Compliance Updates

The TINA compliance threshold rose to $2.5M on October 1, 2025, and jumps to $10M for contracts after June 30, 2026. This guide maps all three active thresholds, explains the four exceptions, and delivers the seven-step pre-certification sweep that protects contractors from defective pricing claims.

The OBBBA Section 174A catch-up election lets eligible small federal contractors recover unamortized 2022-2024 domestic R&D before the July 6, 2026 deadline. The §481(a) catch-up adjustment also lands on FAR 31.205-18 indirect cost pool reporting, which most general-practice CPAs miss.

The Supreme Court voided $175 billion in IEEPA tariffs, but Section 232, 301, and 122 tariffs remain active. Government contractors face new refund credit obligations under FAR 31.205-41(d) and ongoing cost accounting challenges across every contract type.

CMMC compliance costs are allowable under FAR 31.201-2, but the accounting treatment determines whether they survive a DCAA audit. A CPA-managed guide to cost pool classification, indirect rate impact, and the documentation DCAA expects.

AI-powered compliance tools now handle transaction classification, bank reconciliation, and indirect rate monitoring for government contractors. DCAA has issued no guidance on AI in contractor accounting, and the contractor bears full responsibility for every automated decision. Amerifusion Bookkeeping breaks down the tools, the risks, and where CPA judgment remains non-negotiable.

The FAR 31.205-6(p) compensation cap limits what government contractors bill for employee compensation. For 2026, the estimated cap is $695,000, up from $671,000 in 2025. Here is what the change means for your indirect rates, your incurred cost submission, and your next DCAA audit.

The Revolutionary FAR Overhaul took effect February 1, 2026, with 37 class deviations reshaping how government contractors handle cost accounting, indirect rates, and compliance documentation. This article translates the legal changes into specific accounting actions your firm needs to take now.

The FY2026 NDAA raises the full CAS coverage threshold from $50M to $100M and the TINA threshold from $2.5M to $10M. Mid-size government contractors face a narrow window to update their accounting systems, disclosure statements, and pricing strategies before the June 2026 effective date.

DOGE has terminated over 10,000 federal contracts and put every government contractor on notice. This financial and compliance briefing covers which agencies are hit hardest, your legal rights, and 7 protective actions to take now.

The federal government rewrote major sections of the FAR, raised CAS thresholds by 1,300%, and changed how DCAA auditors evaluate your business systems. Contractors who miss these updates risk losing billing rates, triggering payment withholds, or failing their next audit.