Replacing corporate income tax; multigenerational challenge; new blog on the block; and other highlights from our favorite tax bloggers.

Sledgehammer questions

The fun’s in the challenge

• The Rosenberg Associates (https://rosenbergassoc.com/blog/): How to work through the challenges of a practice’s multigenerational workforce.
• Vertex (https://www.vertexinc.com/resources/resource-library/filter/field_asset_type/blog?page=0): As tax authorities worldwide mandate real-time e-invoicing, businesses must digitize and automate invoicing, which brings both benefits and problems. How to navigate the latter.
• Tax Foundation (https://taxfoundation.org/blog): Oregon is one of 12 states that impose an estate tax, which in that state applies to a deceased taxpayer’s estate if its value exceeds $1 million (the lowest such threshold in the nation). This potentially hits many upper-middle-income families whose assets have simply appreciated recently. Do proposed changes in the tax constitute long-overdue reform?
• Institute on Taxation and Economic Policy (https://itep.org/category/blog/): Mississippi may be on the verge of wrong moves with tax cuts.

Never worry

• The National Association of Tax Professionals (https://blog.natptax.com/): This “You Make the Call” looks at John, a U.S. citizen who died on Nov. 17 last year. His will names three beneficiaries to his estate, each of whom is a U.S. citizen. John’s final 1040 will report all income attributable to him while he was alive, with the income received after death allocable to the estate. The estate’s only income for the year is $450 of taxable income from gross proceeds from the sale of stock and $200 of tax-exempt interest. Is the estate required to file a 1041 for its initial year?
• TaxConnex (https://www.taxconnex.com/blog-): What to remind e-commerce clients about Etsy and sales tax.
• Taxbuzz (https://www.taxbuzz.com/blog): What to remind them about the hidden costs of mixing business and personal finances.
• Dean Dorton (https://deandorton.com/insights/): Digital assets in estate planning can go beyond crypto to include domains, storefronts, social media and even email accounts. What to bear in mind, especially as the Revised Uniform Fiduciary Access to Digital Assets Act governs fiduciary access to digital assets in most states.
• HBK (https://hbkcpa.com/insights/): Favorite headline of the week: “The Hidden Cost of DIY Accounting: Why Entrepreneurs Should Focus on Growth, Not Spreadsheets.”

New to us

• Yeo & Yeo (https://www.yeoandyeo.com/resources): This Michigan-based firm, more than a century in business and counting, is another active and timely blog on wide-ranging topics. Recent entries cover managing limits on the business expense deduction, estate planning for the single and child-free, and what to know about the Secure 2.0 IRS proposed regs on catch-up contributions. Welcome!

Early in my CPA career, I fell into the trap many of us know too well — measuring success by email response times and completed checklists. It wasn’t until a health crisis after my pregnancy that I realized something had to change. Not just for me but for our profession.

To be a truly great accountant, you need more than technical expertise. Our clients don’t just want tax returns and financial statements — they’re looking for trusted partners who understand their dreams, fears and aspirations. This shift has changed how I approach client relationships, leading me to develop what I call the “cherished advisor” mindset.

Moving beyond transactions

Those routine client meetings we all know so well? They hold untapped opportunities for meaningful connections. When a client mentions their daughter’s college plans during tax planning or shares concerns about their business legacy while reviewing quarterly statements, these moments matter. They’re openings to demonstrate genuine care and expertise.

True listening transforms client relationships — not the kind where you’re mentally preparing your following response but being fully present. I’ve learned that a question about cash flow often reveals dreams of expansion. Questions about entity structure frequently stem from deeper concerns about family security.

Simple questions create powerful conversations. “What keeps you up at night about your business?” “Where do you dream of taking your company?” These discussions allow us to impact our clients’ success professionally and personally.

Mindful communication builds trust

After years of operating on autopilot, mindfulness transformed my approach to client meetings. Early on, I thought multitasking showed efficiency. Now, with my experience as a CPA and yoga instructor, I’ve discovered the power of being fully present in client interactions. This can be as simple as closing laptops unless needed, turning off notifications, and creating space for genuine dialogue.

When we practice mindful communication, our clients sense the difference. They share more openly about their challenges and aspirations. Recently, during what started as a routine quarterly review, a business owner confided in me about their struggles with work-life harmony. This led to a deeper discussion about structuring their business to support their personal goal — a conversation that wouldn’t have happened had I been focused on rushing through agenda items.

The quality of our questions shapes the depth of our relationships. Instead of defaulting to standard inquiries about financial statements, I like to ask questions that reveal the story behind the numbers. “What inspired you to start this business?” “How do you envision your role evolving over the next few years?” Conversations like these help align our services with our clients’ personal and professional aspirations.

The ‘Cherished Advisor’ connection

Building cherished advisor relationships requires consistent, meaningful engagement throughout the year, beyond the traditional tax season check-ins or quarterly reviews. In my practice, I’ve developed a system of touchpoints that demonstrate my ongoing commitment to client success.

Strategic planning takes on new meaning when we truly understand our clients’ goals. I schedule “vision sessions” with clients where we explore their long-term aspirations. During one such meeting, a client revealed their dream of creating a scholarship foundation. From this idea, we began collaborative planning that grew outside tax implications, incorporating their desire for community impact into their business strategy.

Celebrating client successes also strengthens these connections. When a client meets a major milestone — whether it’s opening a new location, hitting a revenue target, or implementing a succession plan — acknowledge it personally. Send a handwritten note. Share a resource relevant to their next goal. These gestures show we’re invested in their journey, not just their accounts.

Becoming a cherished advisor means being present during challenging times too. When the unexpected hits, try reaching out proactively. Offer support and guidance before they ask. These moments often define the relationship and demonstrate the difference between a service provider and a trusted advisor.

Technology that strengthens relationships

When used mindfully, digital tools can deepen client connections. While some fear tha technology creates distance, I’ve found quite the opposite. Video meetings allow genuine face-to-face connections with remote clients, letting me catch subtle expressions and non-verbal cues that build understanding. Client portals streamline document-sharing, creating more time for meaningful discussion. The key lies in choosing tools that enhance personal connection, rather than replacing it.

Automation gives us the gift of time — time we can invest in understanding our clients’ dreams and challenges. When technology handles routine tasks, we’re free to be more present during client interactions. One client recently shared how much they valued our strategic planning sessions, which were made possible because automation handled the day-to-day compliance work.

Yet, keeping humanity in our digital interactions requires intention. Personalize your messages. Share relevant insights before meetings. Use video when possible to maintain face-to-face connection. Technology should serve as a bridge to deeper relationships, not a barrier.

Developing advisory excellence

Growing into a cherished advisor role requires emotional intelligence and technical expertise. Through my work with firms nationwide, I’ve seen how strengthening these soft skills transforms client relationships. Practice active listening, notice nonverbal cues, and respond with empathy to client concerns.

Building confidence in advisory conversations takes practice and patience. Start small. Ask one deeper question during your next client meeting, or share an insight about their industry. Each interaction builds your advisory muscles and deepens client trust.

Building a connection-focused culture starts with leading by example. Encourage your team to share success stories where deeper client understanding led to better solutions, and celebrate instances of exceptional client service. Make relationship-building a core part of your firm’s DNA.

Takeaway

Becoming a cherished advisor brings rewards beyond revenue growth. It creates lasting partnerships that transform both our clients’ businesses and our own practices. It infuses meaning into our daily work and builds practices that stand out in a crowded market.

Start your journey today — choose one relationship-building practice to implement this week. Schedule quarterly strategy sessions with key clients. Ask deeper questions during routine meetings. Implement technology that creates space for meaningful connection.

Every strong client relationship begins with a single conversation. What conversation will you start today?

The decision by the Treasury Department’s Financial Crimes Enforcement Network, or FinCEN, to halt enforcement of the Corporate Transparency Act’s Beneficial Ownership Information reporting requirement is a momentous one — and received mixed reactions. 

“It drives a stake through the heart of BOI reporting for most if not all small businesses,” said Roger Harris, president of Padgett Business Services. “For everybody in the small-business community, given the way it was being enforced, it’s good news. I don’t know what its effectiveness would be in combating money-laundering and terrorist activity, but for being a burden on small businesses, it’s good news.”

Not everyone was thrilled with the decision. “This law was created to help deter illicit finance through shell companies or other opaque ownership structures” said Jill DeWitt, senior director of compliance & third-party risk management solutions at Moody’s. “It was also designed to align the U.S. globally with financial transparency, especially around beneficial ownership of entities to help prevent terrorist organizations, organized criminals, and other bad actors from exploiting the U.S. financial system and hide their illicitly obtained financial gains.”  

Picasa/rrodrickbeiler – Fotolia

“While arguments against burdening small businesses with the requirements of beneficial ownership compliance and of financial reporting are understandable, greater transparency could help raise financial institutions’ awareness of bad actors in their customer base and support them in avoiding onboarding bad actors who might have otherwise been hidden or overlooked,” she explained.

The CTA requires corporations, LLCs, and other entities formed under state law (domestic reporting companies) or similar entities formed under foreign law and registered to do business in the U.S. (foreign reporting reporting companies) to report to FinCEN their beneficial ownership. 

The reason for the legislation was that kleptocrats, human rights abusers, drug dealers and other corrupt actors have used complex and opaque corporate structures, including shell companies, to hide and launder the proceeds of their corrupt activities. But the law did not affect businesses evenly. Under the rules, more than 32 million small businesses were legally obligated to comply at the beginning of 2024, with 5 million more added every year. However, there is no small-business exception: In this case, the exception is reversed — large companies were mostly exempt, since the government already knew who they were.

“On Feb. 27, 2025, FinCEN said they would suspend all penalties and come out with ways to only penalize people they think were at risk,” said Harris. “Then over the weekend — on Sunday, March 2 — they said they will not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their domestic owner. They still have to issue final guidance, but basically the reporting requirement will only apply to foreign entities. They haven’t issued a rule yet; it’s just a statement.”

“Another administration could take office in four years and reverse the decision,” he noted.

But for now, it’s gone. President Trump praised the decision on Truth Social on March 2: “Exciting news! The Treasury Department has announced that they are suspending all enforcement of the outrageous and invasive Beneficial Ownership Information (BOI) reporting requirement for U.S. citizens … Treasury is now finalizing an Emergency Regulation to formally suspend this rule for American Businesses. The economic menace of BOI reporting will soon be no more.”