Michael R. Bryant, CPA

In December, the SBA sent documentation requests to several contractors under the 8(a) program—and the ask was significant. Three years of financial records. Detailed transaction reports. Balance sheets. Income statements. Reconciliations. Vendor lists. The list went on—easily 12+ items—with an aggressive deadline. Many contractors scrambled to pull everything together in time. Here's what I want you to understand: When you're a government contractor, documentation requests like this aren't a matter of "if." They're a matter of "when." The SBA, DCAA, DOL, and IRS—these agencies can request records at any time during your contract or even after it's over. And when they do, you need to be ready. That means: ✅ Maintaining organized financial records ✅ Keeping supporting documentation for at least three years AFTER contract closure ✅ Having systems in place that allow you to produce what's needed quickly If you're scrambling every time an agency asks for records, that's a sign your systems need work. At Tenace, we help government contractors build and maintain the accounting infrastructure they need to stay compliant and audit-ready—so when requests like this come in, you're prepared. Don't wait until you get the email. Get your records in order now.

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Many of you have been asking how the new tax law, the OBBBA, will affect your taxes this season. As we head into tax season, here are some things you need to know to plan smarter, not just file. NEW Above-the-Line Deductions (Available Even If You Don’t Itemize) These deductions reduce your Adjusted Gross Income (AGI), which can unlock even more tax savings. 1)Senior Bonus Deduction (Age 65+) $6,000 per qualifying individual $12,000 for married couples if both are 65+ Phase-out begins at: $75,000 MAGI (Single) $150,000 MAGI (Married Filing Jointly) This is on top of the standard deduction, not instead of it. 2) No Tax on Overtime (Non-Exempt Employees) Deduct: $12,500 (Single) $25,000 (Married Filing Jointly) Applies only to the “half-time” premium portion of overtime pay (hours worked over 40/week) Not all overtime qualifies, your payroll records must clearly break this out. Call our firm for free 15 minutes tax consultation: 757-977-8911 3) No Tax on Tips Deduct up to $25,000 of qualified tip income Applies to workers in customary tipping industries Phase-out begins at: $150,000 MAGI (Single) $300,000 MAGI (Married Filing Jointly) This is a game-changer for service workers, but documentation matters. 4) Car Loan Interest Deduction Deduct up to $10,000 of interest on new vehicle loans Vehicle must be assembled in the U.S. Phase-out begins at: $100,000 MAGI (Single) $200,000 MAGI (Married Filing Jointly) This is an interest deduction, not the purchase price, huge for planning vehicle purchases. Call our firm for free 15 minutes tax consultation: 757-977-8911 5) Standard Deduction Increases (Locked In) The OBBB Act permanently extended the 7 federal tax brackets (10%–37%) and increased standard deductions by ~7.9%. Single / MFS- $15,750 Married Filing Jointly- $31,500 Head of Household- $23,625 6) Key Credit & Deduction Enhancements Child Tax Credit (CTC) Increased to $2,200 per qualifying child Up to $1,700 refundable Refundable credits = cash back, even if your tax bill is low. 7) SALT Deduction Expansion Cap increased from $10,000 → $40,000 $20,000 for Married Filing Separately Phases back down to $10,000 once MAGI exceeds $500,000 Major win for high-tax states, this changes itemizing strategies. 8) Retirement & Health Account Limits (2025) Retirement Contributions 401(k) / 403(b): $23,500 IRA: $7,000 $8,000 if age 50+ Health Accounts HSA: $4,300 (Individual) $8,550 (Family) Health FSA: $3,300 These accounts offer triple tax benefits when used strategically. Call our firm for free 15 minutes tax consultation: 757-977-8911 If we haven’t met yet, I’m Dr. Lilly Mbinglo, CPA 💸 Tax Strategist 👩🏽‍💼 MBA/MA Professor, Regent University 👩🏽‍💼 Director, MS in Accounting ,Regent University . Let’s connect, and stay compliant. 📌 #TaxSeason #IRSWarning #TaxAudit #TaxCompliance #TaxDeductions #CPALife #SmallBusinessTaxes #TaxTips #StayCompliant #TheARKNPS

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