Merline & Meacham, P.A.

06/03/2026

Growing small businesses may trigger the ACA’s play-or-pay provisions. These rules apply to applicable large employers (ALEs), which are those with 50 or more full-time employees, including full-time equivalents (FTEs).
ALEs must offer full-time employees and their dependents minimum essential coverage that’s affordable and provides certain minimum value. For 2026, the penalties for noncompliance generally are 1) $3,340 per full-time employee, excluding the first 30, for not offering coverage, and 2) $5,010 per full-time employee who receives a premium tax credit, for offering coverage that doesn’t meet the affordability and minimum value requirements.
Contact us to discuss your obligations.

https://www.merlineandmeacham.com/2026/05/06/aca-penalties-may-still-apply-and-theyre-increasing-for-2026/

06/02/2026

Two trust types can be used together to meet your philanthropic goals and leave a legacy for your family: a charitable remainder trust (CRT) and a wealth replacement trust (WRT). The strategy begins with contributing assets to a CRT. As the CRT’s income beneficiary, you use the regular income stream you receive to fund the WRT. The WRT then purchases a life insurance policy that will ultimately benefit the beneficiaries you name. When you die, the CRT’s assets pass to the charity you’ve selected. At the same time, the insurance proceeds (which are excluded from your taxable estate) are paid to your WRT, which distributes them to your beneficiaries based on the trust terms you established.

https://www.merlineandmeacham.com/2026/05/06/use-a-crt-and-a-wrt-in-tandem-to-achieve-two-estate-planning-goals/

05/29/2026

Companies that engage in research and development activities may qualify for a federal tax credit for some of those expenses. The research credit is complicated to calculate, and not all research activities are eligible. But the tax savings can be significant. Certain taxpayers may even be able to use the credit to offset employer-paid payroll taxes or the owners’ alternative minimum tax obligations.
We can help you navigate the complexities of claiming this credit, including how it works, which costs may qualify and how it interacts with the deduction for research and experimentation costs. Contact us to discuss your business’s eligibility and quantify the potential benefits.

https://www.merlineandmeacham.com/2026/05/06/faqs-about-the-research-credit/

05/28/2026

Life insurance can provide peace of mind. But if your estate is large enough that estate taxes are a concern, it’s important not to own the policy at death. The policy’s proceeds will be included in your taxable estate. To avoid this result, you can create an irrevocable life insurance trust (ILIT) to hold the policy. But a time may come when you no longer need the ILIT. Does its irrevocable nature mean you’re stuck with it forever? Maybe not. Depending on the ILIT’s terms and applicable state law, you might be able to pull a life insurance policy out of an ILIT or even unwind the ILIT entirely. Options may include allowing the policy to lapse or swapping the policy for cash or other assets.

https://www.merlineandmeacham.com/2026/05/06/an-ilit-has-many-benefits-but-options-are-available-to-undo-it/

05/25/2026

05/22/2026

How you capitalize your C corporation isn’t just an accounting matter — it’s a tax-saving opportunity. You can set up funds supplied by shareholders as either capital contributions (equity) or loans (debt).
Future withdrawals by equity investors may result in double taxation. Conversely, repayments of shareholder loans are generally tax-free, while interest payments are taxable to the shareholder and deductible by the corporation. This setup provides a more tax-efficient way to get money out of your company. However, the IRS may reclassify shareholder loans as equity if not properly structured and documented. Contact us to evaluate your options and determine what’s right for your situation.

https://www.merlineandmeacham.com/2026/05/06/debt-vs-equity-classification-counts-when-shareholders-put-money-into-their-corporations/

05/20/2026

A family limited partnership (FLP) allows you to manage and protect your wealth while gradually transferring ownership interests to your children or other heirs. You can fund the FLP with a family business, real estate, investments or other assets. Transferring FLP interests to family members removes the value of the underlying assets from your taxable estate. Although interests that are gifted rather than sold (or sold for less than fair market value) are taxable gifts, they can be shielded (in whole or in part) from federal gift tax by your gift and estate tax exemption. Additional benefits include potential income tax savings and protection from creditors. Contact us for details.

https://www.merlineandmeacham.com/2026/05/06/how-can-an-flp-fit-into-your-overall-estate-planning-strategy/

05/19/2026

Merline & Meacham is thrilled to celebrate the graduation of of its two newest associates, Bryce Lawrence and Nicole Pallay, from the University of South Carolina Joseph F. Rice School of Law! Bryce will be joining the firm in August while he earns an LL.M. in Taxation from the University of Florida School of Law. Nicole Pallay will join us next summer after completing her LL.M. in Taxation at the Boston University School of Law. Please join us in congratulating Bryce and Nicole as they embark on this exciting chapter! ⚖️🎓👏

05/19/2026

In this week's podcast, Fellow Jeffrey (Jeff) C. De Francisco shares powerful, real-world insights drawn from his experience during the 2025 Eaton Fire in California—offering practical guidance on how estate planning professionals can help clients prepare for, navigate, and recover from natural disasters.

https://actecfoundation.org/podcasts/disaster-preparedness-for-trust-and-estate-planning/

05/15/2026

Most businesses close their books on December 31 because it aligns with the calendar year. And it may seem easier for tax filing purposes.

But this approach isn’t right for every business. Some entities — such as construction companies, accounting firms and snowplowing operations — may have valid reasons for adopting fiscal year ends. Aligning a company’s tax year with its operating cycle can streamline reporting and support better planning.

If you’re thinking about changing your business’s year end, contact us to discuss your options. We can also guide you through the IRS approval process.

https://www.merlineandmeacham.com/2026/05/05/should-your-business-consider-a-fiscal-year-end/