Nhi Nguyen: Q1 2026 Employee of the Quarter

Nhi hit the ground running in Q1 2026! She maintains a positive attitude, a strong work ethic, and strong organization surrounding her workload. Here are some examples of Nhi upholding our core values:

  • Crush it – She started right at the busiest time of year for out client accounting services (CAS) team and handled our 1099 project with accuracy and organization.
  • Claim it – Nhi has demonstrated proactivity and consistency by finishing her monthly tasks timely and without reminders, as well as being ahead of her project schedule with strong communication when she has capacity.
  • Climb together – She has played a huge role in helping us prepare for a team member’s leave.

She has quickly become an essential part of the CAS team, and we look forward to seeing her continued growth within the department. Thank you, Nhi, and congratulations!

Backup Withholding: What Businesses Should Know

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In most cases, you aren’t required to withhold taxes from payments to independent contractors. However, there are situations in which the “backup withholding” rules apply. Backup withholding is most commonly required when a contractor fails to provide a correct Social Security number or Employer Identification Number, or doesn’t properly complete Form W-9, “Request for Taxpayer Identification Number and Certification.”

When required, you must withhold 24% from payments to the contractor and remit those funds to the IRS using Form 945, “Annual Return of Withheld Federal Income Tax.” The withheld amount must also be reported on the appropriate Form 1099.

Contact the office if you’re unsure whether backup withholding applies or need help navigating the requirements.

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408-252-1800

IRS Eases Partnership Sale Reporting Rules

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Final regulations released by the IRS stipulate that partnerships no longer need to provide detailed gain and loss information to selling partners by January 31. This deadline had become a contentious issue.

The tax code requires that any portion of a partnership’s sale proceeds attributable to the partner’s share of unrealized receivables and inventory items be reported as ordinary income. Other sale proceeds are generally taxed as capital gains. But partnerships complained that the reporting deadline was hard to meet.

Now, partnerships can provide such information to partners according to their natural end-of-year tax compliance cycle, on or with Schedule K-1.

Let us know if you have any questions.

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408-252-1800