Month: June 2026

These NY Counties Are Changing Their Method of Calculating Sales and Use Tax on Gasoline, Diesel, and B20 Biodiesel

Mounting fuel prices have pushed several New York counties to seek ways to ease the resulting cost burden for residents. In an effort to minimize already high cost pressures on local families, five counties have elected to change their method of calculation for sales and use tax on motor fuel, highway diesel motor fuel, and B20 biodiesel sold as qualified fuel. These counties will be temporarily moving from a percentage-based method of calculation to a fixed cents-per-gallon method to help control the tax impacts of rising fuel costs. The switch to a flat rate tax will prevent automatic tax increases due to escalating fuel prices.

Which counties will be making the switch?

Chemung County, Dutchess County, Onondaga County, Rockland County, and Ulster County have elected to move temporarily to a cents-per-gallon method from a percentage rate method.

New Rates for Motor Fuel and Diesel Motor Fuel

The cents-per-gallon rates for motor fuel and diesel motor fuel vary by county as follows:

Chemung County: 12 cents-per-gallon

Dutchess County: 11 cents-per-gallon

Onondaga County: 16 cents-per-gallon

Rockland County: 12 cents-per-gallon

Ulster County: 12 cents-per-gallon

New Rates for B20 Biodiesel

The cents-per-gallon rates for B20 Biodiesel vary by county as follows:

Chemung County: 10 cents-per-gallon

Dutchess County: 9 cents-per-gallon

Onondaga County: 13 cents-per-gallon

Rockland County: 10 cents-per-gallon

Ulster County: 10 cents-per-gallon

When will the new rates become effective?

For all five counties, the change will be effective starting June 1, 2026.

When will the new rates expire?

The new temporary rates expire at different times based on the county.

For Chemung County, the rate will expire after November 30, 2026.

For Dutchess County, the rate will expire after November 30, 2026.

For Onondaga County, the rate will expire after August 31, 2026.

For Rockland County, the rate will expire after February 28, 2027.

For Ulster County, the rate will expire after August 31, 2026.

Important to Note: These changes impact only local county sales tax, not New York State sales and use and tax.

Next Steps for Business Owners

If you own a gas station or are in the business of selling gas, diesel, or B20 biodiesel in any of these five counties, we recommend consulting with your RBT CPAs’ accountant to help you navigate these upcoming changes. RBT CPAs has been serving businesses and organizations throughout the Hudson Valley and beyond since 1969. Our experienced professionals are here to support all of your business’s accounting, tax, audit, and advisory needs. Give us a call today and find out how we can be Remarkably Better Together.

Three Strategies Breweries and Distilleries Can Use to Minimize Tax Liability

As you continue to grow your brewery or distillery, several state and federal tax incentives are available to help you offset the cost of investments like machinery upgrades, facility improvements, and new product development. Taking advantage of available credits and deductions can significantly improve your cash flow and free up capital for future growth. Here are three tax-saving strategies you should consider as an alcoholic beverage producer in New York State.

New York State Investment Tax Credit

The New York State Investment Tax Credit (ITC) can provide valuable tax savings for New York businesses that invest in equipment, machinery, buildings, and other qualifying property used directly in the production of goods—including alcoholic beverages. Breweries, distilleries, and cideries may be eligible for the credit when they place qualifying production assets into service during the tax year. Eligible property may include brewing or distilling equipment, fermentation and storage systems, production machinery, and certain facility improvements used directly in the production process.

Qualified Production Property Deductions

The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, both restored 100% bonus depreciation and expanded it to include a new category of assets known as qualified production property (QPP). Eligible businesses can now immediately deduct 100% of the cost of qualifying production facilities rather than depreciating those costs over the traditional 39-year period for nonresidential real property. For breweries, distilleries, and cideries constructing new production facilities or expanding existing operations, the resulting tax savings may significantly improve cash flow.

To be considered production property (QPP), an asset must meet several criteria, the most important of which is that it must be used as an integral part of a “qualified production activity.” A qualified production activity is defined as the manufacturing, production, or refining of a qualified product resulting in a “substantial transformation” of the property comprising the product. The QPP deduction generally applies to new construction, but in some cases may apply to acquired qualified production property.

Research and Development Tax Benefits

The OBBBA has also made significant changes to the treatment of domestic research and development (R&D) expenditures. Previously, businesses were required to amortize domestic R&D costs over five years. Under the new law, those expenditures may once again be deducted in full during the year they are incurred. For breweries, distilleries, and cideries, qualifying research activities include developing new flavor varieties, testing alternative ingredients, refining fermentation techniques, improving production efficiency, and experimenting with new formulations.

Planning Ahead with RBT

Whether you are purchasing new brewing or distilling equipment, expanding a production facility, or investing in product development, the current tax landscape offers several opportunities to reduce tax liability and improve cash flow. Reviewing your capital expenditure plans with your RBT accountant can help you maximize available tax benefits while also ensuring compliance with applicable requirements. Contact us today to work with our specialized accounting team and find out how we can be Remarkably Better Together.

Preparing for a Smooth and Successful Audit

For school districts, a financial statement audit is an important opportunity to demonstrate financial transparency, accountability, and sound stewardship of public resources. While audits occur annually, successful audits are the result of year-round preparation. Taking a proactive approach can help reduce disruptions, improve efficiency, and ensure the audit process runs smoothly for both district personnel and auditors.

Establish Strong Oversight

An effective audit begins with strong governance. Under New York State Education Law, school districts are required to maintain an audit committee responsible for overseeing the audit process. The committee serves as the primary liaison between auditors and district personnel, reviews audit results, and helps implement recommendations for improvement.

Audit committee members should understand their responsibilities, the scope of the audit, and applicable financial reporting requirements. Resources such as the Government Finance Officers Association’s (GFOA) best practices can help committees fulfill their oversight role effectively.

Stay Current and Understand Expectations

School districts must comply with evolving financial reporting requirements, including Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) standards. Staying informed about new pronouncements and updates can help avoid compliance issues and last-minute adjustments.

It is equally important to understand the audit process itself. Auditors are responsible for evaluating and verifying financial information—not preparing accounting records. Before fieldwork begins, districts should ensure that supporting schedules reconcile to the trial balance and that any known discrepancies have been resolved.

Organize Financial Records and Review Internal Controls

Well-organized documentation is essential to an efficient audit. Districts should gather and review key financial records, including general ledgers, reconciliations, payroll reports, invoices, contracts, purchase orders, and supporting schedules. Ensuring records are complete and readily accessible can significantly streamline the audit process.

Districts should also periodically evaluate their internal controls, including procedures related to authorization, recordkeeping, reconciliations, and financial oversight. Strong controls help protect district assets and reduce the risk of errors or fraud. Any prior-year audit findings should also be reviewed to confirm that corrective actions have been implemented and that previously identified issues have been addressed.

Communicate Early and Often

Open communication between district personnel and auditors is one of the most effective ways to avoid delays. District leaders should be prepared to discuss financial processes, operational changes, staffing updates, and any other developments that may affect the audit. Addressing questions promptly and maintaining transparency throughout the engagement helps create a more efficient and productive audit experience.

A Smooth Audit Starts with Preparation

A successful audit is rarely the result of last-minute effort. By maintaining strong oversight, staying current on reporting requirements, organizing financial records, reviewing internal controls, and communicating proactively with auditors, school districts can approach the audit process with confidence. If you have any additional questions about financial statement audits, our education accounting team at RBT CPAs is here to help. For 57 years, we have provided high-quality audit, accounting, tax, and advisory support to organizations throughout the Hudson Valley and beyond. Contact us today to learn how we can be Remarkably Better Together.

Cost Segregation Studies for Restaurants, Venues, and Hotels

For hospitality businesses, large capital expenditures, financing obligations, and seasonal revenue fluctuations can create ongoing pressure on cash flow. Because of this, strategic tax planning is needed to optimize cash flow and long-term growth potential. A cost segregation study is a tax strategy that combines engineering and accounting principles to reclassify property components into separate asset categories with varying depreciation rates. For owners of restaurants, hotels, and event venues, a cost segregation study can be a powerful tool for accelerating tax deductions and improving cash flow early on.

How a Cost Segregation Study Works

Typically, commercial properties are depreciated over 39 years. However, many components of hospitality properties actually qualify for much shorter depreciation schedules. A cost segregation study identifies and reclassifies those components so they can be depreciated faster.

For restaurants, hotels, and venues, these components may include assets such as:

Furniture, cabinetry, and light fixtures
Kitchen equipment and appliances
Flooring, carpeting, and countertops
Windows, roofs, and HVAC systems
Landscaping, sidewalks, fencing, and parking lots

Rather than depreciating over 39 years along with the building structure, these assets may qualify for 5-, 7-, or 15-year depreciation treatment, depending on their classification. Accelerating these deductions allows hospitality property owners to realize significant tax savings much sooner.

Why Cost Segregation Matters for Hospitality Properties

Restaurants, hotels, and event venues typically contain many assets that may qualify for accelerated depreciation. Because of this, hospitality properties are often strong candidates for cost segregation studies.

By accelerating depreciation deductions, property owners can:

Reduce immediate taxable income
Increase short-term cash flow
Reinvest tax savings into renovations, expansions, additional staffing, or operational improvements

Cost segregation studies can be performed on:

Newly acquired properties
Newly constructed facilities
Renovation and expansion projects
Existing properties through retroactive studies

Even owners who purchased or renovated a property years ago may still be able to capture missed depreciation benefits through a retroactive analysis.

Combining Cost Segregation with Bonus Depreciation

Cost segregation becomes even more valuable when paired with bonus depreciation. Once qualifying assets are identified and reclassified into shorter asset lives, many may also qualify for accelerated first-year depreciation treatment. With the recent restoration of 100% first-year bonus depreciation, property owners can now immediately write off the full cost of reclassified, shorter-lived assets placed in service after Jan. 19, 2025. For hospitality businesses investing heavily in property renovations or improvements, combining cost segregation with bonus depreciation can create substantial upfront tax savings and benefit overall business growth.

Considering a Cost Segregation Study for Your Hospitality Property? Partner With RBT CPAs

RBT CPAs’ hospitality accounting experts can help you identify accelerated depreciation opportunities through a cost segregation study of your property. Give us a call today to discuss how this tax-saving strategy might benefit you. And as always, RBT CPAs is here to support all of your business’s tax, accounting, audit, and advisory needs. Contact us today and find out how we can be Remarkably Better Together.

Changes to the Single Audit: What Local Governments Need to Know

In April of 2024, the Office of Management and Budget (OMB) issued significant revisions to Uniform Guidance, updating several administrative, cost, and audit requirements for recipients of federal awards. Effective for fiscal years starting on or after October 1, 2024, these revisions are intended to reduce administrative burdens on award recipients, align with statutory requirements, clarify certain sections of the guidance, and simplify language to improve readability. This article provides an overview of some of the changes to Uniform Guidance and the Single Audit that local governments should be aware of.

Key Changes to Single Audit Requirements

Increased Single Audit threshold: The spending threshold for the Single Audit has been raised from $750,000 to $1 million, meaning only municipalities that expend $1 million or more in federal funds within the fiscal year will be subject to a Single Audit.
Revised type A program determination: The threshold for defining “Type A” programs has also been raised from $750,000 to $1 million for entities expending between $1 million and $34 million in federal awards.
New cybersecurity requirements: Recipients of federal awards must now implement reasonable cybersecurity measures as a part of their internal controls to safeguard sensitive information.
Increased de minimis indirect cost rate: The de minimis rate for indirect costs has been raised from 10% to 15% of modified total direct costs (MTDC).
Revised terminology: The term “non-federal entity” has been replaced with the term “recipient” or “subrecipient.”

Increased subaward threshold: The exclusion threshold of subawards has been raised from $25,000 to $50,000 for modified total direct costs.
Updated definition of equipment: The capitalization threshold for equipment has been raised from $5,000 to $10,000.
“Questioned costs” clarification: The definition of “questioned costs” has been revised, with examples added to provide further clarification.
Explanation required for questioned costs: When there are questioned costs, but the dollar amount is undetermined or not reported, the audit finding must include an explanation describing why the dollar amount is undetermined or not reported.
Clarified definition of “period of performance”: The definition of “period of performance” has been updated to mean the interval of time between the start and end date of a federal award, which may span multiple budget periods.

What’s Next?

Local Governments should review and update their internal controls to ensure compliance with the revised Uniform Guidance. For additional assistance in preparing your municipality for audits and for all of your other accounting needs, please don’t hesitate to reach out to our government accounting team at RBT CPAs. We’re here to ensure your municipality stays in compliance with all applicable federal and state requirements and accounting standards. Give us a call today and find out how we can be Remarkably Better Together.

Selecting an Entity Structure for Your Healthcare Practice

The entity structure you choose for your healthcare practice can significantly affect your liability exposure, tax obligations, administrative requirements, and long-term growth strategy. Common ownership structures for healthcare practices include sole proprietorships, general partnerships, limited liability companies (LLCs), limited liability partnerships (LLPs), and professional corporations (PCs).

The ideal structure for your practice depends on several factors, including the state in which you operate, the number of owners involved, your anticipated growth plans, your desired level of liability protection, and your overall tax strategy. Below is a general overview of these entity types and some of their tax and liability considerations.

Sole Proprietorship

Available only to solo practitioners
Owned and operated by a single individual
Simple and inexpensive to establish
Requires relatively minimal administrative formalities
Income and losses are reported directly on the owner’s individual tax return (pass-through taxation)
The business itself is not treated as a separate taxpaying entity
The owner is personally liable for all business debts, obligations, and legal claims against the practice

General Partnership

Owned by two or more individuals
Partners share management responsibilities, profits, losses, and liabilities
Income and losses pass through to the partners and are reported on their individual income tax returns
The partnership itself is generally not subject to federal income tax
Requires a partnership agreement
Partners may be personally liable for the debts and obligations of the business
This structure does not generally offer protection in the case of malpractice by another physician in the practice

Limited Liability Company (LLC)

Can be owned by a single member or multiple members, including individuals or other entities
Provides liability protection for members against many business-related claims and obligations
Members are generally liable for creditor-related liabilities only to the extent of their investment in the company
Often preferred by group practices for more comprehensive protection
Income and losses typically pass through to the members for tax purposes
Requires an operating agreement
Offers greater protection for owners’ personal assets than sole proprietorships or general partnerships
Higher administrative costs and burden than sole proprietorships or general partnerships
Members are subject to self-employment taxes on their share of business earnings

Limited Liability Partnerships (LLP)

Commonly used by professional practices with multiple owners
Provides partners with protection from liability arising from another partner’s malpractice or negligence
Income and losses pass through to the partners for tax purposes
Requires a partnership agreement
Offer greater protection than general partnerships
Partners may still be liable for certain business debts

Professional Corporation (PC)

Certain states—including New York, California, Texas, and New Jersey—require physicians and other licensed professionals to form a Professional Corporation (PC) or Professional Limited Liability Company (PLLC), rather than a standard business corporation.

Professional corporations:

Are limited to licensed professionals
Provide liability protection against many business-related claims and obligations
Help protect owners from malpractice claims arising from another physician’s actions
Can be structured as either a C corporation or an S corporation for federal tax purposes
Require more administrative formalities, including bylaws, annual meetings and minutes, shareholder agreements, and employment agreements
Typically involve higher setup and maintenance costs

It is important to note that no entity structure shields a healthcare professional from liability for their own malpractice or professional misconduct.

C Corporation

May have an unlimited number of shareholders
Taxed as a separate entity
Corporate profits may be subject to double taxation if distributed as dividends to shareholders
May offer greater flexibility for raising capital

S Corporation

Limited to 100 shareholders
Income and losses generally pass through to shareholders for federal tax purposes
Avoids double taxation associated with C corporations
May provide opportunities for self-employment tax savings in certain situations
Subject to specific IRS eligibility requirements

Partner with RBT CPAs’ Healthcare Accounting Team

Selecting the right entity structure is an important decision that can affect your practice’s legal exposure, tax treatment, and operational flexibility for years to come. Since laws and tax implications vary by state and individual circumstances, practice owners should work with legal and tax advisors to decide which entity type is best for them. RBT CPAs’ healthcare accounting team is here to help you navigate this decision and to support all of your practice’s accounting, tax, audit, and advisory needs. Reach out to us today and find out how we can be Remarkably Better Together.

State Sales and Use Tax Rules for Your Veterinary Practice

As businesses providing services, as well as selling and purchasing tangible goods, veterinary practices must be aware of the rules surrounding sales and use taxes—but did you know that the laws for sales and use taxes vary from state to state? RBT CPAs serves veterinary practices across multiple states including New York, New Jersey, California, Virginia, Wisconsin, and Colorado, to name a few. Not only do sales and use tax regulations vary between states, but the rules also apply differently to different kinds of transactions taking place at veterinary practices. In this article, we want to highlight the importance of knowing the sales and use tax laws as they apply to veterinarians in your state specifically.

What are sales and use taxes?

Sales tax is a tax imposed on the sale of taxable goods and services. Sales taxes are charged to the end consumer, and the responsibility for collecting the sales tax belongs to the seller. Use tax is a tax imposed on the use, storage or consumption of taxable goods or services for which sales tax was not charged at the point of sale. The rate of the use tax is generally equal to the rate of the local/state sales tax. Veterinary practices are responsible for collecting and reporting sales and use taxes correctly, via state-specific sales and use tax returns.

When are sales and use taxes applied?

Depending on the state where you practice, different tax rules apply to various financial transactions. Certain services and goods are considered nontaxable, while others are taxable.

Let’s take a look at some of the regulations in New York State as an example.

Non-Taxable Sales in NYS

Receipts from services related to the health care of an animal, which includes diagnosing, treating, operating, or prescribing for any animal disease, pain, injury, deformity or dental or physical condition, or the subcutaneous insertion of a microchip intended to be used to identify an animal.
Hospitalization of an animal for which no separate boarding charge is made.
Grooming and clipping if performed as a necessary part of the practice of veterinary medicine to diagnose, treat, operate, or prescribe for any animal disease, pain, injury, deformity, or physical condition.
Receipts from the sale of tangible personal property designed for use in some manner relating to domestic animals or poultry are exempt from sales tax when sold by a veterinarian.
Sales of otherwise taxable tangible personal property to certain tax-exempt purchasers such as farmers, government entities, and other organizations (provided the proper exemption certificate has been supplied).

Taxable Sales in NYS

Sales of non-veterinary services such as boarding, grooming, and clipping are subject to sales tax unless provided as a necessary part of a veterinary service.
The receipts from the sale of pet cremation and burial services are nonveterinary services and accordingly are subject to sales tax as a service to tangible personal property, whether performed by a veterinarian or another person.
Purchases by a veterinarian of tangible personal property designed for use in some manner relating to domestic animals or poultry are subject to sales tax. They may not be purchased exempt from sales tax as a purchase for resale.
- e., medical equipment & supplies, office equipment & supplies, boarding equipment & supplies, and various other costs (cleaning supplies, disinfectants, equipment repair, collars and leashes, litter, carriers, clippers, flea spray/ointment, for example)
Purchases by a veterinarian of tangible personal property not designed for use in some manner relating to domestic animals or poultry are subject to sales tax. However, if an item is to be resold, as such, it may be purchased by the veterinarian exempt from sales tax. The veterinarian should give the supplier a properly completed Form ST-120, Resale Certificate.
- e. mugs, calendars, and t-shirts that feature various breeds of cats and dogs
Sales of animals (except guide, hearing, and service dogs when the dog is sold for use by a person to compensate for impairment to the person’s sight, hearing or movement).

Why is it important to know sales and use tax laws?

Knowing and adhering to your state’s sales and use tax laws protects your practice in the case of a sales tax audit. If your practice is audited, you will be liable for any errors.

What steps can you take to ensure compliance?

Familiarize yourself with the sales and use tax laws for veterinarians in your state.
Ensure you are registered as a sales tax vendor before collecting sales tax.
Make sure your practice’s software is set up to charge sales taxes according to your state’s regulations.
Review your vendor bills as they are received. If you purchase a taxable good or service and are not charged sales tax, make sure to report it in your sales and use tax return, as subject to use tax.
File accurate and timely sales and use tax returns.
Keep detailed records of all sales and purchases for the required period(s) specified by your state. Upon request by your state’s Tax Department, records must be made available.

As you can see, the rules surrounding sales and use taxes are very particular—and vary depending on where you practice. Set your practice up for success by knowing and complying with your state’s sales tax laws. For guidance on sales and use tax regulations in your state, please don’t hesitate to reach out to RBT CPAs. Our experts are here to support all of your practice’s accounting, tax, audit, and advisory needs. Give us a call to learn more.

Fact or Fiction? Busting Four Common Trust Myths

Estate planning is a complex and multifaceted process, so it’s unsurprising that there is often confusion when it comes to estate planning tools such as trusts. Not only are there many different kinds of trusts, but setting up a trust involves extensive legal documentation, ongoing administration, and tax implications. This article highlights and explores some of the most common misconceptions or “myths” related to trusts and trust planning. But first, let’s briefly talk about what trusts are and why people use them.

A trust is a legal arrangement that allows a person (a grantor) to transfer assets to a trustee to hold for one or more beneficiaries. Examples of assets that you might place in a trust include bank accounts, investment accounts, real estate, personal property, and digital assets.

Trusts serve several different purposes, including the following:

to control exactly how and when your assets are distributed,
to protect assets from creditors,
to facilitate gifting assets to minors,
to avoid the probate process, and
sometimes, to provide tax benefits

With that being said, below are four myths about trusts that we feel need debunking.

Myth #1: Trusts always reduce income taxes.

While it’s true that under certain circumstances, trusts may reduce income taxes, frequently this is not the case. Irrevocable trusts that distribute income to beneficiaries in lower tax brackets may reduce the overall tax burden; however, since the tax brackets for trusts are condensed, the overall tax burden may be higher—especially if distributions are not made to beneficiaries, or if there are significant capital gains. Revocable trusts, on the other hand, offer no income tax advantage. Because the assets remain part of the grantor’s estate, all income is reported on the grantor’s personal tax return. So, in short, more often than not, trusts do not reduce the income tax burden.

Myth #2: Family members always make good trustees.

When faced with the task of naming a trustee to manage your trust, you may think the safest option is to select a trusted family member for the role. While a relative may be familiar with your family’s dynamics and values, and selecting a family member may save you the cost of hiring a professional trustee, there are some potential drawbacks associated with this route. Family members serving as trustees often lack expertise in managing and investing assets. Family members may also have difficulty making objective and unbiased decisions, or may even have a personal interest in family assets, leading to a conflict of interest. Additionally, the duties associated with trusteeship can be time-consuming and burdensome for the selected family member. It’s important to consider these factors before choosing a trustee. Hiring a professional trustee to manage your trust, while more costly, can help to avoid many of these potential complications.

Myth #3: You don’t need a will if you have a trust.

You may think that because you have set up a trust to transfer your assets, you do not need a will. After all, wills are only effective after your death and may be subject to the lengthy probate process that trusts avoid. However, a will serves other important purposes besides dictating the distribution of assets, such as designating guardianship for minor children and naming an executor. In addition, a will dictates what happens to any assets not included in the trust. For these reasons, it’s recommended that everyone create a will—even if they already have a trust.

Myth #4: Trusts are only for the wealthy.

Trusts are often associated with the wealthy; however, a trust can be a useful part of anyone’s estate plan, regardless of income. Trusts provide many of the same benefits—such as control over asset distribution, probate avoidance, and legal protection—for all individuals, regardless of net worth. Trusts can be especially useful tools in specific situations, such as for a parent with a special needs child. However, while there is no minimum asset amount required to set up and maintain a trust, doing so often involves considerable costs (i.e., attorney costs, trustee fees, tax professionals), which may be prohibitive to some. It’s important to ensure the benefits outweigh the costs of setting up a trust.

Stick with the Facts and Partner with RBT

At RBT CPAs, we help you distinguish between the facts and the myths and work with you to develop an estate plan that works for your unique needs. Call us today and find out how we can be Remarkably Better Together.

IEEPA Tariff Refunds: What Manufacturers Need to Know About the Refund Process, Eligibility, and Next Steps

Following the Supreme Court’s February decision declaring the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) to be illegal, approximately $166 billion is owed to U.S. importers who paid tariffs. Certain manufacturers now have the opportunity to recover tariff payments plus interest. We recommend meeting with your RBT accountant to assess your eligibility and the potential tax and accounting implications associated with tariff refunds.

Eligibility and the Refund Process

Refund claims can be submitted to U.S. Customs and Border Protection (CBP) via the Consolidated Administration and Processing of Entries (CAPE) system, located within the ACE (Automated Commercial Environment) Portal. Phase 1 of the CAPE process launched on April 20^th. Phase 1 is limited to certain unliquidated entries and certain entries within 80 days of liquidation.

Who qualifies for refunds?

U.S. importers of record who directly paid the tariffs or the person who takes ownership of the goods once they have cleared customs (the “consignee”) may be eligible for a refund (U.S. Chamber of Commerce). Refunds are only available for tariffs applied under IEEPA. Businesses that did not directly pay the tariffs are not eligible.

Next Steps

If you haven’t already, determine whether you are eligible for tariff refunds. Your RBT accountant can help you verify your eligibility if you are unsure.

If submitting a claim, you will need to:

Verify ACE Portal access (new ACE account setup may take up to 4 weeks).
Enroll in Automated Clearinghouse (ACH) Refund.
Compile a list of entries on which IEEPA duties were paid.
Gather supporting documentation (i.e., entry summaries, proof of payment, commercial invoices, certificates of origin).
Submit CAPE Declarations using a .CSV (Comma-Separated Values) file through the ACE Portal.

Refunds are expected to be issued within 60 to 90 days following acceptance of the CAPE Declaration, unless a compliance concern necessitates further review. Refunds will be paid electronically via Automated Clearing House (ACH).

Important to Note:

When submitting your claim, be sure your documentation is complete and accurate to avoid delays or denials.
Once a CAPE Declaration has been filed and accepted, it cannot be amended.
Be wary of scams, as fraudsters may attempt to capitalize on the confusion surrounding tariff refunds.
The timing of refunds may impact cash flow and financial reporting.

Helpful Resources:

The U.S. Customs and Border Protection website offers information, training guides, and answers to frequently asked questions. The U.S Chamber of Commerce also provides a step-by-step guide for importers regarding the refund process.

How RBT Can Help

RBT CPAs’ manufacturing accounting team is available to assess your eligibility for refunds and help you navigate any resulting tax and accounting-related impacts—including how refunds may affect your federal income taxes, cash flow, and/or financial reporting. Give us a call today and find out how we can be Remarkably Better Together.

Integrating Your Accounting and Project Management Software: Why Connected Programs are Key to Efficiency

From day one of planning through the completed project, construction jobs require coordination across various departments in the field and office. Software exists for nearly every business process along a project’s timeline, from accounting to scheduling to project management. However, relying on an array of disconnected programs can lead to limited data visibility, reduced accuracy, and inefficient workflows—ultimately impacting the quality of your projects.

Two areas in which integration is especially useful are your project management system and accounting processes. Connecting these two critical functions allows data to flow cohesively between systems, eliminating duplicate data entry, reducing the risk of error, and providing real-time insights into job costs. Connecting your accounting and project management software can be accomplished either by integrating two compatible programs or implementing a full Enterprise Resource Planning (ERP) system that centralizes business processes into a single unified system. Let’s go over what each of these options looks like.

PM-Accounting Software Integration

One option is to connect your project management software with your accounting software. Not all programs are compatible, so you’ll need to assess the ability of your programs to integrate. Certain construction platforms like Procore, Buildertrend, and Sage Construction Management offer integration with various accounting systems, such as QuickBooks, Sage, and QuickBooks Online.

ERP Systems

Another option for integration is to implement a full ERP system. Enterprise Resource Planning (ERP) systems integrate core business processes, including accounting, project management, HR, and procurement, into a single software system. ERPs for the construction industry are designed to meet the unique needs and challenges of the construction industry.

ERP systems typically include the following business processes (not an exhaustive list):

Project management: project planning, scheduling, resource allocation, progress tracking, job costing.
Finance and accounting: budgeting, invoicing, financial reporting, cash flow management, tax compliance, expense tracking.
Human Resources: payroll, training, compliance, time tracking, certification tracking.
Supply Chain Management: material and inventory tracking, procurement, supplier management.
Customer Relationship Management (CRM): customer communications and data management.

Centralizing all business processes into a single ERP system improves visibility across departments, allows for better insights, and creates more cohesive workflows.

Which option is right for you?

The answer to this question depends largely on the scale of your operations as well as the size and strength of your internal accounting department. Not only are ERP systems expensive, but they are also complex to manage. Some questions to ask yourself are whether you have enough specialized staff to support this kind of software and whether you can afford the costs associated with adopting an ERP system. Companies with straightforward projects and small accounting teams can typically operate effectively using simpler systems. However, as your business grows and projects become more complex, you should consider moving to an ERP framework to better manage expanding operations.

Speak With Your RBT Accountant for Additional Guidance

RBT CPAs’ construction accounting team is well-versed in project management and accounting software integration. We’ll help you assess your business’s needs and advise you on the integration option that would work best for you. And as always, our team is here to support all of your business’s accounting, tax, audit, and advisory needs. Give us a call today and find out how we can be Remarkably Better Together.