions.
This shift opens great opportunities for creators, brands, and small businesses.
What is Frictionless WebAR?
Every extra step between a user and an experience reduces engagement. Downloading apps, dealing with permissions, updates, and onboarding screens all create friction. However, frictionless WebAR is delivered directly through a web browser. It uses web standards like WebXR and WebGL to deliver digital content without downloads or installations. With a shift in how value is created, communicated, and converted, it is possible to have interactive storytelling, experiential funnels, immersive education, and hyper-local marketing. All this is without the costs and complexity involved in traditional AR.
Transitioning from the attention economy to the experience economy has been driven by content overload from content, ads, and interfaces competing for clicks. As a result:
Users avoid downloading new apps
Click-through rates are declining
Trust is harder to build through a flat screen alone
Static content struggles to hold attention
Frictionless WebAR addresses these barriers.
Users can easily scan a QR code or tap a link and instantly see a product, explore a story in 3D form, or interact with information visually.
From a business perspective, the value lies in zero-friction entry, instant immersion, and seamless connection between physical and digital worlds. This is because WebAR does not require large development teams or app store approvals. It is lightweight, fast, and accessible. This makes it viable not only for big brands but also for solo creators and small businesses.
From Passive Content to Active Experiences
With most digital content, users scroll, read, watch, and move on. Frictionless WebAR is built to turn audiences into participants. Instead of reading about a product, users can see it in a 3D model. Instead of watching a story, they can step inside it. When audiences interact with something in their own environment:
Engagement time increases
Emotional connections deepen
Information is remembered longer
Purchase confidence improves
Practical Opportunities for Creators
For filmmakers, artists, game developers, and content creators, frictionless WebAR transforms static content into dynamic, interactive narratives. For instance, scanning a QR code in a physical comic book brings a character to life. This deepens immersion and extends the narrative beyond the printed book. Other examples include AR-enhanced portfolios that showcase work in 3D, behind-the-scenes experiences tied to a QR code, and interactive course previews.
Creators can also monetize WebAR by offering premium AR experiences, bundling AR with digital products, launching interactive experiences for sponsors, and enhancing membership or community access. This makes WebAR part of a creator’s intellectual property and not just a marketing tool.
Practical Opportunities for Brands
Brands leverage WebAR for immersive marketing. Experiential funnels leverage WebAR, allowing brands to engage customers in ways traditional advertising cannot. A good example is a brand launching a new shoe, and customers can scan a QR code on a poster and “try on” the virtual sneakers to see how they look in real time. Luxury brands can offer “virtual showroom” experiences with interactions that deepen the emotional connection.
The low-barrier interaction means higher engagement rates as potential customers are more likely to participate in an experience that doesn’t demand an app download or login.
Practical Opportunities for Small Businesses
Small businesses often struggle to compete with larger brands online. However, now they can access cost-effective WebAR without native app development. This equalizer offers sophisticated marketing and customer engagement tools without the need for a massive budget or IT team. This saves on resources and enables quick campaigns like seasonal promotions.
Since WebAR works through web browsers, a business can gain detailed analytics, such as user behavior. For instance, getting detailed data on dwell time or how long people engage in the experience can indicate how compelling the content is. Spatial analytics, on the other hand, measure how much time users spend on specific scenes, helping make necessary tweaks to optimize user experience. The data collected helps better understand customers and how they engage with content.
Conclusion
Frictionless WebAR represents a fundamental change in how value is delivered online. For creators, brands, and small businesses, it offers a way to stand out by inviting people into meaningful experiences.
In a crowded digital space, ease of access is a competitive advantage.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
Veterans’ Compensation Cost-of-Living Adjustment Act of 2025 (S 2392) – This Act was introduced by Sen. Jerry Moran (R-KS) on July 23. It passed in the Senate on Nov. 9, the House on Nov. 17, and was signed into law on Nov. 25. The purpose of this bill is to increase rates of compensation for veterans with service-connected disabilities, as well as the rates of dependency and indemnity compensation for the survivors of certain disabled veterans. The rate hikes became effective on Dec. 1.
Fairness for Servicemembers and their Families Act of 2025 (HR 970) – This bipartisan Act was introduced on Feb. 4 by Rep. Marilyn Strickland (D-WA). It authorizes increases to servicemember and veteran life insurance packages in order to account for inflation and higher costs of living. It passed in the House on April 7, in the Senate on Nov. 20, and was enacted by the President on Dec. 12.
Veteran Fraud Reimbursement Act of 2025 (HR 1912) – The Veterans Benefits Administration has experienced negligence and fraud that have prevented many veterans from receiving benefits. In the past, the case-by-case system of investigation into misuse led to further delays; in some cases, veterans passed away before ever receiving remuneration. The purpose of this bill is to allow the Veterans Benefits Administration to reimburse victims of fraud via a streamlined process, so that the investigation occurs after the affected veterans have been reimbursed. The bill, which was introduced by Rep. Gerald Connolly (D-VA) on March 6, passed in the House on May 5, in the Senate on Nov. 20, and was signed into law on Dec. 12.
SPEED Act (HR 4776) – The purpose of this bipartisan legislation is to streamline the existing environmental analysis requirements for energy projects (e.g., offshore drilling, mining, pipeline development). Provisions include reducing litigation challenges to a 150-day challenge window, developing standardized federal action criteria, and defining procedural deadlines. The Act was introduced by Rep. Bruce Westerman (R-AR) on July 25 and passed in the House on Dec. 18. Its fate currently rests with the Senate.
ROTOR Act (S 2503) – Prompted by multiple incidents this year, including military aircraft such as the Washington, D.C., helicopter collision, this bipartisan bill seeks to improve aviation safety and Federal Aviation Administration (FAA) oversight. The legislation would specifically require all aircraft to incorporate ADS-B technology, which displays nearby planes and weather data on cockpit screens. The legislation was introduced by Sen. Ted Cruz (R-TX) on July 29. It passed in the Senate on Dec. 17 and awaits consideration by the House.
Lower Health Care Premiums for All Americans Act (HR 6703) – Sponsored by Rep. Mariannette Miller-Meeks (R-IA), this healthcare bill proposes expanding association health plans, increasing transparency requirements for pharmacy benefit managers, and funding some cost-sharing reductions for qualifying Health Insurance Marketplace enrollees. It does not include extending the enhanced premium tax credits that expired on Dec. 31, 2025. The bill was introduced on Dec. 15 and passed in the House on Dec. 17. Its fate now lies with the Senate.
Improving Military Benefits, Relaxing Energy Regulations and Increasing Aviation Regulations
January 1, 2026 · Blog, Congress at Work, News
⏱ 3 min read
Veterans’ Compensation Cost-of-Living Adjustment Act of 2025 (S 2392) – This Act was introduced by Sen. Jerry Moran (R-KS) on July 23. It passed in the Senate on Nov. 9, the House on Nov. 17, and was signed into law on Nov. 25. The purpose of this bill is to increase rates of compensation for veterans with service-connected disabilities, as well as the rates of dependency and indemnity compensation for the survivors of certain disabled veterans. The rate hikes became effective on Dec. 1.
Fairness for Servicemembers and their Families Act of 2025 (HR 970) – This bipartisan Act was introduced on Feb. 4 by Rep. Marilyn Strickland (D-WA). It authorizes increases to servicemember and veteran life insurance packages in order to account for inflation and higher costs of living. It passed in the House on April 7, in the Senate on Nov. 20, and was enacted by the President on Dec. 12.
Veteran Fraud Reimbursement Act of 2025 (HR 1912) – The Veterans Benefits Administration has experienced negligence and fraud that have prevented many veterans from receiving benefits. In the past, the case-by-case system of investigation into misuse led to further delays; in some cases, veterans passed away before ever receiving remuneration. The purpose of this bill is to allow the Veterans Benefits Administration to reimburse victims of fraud via a streamlined process, so that the investigation occurs after the affected veterans have been reimbursed. The bill, which was introduced by Rep. Gerald Connolly (D-VA) on March 6, passed in the House on May 5, in the Senate on Nov. 20, and was signed into law on Dec. 12.
SPEED Act (HR 4776) – The purpose of this bipartisan legislation is to streamline the existing environmental analysis requirements for energy projects (e.g., offshore drilling, mining, pipeline development). Provisions include reducing litigation challenges to a 150-day challenge window, developing standardized federal action criteria, and defining procedural deadlines. The Act was introduced by Rep. Bruce Westerman (R-AR) on July 25 and passed in the House on Dec. 18. Its fate currently rests with the Senate.
ROTOR Act (S 2503) – Prompted by multiple incidents this year, including military aircraft such as the Washington, D.C., helicopter collision, this bipartisan bill seeks to improve aviation safety and Federal Aviation Administration (FAA) oversight. The legislation would specifically require all aircraft to incorporate ADS-B technology, which displays nearby planes and weather data on cockpit screens. The legislation was introduced by Sen. Ted Cruz (R-TX) on July 29. It passed in the Senate on Dec. 17 and awaits consideration by the House.
Lower Health Care Premiums for All Americans Act (HR 6703) – Sponsored by Rep. Mariannette Miller-Meeks (R-IA), this healthcare bill proposes expanding association health plans, increasing transparency requirements for pharmacy benefit managers, and funding some cost-sharing reductions for qualifying Health Insurance Marketplace enrollees. It does not include extending the enhanced premium tax credits that expired on Dec. 31, 2025. The bill was introduced on Dec. 15 and passed in the House on Dec. 17. Its fate now lies with the Senate.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
Campaign messaging would have you believe retirees just scored a major victory. The talking point is everywhere: Social Security benefits are now tax-free. But anyone who reads the One Big Beautiful Bill Act will discover something different. The legislation contains nothing that removes Social Security from federal taxation. Zero provisions. The tax structure that has applied to benefits for over four decades remains fully intact.
So, what did pass? A new deduction aimed at older Americans. And through some rhetorical gymnastics, that deduction is being sold as something it fundamentally is not.
A Deduction Is Not an Exemption
The OBBBA creates an additional deduction exclusively for seniors. Single filers get $6,000 while married couples receive $12,000. This stacks on top of what they already claim through the standard deduction, lowering their overall taxable income.
For retirees whose financial situation falls in a particular range, this extra write-off might be enough to cancel out whatever portion of their Social Security would normally face taxation. But here’s the catch: the deduction applies to all income equally. It doesn’t single out retirement benefits for protection. If your earnings came entirely from investments or a workplace pension, the math would work identically.
Decades of Unchanged Rules
Federal taxation of Social Security benefits dates back to 1983. President Reagan signed that change with support from both parties, making up to half of benefits taxable for seniors with higher earnings. Then in 1993, Congress and President Clinton pushed the ceiling higher. Under current rules, as much as 85 percent of benefits can count toward taxable income for upper-income retirees.
None of that changed with this bill.
The thresholds determining who pays what have remained frozen since the Clinton era. Single filers earning under $25,000 and couples under $32,000 owe nothing on their benefits. Those in the middle tier face taxes on up to half. And couples bringing in more than $44,000 can see 85 percent of their Social Security added to their taxable total.
Because these cutoffs have never adjusted for inflation, more retirees get pulled into taxable categories every single year. The OBBBA leaves this problem completely unaddressed.
Looking at the Administration’s Own Math
Treasury Department calculations highlighted by the White House reveal how limited the benefit truly is. Picture a single retiree receiving $40,000 annually from Social Security alongside another $40,000 from retirement accounts like an IRA or 401(k). Current law would put their 2026 tax bill at $7,190. Under the new legislation, the amount drops to $5,685, a reduction of roughly $1,500. The senior deduction accounts for approximately $900 of those savings.
Helpful? Sure. But this person still owes thousands in federal taxes. Their Social Security benefits remain part of the calculation. The deduction simply chips away at overall liability without treating retirement benefits any differently than other income sources.
Temporary Relief with Built-In Limits
Unlike corporate tax provisions and cuts benefiting wealthy taxpayers, which received permanent status in the bill, the senior deduction disappears after 2028. It was written with an expiration date from the start.
Income limits further narrow who benefits. Single filers with earnings above $75,000 and married couples exceeding $150,000 see the deduction phase-out entirely. Ironically, these higher-earning retirees facing the steepest Social Security taxation are exactly the ones shut out from this supposed fix.
Conclusion and Why This Framing Succeeds
Announcing a supplemental deduction for older taxpayers generates little excitement. Declaring that Social Security taxation has ended makes waves. Political strategists understand that most people absorb information through headlines rather than legislative analysis. Few voters examine IRS guidance or compare statutory language.
The outcome is clever stagecraft masquerading as meaningful reform. Benefits remain taxable under the same formulas established decades ago. Inflation continues to drag more retirees across taxation thresholds, and this temporary, income-restricted deduction is merely wrapped in revolutionary packaging.
What Seniors Actually Got in the Latest Tax Bill
January 1, 2026 · Blog, Financial Planning, News
⏱ 4 min read
Campaign messaging would have you believe retirees just scored a major victory. The talking point is everywhere: Social Security benefits are now tax-free. But anyone who reads the One Big Beautiful Bill Act will discover something different. The legislation contains nothing that removes Social Security from federal taxation. Zero provisions. The tax structure that has applied to benefits for over four decades remains fully intact.
So, what did pass? A new deduction aimed at older Americans. And through some rhetorical gymnastics, that deduction is being sold as something it fundamentally is not.
A Deduction Is Not an Exemption
The OBBBA creates an additional deduction exclusively for seniors. Single filers get $6,000 while married couples receive $12,000. This stacks on top of what they already claim through the standard deduction, lowering their overall taxable income.
For retirees whose financial situation falls in a particular range, this extra write-off might be enough to cancel out whatever portion of their Social Security would normally face taxation. But here’s the catch: the deduction applies to all income equally. It doesn’t single out retirement benefits for protection. If your earnings came entirely from investments or a workplace pension, the math would work identically.
Decades of Unchanged Rules
Federal taxation of Social Security benefits dates back to 1983. President Reagan signed that change with support from both parties, making up to half of benefits taxable for seniors with higher earnings. Then in 1993, Congress and President Clinton pushed the ceiling higher. Under current rules, as much as 85 percent of benefits can count toward taxable income for upper-income retirees.
None of that changed with this bill.
The thresholds determining who pays what have remained frozen since the Clinton era. Single filers earning under $25,000 and couples under $32,000 owe nothing on their benefits. Those in the middle tier face taxes on up to half. And couples bringing in more than $44,000 can see 85 percent of their Social Security added to their taxable total.
Because these cutoffs have never adjusted for inflation, more retirees get pulled into taxable categories every single year. The OBBBA leaves this problem completely unaddressed.
Looking at the Administration’s Own Math
Treasury Department calculations highlighted by the White House reveal how limited the benefit truly is. Picture a single retiree receiving $40,000 annually from Social Security alongside another $40,000 from retirement accounts like an IRA or 401(k). Current law would put their 2026 tax bill at $7,190. Under the new legislation, the amount drops to $5,685, a reduction of roughly $1,500. The senior deduction accounts for approximately $900 of those savings.
Helpful? Sure. But this person still owes thousands in federal taxes. Their Social Security benefits remain part of the calculation. The deduction simply chips away at overall liability without treating retirement benefits any differently than other income sources.
Temporary Relief with Built-In Limits
Unlike corporate tax provisions and cuts benefiting wealthy taxpayers, which received permanent status in the bill, the senior deduction disappears after 2028. It was written with an expiration date from the start.
Income limits further narrow who benefits. Single filers with earnings above $75,000 and married couples exceeding $150,000 see the deduction phase-out entirely. Ironically, these higher-earning retirees facing the steepest Social Security taxation are exactly the ones shut out from this supposed fix.
Conclusion and Why This Framing Succeeds
Announcing a supplemental deduction for older taxpayers generates little excitement. Declaring that Social Security taxation has ended makes waves. Political strategists understand that most people absorb information through headlines rather than legislative analysis. Few voters examine IRS guidance or compare statutory language.
The outcome is clever stagecraft masquerading as meaningful reform. Benefits remain taxable under the same formulas established decades ago. Inflation continues to drag more retirees across taxation thresholds, and this temporary, income-restricted deduction is merely wrapped in revolutionary packaging.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
When it comes it understanding a net charge-off (NCO), it’s the difference between any recovery of delinquent debt and gross charge-offs a business sees in a defined accounting time frame. NCOs are debts a company projects with a low likelihood of being collected. It can happen when a customer stops paying outstanding invoices or sees a decline in their credit rating.
The first step considers it as a gross charge-off; if any amount is recovered, it’s subtracted to arrive at net charge-offs. If businesses can recover a percentage of what’s been charged off, the recovered monies can be net against the gross charge-offs to realize net charge-offs. A business’ loan loss provision is lowered by the net charge-off amount at the end of the accounting time frame and then refilled for the next accounting time frame based on new estimates for loan losses. This is part of a business’ provision for credit losses (PCL) that projects a certain percentage of accounts unable to be collected.
Accounting in Detail
The following formula calculates net charge-offs (NCO). This assumes a gross charge-off booking of 6 percent of all outstanding loans, with 1 percent ultimately being recovered during a particular accounting time frame.
Net Charge-Offs = Gross Charge-Offs – Amount of Recovered Debt
= 6 percent – 1 percent = 5 percent
Once the figure is calculated, the 1 percent collected adjusts the loan loss provision in the accounting statements.
Banks’ business models and financials demonstrate their ability to pay their depositors competitive interest rates while also being able to make loans. Since banks earn profits via net interest margin, earning a spread between what banks pay depositors on interest rates and what borrowers are charged on loans, the spread is integral to measuring profitability. To generate the total value of a bank’s balance sheet, it’s imperative for banks to estimate and project their charge-offs as accurately as possible.
Financial institutions determine credit loss provisions by analyzing their balance sheets and the level of risk represented by outstanding loans. They look at the ratio of loan losses to overall losses, which is their net charge-off rate. The net charge-off rate is used to evaluate a loan’s book quality against other banks.
How Different Risks Impact Net Charge-Off Levels
Banks that have different loan mixes will see different risk and reward payoffs. If one bank offers primarily secured loans, while it may have lower net interest margins, it will also have lower charge-offs because the collateral backing them is less risky overall. This is compared to other lenders that have a higher level of unsecured loans, such as credit cards and commercial loans. This scenario, in the case of riskier loans, may result in higher net interest margins, but also greater potential for higher losses.
Journal Entry Examples
The following journal entries illustrate how to account for bad debts. Using the direct write-off method, when debt collection efforts have been exhausted, bad debts are recorded as follows:
Expenses for bad debt: Debit $750
Accounts Receivable: Credit $750
If, however, the business recovers anything from the customer’s outstanding invoices, the following journal entries would be added if $200 were received:
Cash: Debit $200
Accounts Receivable: Credit $200
Conclusion
While this is primarily for early-stage companies with a low percentage of credit sales, it illustrates how businesses can update their books when projecting their numbers to account for net charge-offs.
Accounting for Net Charge Offs
January 1, 2026 · Accounting News, Blog, News
⏱ 3 min read
When it comes it understanding a net charge-off (NCO), it’s the difference between any recovery of delinquent debt and gross charge-offs a business sees in a defined accounting time frame. NCOs are debts a company projects with a low likelihood of being collected. It can happen when a customer stops paying outstanding invoices or sees a decline in their credit rating.
The first step considers it as a gross charge-off; if any amount is recovered, it’s subtracted to arrive at net charge-offs. If businesses can recover a percentage of what’s been charged off, the recovered monies can be net against the gross charge-offs to realize net charge-offs. A business’ loan loss provision is lowered by the net charge-off amount at the end of the accounting time frame and then refilled for the next accounting time frame based on new estimates for loan losses. This is part of a business’ provision for credit losses (PCL) that projects a certain percentage of accounts unable to be collected.
Accounting in Detail
The following formula calculates net charge-offs (NCO). This assumes a gross charge-off booking of 6 percent of all outstanding loans, with 1 percent ultimately being recovered during a particular accounting time frame.
Net Charge-Offs = Gross Charge-Offs – Amount of Recovered Debt
= 6 percent – 1 percent = 5 percent
Once the figure is calculated, the 1 percent collected adjusts the loan loss provision in the accounting statements.
Banks’ business models and financials demonstrate their ability to pay their depositors competitive interest rates while also being able to make loans. Since banks earn profits via net interest margin, earning a spread between what banks pay depositors on interest rates and what borrowers are charged on loans, the spread is integral to measuring profitability. To generate the total value of a bank’s balance sheet, it’s imperative for banks to estimate and project their charge-offs as accurately as possible.
Financial institutions determine credit loss provisions by analyzing their balance sheets and the level of risk represented by outstanding loans. They look at the ratio of loan losses to overall losses, which is their net charge-off rate. The net charge-off rate is used to evaluate a loan’s book quality against other banks.
How Different Risks Impact Net Charge-Off Levels
Banks that have different loan mixes will see different risk and reward payoffs. If one bank offers primarily secured loans, while it may have lower net interest margins, it will also have lower charge-offs because the collateral backing them is less risky overall. This is compared to other lenders that have a higher level of unsecured loans, such as credit cards and commercial loans. This scenario, in the case of riskier loans, may result in higher net interest margins, but also greater potential for higher losses.
Journal Entry Examples
The following journal entries illustrate how to account for bad debts. Using the direct write-off method, when debt collection efforts have been exhausted, bad debts are recorded as follows:
Expenses for bad debt: Debit $750
Accounts Receivable: Credit $750
If, however, the business recovers anything from the customer’s outstanding invoices, the following journal entries would be added if $200 were received:
Cash: Debit $200
Accounts Receivable: Credit $200
Conclusion
While this is primarily for early-stage companies with a low percentage of credit sales, it illustrates how businesses can update their books when projecting their numbers to account for net charge-offs.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
Phishing is a major threat that keeps evolving and has now become a sophisticated and costly cyber risk facing businesses of all sizes. Previously linked to malicious links in an email, phishing is now powered by AI, automation, and social engineering. The attacks have become harder to detect; they are faster to execute; and they can be very damaging if successful. With many business processes happening online – such as payments, approvals, and customer engagement – the attack surface has expanded, and so has the creativity of cybercriminals.
The Changing Landscape of Phishing
Modern phishing is unlike the previous suspicious and poorly written emails, and today cybercriminals are using AI tools to do many things, including:
Generate perfectly written and personalized messages – attackers can now easily analyze company websites, social media profiles, public reports, and employee profiles to clone the tone, style, and communication patterns. Messages appear legitimate when they reference recent projects or internal updates.
Generate deepfake audio and video – with readily available AI voice-cloning tools, a scammer can easily impersonate CEOs or CFOs and request urgent wire transfers or credential access.
Bypass MFA using real-time phishing kits – these kits mirror login screens of popular business tools such as Microsoft 365 or Google Workspace. An employee enters credentials and authentication codes into the fake page, giving attackers instant access.
Launch automated hyper-targeted attacks – with automation, criminals can target specific departments using tailored messages relevant to their daily tasks.
High-Value Targets Inside Organizations
Phishing attacks are no longer random but very strategic:
C-Suite executives – executives are prime targets due to their authority and access levels. If an executive is compromised, their inbox can be used to authorize payments or request sensitive data.
Financial teams – the accounts department faces fake invoice scams, fraudulent banking instructions, and impersonated vendor messages.
HR departments – attackers send fake resumes loaded with malware. They might also pose as job applicants to access employee data.
Remote and hybrid workers – these workers use shared Wi-Fi, personal devices, and unsupervised collaboration tools. This creates a wider entry point for attackers.
Customers and partners – attackers impersonate brands and trick customers into submitting payments or sensitive information through fake lookalike pages.
IT admins and system engineers are also valuable as they have privileged access.
Modern Phishing Techniques
Emails remain the dominant delivery method, but attackers have diversified to:
Quishing (QR Code Phishing) QR codes are everywhere: on flyers, delivery packages, restaurant menus, conference badge,s and more. However, QR codes can lead to malicious sites or credential harvesting pages.
Search Engine Phishing or Malvertising Fake ads appear above legitimate brands on search results that a user can click on –thinking it’s a legitimate link.
Browser-in-the-Browser Attacks These are fake login pop-ups that replicate trusted login screens. An employee will enter their credentials, thinking it’s a legitimate site, and this goes straight to attackers.
OAuth Application Scams Here, attackers don’t steal passwords. Instead, they trick users into granting access to a malicious app. Once the access is granted, the attacker has total access.
Deepfake Calls and Video Messages These may come as high-pressure video calls or messages from an executive requesting urgent action, emergency payment, or private documents.
Fake Travel and Expense Scams Taking advantage of corporate travel, attackers clone legit travel sites in order to steal credit card and employee information.
Prevention Strategies Every Business Must Adopt
Phishing is a problem that can’t be eliminated but can only be significantly reduced through a combination of technical measures and human risk management.
Prevention requires a combination of technology, processes, and people.
Build a Security-Aware Culture Training must be continuous, engaging, and realistic. It should be conducted via simulation and scenario-based learning.
Strengthen Email Authentication Implement modern AI-based email filtering tools to help detect anomalies that human eyes miss. Include identity verification protocols like DMARC, SPF, and DKIM to reduce spoofing attacks.
Adopt Zero Trust Security Implement the “never trust, always verify” approach. Access should be limited, monitored, and timed out automatically. High-risk actions should trigger additional verification.
Secure Remote Work Implement VPNs, approved devices, endpoint protection, encrypted storage, and clear policies.
Implement Multistep Verification for Financial Transactions Require verbal confirmation or dual approvals for high-value transfers.
Monitor Vendors and Partners Keep in mind, there is a sharp rise in supply-chain attacks. Regularly verify domains, emails, and communication from suppliers and partners.
Have an Incident Response Plan Be ready with a response plan in case of a breach. Acting quickly will reduce potential losses.
Conclusion
Phishing has transitioned into a sophisticated threat targeting the core operations of a business. New phishing variants reveal how attackers continually evolve their techniques. With the right awareness, technology, and processes, organizations can significantly reduce exposure.
The New Face of Phishing: Techniques, Targets and Prevention
December 1, 2025 · Blog, News, What's New in Technology
⏱ 4 min read
Phishing is a major threat that keeps evolving and has now become a sophisticated and costly cyber risk facing businesses of all sizes. Previously linked to malicious links in an email, phishing is now powered by AI, automation, and social engineering. The attacks have become harder to detect; they are faster to execute; and they can be very damaging if successful. With many business processes happening online – such as payments, approvals, and customer engagement – the attack surface has expanded, and so has the creativity of cybercriminals.
The Changing Landscape of Phishing
Modern phishing is unlike the previous suspicious and poorly written emails, and today cybercriminals are using AI tools to do many things, including:
Generate perfectly written and personalized messages – attackers can now easily analyze company websites, social media profiles, public reports, and employee profiles to clone the tone, style, and communication patterns. Messages appear legitimate when they reference recent projects or internal updates.
Generate deepfake audio and video – with readily available AI voice-cloning tools, a scammer can easily impersonate CEOs or CFOs and request urgent wire transfers or credential access.
Bypass MFA using real-time phishing kits – these kits mirror login screens of popular business tools such as Microsoft 365 or Google Workspace. An employee enters credentials and authentication codes into the fake page, giving attackers instant access.
Launch automated hyper-targeted attacks – with automation, criminals can target specific departments using tailored messages relevant to their daily tasks.
High-Value Targets Inside Organizations
Phishing attacks are no longer random but very strategic:
C-Suite executives – executives are prime targets due to their authority and access levels. If an executive is compromised, their inbox can be used to authorize payments or request sensitive data.
Financial teams – the accounts department faces fake invoice scams, fraudulent banking instructions, and impersonated vendor messages.
HR departments – attackers send fake resumes loaded with malware. They might also pose as job applicants to access employee data.
Remote and hybrid workers – these workers use shared Wi-Fi, personal devices, and unsupervised collaboration tools. This creates a wider entry point for attackers.
Customers and partners – attackers impersonate brands and trick customers into submitting payments or sensitive information through fake lookalike pages.
IT admins and system engineers are also valuable as they have privileged access.
Modern Phishing Techniques
Emails remain the dominant delivery method, but attackers have diversified to:
Quishing (QR Code Phishing) QR codes are everywhere: on flyers, delivery packages, restaurant menus, conference badge,s and more. However, QR codes can lead to malicious sites or credential harvesting pages.
Search Engine Phishing or Malvertising Fake ads appear above legitimate brands on search results that a user can click on –thinking it’s a legitimate link.
Browser-in-the-Browser Attacks These are fake login pop-ups that replicate trusted login screens. An employee will enter their credentials, thinking it’s a legitimate site, and this goes straight to attackers.
OAuth Application Scams Here, attackers don’t steal passwords. Instead, they trick users into granting access to a malicious app. Once the access is granted, the attacker has total access.
Deepfake Calls and Video Messages These may come as high-pressure video calls or messages from an executive requesting urgent action, emergency payment, or private documents.
Fake Travel and Expense Scams Taking advantage of corporate travel, attackers clone legit travel sites in order to steal credit card and employee information.
Prevention Strategies Every Business Must Adopt
Phishing is a problem that can’t be eliminated but can only be significantly reduced through a combination of technical measures and human risk management.
Prevention requires a combination of technology, processes, and people.
Build a Security-Aware Culture Training must be continuous, engaging, and realistic. It should be conducted via simulation and scenario-based learning.
Strengthen Email Authentication Implement modern AI-based email filtering tools to help detect anomalies that human eyes miss. Include identity verification protocols like DMARC, SPF, and DKIM to reduce spoofing attacks.
Adopt Zero Trust Security Implement the “never trust, always verify” approach. Access should be limited, monitored, and timed out automatically. High-risk actions should trigger additional verification.
Secure Remote Work Implement VPNs, approved devices, endpoint protection, encrypted storage, and clear policies.
Implement Multistep Verification for Financial Transactions Require verbal confirmation or dual approvals for high-value transfers.
Monitor Vendors and Partners Keep in mind, there is a sharp rise in supply-chain attacks. Regularly verify domains, emails, and communication from suppliers and partners.
Have an Incident Response Plan Be ready with a response plan in case of a breach. Acting quickly will reduce potential losses.
Conclusion
Phishing has transitioned into a sophisticated threat targeting the core operations of a business. New phishing variants reveal how attackers continually evolve their techniques. With the right awareness, technology, and processes, organizations can significantly reduce exposure.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
Epstein Files Transparency Act (HR 4405) – The purpose of this bill is to require the Department of Justice to release all documents and records in its possession of investigations and court cases related to Jeffrey Epstein. Epstein was previously convicted of soliciting prostitution from an underage girl, and also faced new sex trafficking charges prior to his 2019 death in custody. The files are expected to reveal the names of other people involved in the sex trafficking scheme. The act was initially introduced by Rep. Ro Khanna (D-CA) on July 15. It was updated and passed in the House on Nov. 18, in the Senate the next day, with only one opposing vote between the two chambers. The bill was signed into law by the president on Nov. 19. The DOJ has up to 30 days to release the documents, which may be lightly redacted to protect against unwarranted invasion of privacy, such as victim names and medical data.
Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 (HR 5371) – This is the bill that ended the federal government shutdown. It includes funding for the remainder of the fiscal year for the food assistance program SNAP, the Department of Agriculture, the FDA, the military, Veterans Affairs, and Congress through Sept. 30, 2026. However, it stops short of funding approval beyond Jan. 30, 2026, for Commerce, Justice and Science (CJS); Defense, Energy and Water; Financial Services and General Government (FSGG); Homeland Security; Interior, Environment, and Related Agencies; Labor, Health and Human Services, and Education (LHHS); State, Foreign Operations and Related Programs; Transportation; and Housing and Urban Development. The continuing resolution did contain a few ancillary provisions, including mandatory backpay and rehiring of all federal employees furloughed or laid off during the shutdown. The original version of the bill was introduced on Sept. 16 by Rep. Tom Cole (R-OK). It passed in the House on Sept. 19 and failed in the Senate 14 times before a revised bill was passed on Nov. 10. The final bill, with changes, passed in the House on Nov. 12 and was signed into law on the same day.
District of Columbia Cash Bail Reform Act of 2025 (HR 5214) – This bill was introduced on Sept. 8 by Rep. Elise Stefanik (R-NY). It represents Republicans’ ongoing battle over who has jurisdiction over Washington, D.C.’s law enforcement and justice system. The bill would return to a cash bail system and require automatic detention of those charged under a wider set of offenses. The new confinement rule counters D.C.’s long-standing system of judge discretion regarding detention or supervised release. The bill passed in the House on Nov. 19 and currently lies in the Senate.
Strengthening Cyber Resilience Against State-Sponsored Threats Act (HR 2659) – This bipartisan legislation represents a federal strategy to strengthen U.S. cyber defenses to counter China’s attempts to actively target American infrastructure. Unfortunately, the bill does not apply to other hostile state-sponsored cyber actors such as Russia, Iran, or North Korea. Introduced by Rep. Andrew Ogles (R-TN) on April 7, the bill passed in the House on Nov. 17 and currently rests with the Senate.
Department of Homeland Security Vehicular Terrorism Prevention and Mitigation Act of 2025 (HR 1608) – This bipartisan bill seeks to address the rising threat of vehicle-based attacks, including the possible misuse of autonomous vehicles, rideshare platforms, and connected vehicle technologies. The legislation was introduced by Rep. Carlos Gimenez (R-FL) on Feb. 26 and passed in the House on Nov. 17. It currently awaits consideration by the Senate.
Partial Government Funding, Promoting Transparency and Protecting Against Foreign Terrorism
December 1, 2025 · Blog, Congress at Work, News
⏱ 3 min read
Epstein Files Transparency Act (HR 4405) – The purpose of this bill is to require the Department of Justice to release all documents and records in its possession of investigations and court cases related to Jeffrey Epstein. Epstein was previously convicted of soliciting prostitution from an underage girl, and also faced new sex trafficking charges prior to his 2019 death in custody. The files are expected to reveal the names of other people involved in the sex trafficking scheme. The act was initially introduced by Rep. Ro Khanna (D-CA) on July 15. It was updated and passed in the House on Nov. 18, in the Senate the next day, with only one opposing vote between the two chambers. The bill was signed into law by the president on Nov. 19. The DOJ has up to 30 days to release the documents, which may be lightly redacted to protect against unwarranted invasion of privacy, such as victim names and medical data.
Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 (HR 5371) – This is the bill that ended the federal government shutdown. It includes funding for the remainder of the fiscal year for the food assistance program SNAP, the Department of Agriculture, the FDA, the military, Veterans Affairs, and Congress through Sept. 30, 2026. However, it stops short of funding approval beyond Jan. 30, 2026, for Commerce, Justice and Science (CJS); Defense, Energy and Water; Financial Services and General Government (FSGG); Homeland Security; Interior, Environment, and Related Agencies; Labor, Health and Human Services, and Education (LHHS); State, Foreign Operations and Related Programs; Transportation; and Housing and Urban Development. The continuing resolution did contain a few ancillary provisions, including mandatory backpay and rehiring of all federal employees furloughed or laid off during the shutdown. The original version of the bill was introduced on Sept. 16 by Rep. Tom Cole (R-OK). It passed in the House on Sept. 19 and failed in the Senate 14 times before a revised bill was passed on Nov. 10. The final bill, with changes, passed in the House on Nov. 12 and was signed into law on the same day.
District of Columbia Cash Bail Reform Act of 2025 (HR 5214) – This bill was introduced on Sept. 8 by Rep. Elise Stefanik (R-NY). It represents Republicans’ ongoing battle over who has jurisdiction over Washington, D.C.’s law enforcement and justice system. The bill would return to a cash bail system and require automatic detention of those charged under a wider set of offenses. The new confinement rule counters D.C.’s long-standing system of judge discretion regarding detention or supervised release. The bill passed in the House on Nov. 19 and currently lies in the Senate.
Strengthening Cyber Resilience Against State-Sponsored Threats Act (HR 2659) – This bipartisan legislation represents a federal strategy to strengthen U.S. cyber defenses to counter China’s attempts to actively target American infrastructure. Unfortunately, the bill does not apply to other hostile state-sponsored cyber actors such as Russia, Iran, or North Korea. Introduced by Rep. Andrew Ogles (R-TN) on April 7, the bill passed in the House on Nov. 17 and currently rests with the Senate.
Department of Homeland Security Vehicular Terrorism Prevention and Mitigation Act of 2025 (HR 1608) – This bipartisan bill seeks to address the rising threat of vehicle-based attacks, including the possible misuse of autonomous vehicles, rideshare platforms, and connected vehicle technologies. The legislation was introduced by Rep. Carlos Gimenez (R-FL) on Feb. 26 and passed in the House on Nov. 17. It currently awaits consideration by the Senate.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
In 2024, the median household income in the United States was $83,730. However, the national average annual cost of 24-hour paid long-term care (LTC) for a retiree age 65 and older was more than $125,000, according to the Department of Health and Human Services. Moreover, one in five seniors will require care for more than five years.
Obviously, the math varies by household, but the reality is that the majority of older Americans who rely on paid caregiving will use much of their retirement savings and investments to pay for it. When considering insurance, there are presently two options: Long Term Care Insurance (LTCi) and Hybrid Life Insurance with an LTC component. Be aware that each policy offers a throng of variations and exclusions, so it is important to dig into the details of individual policies before making a decision.
Long Term Care Insurance
Purchasing a long-term care insurance policy can help offset the cost of caregiving for either in-home care (in some cases, even payouts for family caregivers) or care outside the home (e.g., adult daycare services, assisted living, memory care, nursing home). However, it’s important to understand the following about LTCi.
It can be quite expensive.
Premiums can range from $2,000 a year for a man in his 50s to more than $12,000 a year for a woman in her 70s. Furthermore, premiums increase annually until benefits begin (premiums cease while benefits are paid).
It may not cover the full cost of care.
Unless care is needed for only a few hours a day, long-term care policies generally do not cover the full cost of paid caregiving. For example, let’s say a policy pays $150 a day, but the owner needs care for eight hours a day. His in-home caregiver charges $30 an hour. That means his cost is $240 a day, so he’ll have to pay the additional $90 a day out of his own pocket. That’s
up to $2,790 a month or $32,850 a year. So, while LTCi can help defray the cost, someone who needs extensive care must have other assets to cover the rest of the cost. For an elderly person who needs 24-hour home care, the cost can be exponential.
Many new policies cover only a handful of years.
When you purchase an LTCi policy, you choose from various options that increase or decrease your premium. For example, coverage periods may range from two years to five years to life. You may also select a waiting period before coverage begins after purchase, which could range from 30 days to 365 days. The longer the wait period, the lower the premium. If you have an immediate need for coverage, you might be denied coverage altogether. That is why it’s best to purchase coverage when you are younger (50s) and presumably healthy.
You don’t get to choose when to start benefits.
LTCi coverage doesn’t kick in until you qualify, which generally means you are no longer able to independently conduct some or all of the prescribed daily living activities. The five primary qualifiers are bathing, going to the toilet, dressing yourself, feeding yourself, and the ability to move from bed to chair/wheelchair. Qualification to begin taking LTCi benefits usually requires physician verification.
The downside of a standalone LTCi policy is that it is a “use-it-or-lose-it” type of contract, much like auto or homeowner’s insurance. In other words, you may pay for it for decades but never actually use it, so all the premiums paid are lost.
Hybrid Life/Long Term Care Insurance
On the other hand, a hybrid insurance policy will pay out some portion of unused proceeds to beneficiaries upon the death of the policyowner. A hybrid policy is basically a life insurance policy with an LTCi rider or an accelerated benefit clause, which, either way, means it will cost more.
First and foremost, it works just like life insurance – once the owner passes away, the beneficiary receives a payout. However, if the owner needs money to pay for long-term care while he is still alive, he can tap the rider or life insurance payout to pay for the care. Then, when he passes away, his heirs receive any amount of the unused proceeds. With this type of policy, the owner doesn’t pay for LTCi coverage he does not need, but it’s available if he does need it.
Premiums for a hybrid policy, like any life insurance, depend on the age, gender, health, and amount of insurance proceeds desired, as well as any additional charge for the LTCi rider. Some policies include LTC benefits as a standard feature.
Employer-Sponsored Benefit
If your employer offers long-term care insurance as a voluntary benefit, it’s worth considering because group rates are generally cheaper than on the individual market. However, while employer-sponsored LTCi policies are usually portable – meaning you can keep paying for it after you leave your employer – your premiums may increase when no longer part of the group policy.
As always, reach out to a professional when it comes to planning for you and your family’s future care.
Long Term Care Insurance Options
December 1, 2025 · Blog, Financial Planning, News
⏱ 5 min read
In 2024, the median household income in the United States was $83,730. However, the national average annual cost of 24-hour paid long-term care (LTC) for a retiree age 65 and older was more than $125,000, according to the Department of Health and Human Services. Moreover, one in five seniors will require care for more than five years.
Obviously, the math varies by household, but the reality is that the majority of older Americans who rely on paid caregiving will use much of their retirement savings and investments to pay for it. When considering insurance, there are presently two options: Long Term Care Insurance (LTCi) and Hybrid Life Insurance with an LTC component. Be aware that each policy offers a throng of variations and exclusions, so it is important to dig into the details of individual policies before making a decision.
Long Term Care Insurance
Purchasing a long-term care insurance policy can help offset the cost of caregiving for either in-home care (in some cases, even payouts for family caregivers) or care outside the home (e.g., adult daycare services, assisted living, memory care, nursing home). However, it’s important to understand the following about LTCi.
It can be quite expensive.
Premiums can range from $2,000 a year for a man in his 50s to more than $12,000 a year for a woman in her 70s. Furthermore, premiums increase annually until benefits begin (premiums cease while benefits are paid).
It may not cover the full cost of care.
Unless care is needed for only a few hours a day, long-term care policies generally do not cover the full cost of paid caregiving. For example, let’s say a policy pays $150 a day, but the owner needs care for eight hours a day. His in-home caregiver charges $30 an hour. That means his cost is $240 a day, so he’ll have to pay the additional $90 a day out of his own pocket. That’s
up to $2,790 a month or $32,850 a year. So, while LTCi can help defray the cost, someone who needs extensive care must have other assets to cover the rest of the cost. For an elderly person who needs 24-hour home care, the cost can be exponential.
Many new policies cover only a handful of years.
When you purchase an LTCi policy, you choose from various options that increase or decrease your premium. For example, coverage periods may range from two years to five years to life. You may also select a waiting period before coverage begins after purchase, which could range from 30 days to 365 days. The longer the wait period, the lower the premium. If you have an immediate need for coverage, you might be denied coverage altogether. That is why it’s best to purchase coverage when you are younger (50s) and presumably healthy.
You don’t get to choose when to start benefits.
LTCi coverage doesn’t kick in until you qualify, which generally means you are no longer able to independently conduct some or all of the prescribed daily living activities. The five primary qualifiers are bathing, going to the toilet, dressing yourself, feeding yourself, and the ability to move from bed to chair/wheelchair. Qualification to begin taking LTCi benefits usually requires physician verification.
The downside of a standalone LTCi policy is that it is a “use-it-or-lose-it” type of contract, much like auto or homeowner’s insurance. In other words, you may pay for it for decades but never actually use it, so all the premiums paid are lost.
Hybrid Life/Long Term Care Insurance
On the other hand, a hybrid insurance policy will pay out some portion of unused proceeds to beneficiaries upon the death of the policyowner. A hybrid policy is basically a life insurance policy with an LTCi rider or an accelerated benefit clause, which, either way, means it will cost more.
First and foremost, it works just like life insurance – once the owner passes away, the beneficiary receives a payout. However, if the owner needs money to pay for long-term care while he is still alive, he can tap the rider or life insurance payout to pay for the care. Then, when he passes away, his heirs receive any amount of the unused proceeds. With this type of policy, the owner doesn’t pay for LTCi coverage he does not need, but it’s available if he does need it.
Premiums for a hybrid policy, like any life insurance, depend on the age, gender, health, and amount of insurance proceeds desired, as well as any additional charge for the LTCi rider. Some policies include LTC benefits as a standard feature.
Employer-Sponsored Benefit
If your employer offers long-term care insurance as a voluntary benefit, it’s worth considering because group rates are generally cheaper than on the individual market. However, while employer-sponsored LTCi policies are usually portable – meaning you can keep paying for it after you leave your employer – your premiums may increase when no longer part of the group policy.
As always, reach out to a professional when it comes to planning for you and your family’s future care.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.