by Stephen Reed | Accounting News, Healthcare, Industry - Healthcare, News, Newsletter
As the healthcare landscape continues to evolve, the U.S. Department of Health and Human Services (HHS) is implementing a major overhaul of the Health Insurance Portability and Accountability Act (HIPAA) in 2025. These changes reflect shifting priorities in data protection, patient rights, and digital healthcare delivery—especially in light of growing concerns about data misuse and reproductive health privacy.
For small healthcare practice owners, staying ahead of these updates is crucial for legal compliance, maintaining patient trust, and ensuring operational stability. Here’s what you should know to prepare for the HIPAA updates and protect your practice this year.
Strengthening Data Security and Breach Prevention
The 2025 HIPAA updates emphasize preventing cyberattacks and unauthorized access to sensitive health information. This includes:
- Updated encryption requirements for electronic protected health information (ePHI)
- Mandatory risk assessments to identify and mitigate vulnerabilities
- Stronger breach notification rules with shortened response timelines
As cyber threats become increasingly sophisticated, small practices must take proactive steps. This involves investing in secure data systems, updating internal access controls, and training staff on best practices for information security. A data breach, even if unintentional, could result in severe fines and reputational damage under the revised enforcement framework.
Expanding Patient Access to Health Data
One of the key goals of the new HIPAA regulations is to empower patients with easier and quicker access to their medical records. Under the new rules:
- Patients must be able to access their records within 15 days, reduced from the previous 30-day window.
- Electronic delivery methods, such as secure portals or email, must be supported unless the patient opts out.
- Fees for access must be reasonable and clearly stated.
Healthcare practices should evaluate their current record request workflows to ensure they can meet these tighter timelines. Automating record fulfillment through patient portals or EHR systems can reduce the administrative burden while remaining compliant.
Emphasizing Responsible Data Use and Sharing
As health apps and third-party services become more widely used, the updated HIPAA rules clarify how and when health data can be shared. In particular:
- Integrations with third-party apps must meet minimum security and privacy standards.
- Covered entities must ensure that data sharing aligns with the patient’s consent and intended use
- New guidance will limit the sale or unauthorized use of health data for marketing or non-care-related purposes
Healthcare practice owners should carefully review any third-party vendors or tools that interact with their systems to ensure compliance with HIPAA standards. This includes data-sharing agreements and clear documentation regarding how patient information is used.
Safeguarding Reproductive Health Privacy
In response to growing concerns after recent state-level changes to reproductive healthcare access, the 2025 HIPAA updates introduce specific protections for reproductive health data. Specifically:
- Covered entities cannot disclose reproductive health information (such as abortion services or contraception use) to law enforcement unless required by a valid court order.
- Patients must be informed about when and how their reproductive health data may be disclosed.
- Providers must restrict access to only essential personnel within their organization.
To remain compliant, small practices should revise their privacy notices, modify internal protocols, and ensure that staff are trained on these new protections.
Preparing Your Practice for the Transition
Here are three steps healthcare practice owners can take today to prepare for compliance with the 2025 HIPAA overhaul:
- Review your existing policies and identify areas needing improvement in data protection, patient access, and privacy practices.
- Invest in staff training to ensure your team understands the new rules and their role in enforcement.
- Consider consulting with legal or compliance experts to clarify uncertainties and help implement adequate safeguards tailored to your practice.
As regulatory scrutiny increases and patient expectations evolve, early adaptation can protect your practice from penalties while establishing you as a trustworthy provider in a competitive market.
by Stephen Reed | Accounting News, IRS, News, Newsletter, Small Business, Tax, Tax Planning
If you’re self-employed or earn income without tax withholding, you’re likely required to pay quarterly estimated taxes. Missing these payments can result in penalties and interest charges from the IRS, but don’t panic—you have options to correct the situation and avoid bigger financial consequences. Here’s what you need to know about quarterly taxes, potential penalties, and how to get back on track.
Who Needs to Pay Quarterly Estimated Taxes?
The IRS requires individuals and businesses to pay taxes on income as they earn it. If you receive a steady paycheck from an employer, taxes are automatically withheld. However, if your income comes from self-employment, freelancing, gig work, rental properties, or investments, you must make estimated tax payments.
You generally need to pay quarterly taxes if you expect to owe at least $1,000 in taxes when you file your return. These payments are due on the following dates each year:
- April 15 (for income earned January–March)
- June 15 (for April–May)
- September 15 (for June–August)
- January 15 of the following year (for September–December)
Why People Miss Quarterly Tax Payments
Many individuals fail to make quarterly tax payments because they:
- Aren’t aware of the requirement. New freelancers and business owners may not realize they need to pay.
- Underestimate their income. If income fluctuates, it’s easy to miscalculate estimated taxes. Additionally, understanding tax laws and keeping up with changing regulations can cause added stress.
- Don’t have enough cash flow. Some businesses struggle with inconsistent revenue, and freelancers often live invoice-to-invoice.
- Forget the deadlines. Without reminders, it’s easy to overlook payment dates.
Regardless of the reason, missing payments can lead to IRS penalties and interest charges.
Penalties and Interest for Missed Payments
The IRS imposes various penalties and interest fees for missed or underpaid quarterly taxes. Here’s what you could face:
- Underpayment penalty. If you don’t pay enough throughout the year, the IRS may charge a penalty of 0.5% of the unpaid amount per month, up to 25% of the balance. When you complete your annual tax return, the underpayment will be reported, and the IRS will apply the penalty to the amount you owe.
- Late payment penalty. If you miss a deadline, you may owe an additional 0.5% per month until you pay in full.
- Failure-to-file penalty. If you don’t file a tax return on time, the penalty is 5% of the unpaid tax per month, up to 25%.
- Interest fees. The IRS also charges interest on unpaid taxes, which compounds daily until the tax is paid in full. It is 8% for tax year 2024.
What to Do If You Missed a Payment
If you’ve missed a quarterly payment, take action immediately:
- Calculate what you owe. Use IRS Form 1040-ES or an online tax calculator to estimate your outstanding balance.
- Pay as soon as possible. Even a partial payment can help reduce penalties and interest. The IRS accepts payments online at IRS.gov.
- File your tax return on time. Avoid additional failure-to-file penalties by ensuring your annual return is submitted before April 15.
- Request penalty relief. If this is your first time missing a payment, you may qualify for the IRS First-Time Penalty Abatement. You can also request a payment plan if you can’t pay in full.
How to Avoid Future Penalties
To prevent tax issues going forward, consider these strategies:
- Set aside taxes regularly. Allocate 20-30% of your income for estimated taxes.
- Automate your payments. Use the IRS’s Electronic Federal Tax Payment System (EFTPS) to schedule payments.
- Adjust your estimates. If your income changes, adjust your quarterly tax payments to avoid over- or underpaying.
- Work with a tax professional. An accountant or tax preparer can help you stay compliant and minimize tax liability.
by Stephen Reed | Accounting News, Industry - Retail & Distribution, News, Newsletter, Retail & Distribution
After a period of workforce reductions and aggressive cost-cutting measures, major retail companies are shifting toward optimization strategies—investing in technology, process improvements, and operational efficiencies that enhance productivity without sacrificing jobs. This shift streamlines costs and enables businesses to reinvest savings into growth initiatives, new revenue streams, and customer experience enhancements.
The Evolution of Cost-Cutting in Retail
To maintain profitability, the retail sector has long relied on cost-cutting measures, including layoffs, store closures, and supply chain adjustments. However, as labor markets tighten and consumer expectations rise, many retailers recognize that indiscriminate cost-cutting is no longer sustainable. Instead, forward-thinking companies are focusing on efficiency investments that reduce waste, optimize workflows, and improve margins without compromising workforce stability or customer satisfaction.
Efficiency Investments Driving Retail Optimization
Leading retailers are embracing a range of efficiency-enhancing technologies and process improvements, including:
- Artificial Intelligence and Automation
AI-powered solutions are transforming retail operations, from predictive analytics that optimize inventory management to automated tools that improve customer service by automating workflows, providing consistent responses, and reducing labor costs. Machine learning (ML) algorithms help retailers anticipate demand, minimize stockouts, and reduce excess inventory, leading to lower costs and higher profitability.
- Dynamic Pricing Strategies
Retailers are leveraging AI-driven dynamic pricing to adjust product prices in real time based on demand, supply, competitor pricing, and market trends. This allows businesses to maximize revenue while establishing competitive pricing and maximizing sales and profit margins without requiring layoffs.
- Supply Chain and Logistics Optimization
Investments in supply chain efficiency, such as automated warehouses, robotics, and improved logistics software, are helping retailers cut costs without sacrificing service quality. From streamlining distribution networks to improving last-mile delivery, companies can meet customer expectations while maintaining profitability.
- Process Automation in Store Operations
Retailers are adopting self-checkout systems, digital kiosks, and mobile payment solutions to enhance in-store efficiency. These tools improve customer experience and allow retailers to optimize labor allocation without reducing staff.
- Outsourcing and Strategic Partnerships
Instead of hiring full-time specialists, many retailers are outsourcing key functions such as marketing, IT support, and customer service. Strategic partnerships with third-party providers offer retailers solutions without the fixed costs of expanding their in-house teams.
Reinvesting Savings into Growth and Innovation
Rather than simply cutting costs, retailers are reinvesting savings into strategic initiatives that drive long-term growth. These include:
- Enhancing Customer Experience: Investments in personalized marketing, loyalty programs, and omnichannel integration are helping retailers build deeper relationships with customers.
- Expanding Product Offerings: Some companies are using efficiency savings to explore new product lines, private label brands, and subscription services.
- Digital Transformation: Many retailers are expanding e-commerce capabilities, investing in virtual shopping experiences, and leveraging data analytics for more informed decision-making.
by Stephen Reed | Accounting News, News, Newsletter, Tax, Tax Planning, Tax Planning - Individual, Tax Preparation - Individual
Tax season 2025 is here, and staying on top of important deadlines is essential for avoiding late fees and penalties. Knowing key dates like the federal income tax filing deadline, quarterly estimated tax payment due dates, and extensions can help you stay organized and stress-free. Read on as we go over these deadlines and provide tips to ensure your tax filing process goes smoothly.
When Are Taxes Due in 2025?
Federal income tax returns for the 2025 tax season are due by Tuesday, April 15, 2025. The extended deadline for U.S. taxpayers residing overseas to file and pay is June 16, 2025. The IRS determines the timeliness of your electronic return based on the date and time it is transmitted in your local time zone. For those filing paper returns, the IRS considers the submission on time if it is correctly addressed, includes sufficient postage, and is postmarked by the deadline.
E-filers must submit their returns no later than 11:59 p.m. local time to meet the deadline. Certain groups, including members of the military and individuals impacted by natural disasters, may qualify for automatic filing extensions. Always verify eligibility for extensions and meet filing requirements to avoid penalties.
Tax Refunds
According to the IRS, taxpayers who file electronically and opt for direct deposit can typically expect to receive their tax refund within 21 days of filing. However, if you submit a paper tax return, the processing time is significantly longer, with refunds often taking four weeks or more to arrive. Choosing e-filing and direct deposit is the fastest and most efficient way to get your refund quickly.
Penalties for Failing to File on Time
Failing to file your federal tax return by the deadline can result in a penalty of 5% per month on any unpaid taxes, up to a maximum of 24% of the outstanding balance. However, if you file your return but do not pay the full amount owed or have been granted an extension, you will generally incur a lower penalty of 0.5% per month on the unpaid taxes. Filing on time and paying as much as possible by the due date is crucial to minimize penalties and interest.
Tax Extension Deadline
Filing an extension by April 15, 2025, will extend your filing deadline to October 15, 2025. While an extension provides extra time to file your tax return, it does not extend the deadline to pay any taxes owed. The IRS requires you to pay the full amount—or a reasonable estimate—by the original due date of April 15, 2025. Failing to pay by this date will result in interest charges and penalties that continue to accrue until your outstanding balance is fully paid. To avoid additional costs, ensure you meet the payment deadline even if filing later.
Deadlines for W-2 and 1099 Forms
Employers must send W-2 forms by Jan. 31. Freelancers, independent contractors, and individuals earning income from non-traditional sources should expect a 1099 tax form by February 15. If you earn self-employment income or have side gigs, ensure you check for 1099 forms to accurately report your earnings and avoid potential tax issues.
Due Dates for Quarterly Taxes
If you earn income not subject to withholding taxes, such as from self-employment or freelance work, you’re generally required to make estimated tax payments to the IRS. These payments can be made quarterly or as a single annualized payment. The annualized payment is due by April 15, while the quarterly deadlines are as follows:
- First payment: April 15, 2025
- Second payment: June 16, 2025 (adjusted since June 15 is a Sunday)
- Third payment: September 15, 2025
- Fourth payment: January 15, 2026
Staying on top of these deadlines helps avoid interest charges and penalties for underpayment.
by Stephen Reed | Accounting News, News, Newsletter, Tax, Tax Planning
After Donald Trump’s win in November, taxpayers are wondering how a second Trump term could reshape U.S. tax policy. Trump’s first term saw sweeping changes under the Tax Cuts and Jobs Act (TCJA) of 2017. With key provisions of that legislation set to expire in 2025, Trump’s proposals offer a glimpse of his tax priorities. From significant individual tax cuts to business-friendly policies, here’s what you need to know.
The Expiration of the 2017 Tax Cuts
The TCJA lowered tax rates across the board, nearly doubling the standard deduction—which eliminated the need for itemized deductions—and capping the state and local tax (SALT) deduction at $10,000. These changes contributed to lower tax bills for many Americans. However, the individual tax cuts were temporary and are set to expire at the end of 2025 unless Congress acts to extend them.
If re-elected, Trump has indicated that extending or making these provisions permanent would be a top priority. Without an extension, taxpayers could see higher marginal tax rates, a reduced standard deduction, and the return of personal exemptions.
Removing the $10,000 SALT Deduction Cap
The SALT deduction, which allows taxpayers to deduct state and local taxes on their federal tax returns, became a testy issue after the TCJA imposed a $10,000 cap. This change particularly affected residents in high-tax states like New York, California, and New Jersey.
Trump has proposed removing the cap, a move that would benefit taxpayers in those states while potentially increasing the federal deficit. Critics argue that eliminating the cap would disproportionately benefit higher-income households, but supporters see it as a necessary adjustment to provide relief to middle- and upper-income earners in high-tax areas. Steven Moore, a senior economic advisor to Trump, recently floated the idea of doubling the cap to $20,000 as a potential compromise.
Eliminating Taxes on Social Security and Tip Income
Currently, up to 85% of Social Security benefits can be taxable, depending on your income level. Trump’s tax plan consists of eliminating these taxes, which would provide retirees with additional financial security. Trump has also floated the idea of eliminating taxes on tips, which would increase take-home pay and simplify tax compliance for hospitality and service industry workers. However, this proposal has sparked discussion over the potential impact on tax revenue and fairness in the tax code.
Reducing the Corporate Tax Rate
The TCJA decreased the corporate tax rate from 35% to 21%, which rendered the U.S. more competitive globally. Trump has suggested lowering the rate even more, potentially to 15%. Those in favor of this plan say that it could spur economic growth and encourage domestic investment, while critics are concerned about increasing the federal deficit.
Trump’s Tariffs
Trump has been clear on his stance on tariffs. During his first term, Trump imposed tariffs on various goods, particularly from China. Tariffs are not taxes in the traditional sense, but they can indirectly affect taxpayers by increasing the cost of goods and services. Businesses often pass these costs onto consumers, so households, particularly those in middle- and lower-income brackets, could feel the strain of tariffs.
