Disapproving the action of the District of Columbia Council in approving the DC Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025 (HJRes 142) – After passage of the One Big Beautiful Bill Act, the Council of the District of Columbia (DC) opted out of the tax code from the Act, amending several provisions and restoring the DC child tax credit. This resolution nullifies DC’s amended legislation. It was introduced on Jan. 22 by Rep. Brandon Gill (R-TX). It passed in the House on Feb. 4, the Senate on Feb. 12, and was enacted on Feb. 18.
Semiquincentennial Congressional Time Capsule Act (S 3705) – This bill instructs the Architect of the Capitol to bury a time capsule in the Capitol Visitor Center (on or before July 4, 2026) as part of this year’s 250th anniversary celebration of the nation’s founding. The purpose of the capsule is to represent legislative milestones to date via a joint letter to the future Congress by the majority and minority leaders of the Senate and the House. The time capsule is meant to remain there until July 4, 2276, the nation’s 500th anniversary. The legislation was introduced by Sen. Thom Tillis (R-NC) on Jan. 27. It passed the Senate on Jan. 27, the House on Feb. 9, and was signed into law by the president on Feb. 18.
Bankruptcy Administration Improvement Act of 2025 (S 3424) – This Act was introduced by Rep. Christopher Coons (D-DE) on Dec. 10, 2025, and passed in the Senate on the same day. It cleared the House on Jan. 12 and was signed into law on Feb. 6. The bill makes alterations to the administration of bankruptcy cases by increasing fees paid to trustees in Chapter 7 (liquidation) cases, and extends by five years the fees paid to trustees in Chapter 11 (reorganization) cases. It also extends the term of bankruptcy judgeships in various districts, as well as other provisions.
Ending Improper Payments to Deceased People Act (S 269) – This legislation requires the Social Security Administration (SSA) to share its death records with the Treasury Department in order to prevent improper payments to deceased individuals. In the past, this bill had to be extended every three years, but the new bill makes the requirement permanent. The bill was introduced by Sen. John Kennedy (R-TN) on Jan. 28, 2025. It passed unanimously in the Senate on Sept. 19, 2025, cleared the House on Jan. 13, and was enacted on Feb. 10.
Safeguard American Voter Eligibility Act (S 1383) – This controversial voting bill passed in the House on Feb. 11. The Republicans in the Senate have secured 50 votes for passage, but the bill requires 60. The provisions in the current bill include requiring:
Each state is to submit full voter rolls to the Department of Homeland Security (DHS) for verification of citizenship via its SAVE system, which has historically had a high error rate of flagging citizens as non-citizens.
Voter roll purges every 30 days and end the 90-day quiet period that allows voters mistakenly purged time to re-register before Election Day.
New or changing voter registrants to show proof of U.S. citizenship (birth certificate or passport; five states already meet this requirement for a Real ID driver’s license).
Voters to show photo ID at polls in order to vote (38 states already require this)
A ban on automatically mailing ballots to all voters (currently used by eight states and DC); voters would have to send individual requests to receive a mail ballot.
Democrats in the Senate have vowed to block passage via filibuster.
Alan F Burke CPA
Burying Time Capsules, Ending Payments to Dead People, and Safeguarding Voting Rights for U.S. Citizens
March 1, 2026 · Blog, Congress at Work
⏱ 3 min read
Disapproving the action of the District of Columbia Council in approving the DC Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025 (HJRes 142) – After passage of the One Big Beautiful Bill Act, the Council of the District of Columbia (DC) opted out of the tax code from the Act, amending several provisions and restoring the DC child tax credit. This resolution nullifies DC’s amended legislation. It was introduced on Jan. 22 by Rep. Brandon Gill (R-TX). It passed in the House on Feb. 4, the Senate on Feb. 12, and was enacted on Feb. 18.
Semiquincentennial Congressional Time Capsule Act (S 3705) – This bill instructs the Architect of the Capitol to bury a time capsule in the Capitol Visitor Center (on or before July 4, 2026) as part of this year’s 250th anniversary celebration of the nation’s founding. The purpose of the capsule is to represent legislative milestones to date via a joint letter to the future Congress by the majority and minority leaders of the Senate and the House. The time capsule is meant to remain there until July 4, 2276, the nation’s 500th anniversary. The legislation was introduced by Sen. Thom Tillis (R-NC) on Jan. 27. It passed the Senate on Jan. 27, the House on Feb. 9, and was signed into law by the president on Feb. 18.
Bankruptcy Administration Improvement Act of 2025 (S 3424) – This Act was introduced by Rep. Christopher Coons (D-DE) on Dec. 10, 2025, and passed in the Senate on the same day. It cleared the House on Jan. 12 and was signed into law on Feb. 6. The bill makes alterations to the administration of bankruptcy cases by increasing fees paid to trustees in Chapter 7 (liquidation) cases, and extends by five years the fees paid to trustees in Chapter 11 (reorganization) cases. It also extends the term of bankruptcy judgeships in various districts, as well as other provisions.
Ending Improper Payments to Deceased People Act (S 269) – This legislation requires the Social Security Administration (SSA) to share its death records with the Treasury Department in order to prevent improper payments to deceased individuals. In the past, this bill had to be extended every three years, but the new bill makes the requirement permanent. The bill was introduced by Sen. John Kennedy (R-TN) on Jan. 28, 2025. It passed unanimously in the Senate on Sept. 19, 2025, cleared the House on Jan. 13, and was enacted on Feb. 10.
Safeguard American Voter Eligibility Act (S 1383) – This controversial voting bill passed in the House on Feb. 11. The Republicans in the Senate have secured 50 votes for passage, but the bill requires 60. The provisions in the current bill include requiring:
Each state is to submit full voter rolls to the Department of Homeland Security (DHS) for verification of citizenship via its SAVE system, which has historically had a high error rate of flagging citizens as non-citizens.
Voter roll purges every 30 days and end the 90-day quiet period that allows voters mistakenly purged time to re-register before Election Day.
New or changing voter registrants to show proof of U.S. citizenship (birth certificate or passport; five states already meet this requirement for a Real ID driver’s license).
Voters to show photo ID at polls in order to vote (38 states already require this)
A ban on automatically mailing ballots to all voters (currently used by eight states and DC); voters would have to send individual requests to receive a mail ballot.
Democrats in the Senate have vowed to block passage via filibuster.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
Companies that have assets on their balance sheet, but the values of those assets aren’t accurately reflected, are considered to have hidden value. As part of an investor’s fundamental analysis of a potential investment, it looks at a company’s financial statements, the state of the macro economy, and the business’ competitive position relative to its industry. It looks at assets’ book value, reflected on the balance sheet, compared to what the market values it on a fair value or market price. The difference between the balance sheet price and the prevailing market value is what may be hidden.
Defining Hidden Value
Common areas where hidden value may be found include natural resources, real estate, a business’ customer base, and inventory. When investors evaluate a project and conduct accurate analysis between the balance sheet’s book value and the hidden value they believe the market will price it to in the future, investors may take advantage of the increase in value through early investing.
Real Estate
When it comes to real estate, by the way of generally accepted accounting principles (GAAP), real estate asset purchases are reported at historical cost. However, real estate values oftentimes rise but are not necessarily reflected on the company’s balance sheet. Since the price is reflected on the balance sheet, minus depreciation, if the real estate’s appraisal sells for at or near the appraised price, the difference shows the potential for hidden value.
Asset Considerations
Regardless of the type of asset, and depending on how the items have been cared for, hidden value may exist in the difference between financial statement value and real-world production capability. Assets that are taken care of impeccably, such as machinery, despite following a depreciation schedule, may have actual value above their reported value. Where intellectual property is involved, the amortization schedule may not reflect the full value if the company uses the IP or licenses it for revenue.
Inventory accounting methods, specifically last-in, first-out (LIFO), can impact hidden value considerations. When inflation is elevated, this method denotes the latest costs to the cost of goods sold. More mature inventory at lower costs is kept on the balance sheet for longer periods. This accounting method reduces the assets’ fair value recorded on the final inventory figure, as well as potentially creating tax benefits by lowering the business’ recorded income.
Customer Loyalty
Businesses that have a strong base of loyal customers often own an undervalued asset of customer loyalty. When customers have established a positive relationship with a company, it can make customers more open to new products or services. By opening an easier reception for future growth, the business creates an asset that’s not completely reflected on the balance sheet.
Conclusion
Regardless of the industry or the type of company, implementing effective accounting analysis and recording is one way to maximize one’s tax obligations and maximize asset value to investors and purchasers. Understanding how to do it is the first step in identifying and strategizing current and future financial plans.
Alan F Burke CPA
Understanding Hidden Values
March 1, 2026 · Accounting News, Blog
⏱ 3 min read
Companies that have assets on their balance sheet, but the values of those assets aren’t accurately reflected, are considered to have hidden value. As part of an investor’s fundamental analysis of a potential investment, it looks at a company’s financial statements, the state of the macro economy, and the business’ competitive position relative to its industry. It looks at assets’ book value, reflected on the balance sheet, compared to what the market values it on a fair value or market price. The difference between the balance sheet price and the prevailing market value is what may be hidden.
Defining Hidden Value
Common areas where hidden value may be found include natural resources, real estate, a business’ customer base, and inventory. When investors evaluate a project and conduct accurate analysis between the balance sheet’s book value and the hidden value they believe the market will price it to in the future, investors may take advantage of the increase in value through early investing.
Real Estate
When it comes to real estate, by the way of generally accepted accounting principles (GAAP), real estate asset purchases are reported at historical cost. However, real estate values oftentimes rise but are not necessarily reflected on the company’s balance sheet. Since the price is reflected on the balance sheet, minus depreciation, if the real estate’s appraisal sells for at or near the appraised price, the difference shows the potential for hidden value.
Asset Considerations
Regardless of the type of asset, and depending on how the items have been cared for, hidden value may exist in the difference between financial statement value and real-world production capability. Assets that are taken care of impeccably, such as machinery, despite following a depreciation schedule, may have actual value above their reported value. Where intellectual property is involved, the amortization schedule may not reflect the full value if the company uses the IP or licenses it for revenue.
Inventory accounting methods, specifically last-in, first-out (LIFO), can impact hidden value considerations. When inflation is elevated, this method denotes the latest costs to the cost of goods sold. More mature inventory at lower costs is kept on the balance sheet for longer periods. This accounting method reduces the assets’ fair value recorded on the final inventory figure, as well as potentially creating tax benefits by lowering the business’ recorded income.
Customer Loyalty
Businesses that have a strong base of loyal customers often own an undervalued asset of customer loyalty. When customers have established a positive relationship with a company, it can make customers more open to new products or services. By opening an easier reception for future growth, the business creates an asset that’s not completely reflected on the balance sheet.
Conclusion
Regardless of the industry or the type of company, implementing effective accounting analysis and recording is one way to maximize one’s tax obligations and maximize asset value to investors and purchasers. Understanding how to do it is the first step in identifying and strategizing current and future financial plans.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
Every modern business is paying rent. Not for office space or equipment, but for the digital infrastructure that runs the company. This might include the cost of CRMs, email platforms, project management tools, automation tools, analytical dashboards, and countless other tools designed to solve a specific business need. Individually, these tools seem affordable; collectively, they form a permanent tax on business growth.
For several years now, software-as-a-service (SaaS) has been sold as a form of freedom. Businesses were promised low upfront cost, instant deployment, and minimal complexity. For a long time, SaaS delivered on this promise. It helped companies move faster, scale quickl,y and compete globally regardless of size.
But this is shifting. Now, business leaders are beginning to question whether renting critical systems is still a worthy strategy.
The SaaS Era
The rise of SaaS was a necessary evolution. It lowered the entry barrier for tools that once required large IT teams and a huge capital investment.
However, this convenience turned into dependency. Businesses not only adapted SaaS tools, but they also built operations around them. Third-party platforms now hold business workflows, customer data, analytics, automations, and even institutional knowledge. This means that a business has dozens of subscriptions they don’t fully control, can’t meaningfully customize, and must keep paying for to keep operating.
What Sovereign Ownership Means
Sovereign ownership doesn’t mean abandoning the cloud or rejecting modern technology; it means owning the core logic of your business systems. The sovereign models emphasize self-management, control and long-term resilience.
When a business practices sovereign ownership, it controls:
Where data resides (e.g., virtual private clouds or sovereign clouds)
Access permissions and encryption keys
Workflows and automations
Internal knowledge systems
AI models and training data
The ability to move, adapt, or rebuild without needing vendor permission
Self-sovereign identity has been a great support for this shift. SSI protocols allow businesses, employees, and customers to control their digital identities and credentials without relying on centralized identity providers. This means that identity is not locked inside the SaaS platform, as it is portable, verifiable, and owned by the entity itself.
The Real Cost of SaaS Goes Beyond the Invoice
SaaS costs more than renting the service. Aside from monthly or annual subscriptions that compound into a huge expense over time, vendor lock-in makes switching platforms painful and risky. The pricing models also keep changing. Features may be removed or placed under higher payment tiers. Other issues include broken integrations and limited or messy data exports.
More critically, companies adapt their workflows to match the SaaS tools, rather than the tool serving the business. Therefore, innovation is constrained by what the platform allows and not what the business needs.
The biggest risk is when a SaaS provider is acquired, suffers downtime, or shuts down entirely. When this happens, your business absorbs the impact without control or leverage.
Why 2026 Is the Turning Point
Why now? Because the alternatives have finally matured. Decentralized physical infrastructure (DePIN), the maturity of enterprise-grade, open-source software, and modular cloud architecture have made system ownership accessible without deep technical teams. AI has transformed how businesses build, automate, and maintain internal tools. Modular infrastructure allows companies to own their core while selectively renting specialized services.
At the same time, external pressure is increasing as data privacy regulations tighten. Regulatory frameworks like the U.S. Cloud Act, the GDRP and the EU’s Digital Operational Resilience Act (DORA) demand operational independence that SaaS cannot fully deliver. Gartner predicts that by 2030, 75 percent of enterprises outside of the United States will implement data sovereignty strategies due to regulatory scrutiny and geopolitical tensions.
Major players are already responding. IBM is one example of the shift, as they already announced IBM Sovereign Core, software that helps businesses take back control of their data and systems.
Customers are also more aware. They want to know how their data is stored, processed, and protected. AI models trained on proprietary information raise new questions of ownership and risk. In an uncertain global economy, businesses want cost predictability and not endless variable subscriptions.
The mindset is shifting from speed at any cost to resilience by design.
From Renters to Owners
SaaS helped businesses grow. But growth built on dependency has limits.
2026 represents a strategic window where ownership is finally accessible, affordable, and necessary. The shift toward sovereign systems is not about rebellion against technology that has previously helped businesses. It’s about leverage, resilience, and long-term value.
The future belongs to businesses that stop renting their foundations and start owning their future.
Alan F Burke CPA
Reclaiming the Rent: Why 2026 is the Year Businesses Switch from SaaS to Sovereign Ownership
February 1, 2026 · Blog, What's New in Technology
⏱ 4 min read
Every modern business is paying rent. Not for office space or equipment, but for the digital infrastructure that runs the company. This might include the cost of CRMs, email platforms, project management tools, automation tools, analytical dashboards, and countless other tools designed to solve a specific business need. Individually, these tools seem affordable; collectively, they form a permanent tax on business growth.
For several years now, software-as-a-service (SaaS) has been sold as a form of freedom. Businesses were promised low upfront cost, instant deployment, and minimal complexity. For a long time, SaaS delivered on this promise. It helped companies move faster, scale quickl,y and compete globally regardless of size.
But this is shifting. Now, business leaders are beginning to question whether renting critical systems is still a worthy strategy.
The SaaS Era
The rise of SaaS was a necessary evolution. It lowered the entry barrier for tools that once required large IT teams and a huge capital investment.
However, this convenience turned into dependency. Businesses not only adapted SaaS tools, but they also built operations around them. Third-party platforms now hold business workflows, customer data, analytics, automations, and even institutional knowledge. This means that a business has dozens of subscriptions they don’t fully control, can’t meaningfully customize, and must keep paying for to keep operating.
What Sovereign Ownership Means
Sovereign ownership doesn’t mean abandoning the cloud or rejecting modern technology; it means owning the core logic of your business systems. The sovereign models emphasize self-management, control and long-term resilience.
When a business practices sovereign ownership, it controls:
Where data resides (e.g., virtual private clouds or sovereign clouds)
Access permissions and encryption keys
Workflows and automations
Internal knowledge systems
AI models and training data
The ability to move, adapt, or rebuild without needing vendor permission
Self-sovereign identity has been a great support for this shift. SSI protocols allow businesses, employees, and customers to control their digital identities and credentials without relying on centralized identity providers. This means that identity is not locked inside the SaaS platform, as it is portable, verifiable, and owned by the entity itself.
The Real Cost of SaaS Goes Beyond the Invoice
SaaS costs more than renting the service. Aside from monthly or annual subscriptions that compound into a huge expense over time, vendor lock-in makes switching platforms painful and risky. The pricing models also keep changing. Features may be removed or placed under higher payment tiers. Other issues include broken integrations and limited or messy data exports.
More critically, companies adapt their workflows to match the SaaS tools, rather than the tool serving the business. Therefore, innovation is constrained by what the platform allows and not what the business needs.
The biggest risk is when a SaaS provider is acquired, suffers downtime, or shuts down entirely. When this happens, your business absorbs the impact without control or leverage.
Why 2026 Is the Turning Point
Why now? Because the alternatives have finally matured. Decentralized physical infrastructure (DePIN), the maturity of enterprise-grade, open-source software, and modular cloud architecture have made system ownership accessible without deep technical teams. AI has transformed how businesses build, automate, and maintain internal tools. Modular infrastructure allows companies to own their core while selectively renting specialized services.
At the same time, external pressure is increasing as data privacy regulations tighten. Regulatory frameworks like the U.S. Cloud Act, the GDRP and the EU’s Digital Operational Resilience Act (DORA) demand operational independence that SaaS cannot fully deliver. Gartner predicts that by 2030, 75 percent of enterprises outside of the United States will implement data sovereignty strategies due to regulatory scrutiny and geopolitical tensions.
Major players are already responding. IBM is one example of the shift, as they already announced IBM Sovereign Core, software that helps businesses take back control of their data and systems.
Customers are also more aware. They want to know how their data is stored, processed, and protected. AI models trained on proprietary information raise new questions of ownership and risk. In an uncertain global economy, businesses want cost predictability and not endless variable subscriptions.
The mindset is shifting from speed at any cost to resilience by design.
From Renters to Owners
SaaS helped businesses grow. But growth built on dependency has limits.
2026 represents a strategic window where ownership is finally accessible, affordable, and necessary. The shift toward sovereign systems is not about rebellion against technology that has previously helped businesses. It’s about leverage, resilience, and long-term value.
The future belongs to businesses that stop renting their foundations and start owning their future.
Disclaimer
These articles provide general information on tax, accounting, and financial topics for small businesses and individuals. They are educational in nature and are not specific legal, accounting, financial, tax, or other professional advice, and should not be relied upon as such. This content was prepared by Service2Client and may have been reviewed or edited by the website owner for accuracy and compliance. Look for a trust mark below for verification details. No representation is made that any approach described will achieve a particular result, and no regulatory or professional body has reviewed or endorsed this content. Because each situation is different, readers should consult a qualified professional about their specific circumstances before acting. Images accompanying these articles are protected by copyright and may not be copied or reused.
Companies that have assets on their balance sheet, but the values of those assets aren’t accurately reflected, are considered to have hidden value. As part of an investor’s fundamental analysis of a potential investment, it looks at a company’s financial statements, the state of the macro economy, and the business’ competitive position relative to its industry. It looks at assets’ book value, reflected on the balance sheet, compared to what the market values it on a fair value or market price. The difference between the balance sheet price and the prevailing market value is what may be hidden.
Every modern business is paying rent. Not for office space or equipment, but for the digital infrastructure that runs the company. This might include the cost of CRMs, email platforms, project management tools, automation tools, analytical dashboards, and countless other tools designed to solve a specific business need. Individually, these tools seem affordable; collectively, they form a permanent tax on business growth.