Here is a practical overview of the federal tax rules around inherited HSAs and a few planning steps that can help avoid surprises.

When an HSA owner dies, the account passes according to the designated beneficiary on file, not necessarily according to the will or trust. This is why beneficiary forms are important.  From a federal income tax standpoint, there are three main possibilities for designating the beneficiary:

1. The surviving spouse is the designated beneficiary
2. A non-spouse beneficiary is the designated beneficiary
3. The estate receives the account, either because the estate was named or because there is no valid stated beneficiary

If the surviving spouse is the beneficiary

This is generally the simplest and most tax beneficial outcome.

When the deceased owner’s surviving spouse is the designated beneficiary, the HSA is treated as if it were the spouse’s own HSA. So, the account continues as an HSA rather than ending at death.  This means that:

1. There is no immediate taxable income at the time of inheritance
2. The spouse can continue to use the HSA for qualified medical expenses
3. Future distributions are taxed under the normal HSA rules
4. If the spouse is otherwise eligible, the spouse can continue making HSA contributions going forward

If a non-spouse individual is the beneficiary

This is where many people are caught off guard.

If the beneficiary is anyone other than the surviving spouse, such as an adult child, sibling, or other individual, the account stops being an HSA as of the date of death. That means the beneficiary does not continue the account as an inherited HSA in the way a spouse can.  This means that:

1. A liquidating distribution is completed to the beneficiary.
2. The non-spouse beneficiary must include in their income the fair market value of the HSA on the date of death In the instance of a death, no additional 20% tax is applied
3. This income is reported on the beneficiary’s return for the tax year that includes the date of death

However, there is one important tax break to know about.

A non-spouse beneficiary can reduce the taxable income otherwise recognized from the inherited HSA by paying the deceased person’s qualified medical expenses if:

1. the expenses were incurred before death
2. the beneficiary pays them within one year after the date of death

This requires good recordkeeping and the beneficiary will need to document:

1. The qualified expenses
2. The date that the expenses were incurred
3. The date of payment

If the Estate Is the Beneficiary

 If the HSA goes to the estate, the account is no longer considered to be an HSA. But instead of the income being reported by a non-spouse beneficiary, the fair market value of the account is included on the decedent’s final income tax return.  This amount is also included in the deceased owner’s total estate and subject to the estate tax exemption amount.  If an estate tax is actually paid on the inherited HSA’s value, there may be a deduction available to mitigate double taxation.

Key points to take away

1. a spouse beneficiary usually gets the most favorable treatment
2. a non-spouse beneficiary generally inherits an immediate tax liability with the account balance
3. the estate as beneficiary shifts the income to the decedent’s final tax return, but the income is includable in the gross estate

Below is a side by side comparison.

The post Inherited HSAs: What you need to know first appeared on Fluence.

Oregon: Minimum Wage Goes Up July 1, 2026

Good reminder for Oregon employers: minimum wage increases every year on July 1, and 2026 is no exception. The rate depends on where the work is performed, not where your business is headquartered.

Oregon’s New Rates (Starting July 1, 2026)

• $15.55/hour – Standard rate
  This applies to most Oregon counties and areas outside the Portland metro urban growth boundary.
• $16.80/hour – Portland Metro rate
  This applies to work done inside the urban growth boundary in parts of Clackamas, Multnomah, and Washington counties.
• $14.55/hour – Non‑urban (rural) rate
  This applies to designated rural counties like Douglas, Klamath, Baker, Grant, and others.

Washington State: Rates Set for All of 2026

Washington’s statewide minimum wage went up on January 1, 2026, and it stays the same for the rest of the year—unless a city or county requires a higher amount.

Washington Statewide Minimum Wage (2026)

• $17.13/hour for employees age 16 and older
• $14.56/hour for employees ages 14–15

Here is a link to review which cities in Washington require paying more than the state minimum wage – https://lni.wa.gov/workers-rights/wages/minimum-wage/local-minimum-wage-rates

Make sure you are reviewing all rates and paying all employees at or above the required minimum wage.

If you have any questions, please contact our office.

The post Minimum Wage Updates for 2026: What Small Businesses in Oregon & Washington Should Know first appeared on Fluence.

 Under the current program, eligible recipients may receive up to $25,000 over the life of the program. In 2025, the program was reopened after Portland City Council approved an additional $1 million in funding, giving more businesses and nonprofits a chance to apply for support.

 Who may be eligible?

1. Small businesses within the City of Portland

1. • Must have current City of Portland Business license and State of Oregon registration
   • Must have 50 or fewer employees
   • Must maintain regular hours of operation
   • Space must be zoned for commercial use

2. Nonprofits in Portland

3. Organizations operating from ground-floor storefronts with “in person” customer facing business

4. Those that experienced physical or economic damage due to break-ins or vandalism

If your business has had to deal with burglary, property damage, or similar disruption, it may be worth reviewing the program details to see whether you qualify.

Because grant programs can include additional requirements, we recommend reviewing the current Prosper Portland application materials to determine potential eligibility.

 What types of costs might be covered?

1. Replacing broken windows
2. Repairing doors, locks, and entrances
3. Cleanup related to an incident
4. Security upgrades such as cameras, reinforced locks, gates, or similar measures
5. Costs related to temporary closures
6. Insurance premium increases

To get started:

1. Gather documentation now

Start compiling records that show both the incident and the related financial impact. Depending on your situation, that might include:

1. Photos of damage
2. Repair invoices or estimates
3. Receipts for cleanup work
4. Insurance correspondence
5. Police reports
6. Internal records showing lost revenue or other disruption

The more organized your documentation is, the easier it may be to complete an application and support your reimbursement request.

2. Review the current program page and application details

Visit the Prosper Portland or City of Portland grants page to review eligibility rules, application steps, and required documents.

3. Track-related reimbursements or relief

If you have insurance proceeds or other related funding, keep a clear record of what has been received or applied for.

4. Let us know if you will be applying for a grant

Even though this is a relief program, grant proceeds may be taxable income depending on your specific situation. They may also affect how certain repair costs or relief items are recorded in your books, tax planning, and tax filings. 

5. Apply soon if it appears you may be eligible

Because the program stays open only as long as funds are available, it makes sense to act soon once you have the necessary information together.

See the website below for Prosper Portland for additional information:

https://prosperportland.us/our-work/repair-restore-grant-program/

The post Portland Reopens Repair/Restore Grant Funding for Small Businesses and Nonprofits first appeared on Fluence.

• The list we provide includes only check refunds that remain un-cashed after one year, which we will void in QuickBooks, but they only need to be reported once they’ve been outstanding after three years. The list will also provide the reporting period for each un-cashed check, so you’ll want to keep these lists to review periodically to ensure the checks weren’t voided or reissued during that time period.
• If they were voided due to error and/or reissued, the amount of the original un-cashed check would not need to be turned over to the state.
• Something our list does not show is credits that remain on patients’ accounts for longer than three years. This is why it is very important to review a credit balance report regularly – ideally monthly – to ensure all credit balances are accounted for. There are many reasons a credit balance may exist:
• A true patient or insurance overpayment – these should be issued as refunds regularly. For a patient overpayment, a patient may request to leave the balance on their account to offset future treatment. If this is the case, you’ll want to make sure you get it in writing from the patient. If you don’t have documentation to leave it on the account, even if the patient verbally tells you to do so, you still run the risk of them coming back and claiming you’ve been withholding their refund.
• Small balances – most practices have a small-balance write-off adjustment in place to clean these up. Typically, we see $5-$10; any balance – positive or negative – would be written off by the practice.
• The formal letter mentions this as well, but minimum-balance credit refunds do need to still be turned over to the state.
• Timing of posting production – if you receive a full payment upfront for treatment done over time but post the production as it happens, it can appear there is a credit balance on the account. These should resolve themselves once all the treatment is completed.
• Incorrect posting – sometimes things (usually production or adjustments) get posted incorrectly. This is another reason it’s important to review all credit balances regularly: to catch any mistakes that are resulting in incorrect balances on a patient’s account.

We have been seeing an uptick in Unclaimed Property audits recently so it’s extra important, this is something that is being looked at regularly. It may take some time upfront if it’s been a while since you’ve done an internal audit of all the credit balances and/or haven’t been turning over unclaimed property each year. It is worth it to do so sooner than later so it will be much easier to remain on top of it moving forward.

The post Unclaimed Patient Refunds first appeared on Fluence.

1. Additional Runway for Retirement Plan True‑Ups

Certain retirement plan contributions or adjustments — such as 401(k) or profit‑sharing true‑ups — may not be fully finalized by the original filing deadline. An extension preserves the ability to properly reflect these items if adjustments are required and provides a larger funding window for the taxpayer.

2. Preserving Tax Planning Flexibility

Under federal tax rules, some elections and actions are only available if a return is timely filed, which includes returns filed on extension. Once a return is filed, making changes may require an amended return — and not all planning opportunities are available through amendments.

These situations are uncommon, but when they arise, having an extension in place can make a meaningful difference.

3. Allows for Better Tax Outcomes

S Corporation and Partnership returns are due March 15, but the income from those entities flows into individual returns that aren’t due until April 15. In many cases, extending the business return gives us more time to see how pass‑through income will affect the overall tax picture, allowing for better‑informed decisions before finalizing related returns.

4. No Downside When Done Correctly

When an extension is filed properly and any required payment is made on time:

• There is no penalty
• There is no negative mark
• There is no impact on audit risk

For that reason, extensions are commonly used as a best practice rather than a last‑minute solution.

Federal Extensions Are Automatic

For federal returns, little to no action is required from most clients beyond ensuring that any expected tax is paid.

• Filing Form 7004 grants an automatic extension when filed by the original due date
• No explanation or justification is required by the IRS

State and Local Extensions: Often a Payment Is Required

If a state extension does require action because of tax owed, it is usually recognized by submitting a payment voucher by the original due date.

Because state rules differ, this is reviewed on a case‑by‑case basis to ensure compliance.

The Bottom Line

Extensions are not a sign of delay or uncertainty. When used thoughtfully, they are a planning tool that protects flexibility, accuracy, and compliance.

Whether or not the extended deadline is ultimately needed, filing an extension can provide peace of mind — and in some cases, meaningful tax advantages — with no downside when handled properly.

If you ever have questions about how extensions apply to your specific situation, we’re always happy to walk through the details.

The post Why Corporate Extensions Can Be Beneficial — Even If Not “Used” first appeared on Fluence.

1. Who Owns Dental Gold?

When a dentist removes a gold crown, other gold‑containing restoration or has left over scraps from lab work and grindings, the question of ownership seems murky—but legally, it’s quite clear:

The patient owns it.

Once a gold crown is removed, it is considered the personal property of the patient, because they originally paid for the restoration. Dentists routinely acknowledge this and are expected to offer the crown back to the patient.   If the patient does not want it, ownership transfers to the practice. Many patients decline to take their old crown, often unaware of its value. When this happens, the scrap is sterilized and becomes part of the practice’s precious‑metal scrap collection. Once relinquished, the dental office can recycle the scrap through a refiner, and the resulting payment belongs to the practice.

The practice owns it.

Gold generated from lab work and grindings belong to the practice.

2. Why Gold Scrap Matters Financially

A single crown may not look like much, but dental scrap can accumulate thousands of dollars in recoverable precious metals. Most practices underestimate how much value they generate—and thieves know it.  Scrap may include:

• Gold crowns and bridges
• Porcelain‑fused‑to‑metal restorations
• Palladium, platinum, and silver‑bearing alloys
• Miscellaneous precious‑metal debris (e.g., floor sweepings, lab waste)

3. The Rising Risk of Gold Scrap Theft

Dental scrap theft is more common than most dentists realize. Assistants, sterilization techs, or anyone with access to back‑office areas may pocket small amounts over time. Because the material is tiny, untracked, and easy to sell, losses can go unnoticed for years.

Given the high value of gold and other precious metals, safeguarding your scrap is no longer optional. It’s a standard risk‑management practice.

4. How to Protect Your Practice Against Scrap Theft

Implementing even a few protocols dramatically reduces the risk:

Create a documented scrap-handling policy/SOP

Specify where scrap is stored, who has access, and how often it’s collected for refining. See example SOP: Who Really Owns Dental Gold Scrap

Use tamper‑resistant containers

Keep scrap in sealed, labeled containers stored in a monitored or locked area.

Limit access to authorized team members only

Designate one or two trusted employees to manage scrap and maintain transparency.

Reconcile scrap regularly with a reputable refiner

Work with refiners who provide detailed assay reports and evidence‑based payouts.

Educate your team

Most cases of theft occur simply because staff don’t understand the value or think it won’t be missed. Awareness creates accountability.

Final Thoughts

Dental gold scrap is a legitimate and valuable asset of your practice—but only if it’s handled properly. By understanding who legally owns removed restorations and by safeguarding your scrap from theft, your practice protects revenue, maintains patient trust, and strengthens internal controls.

The post Who Really Owns Dental Gold Scrap — and Why Protecting It Matters More Than Ever first appeared on Fluence.

Please note that this tax is separate from Washington’s Business & Occupation (B&O) Tax, which is based on your gross income from providing dental care services.

The following transactions are exempt from sales tax.

1. Professional Dental Services – The services you provide as a dentist, such as exams, cleanings, fillings, and other patient care, are exempt from Washington sales and use tax. This exemption applies even if you use or furnish materials and supplies while providing care. The primary purpose of these transactions is the professional service, not the sale of tangible goods.
2. Dental Prosthetic Devices – Sales of qualifying dental prosthetic devices to dentists are also exempt from retail sales tax. This includes dental prosthetic devices that replace or support missing or defective teeth, including dentures, crowns, bridges, and similar items. If you purchase these items from a dental laboratory or another dentist for use in patient care, no sales tax should be charged, provided the items meet the legal definition of prosthetic devices. Dentists and dental labs should keep records to show that the items sold qualify as prosthetic devices and are exempt from sales tax. When purchasing for resale, a reseller permit should be provided to the vendor to document the wholesale nature of the transaction.

The following transactions are not exempt.

1. Sales of Tangible Personal Property to Patients – If your practice sells items such as toothbrushes, toothpaste, mouthwash, or other over-the-counter dental products directly to patients, these sales are subject to retail sales tax. The exemption only applies when these items are used as part of providing dental care.
2. Purchases of Office Supplies and Equipment – Purchases of office furniture, computers, general supplies, and other tangible personal property for use in your practice are subject to sales and use tax. There is no general exemption for these items, even though they are used in the operation of a dental office.

Lastly, if your practice is making a purchase that you believe to be exempt, it will be important to use the “Sales Tax Exemption Certificate For Health Care Providers” at the time of transaction with the vendor.  The form can be found at: https://dor.wa.gov/sites/default/files/2022-02/27-0055.pdf . Its purpose is to provide the vendor with assurance that the items are being used in the course of providing patient care, which allows the seller to treat the purchase as exempt from retail sales tax when permitted under Washington law. Both the dental practice and the seller must retain copies of the exemption certificate in their records, as required by the Washington Department of Revenue.

The post Is your Washington dental practice subject to sales and use tax? first appeared on Fluence.

Here’s what taxpayers need to know and why having a bank account on file is now critical.

The IRS Is Phasing Out Paper Checks

The IRS is steadily transitioning to electronic payments for both refunds and tax payments. This shift is designed to reduce fraud, speed up processing, and lower administrative costs. As a result, paper checks are no longer the default option for refunds.

While paper checks have not been eliminated entirely, they are now considered a last resort rather than a standard method of payment. This change directly impacts taxpayers who file returns without direct deposit information.

What Happens If You File Without Direct Deposit Information?

If you e‑file your 2025 tax return and do not include bank account details, the IRS will accept and process your return, but your refund timeline will change.

Here’s the step‑by‑step process:

1. Your Return Is Processed Without a Refund Issued

The IRS will not automatically send a paper check. Instead, they pause the refund while attempting to obtain electronic payment information from you.

2. The IRS Sends a Letter Requesting Banking Information

After filing, the IRS will mail you a letter asking you to provide or update your direct deposit details within 30 days. This letter will:

• Explain how to submit banking information
• Address situations where direct deposit was rejected by a bank
• Provide details on exceptions

3. A Dedicated Phone Line Is Required for Paper Check Requests

If you truly cannot use direct deposit, the letter includes a special IRS phone number you must call to request an exception and approval for a paper check. Fluence will not be able to assist with this.

4. Paper Checks Are Issued Only After Extended Delays

If no banking information is provided and no exception is approved, the IRS will wait up to six weeks before issuing a paper check. This delay exists primarily to prevent the IRS from having to pay interest on your refund.

Not having a bank account on file no longer just means “waiting for a check.” In 2025, it can mean weeks or months of delay, extra IRS correspondence, and unnecessary stress.

The post No Bank Account on File? Expect Significant Tax Refund Delays in 2025 first appeared on Fluence.

Use the steps below to protect your legacy, your family, and your team.

1. Designate a Trusted Decision Maker – Identify who would immediately step in to communicate with staff, contact your attorney and CPA and make temporary operational decisions.
2. Establish Emergency Clinical Coverage- Sudden loss of a practicing dentist shuts down production instantly. A temporary licensed dentist, ideally a colleague with whom you’ve made a reciprocal agreement, can step in to operate the practice until it can be sold.
3. Maintain Adequate Insurance –Life and disability insurance can make the difference between a smooth transition and a forced, low‑value sale. Dental CPAs have seen practices sell for far less after a sudden death even when a plan is in place. Insurance helps buffer these losses for surviving family members
4. Create an Emergency Continuity Plan- a detailed plan to help protect your practice from collapse, ensure uninterrupted patient care, preserve financial value and give guidance to your staff and loved ones. Emergency Action Plan for Your Dental Practice. 
5. Staff and Patient Communication Templates- Clear communication will help ensure clarity during times of uncertainty, reduce emotional overload and help preserve patient trust and retention. Staff and Patient Communication Templates.

Final Thoughts

Creating a plan for your sudden death is essential because without clear instructions, your dental practice can quickly fall into operational and financial chaos, placing a heavy burden on your staff, patients, and surviving family. Real‑world cases show that when dentists pass unexpectedly without a structured plan, practices often lose significant value — selling for about half of what they would have if the transition had been planned, even when local colleagues volunteered to help keep things afloat. By outlining how clinical care will continue, who will manage day‑to‑day operations, and how communication will be handled, you protect patient safety, support your team, and preserve the financial stability and legacy of the practice you’ve built.

The post Preparing Your Dental Practice for a Sudden Death: Why Every Dentist Needs a Continuity Plan first appeared on Fluence.

The Oregon Department of Revenue’s Form OR-VSI is used to gather data about the race and ethnicity of Oregon taxpayers. This data will help the Oregon Department of Revenue work toward fairness and equity in the personal income tax system. It can’t be used for any other purpose. Completing this form is voluntary. If you choose to file this form, the Oregon Department of Revenue may use your SSN or ITIN to match your tax return and account information to your VSI data for the purposes described above. If no form is filed, the department will not use your SSN or ITIN for those purposes. OAR 150-316-0662. See Form OR-VSI Instructions for more information.

https://www.oregon.gov/dor/programs/individuals/Pages/or-vsi-instructions.aspx

It is not mandatory to include this form with your tax return, and taxpayers can opt out simply by not filing the form. Fluence will not include this information with your return unless you request it.

You can also choose to report the information yourself online at https://revenueonline.dor.oregon.gov. Under the Individuals menu, there is a link to voluntarily submit your race and ethnicity data (no login required).

For more information, you can visit the Oregon Department of Revenue’s VSI program page:

https://www.oregon.gov/dor/programs/individuals/Pages/self-identification.aspx

The post Voluntary Self-Identification Form for Oregon Taxpayers first appeared on Fluence.