Trusted by Orange County’s Leading Attorneys – Smith Dickson Delivers Financial Clarity When It Matters Most

In today’s complex legal landscape, trial attorneys know that success often hinges on more than just legal expertise—it requires airtight financial evidence. That’s where a seasoned forensic accountant becomes indispensable.

At Smith Dickson, Certified Public Accountants, LLP, we go beyond the spreadsheets. Our team serves as both financial investigators and expert witnesses, transforming complicated data into clear, compelling courtroom narratives.

Strengthening Legal Cases with Financial Expertise

Litigators are under constant pressure to present irrefutable evidence. Our forensic accountants provide detailed, court-admissible reports that stand up to scrutiny. We specialize in breaking down intricate financial transactions and making them understandable to judges and juries alike.

Whether it’s reconstructing records or clarifying damage claims, we help attorneys build stronger, more persuasive cases.

Detecting Fraud and Uncovering Irregularities

Backed by decades of auditing experience, our team is trained to spot financial red flags. From fraud and misrepresentation to unexplained discrepancies, we meticulously examine records to identify critical details that could shift the direction of a case.

We support litigators across civil and commercial disputes, probate issues, and fraud investigations—always with an eye on delivering the truth behind the numbers.

Experts on the Stand

Our forensic accountants are no strangers to high-stakes environments. We regularly provide expert testimony, explaining complex financial matters in a clear, confident manner—even under intense cross-examination.

We understand the courtroom dynamic and know how to communicate technical insights in ways that resonate with jurors and judges.

Why Litigators Trust Smith Dickson

For attorneys managing complex financial litigation, partnering with the right forensic accountant can make all the difference. At Smith Dickson, we combine deep technical knowledge with courtroom-tested communication skills to help you protect your client’s interests—and win.

Experts in Accounting. Experts on the Stand.

From uncovering the numbers to explaining them in court, Smith Dickson CPA is the forensic accounting expert Orange County litigators trust.

Understanding how your business reports income for tax purposes is crucial to optimizing cash flow and minimizing tax liabilities. Businesses typically use either the cash method or the accrual method of accounting:

• Accrual Method: Income is taxed when a sale is made, even if cash has not been collected.

• Cash Method: Income is taxed only when cash is received, aligning tax payments more closely with actual cash flow.

For many businesses, the cash method provides significant advantages, as it offers greater flexibility in managing tax liabilities.

The Tax Cuts and Jobs Act (TCJA) and Expanded Eligibility

The Tax Cuts and Jobs Act (TCJA) of 2018 expanded the number of businesses eligible to use the cash method of accounting. Before the TCJA, only businesses with average revenues under $5 million could use this method. However, the new law increased the threshold to $25 million (indexed for inflation, reaching $31 million in 2025).

Who Benefits the Most from the Cash Method?

Businesses that have significantly higher accounts receivable than accounts payable can benefit the most from switching to the cash method. If your business collects payments long after making sales but pays vendors quickly, this method can help delay tax liabilities and improve cash flow.

Despite these benefits, many businesses have yet to take advantage of this change. Even seven years after the TCJA, businesses earning under $31 million may still be using the accrual method and missing out on potential tax savings. If your business qualifies, consulting with a Certified Public Accounting (CPA) professional can help determine whether switching accounting methods can reduce your tax burden.

How Can CPAs and Forensic Accountants Help?

CPAs and forensic accountants play a crucial role in analyzing your financial situation, determining the best accounting method, and ensuring compliance with IRS regulations. They help businesses identify potential tax savings, optimize financial strategies, and navigate the complexities of tax law changes. Partnering with a CPA can provide valuable insights and maximize your business’s tax efficiency.

When it comes to estate and trust planning, timing is everything. One of the most powerful tax-saving strategies available is the 65-day rule, outlined in Section 663(b) of the U.S. tax code. This little-known provision allows trustees and fiduciaries to make distributions within 65 days after the end of the tax year and count them as if they were made in the previous tax year, a move that can lead to significant tax savings.

Why Does the 65-Day Rule Matter?

Estates and trusts are taxed differently from individuals, often facing much higher rates at lower income levels. For example, in 2025, fiduciary tax rates reach the highest bracket of 37% at just $15,650, whereas an individual taxpayer (married filing jointly) doesn’t hit the same 37% rate until their income surpasses $751,600. This sharp contrast means that trusts and estates can owe hefty taxes on relatively small amounts of income.

But here’s where the 65-day rule comes in handy:

Distribute income strategically: By shifting taxable income from the estate or trust to beneficiaries—who may be in lower tax brackets, you can reduce the overall tax burden.

Maximize tax efficiency: Beneficiaries often pay less in taxes than a trust or estate would, allowing for better wealth preservation.

Proceed with Caution: Key Considerations

While this rule offers compelling advantages, it’s not a one-size-fits-all solution. Here are a few things to keep in mind:

✔ Proper Documentation is Key – Fiduciaries must carefully track distributions and comply with IRS regulations to avoid tax penalties.

✔ Consult a Certified Public Accounting (CPA) Professional – Every estate or trust has unique financial considerations. Professional guidance ensures you don’t trigger unintended consequences.

✔ Consider Long-Term Impacts – Immediate tax savings are great, but how do distributions affect the future financial health of the estate or trust?

The Bottom Line

The 65-day rule is a valuable tool for estate and trust tax planning, allowing fiduciaries to reduce tax liabilities and provide beneficiaries with more favorable tax treatment. However, to fully take advantage of this strategy, careful planning and expert advice are essential. Don’t wait until it’s too late, consult with a Certified Public Accounting (CPA) professional today to see if this strategy fits your needs!

How Can CPAs and Forensic Accountants Help?

CPAs and forensic accountants help fiduciaries navigate the complexities of the 65-day rule by analyzing financial records, ensuring IRS compliance, and providing forensic analysis in cases of disputes or mismanagement. Partnering with an experienced CPA can maximize tax savings and protect the financial health of your estate or trust.