Form 5102 Scam: What Small Business Owners Need to Know

May 07, 2026

Is Form 5102 legitimate? If you received a letter requesting a filing fee for beneficial ownership reporting, here’s what you need to know — and what to do right now.

What Happened?
Scammers are targeting small business owners with a fake “Form 5102,” exploiting confusion around a real 2024 law — the Corporate Transparency Act (CTA) — that requires most LLCs and corporations to report Beneficial Ownership Information (BOI) to FinCEN (Financial Crimes Enforcement Network).

These fraudulent letters look official. They reference real legislation, appear to come from fake agencies like “Annual Records Service” or “US Business Regulations Dept.,” and demand a filing fee — typically around $119 — threatening penalties for non-compliance.

The facts: Form 5102 is not a real government form. Those agencies don’t exist. And your actual BOI filing with FinCEN is completely free. The Treasury’s Office of Inspector General has confirmed this scheme and urges businesses to discard these forms immediately.

What Does This Mean for Me?
If you own an LLC or corporation, you’re squarely in the crosshairs of this scam. Here’s why it matters:

  • Your real BOI obligation still stands. Paying scammers does nothing to satisfy your actual FinCEN requirement — and penalties for missing the legitimate deadline can reach $500 per day.
  • Your business data is at risk. These fraudulent forms collect sensitive ownership information that can be used for identity theft.

Know the red flags:

  • Any request for payment related to BOI filing
  • Correspondence from “Annual Records Service” or “US Business Regulations Dept.”
  • Suspicious QR codes, links, or threats of immediate penalties
  • References to “Form 5102” or “Form 4022”

FinCEN does not send unsolicited mail, charge fees, or make initial contact by text or email requesting your business information.

Next Steps.

  • Don’t pay or respond. Discard the letter or delete the email immediately.
  • Report it to the Treasury’s Office of Inspector General here.
  • Confirm your real BOI filing status. Unsure if your business is compliant? Contact us — we’ll help you file correctly, for free, through FinCEN’s official system.

When in doubt about any compliance notice, call your CPA before taking action. We’re here to protect you.

As always, if you have questions or concerns, please reach out to your William Vaughan Company advisor.

Categories: Tax Compliance

Digital Transformation & Automation for Small Businesses

May 05, 2026

Is your business ready for the digital future?

Digital Transformation is a term that has become increasingly relevant in today’s business environment, especially for small to medium-sized, privately-held companies. It refers to the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. For business owners, understanding and implementing digital transformation can lead to significant improvements in their business intelligence, resulting in enhanced efficiency, increased customer satisfaction, and greater profitability.

Why Consider Digital Transformation?
In many organizations, manual or “paper” processes are prevalent and often result in errors, inefficiencies, and wasted resources. According to WVC’s Digital Transformation Partner, Method Automation Services, many companies struggle with error-prone manual processes across disconnected systems. This is where digital transformation can make a substantial impact. By automating these processes and integrating them into a cohesive digital ecosystem, businesses can streamline operations and improve accuracy

Key Benefits of Digital Transformation

  • Improved Efficiency and Productivity: Digital transformation enables automation of routine tasks, significantly reducing time and resources spent on manual processes. For instance, Process Automation combined with Workflow Integration simplifies and improves business processes.
  • Enhanced IT Infrastructure: By integrating cutting-edge digital solutions and optimizing your existing technology stack, you ensure seamless alignment among your people, processes, and platforms, enabling better decision-making.
  • Increased Business Intelligence: By adopting digital solutions, companies can respond more quickly to market changes and customer needs. This agility allows for continuous improvement and innovation.
  • Better Customer Experience: Digital transformation can enhance customer interactions by delivering more personalized, efficient services. Automated processes and clear visibility can lead to quicker response times and improved customer satisfaction.
  • Cost Reduction: By reducing the reliance on manual processes and minimizing errors, companies can achieve significant cost savings. Additionally, digital solutions often provide a better return on investment in the long run.

How William Vaughan Company Can Help
WVC has partnered with Method Automation Services, who specialize in building configurable digital process automation solutions that integrate seamlessly with your existing systems. Their approach focuses on business process automation, which simplifies and accelerates tasks and procedures across departments. With a team of experienced business and technical architects, project managers, UX designers, and developers, they ensure a smooth transition to a digitally transformed business model.

For business owners of small to medium-sized companies, digital transformation is not just a trend but a necessity for staying competitive in today’s market. By embracing digital solutions, you can not only improve operational efficiency and customer satisfaction but also unlock new opportunities for growth and innovation. If you are considering digital transformation, partnering with a service provider like Method Automation Services can offer the expertise and support needed to achieve your goals.

Additional Resources
Workflow Automation Case Study
Enhanced Business Intelligence Case Study
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Categories: IT & Risk Services

Supreme Court Overturns Trump Tariffs: What Businesses Need to Know

Feb 25, 2026

On Friday, February 20, 2026, the Supreme Court ruled President Trump’s emergency tariffs unconstitutional, marking a pivotal moment in trade policy. In a 6-3 decision, the Court determined that President Trump’s use of the International Emergency Economic Powers Act (IEEPA) exceeded the scope of authority granted by Congress. Chief Justice John Roberts, writing for the majority, stated: “The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope. In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it.”

While the decision invalidates the IEEPA tariffs, the Court did not address whether or how the government will return the estimated $129–$175 billion in IEEPA tariff revenue already collected from importers. Justice Kavanaugh, in his dissent, cautioned that “refunds of billions of dollars would have significant consequences for the U.S. Treasury.”

Notably, the ruling does not entirely preclude the use of tariffs as a strategic tool. Following the Court’s action, President Trump proposed a 10% global tariff under Section 121 of the Trade Act of 1974, subsequently increasing his proposal to 15% the next day.

This evolving landscape leaves businesses and trading partners navigating considerable uncertainty. With other statutory authorities still available, organizations should closely monitor developments and reassess their exposure and strategies in light of ongoing regulatory and economic changes.

We are closely monitoring ongoing developments and will promptly share any notable updates or guidance as changes unfold. If you have questions regarding tariff refunds, financial impacts, or supply chain adjustments, please reach out to your engagement team—we are committed to supporting you through these transitions. To sign up for our news and insights, click here.

Categories: Manufacturing & Distribution

One Big Beautiful Bill Act (OBBBA) Signed Into Law

Jul 10, 2025

On July 4, President Trump signed into law H.R.1, widely recognized as the One Big Beautiful Bill Act (OBBBA). This comprehensive legislation introduces significant budgetary measures addressing border security, defense, energy policy, and federal spending reductions. Most notably, OBBBA represents one of the most consequential federal tax reforms since the Tax Cuts and Jobs Act of 2017 (TCJA), with far-reaching implications for both individuals and businesses.

The most prominent provisions are outlined below. For a more comprehensive overview of how these changes may impact your specific situation, we encourage you to connect with your William Vaughan Company advisor.

Key Provisions for Businesses

  • Research and Experimentation (R&D) Deductions: OBBBA establishes new IRC Section 174A, enabling immediate deductibility of domestic R&D expenses incurred after December 31, 2024, replacing the prior five-year amortization rule, and enhancing tax benefits for U.S.-based innovation. Companies with capitalized domestic R&D expenses between 2022 and 2024 can elect to accelerate those deductions. Eligible small businesses, generally those with average annual gross receipts not exceeding $31 million, can elect to retroactively apply the full expensing of domestic R&D expenses to tax years beginning after December 31, 2021, by amending their returns for 2022, 2023, and 2024 to claim refunds for taxes paid because of amortization. Other taxpayers with capitalized domestic R&D expenses between 2022 and 2024 can choose to accelerate deductions of the remaining unamortized amount over a one or two-year period, starting with the 2025 tax year. Foreign R&D expenditures remain subject to 15-year amortization.
  • Bonus Depreciation: Restores 100% bonus depreciation, allowing businesses to immediately expense qualifying assets placed in service after January 19, 2025, thereby eliminating the previously scheduled phase-down.
  • Qualified Production Property (QPP): Manufacturers can claim a 100% deduction for the cost of new “qualified production property,” including nonresidential real property, defined as property used in a “qualified production activity” (the manufacturing, production, or refining of a qualified product that results in a substantial transformation of the property). This change applies to qualified property placed in service after the date of enactment and before January 1, 2031.
  • Business Interest: Restores the more favorable EBITDA-based calculation for the business interest deduction limitation under Section 163(j) for tax years beginning after December 31, 2024. This reverts to the approach used from 2018 through 2021, which generally allowed larger deductions. It also provides specific rules regarding the interaction of the business interest expense limitation with other tax provisions that capitalize interest.
  • Pass-through Businesses: Makes permanent the Section 199A qualified business income deduction, with no change to the current 20% deduction percentage. Additionally, the bill expands the limitation phase-in window from $50,000 for single filers ($100,000 for married filing jointly) to $75,000 for single filers ($150,000 for married filing jointly).
  • Pass-through Entity Tax (PTET) Elections: Electing pass-through entities (PTEs) can continue to deduct state income taxes paid at the entity level, effectively allowing business owners to bypass the limitation on individual SALT deductions.
  • Advanced Manufacturing Investment Credit: The advanced manufacturing investment credit rate increases from 25% to 35% for property placed in service after December 31, 2025.
  • Federal Tax Exclusion for Capital Gains from Qualified Small Business Stock (QSBS): Updates Section 1202 of the Internal Revenue Code by raising gain exclusion caps from $10 million to $15 million and allowing investors to access tax benefits after a shorter holding period (as little as three years in some cases). The asset limit is also increased from $50 million to $75 million, making it easier for larger start-ups to qualify.
  • Employee Retention Tax Credit: Retroactively bars the IRS from issuing refunds for Employee Retention Tax Credit (ERTC) claims for Q3 2021 (and in some cases Q4 2021) filed after January 31, 2024. The bill also requires ERTC promoters to comply with due diligence requirements regarding a taxpayer’s eligibility and the amount of an ERTC for affected quarters. In addition, OBBBA includes a $1,000 penalty for each failure to comply and extends the penalty for excessive refund claims to employment tax refund claims.

Key Provisions for Individuals

  • Tax Rates: Permanently extends most of the individual income tax rate structures established by the TCJA of 2017.
  • Standard Deduction: Makes the TCJA’s increased standard deduction amounts permanent. For tax years beginning after 2024, the standard deduction increases to $15,750 for single filers, $23,625 for heads of household, and $31,500 for married individuals filing jointly. The standard deduction will be adjusted for inflation thereafter. These changes are retroactive to include 2025.
  • SALT Cap: The $10,000 cap on state and local tax deductions is raised to $40,000 for most taxpayers. However, the benefit phases out for households with adjusted gross income (AGI) exceeding $500,000, tapering to restore the lower cap for high earners. Both the SALT cap and the income threshold for the phase-out will increase by 1% each year from 2026 through 2029. The $40,000 limit is not permanent; it is scheduled to revert to $10,000 starting in 2030.
  • Alternative Minimum Tax (AMT): The higher AMT exemptions under the TCJA are made permanent, reducing the likelihood of AMT applying for many taxpayers. The exemption phase-out threshold is set at 2018 levels under the TCJA ($500,000 for singles and $1 million for joint filers), indexed for inflation. The exemption also phases out more quickly for higher earners.
  • Excess Business Loss (EBL) Limitations: Makes permanent the current limitations on business losses allowed to offset non-business income, with losses exceeding the limit treated as net operating losses (NOLs) and carried forward to future years.
  • New Deduction for Seniors: OBBBA provides a temporary bonus deduction of $6,000 for individuals age 65 or older (and for each spouse meeting the criteria in the case of a joint return) for taxable years 2025 through 2028. The deduction phases out for joint filers with income starting at $150,000 and $75,000 for all other taxpayers.
  • Charitable Contributions: Creates a permanent deduction for taxpayers who do not itemize. For tax years beginning after December 31, 2025, non-itemizing taxpayers can claim a deduction of up to $1,000 (single filer) or $2,000 (married filing jointly) for certain charitable contributions.
  • Child Tax Credit: Extends and enhances provisions related to the Child Tax Credit (CTC), including increasing the nonrefundable portion of the credit to $2,200 per child. The refundable Additional Child Tax Credit (ACTC) remains at $1,700 for 2025 and will be adjusted annually for inflation. The nonrefundable portion of the CTC will also be indexed for inflation beginning in 2026. Taxpayers must have a valid Social Security number for themselves (or one spouse if married filing jointly) and the qualifying child.
  • Tips & Overtime Pay Deductions: Establishes new above-the-line deductions for the 2025–2028 tax years, allowing taxpayers to deduct up to $25,000 per individual in tip income and up to $12,500 per individual (or $25,000 for joint filers) in overtime compensation. These deductions are subject to phase-out at specified AGI thresholds.
  • Individual Trust Accounts (Trump Accounts): Introduces a new category of tax-advantaged accounts specifically designed to support children under age 18. These accounts can be utilized for qualified expenses such as education, small business investments, and first-time home purchases. Annual contributions are capped at $5,000 per account, with a one-time, government-funded deposit of $1,000 for eligible children born between December 31, 2024, and January 1, 2029. Employers are also permitted to make tax-free annual contributions to these accounts.

Other Notable Provisions

  • Estate Planning: Increases the estate, gift, and generation-skipping tax exemption amounts to $15 million for estates of decedents dying and gifts made after December 31, 2025, and makes them permanent. This is compared to the TCJA’s temporary $10 million exemption (adjusted for inflation to $13.99 million in 2025).

Next Steps
The impact of the One Big Beautiful Bill Act is substantial, introducing changes that warrant continuous review and proactive planning. We strongly recommend that you engage with your William Vaughan Company advisor to assess how these legislative developments may affect your tax liabilities, cash flow, and overall business or personal wealth strategies. Our team is here to help you navigate these complexities and identify opportunities aligned with your objectives.

Categories: Tax Planning

Should I Cancel My Ohio CAT Account?

Sep 26, 2023

Commercial Activity Tax Changes Under Ohio House Bill 33

We recently covered the changes to Ohio’s tax codes that were enacted by Ohio House Bill 33 after it’s passage into law in July of 2023. The new law introduced several changes to state tax codes that could prove advantageous for Ohio business owners. One of the more significant changes to the tax law relates to how CAT is reported.

The CAT is calculated using a business’s taxable gross receipts. As a result of the passing bill, beginning January 1, 2024, the CAT annual minimum tax will be eliminated, and the exemption amounts for businesses will be significantly increased. Under the new law, the CAT rate of .26% will stay the same, but will now only affect taxpayers with gross receipts over $3 million in 2024, (that number will increase to $6 million in 2025).

Taxpayer Implications
Businesses currently reporting under $1 million in gross receipts, and that are predicted to have less than $3 million in gross receipts in 2024, should cancel their CAT account effective December 31, 2023, and file a final annual CAT return, due May 10, 2024. Once the final CAT return is filed, taxpayers with gross receipts under the exemption amount will no longer have to file an annual CAT return in subsequent years. Taxpayers that predict they will have annual gross receipts between $3 million and $6 million should file their final CAT return the following year, 2025. All remaining CAT payers that do not meet the exclusion amount must still file quarterly returns for tax periods after January 1, 2024.

If a taxpayer does not cancel their CAT account, they will still be required to file a CAT return until the account is canceled, even if nothing is due. Taxpayers may cancel their CAT account by visiting the CAT Cancel Account Transaction on the Ohio Department of Taxation’s Business Gateway (preferred method.) Alternatively, those wishing to cancel their CAT account can also complete and submit a “Business Account Update Form” available in the “Tax Forms” section of the Ohio Department of Taxation’s website.

If a business’s gross receipts happen to exceed the exclusion amount in subsequent periods, the taxpayer must reactivate their CAT account and resume filing returns and paying the Commercial Activity Tax at that time.

Conclusion
Ohio House Bill 33 has made several alterations to Ohio’s tax laws, with the regulations around Commercial Activity Tax being particularly affected. For more information on these changes, visit the official release from the Ohio Department of Taxation.

William Vaughan Company will continue to monitor the changes resulting from this bill as well as other state and federal tax bills.

Questions or concerns about how these changes apply to your specific CAT filings? Connect with us today to get a better understanding of these new developments and mitigate tax risks in your business.

Categories: Tax Compliance

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