Key Takeaways

• The HIRE Act targets accounting outsourcing. If passed, the Halting International Relocation of Employment (HIRE) Act would add a 25% tax on payments to foreign contractors and remove the ability to deduct outsourcing costs — making offshore accounting services much more expensive.
• Dental practices could face higher accounting fees. Many CPA firms that outsource would likely pass these new costs on to clients, raising the price of tax preparation, bookkeeping, and other accounting services for dental practices.
• Outsourcing adds risks beyond cost. Offshore accounting work can create challenges with data security, oversight, accountability, and consistency in client service.
• Edwards & Associates provides U.S.-based accounting support. Because the firm never outsources, dental practices avoid surprise fee increases and know their financial data is handled by trusted, in-house professionals.

Congress is considering new legislation called the Halting International Relocation of Employment (HIRE) Act, introduced in September 2025. Although still in its early stages, the bill could significantly increase the cost for accounting firms that outsource client work overseas. Why does this matter to you as a dental practice owner or administrator? Because if your accounting firm relies on outsourcing, you may end up paying the price.

What the HIRE Act Would Do

The HIRE Act is designed to discourage companies from offshoring work and instead encourage U.S. job growth. It does this in two big ways:

• New 25% tax on outsourcing payments: Any U.S. business, including accounting firms, that pays foreign contractors for work benefiting U.S. clients would owe a 25% excise tax on top of those payments.
• Loss of tax deductions: Today, outsourcing costs are deductible business expenses. Under the HIRE Act, that deduction would disappear, meaning firms would owe income tax as if those expenses never happened.

Together, those changes could greatly increase the effective cost of outsourcing. For example, if a firm currently pays $100,000 a year to an offshore provider, the real after-tax cost could jump to around $150,000 under the HIRE Act.

While the HIRE Act is still only a proposal, most experts believe it is unlikely to pass in its current form. That said, legislation often changes shape as it moves through Congress, and some version of it could eventually become law. That’s why we’re keeping a close eye on it now so we can help explain what it would do and what it could mean for your practice if it advances.

Why That Matters for Dental Practices

For firms that outsource, these higher costs won’t stay behind the scenes. They’ll almost certainly be passed on to clients in the form of higher fees. And here’s the frustrating reality: when many firms first turned to outsourcing to cut their own costs, very few passed those savings along to their clients. Yet if the HIRE Act passes and outsourcing becomes more expensive, it’s very likely those same firms will shift the added costs to the practices they serve. In other words, clients could pay more for the same work, all because of a business decision they didn’t make.

On top of cost, outsourcing has always raised other concerns like reduced oversight, less accountability, and potential risks to the security of sensitive financial data.

Why Edwards & Associates Is Different

At Edwards & Associates, we don’t outsource your work. Everything is handled by our U.S.-based team, with the people and processes you already know and trust. That means:

• No surprise fee increases tied to outsourcing legislation
• No hidden risks about who is handling your financial data
• A consistent, client-first focus on supporting your practice

While the HIRE Act is still making its way through Congress, it highlights an important truth: there is risk involved when your accounting firm outsources. With Edwards & Associates, you don’t have to worry about unexpected costs or hidden trade-offs. Our commitment is, and always has been, to keep your work in-house so we can focus on what matters most: helping your practice thrive.