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  • Noelle Merwin
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CAPE Opens in ACE: What Importers Need to Know About IEEPA Refund Processing
CAPE Opens in ACE: What Importers Need to Know About IEEPA Refund Processing 266 266 Noelle Merwin

U.S. Customs and Border Protection (CBP) activated the Consolidated Administration and Processing of Entries (CAPE) functionality in the Automated Commercial Environment (ACE) on April 20, 2026, marking the first operational mechanism for processing refunds of duties paid under tariffs illegally imposed pursuant to the International Emergency Economic Powers Act (IEEPA).

CAPE represents CBP’s initial attempt to operationalize refund relief following the Supreme Court’s invalidation of IEEPA based tariffs and subsequent court orders directing CBP to remove and refund those duties (for prior coverage, see the trade alert, IEEPA Tariff Refunds: CIT Suspends Tariff Refund Order, CBP Develops New Refund Procedure, dated March 17, 2026). CAPE is planned to be deployed in phases, with more functionality added in subsequent stages. While CAPE creates an administrative pathway for recovery, eligibility is limited in Phase 1, with many entries deferred to later phases or requiring additional procedural action to preserve refund rights.

Background: From IEEPA Invalidation to Administrative Refund Processing

Following the Supreme Court’s decision holding that IEEPA does not authorize the imposition of tariffs, CBP was directed through subsequent orders of the U.S. Court of International Trade (CIT) to remove IEEPA duties from affected entries through the normal administrative procedures involving entry-by-entry liquidation (closing out and final assessment of duties). However, CBP objected citing a lack of resources and other factors, and the CIT instead allowed the agency to develop a new “mass claims” refund process: CAPE.

CAPE was developed within CBP’s ACE to consolidate, validate, and process refunds of the ad valorem duties imposed under IEEPA (which, in many cases, were in addition to the Normal Trade Relations duties and other trade remedy tariffs). As CBP has acknowledged, refund eligibility will be segmented based on liquidation status, timing windows, and the presence of complicating factors such as reconciliation, drawback, protests, or antidumping/countervailing duty (ADD/CVD) suspensions of liquidation.

CAPE Phase 1: Entries Eligible for Processing Beginning April 20

Phase 1 of CAPE is intentionally narrow and focuses on entries where CBP has clear administrative authority to act without additional court involvement. Eligible entries generally include:

  • Unliquidated entries, including those with liquidation status shown in ACE as suspended, extended, or under review;
  • Recently liquidated entries within the voluntary reliquidation window under 19 U.S.C. § 1501 (practically, entries liquidated within approximately the last 80 days to allow processing before the 90 day statutory deadline);
  • Warehouse entries and warehouse withdrawals where IEEPA Chapter 99 codes were declared and refunds will issue upon liquidation in the normal course; and
  • ADD/CVD entries that remain under suspension where IEEPA codes have been removed but refunds will issue only when liquidation occurs.

To be eligible in Phase 1, the entry must have had at least one IEEPA specific HTSUS Chapter 99 number declared, must exist electronically in ACE, and must not be subject to an exclusion category.

Entries Excluded from CAPE Phase 1

CBP has identified several categories that are excluded from Phase 1 processing, even though refund rights may still exist. These include:

  • Entries liquidated more than 90 days ago (outside CBP’s voluntary re-liquidation window);
  • Entries flagged for reconciliation or filed as Entry Type 09 reconciliation summaries;
  • Entries designated on active drawback claims;
  • Entries covered by open protests; and
  • Entries lacking an electronic ACE record or liquidation status.

For these entries, CAPE does not provide immediate relief, and importers must evaluate alternative or interim strategies to preserve rights while later phase mechanisms develop.

CAPE Later Phases: Deferred, Not Eliminated

A substantial portion of potentially refundable IEEPA duties will fall outside Phase 1 and be addressed in later phases—or may require additional court action. Deferred categories include:

  • Finally liquidated entries still within the 180 day protest period (refund rights preserved if protests are timely filed);
  • Finally liquidated entries beyond the protest deadline, which are covered by the CIT’s amended March 27 order but are not yet operationally refundable through CAPE;
  • Entries involving reconciliation, active drawback claims, complex interest calculations, or enhanced CBP compliance review; and
  • Entries with outstanding non IEEPA duty balances, which CBP has flagged for potential offset in a later phase.

Importantly, deferral to later phases does not mean refund rights are lost but it does require careful planning, documentation, and deadline management.

Universal Rules Importers Must Observe

Across all phases of CAPE, several foundational rules apply:

  • Only IEEPA duties are refundable; Section 232, Section 301, and other duties on the same entry are not;
  • Refunds are issued to the importer of record, absent a properly filed CBP Form 4811 designating another party;
  • Only the importer of record or the customs broker who filed the entry summary on behalf of the importer of record may file for a refund;
  • ACH Refund enrollment in ACE is mandatory and refunds will be rejected without it; and
  • Section 301 and Section 232 duties—particularly on China origin entries—must be carefully separated from IEEPA duties to avoid processing delays or denials.

The businesses most affected by Trump-era tariff refunds are importers of record, particularly in the technology, manufacturing, and retail sectors. If you believe your business may be entitled to a possible refund, please contact Dan Kruesi for assistance.

Some content borrowed with permission from BDO USA. Our firm is an independent member of the BDO Alliance USA, a nationwide association of independently owned local and regional accounting, consulting, and service firms.

 

  • Noelle Merwin
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Tax News: Amending Personal Income Tax Returns
Tax News: Amending Personal Income Tax Returns 266 266 Noelle Merwin

It is estimated that five million amended income tax returns are filed with the IRS annually. There are various circumstances why an amended Federal income tax return is filed by an individual taxpayer including:

•    To correct an error discovered after filing
•    Receipt of a corrected 1099 form, often from brokerage firms
•    Receipt of a third-party document such as a K-1 or 1099 form after filing
•    Receipt of an amended K-1 from a trust, estate, partnership or S corporation
•    To carryback credits in certain situations
•    To change one’s filing status – note that one cannot change from married joint to married separate after the due date.

There are circumstances where a Federal amended tax return also leads to the filing of amended state income tax returns. On the other hand, sometimes an amended state income tax return will be filed without the filing of an amended Federal income tax return. Case in point is where a nonresident personal income tax return is audited resulting in an increase in the nonresident tax liability. This often leads to a refund opportunity via the filing of an amended state income tax return for the resident state via claiming an increase in the credit for taxes paid to other jurisdictions.

The general time period for filing an amended income tax return is three years. If the original income tax return was filed prior to April 15 it is deemed filed on April 15. If the original income tax return was filed on extension, the three-year period is measured from the actual filing date. These rules apply not only for Federal purposes but for both New Jersey and New York. To illustrate, if an individual filed their 2022 personal income tax returns without going on extension, those income tax returns are deemed filed April 15, 2023. Thus, the three-year period has just expired. This not only applies to refunds but to tax deficiencies.

The IRS as well as the states have six years to conduct an audit if it is determined that there was an omission of gross income exceeding 25% of the reported gross income. For example, a taxpayer reports $400,000 of gross income. If it determined that there was an omission of income exceeding $100,000 then the statute of limitations becomes six years. Taxpayers cannot use this longer period to file amended tax returns.

If you have questions or need assistance, please contact your Smolin representative.

  • Noelle Merwin
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Protect Your Estate and Your Family with Co‑Executors
Protect Your Estate and Your Family with Co‑Executors 266 266 Noelle Merwin

Choosing an executor is one of the most important decisions in the estate planning process. This person (or institution) will be responsible for carrying out your wishes, managing assets, paying debts and taxes, distributing property to beneficiaries and more.

Your first instinct may be to name your spouse, adult child or other close family member as executor. While that decision may feel natural, it’s not always the best choice. Co-appointing a professional advisor alongside a trusted family member can provide a more effective and balanced solution.

An executor’s duties

Your executor has a variety of important duties, including:

  • Arranging for probate of your will and obtaining court approval to administer your estate (if necessary),
  • Taking inventory of — and collecting, recovering or maintaining — your assets, including life insurance proceeds and retirement plan benefits,
  • Obtaining valuations of your assets where required,
  • Preparing a schedule of assets and liabilities,
  • Arranging for the safekeeping of personal property,
  • Contacting your beneficiaries to advise them of their entitlements under your will,
  • Paying any debts incurred by you or your estate and handling creditors’ claims,
  • Defending your will in the event of litigation,
  • Filing tax returns on behalf of your estate, and
  • Distributing your assets among your beneficiaries according to the terms of your will.

For someone without financial, legal or tax expertise, these responsibilities can feel overwhelming — especially while grieving. Even highly capable family members may lack the time or experience needed to administer an estate efficiently.

Mistakes can result in delays, disputes or even personal liability. Executors are legally responsible for acting in the best interests of the estate and its beneficiaries. If errors occur — such as missed tax deadlines or improper distributions — the executor may be held accountable.

Emotional dynamics can complicate matters

When a family member serves as sole executor, emotional tensions can arise. Sibling rivalries, blended family dynamics or disagreements about asset values can quickly escalate.

Even when everyone has good intentions, beneficiaries may question decisions about timing, asset sales or expense payments. The executor may feel caught between honoring the deceased’s wishes and preserving family harmony. Needless to say, these situations can strain relationships, sometimes permanently.

Two can be better than one

A practical alternative is to name both a trusted family member and a professional advisor, such as a CPA, estate planning attorney or corporate fiduciary, as co-executors. This structure can offer several key benefits, such as:

Technical expertise. A professional advisor can bring knowledge of tax law, probate procedures, accounting requirements and regulatory compliance. This reduces the risk of costly mistakes and helps ensure deadlines are met.

Objectivity. A neutral third party can help mediate disagreements and make decisions based on fiduciary standards rather than emotions. This can protect family relationships and minimize conflict.

Shared responsibility. Administering an estate can be time consuming. Dividing responsibilities allows the family member to focus on personal matters while the professional handles technical and administrative tasks.

Continuity and stability. If a family member becomes overwhelmed, ill or otherwise unavailable, a professional co-executor can provide continuity. Estates often take months — or even years — to settle.

A balanced approach

Co-appointing a professional doesn’t mean excluding family involvement. In fact, it often enhances it. The family member remains involved in decision-making and ensures that your personal wishes and family values are honored. Meanwhile, the professional ensures that legal and financial matters are handled efficiently and correctly.

For larger or more complex estates — such as those involving business ownership, multiple properties or significant investments — this collaborative model can be especially valuable. Contact a Smolin representative if you have questions about having co-executors or choosing them.

 

  • Noelle Merwin
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Tax News: Form 1040 refunds
Tax News: Form 1040 refunds 266 266 Noelle Merwin

IRS Refund Delays: What You Need to Know

Missing direct deposit information could delay your tax refund by six weeks or more.

The IRS has begun issuing CP53E notices to taxpayers who requested refunds but did not include bank account information for direct deposit on their 2025 Form 1040.

When bank information is missing from Form 1040, the IRS must issue a paper check instead of a direct deposit, resulting in significant refund delays and unnecessary follow‑up.

How to Avoid Delays

If you are expecting a refund, be sure your bank account information is included when your tax return is prepared. Direct deposit is the fastest way to receive your refund. Additionally, always review your Form 1040 carefully to ensure accuracy.

To learn more about CP53E notices and how to avoid refund delays, visit Understanding your CP53E notice.

If you have questions or need assistance, please contact your Smolin representative.

Does your family know how to access your estate planning documents?
Does your family know how to access your estate planning documents? 266 266 Lindsay Yeager

Making sure your family will be able to locate your estate planning documents when needed is one of the most important parts of the estate planning process. Your carefully prepared will, trust or power of attorney will be useless if no one knows where to find it.

When loved ones are grieving or faced with urgent financial and medical decisions, not being able to locate key documents can create unnecessary stress, confusion and even legal complications. Here are some tips on how and where to store your estate planning documents.

Your Signed, Original Will

There’s a common misconception that a photocopy of your signed last will and testament is sufficient. In fact, when it comes time to implement your plan, your family and representatives will need your signed original will. Typically, upon a person’s death, the original document must be filed with the county clerk and, if probate is required, with the probate court as well.

What happens if your original will isn’t found? It doesn’t necessarily mean that it won’t be given effect, but it can be a major — and costly — obstacle.

The High Stakes of a Missing Will

In many states, if your original can’t be produced, there’s a presumption that you destroyed it with the intent to revoke it. Your family may be able to obtain a court order admitting a signed photocopy, especially if all interested parties agree that it reflects your wishes. But this can be a costly, time-consuming process. And if the copy isn’t accepted, the probate court will administer your estate as if you died without a will.

To avoid these issues, store your original will in a safe place and tell your family how to access it.

Storage options include:

  • Leaving your original will with your accountant or attorney, or
  • Storing your original will at home (or at the home of a family member) in a waterproof, fire-resistant safe, lockbox or file cabinet.

Accessing Your Will: The Hidden Risks of Safe Deposit Boxes

What about safe deposit boxes? Although this can be an option, you should check state law and bank policy to be sure that your family will be able to gain access without a court order. In many states, it can be difficult for loved ones to open your safe deposit box, even with a valid power of attorney. It may be preferable, therefore, to keep your original will at home or with a trusted advisor or family member.

If you do opt for a safe deposit box, it may be a good idea to open one jointly with your spouse or another family member. That way, the joint owner can immediately access the box in the event of your death or incapacity.

Other documents

Original trust documents should be kept in the same place as your original will. It’s also a good idea to make several copies. Unlike a will, it’s possible to use a photocopy of a trust. Plus, it’s useful to provide a copy to the person who’ll become trustee and to keep a copy to consult periodically to ensure that the trust continues to meet your needs.

For powers of attorney, living wills or health care directives, originals should be stored safely. But it’s also critical for these documents to be readily accessible in the event you become incapacitated.

Duplicate Originals: A Simple Step Toward Peace of Mind

Consider giving copies or duplicate originals to the people authorized to make decisions on your behalf. Also consider providing copies or duplicate originals of health care documents to your physicians to keep with your medical records.

Clear communication is key

Clearly communicating the location of your estate planning documents can help ensure your wishes are carried out promptly and accurately. Let your family, executor or trustee know where originals are stored and how to access them. Contact a Smolin Representative for help ensuring your estate plan will achieve your goals.

  • Noelle Merwin
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Don’t forget to include a residuary clause in your will
Don’t forget to include a residuary clause in your will 266 266 Noelle Merwin

When creating a will, most people focus on the big-ticket items — including who gets the house, the car and specific family heirlooms. But one element that’s often overlooked is the residuary clause. This clause determines what happens to the remainder of your estate — the assets not specifically mentioned in your will. Without one, even a carefully planned estate can end up in legal limbo, causing unnecessary stress, expense and conflict for your loved ones.

Defining a residuary clause

A residuary clause is the part of your will that distributes the “residue” of your estate. This residue includes any assets left after specific bequests, debts, taxes and administrative costs have been paid. It might include forgotten bank accounts, newly acquired property or investments you didn’t specifically name in your will.

For example, if your will leaves your car to your son and your jewelry to your daughter but doesn’t mention your savings account, the funds in that account would fall into your estate’s residue. The residuary clause ensures those funds are distributed according to your wishes — often to a named individual, group of heirs or charitable organization.

Omitting a residuary clause

Failing to include a residuary clause can create serious problems. When assets aren’t covered by specific instructions in a will, they’re considered “intestate property.” This means those assets will be distributed according to state intestacy laws rather than your personal wishes. In some cases, this could result in distant relatives inheriting part of your estate or assets going to individuals you never intended to benefit.

Without a residuary clause, your executor or family members may also need to seek court intervention to determine how to handle the leftover property. This adds time, legal costs and emotional strain to an already difficult process.

Moreover, the absence of a residuary clause can lead to family disputes. When the law, rather than your will, determines who gets what, heirs may disagree over how to interpret your intentions. A simple clause could prevent these misunderstandings and preserve family harmony.

Adding flexibility to your plan

A key advantage of a residuary clause is added flexibility. Life circumstances change — new assets are acquired, accounts are opened or closed, and property values fluctuate.

If your will doesn’t specifically list every asset (and most don’t), a residuary clause acts as a safety net to ensure nothing is left out. It can even account for unexpected windfalls or proceeds from insurance or lawsuits that arise after your passing.

Providing extra peace of mind

Including a residuary clause in your will is one of the simplest ways to make sure your entire estate is handled according to your wishes. It helps avoid gaps in your estate plan, minimizes legal complications and ensures your executor can distribute your assets smoothly. Contact Smolin Representative for additional details. Ask your estate planning attorney to add a residuary clause to your will.

  • Noelle Merwin
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Stop procrastinating and get to work on your estate plan
Stop procrastinating and get to work on your estate plan 1200 1200 Noelle Merwin

For many people, creating an estate plan falls into the category of important but not urgent. As a result, it can get postponed indefinitely. If you find yourself in this situation, understanding the reasons behind this procrastination can help you recognize and overcome the barriers that are preventing you from taking the first steps toward creating an estate plan.

Multiple reasons for procrastination

A primary reason people delay estate planning is emotional discomfort. Thinking about your death or a disability or becoming incapacitated is unpleasant. Simply put, it can be difficult to confront your mortality or make difficult decisions about who should inherit your assets or serve as guardian of your minor children.

Another reason for delay is that estate planning can seem daunting, especially when people assume it involves complicated legal jargon, multiple professionals and a mountain of paperwork. For those with blended families, business interests or complex financial situations, the process may feel even more overwhelming. Without clear guidance, many people don’t know where to start, so they don’t start at all.

There’s also the mistaken belief that estate planning is only necessary for the wealthy or elderly. Younger individuals or those with modest assets may think they don’t need a plan yet. Additionally, procrastination bias — the tendency to prioritize immediate concerns over future needs — often pushes estate planning to the bottom of the to-do list.

Reasons to motivate yourself

Not having an estate plan in place, especially the basics of a will and health care directives, can have dire tax consequences in the event of an unexpected death or incapacitation. Without a will, your assets will be divided according to state law, regardless of your wishes. This can cause family disputes and lead to legal actions. It can also result in tax liabilities that could have been easily avoided.

There are a few relatively simple documents that can comprise an estate plan. For example, a living will can spell out instructions for end-of-life decisions. A power of attorney can appoint someone to handle your affairs if you’re incapacitated. And a living trust can be used to transfer assets without going through probate.

The bottom line

Procrastinating on estate planning carries real risks — not just for you, but also for your loved ones. Without a proper plan, state laws will determine how your assets will be distributed, often in ways that may not align with your wishes. Contact your Smolin representative for help taking the first steps toward forming your estate plan.

 

  • Noelle Merwin
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Members of the “sandwich generation” face unique estate planning circumstances
Members of the “sandwich generation” face unique estate planning circumstances 1200 1200 Noelle Merwin

Members of the sandwich generation — those who find themselves simultaneously caring for aging parents while supporting their own children — face unique financial and emotional pressures. One critical yet often overlooked task amid this juggling act is estate planning.

How can you best handle your parents’ financial affairs in the later stages of life? Consider incorporating their needs into your estate plan while tweaking, when necessary, the arrangements they’ve already made. Let’s take a closer look at four critical steps.

  1. Make cash gifts to your parents and pay their medical expenses

One of the simplest ways to help your parents is to make cash gifts to them. If gift and estate taxes are a concern, you can take advantage of the annual gift tax exclusion. For 2025, you can give each parent up to $19,000 without triggering gift taxes or using your lifetime gift and estate tax exemption. The exemption amount for 2025 is $13.99 million.

Plus, payments to medical providers aren’t considered gifts, so you can make such payments on your parents’ behalf without using any of your annual exclusion or lifetime exemption amounts.

  1. Set up trusts

There are many trust-based strategies you can use to assist your parents. For example, if you predecease your parents, your estate plan might establish a trust for their benefit, with any remaining assets passing to your children when your parents die.

Another option is to set up trusts during your lifetime that leverage your $13.99 million gift and estate tax exemption. Properly designed, these trusts can remove assets — together with all future appreciation in their value — from your taxable estate. They can provide income to your parents during their lives, eventually passing to your children free of gift and estate taxes.

  1. Buy your parents’ home

If your parents have built up significant equity in their home, consider buying it and leasing it back to them. This arrangement allows your parents to tap their home’s equity without moving out while providing you with valuable tax deductions for mortgage interest, depreciation, maintenance and other expenses.

To avoid negative tax consequences, pay a fair price for the home (supported by a qualified appraisal) and charge your parents fair-market rent.

  1. Plan for long-term care expenses

The annual cost of long-term care (LTC) can easily reach six figures. Expenses can include assisted living facilities, nursing homes and home health care.

These expenses aren’t covered by traditional health insurance policies or Social Security, and Medicare provides little, if any, assistance. To prevent LTC expenses from devouring your parents’ resources, work with them to develop a plan for funding their health care needs through LTC insurance or other investments.

Don’t forget about your needs

As part of the sandwich generation, it’s easy to lose sight of yourself. After addressing your parents’ needs, focus on your own. Are you saving enough for your children’s college education and your own retirement? Do you have a will and power of attorney in place for you and your spouse?

With proper planning, you’ll make things less complex for your children so they might avoid some of the turmoil that you could be going through.

If you have questions about estate planning strategies tailored to the needs of the sandwich generation, reach out to your Smolin advisor.

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