In the Know with BSCO: A monthly newsletter from Brinker Simpson & Company. Practical insights, firm updates, and events, delivered straight to your inbox.
Big month for tax news. Inside: the employer-provided child care credit jumping from 25% to 40% for 2026, IRS relief on gift tax reporting for Section 530A accounts, Pennsylvania's Annual Report deadline and what changes in 2027, the questions small business owners ask most, where to look when margins tighten, and California's new tax on SaaS. Also this month: Caitlyn Kwiatkowski's promotion to Senior Audit Associate, and a goodbye to four summer interns who made an impression.
The New and Improved Credit for Employer-Provided Child Care
For 2026, the Section 45F credit jumped from 25% to 40% of qualified child care facility expenditures, with the annual cap rising from $150,000 to $500,000. Small businesses under $32 million in average annual gross receipts can claim 50% and up to $600,000, and can now pool resources with other employers rather than running a facility alone.
IRS Provides Gift Tax Reporting Relief for Section 530A Accounts
Section 530A accounts, known as Trump accounts, opened for contributions on July 4. New IRS guidance means qualifying contributions may fall under the $19,000 annual gift tax exclusion, so you may not need to file Form 709 at all, provided you meet the safe harbor conditions.
PA Annual Report: Deadlines, Fees, and What Changes in 2027
Pennsylvania's Annual Report deadline for LLCs is September 30. It costs $7 and takes a few minutes online, and starting in 2027, skipping it can cost you the exclusive right to your business name.
A notice, a missed deadline, or a payroll deposit that slipped can escalate quickly once penalties and interest start compounding. Answers to the questions owners ask most, including how far back unfiled returns need to go, when an installment agreement or offer in compromise makes sense, and why payroll tax withholding problems can become personal liability through the Trust Fund Recovery Penalty.
Where to Look When You Need to Improve Profit Margins
Growing revenue is not the only way to strengthen performance. A systematic review of compensation and benefits, vendor and subscription spend, marketing ROI, and borrowing costs can protect the bottom line without cutting into growth.
Partner Hillary Alexander, CPA, Explains California's New SaaS Tax
California is taxing SaaS and software, one of the biggest state tax changes for software in years. If you sell software or buy it across state lines, this one reaches further than California.
Employee Spotlight: Meet the People Behind Your Work
At Brinker Simpson & Company, our people are at the heart of everything we do. Each month, we highlight team members who reflect our core principle: Work Hard. Have Fun. Help Others.
From Intern to Senior: Congratulations to Caitlyn Kwiatkowski
Caitlyn Kwiatkowski has been promoted to Senior Audit Associate. She joined us as an intern in 2023, came on full time in 2024, and has grown into a professional our team and our clients rely on.
This year's cohort worked across tax, audit, and client accounting services, and they left a mark on all three. A look at what they built and where they're headed.
This e-newsletter is intended for general informational purposes only and does not constitute legal, tax, accounting, investment, or professional advice. It should not replace consultation with qualified professionals. Always seek advice from experts before making any decisions. The tax information provided is not meant to be used to avoid penalties. We do not guarantee the accuracy or completeness of this information and disclaim all warranties, express or implied.
