Darnall, Sikes & Frederick CPAs

Happy Labor Day from Darnall, Sikes & Frederick!

Today, we recognize the hard work and dedication of our team, clients and communities who contribute to the success of the businesses we serve.

We hope everyone enjoys a safe and relaxing Labor Day with family and friends.

Wear Red Friday at DSF!

🔴Tomorrow, the Louisiana Ragin’ Cajuns Football team returns to Cajun Field for their home opener against Lamar, and we’ll be cheering them on every step of the way.

📣🙌 Geaux Cajuns! 🤟🏼🏈🌶️

What happens when someone doesn't just work around the system, but gets inside it?

𝘍𝘳𝘢𝘶𝘥 𝘍𝘳𝘪𝘥𝘢𝘺, written by shareholder Kyle P. Saltzman, CPA, CFE, shares real-world cases every other Friday to help organizations recognize risks and strengthen controls.

In today's case, a former SBA and IRS employee was sentenced to six and a half years in federal prison for leading a scheme involving more than $3.5 million in fraudulent pandemic relief claims. The scheme began with false applications for businesses that were not operational and escalated when she obtained positions within the SBA and IRS, using her insider access to help approve fraudulent claims and recruit accomplices through social media.

Over three years, the scheme targeted four separate pandemic relief programs and resulted in more than $3.27 million being distributed before it was disrupted.

The case reinforces an important reminder: access and authority can create significant fraud risk without the right oversight, segregation of duties, and controls in place.

Read more about the case: https://loom.ly/doCTrXA

𝐏𝐥𝐚𝐧 𝐀𝐡𝐞𝐚𝐝 𝐟𝐨𝐫 𝐄𝐪𝐮𝐢𝐩𝐦𝐞𝐧𝐭 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞𝐬

Businesses considering equipment, technology or vehicle purchases should evaluate potential tax benefits before making major investments.

Review:
• Equipment replacement needs
• Technology upgrades
• Vehicle purchases
• Available depreciation deductions
• Cash flow impact

Strategic planning can help maximize available tax incentives while supporting your company's long-term growth goals.

𝐄𝐧𝐡𝐚𝐧𝐜𝐞𝐝 𝐂𝐡𝐢𝐥𝐝 𝐓𝐚𝐱 𝐂𝐫𝐞𝐝𝐢𝐭: 𝐖𝐡𝐚𝐭 𝐅𝐚𝐦𝐢𝐥𝐢𝐞𝐬 𝐍𝐞𝐞𝐝 𝐭𝐨 𝐊𝐧𝐨𝐰

The One Big Beautiful Bill Act (OBBBA) includes important updates to the Child Tax Credit, providing additional tax relief for many families. 👨‍👩‍👧‍👦

In our latest staff blog, Kathryn Carrere explains how Section 70104 permanently enhances the Child Tax Credit and what it could mean for taxpayers with qualifying children.

Key highlights include:

• The maximum Child Tax Credit increases to $2,200 per qualifying child.
• Up to $1,700 may be refundable for eligible taxpayers.
• Income phaseout thresholds remain at $200,000 for single filers and $400,000 for married couples filing jointly.
• Eligible families may reduce their federal tax liability and, in some cases, receive a refund.

These changes could provide meaningful tax savings for many households.

👉 Read the full article to learn who qualifies and how these enhancements may benefit your family.
https://loom.ly/yRqdaxA

𝐑𝐞𝐯𝐢𝐞𝐰 𝐘𝐨𝐮𝐫 𝐌𝐢𝐝-𝐘𝐞𝐚𝐫 𝐓𝐚𝐱 𝐏𝐨𝐬𝐢𝐭𝐢𝐨𝐧

The middle of the year is a great time to evaluate your tax situation and make adjustments before year-end.

Consider reviewing:
• Income projections
• Tax withholding elections
• Estimated tax payments
• Major business expenses
• Upcoming capital investments

Taking action now can help reduce surprises and create opportunities for tax savings before December 31.

𝐀 𝐌𝐢𝐥𝐞𝐬𝐭𝐨𝐧𝐞 𝐟𝐨𝐫 𝐋𝐨𝐮𝐢𝐬𝐢𝐚𝐧𝐚’𝐬 𝐂𝐏𝐀 𝐏𝐫𝐨𝐟𝐞𝐬𝐬𝐢𝐨𝐧

At Darnall, Sikes & Frederick, we are excited to see the implementation of Act 653, legislation that creates additional pathways for CPA candidates to earn their credentials in Louisiana.

This progress recently came full circle at the Society of Louisiana CPAs’ Ledgers & Legends Ball, where Darnall, Sikes & Frederick’s Bennett Guidry became one of the first CPAs to benefit from Louisiana’s new CPA pathways.

Bennett received his signed certificate from Louisiana State Board of Certified Public Accountants Chair Lynn Hutchinson and Darnall, Sikes & Frederick Partner and Louisiana State Board of Certified Public Accountants Member Christie Dunn, marking an exciting milestone for both Bennett and the profession.

Effective August 1, Act 653 expanded the pathways available to CPA candidates, helping welcome more talented professionals into the field while maintaining the standards of the CPA designation.

We’re proud of this important step forward for Louisiana’s accounting profession and especially proud to see one of our own among the first to benefit.

𝐂𝐨𝐧𝐠𝐫𝐚𝐭𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬, 𝐁𝐞𝐧𝐧𝐞𝐭𝐭!

Could someone in a position of authority override your organization’s internal controls?

𝐹𝑟𝑎𝑢𝑑 𝐹𝑟𝑖𝑑𝑎𝑦, written by shareholder Kyle P. Saltzman, CPA, CFE, shares real-world cases every other Friday to help organizations recognize risks and strengthen controls.

In today's case, a former bank branch manager was sentenced to four years in prison for embezzling $655,000. She stole cash from ATMs and the branch vault, then manipulated audit records to conceal the shortages.

The scheme was not uncovered until after she resigned, reinforcing an important reminder: strong internal controls and proper oversight matter at every level of an organization.

Read more about the case: https://loom.ly/doCTrXA

𝐍𝐞𝐰 𝐓𝐚𝐱 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 𝐟𝐨𝐫 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫𝐬 𝐚𝐧𝐝 𝐏𝐫𝐨𝐝𝐮𝐜𝐞𝐫𝐬

The One Big Beautiful Bill Act (OBBBA) introduced a significant incentive for businesses investing in production facilities and other qualifying business property.

In our latest staff blog, 𝐇𝐚𝐲𝐥𝐞𝐲 𝐑𝐨𝐦𝐞𝐫𝐨 explores Section 70307, which allows eligible businesses to claim a 100% first-year depreciation deduction for qualified production property, potentially accelerating tax savings and improving cash flow.

Key highlights include:

• Immediate deduction of 100% of the cost of qualifying production property.
• Applies to certain nonresidential real property used in manufacturing, producing, or refining qualified products.
• Available for property constructed or acquired after January 19, 2025, and placed in service after July 4, 2025.
• Designed to encourage investment in U.S. production and manufacturing operations.

For businesses planning facility expansions or significant capital investments, this provision may create valuable tax planning opportunities.

👉 Read the full article to learn whether your investment may qualify and how to maximize the potential benefits. https://loom.ly/EWV0SgU

Our Morgan City office is proud to sponsor the 91st Louisiana Shrimp & Petroleum Festival and celebrate the industries, traditions and community spirit that make South Louisiana so special.

We’re honored to support a festival that brings our community together while recognizing the people and industries that have helped shape our region for generations. 🦐

Here’s to celebrating our heritage and the community we’re proud to call home!