IRS to Revamp Form 990 to Require More Info
The Treasury announced that the IRS will overhaul Form 990 to require tax‑exempt organizations to disclose detailed information on government contracts, grants and fiscal‑sponsorship arrangements. The change is designed to expose fraud, misuse of public funds and extremist activity hidden behind nonprofit structures. Proposed regulations will be published for public comment, with the agency promising to balance transparency against reporting burden. The move follows a recent IRS whistleblower alert and a high‑profile DOJ case against the Southern Poverty Law Center, signaling tighter federal scrutiny of charities.
Tax Fraud Blotter: Running Backlash
A wave of federal tax fraud convictions swept the United States this month, targeting a former NFL champion, a crypto hedge‑fund manager, and several small‑business owners. Wendell Smallwood Jr. received an 18‑month sentence and $645,000 restitution for defrauding COVID‑19 relief...
IPSASB Proposes Tweaks to Public Sector Accounting Standards
The International Public Sector Accounting Standards Board (IPSASB) released two exposure drafts—ED 95 and ED 96—proposing narrow tweaks to its standards for government entities. ED 95 targets minor improvements to accrual‑basis accounting for financial instruments, foreign exchange and consolidated statements, while ED 96 revises...
US, South Africa Renew Accounting Recognition Pact
The United States and South Africa have renewed their mutual recognition agreement (MRA) for accountants through June 30, 2031. The pact, signed by NASBA, the AICPA and SAICA, streamlines licensing for U.S. CPAs and South African chartered accountants seeking to work in...
FASB Provides Guidance on Paid-in-Kind Dividends
The Financial Accounting Standards Board issued ASU 2026‑01, establishing how issuers should initially measure paid‑in‑kind (PIK) dividends on equity‑classified preferred stock. The update requires measurement at the dividend rate specified in the preferred‑stock agreement, eliminating current GAAP gaps. It becomes effective...
Two Relationships that Will Define the Next Decade of Client Value
The article argues that over the next decade the two most enduring client relationships will be with a CPA and a wealth advisor. As AI and platform tools flatten technical advantages in tax preparation and portfolio management, differentiation will shift...
KPMG Premieres Monthly Close AI Assistant
KPMG unveiled the Ignite Financial Close Companion, an AI assistant built with Google’s Gemini Enterprise and integrated into Workday. The tool lets finance teams issue natural‑language commands to automate month‑end close steps, run built‑in checks, and flag anomalies. KPMG also...
ISSB Plans Practice Statement on Nature-Related Disclosures
On Earth Day, the International Sustainability Standards Board announced it will propose an IFRS Practice Statement to guide nature‑related disclosures. The practice statement will complement existing IFRS S1 and IFRS S2 standards without altering their requirements, helping companies meet material nature‑risk reporting...
House Committee Passes CTA Repeal Bill
The House Financial Services Committee voted 26‑25 to advance the Repealing Big Brother Overreach Act, which would effectively repeal the Corporate Transparency Act (CTA) and limit beneficial‑ownership reporting to foreign‑owned companies. The measure, backed by more than 190 co‑sponsors, responds...
A Crazy Take on the Talent Pipeline Crisis
The accounting profession has reversed its enrollment decline, with a 12% rise in undergraduate majors in 2024 and a further 7% increase in 2025. However, the surge in quantity masks a new talent gap: AI automates routine staff work, leaving...
GASB Videos Help Gov't Officials Navigate Financials
The Governmental Accounting Standards Board (GASB) has launched a 16‑video series to demystify government financial reports for elected officials and other stakeholders. Each video runs 5‑10 minutes and walks viewers through the four financial statements in the Annual Comprehensive Financial...
Court Rules Micro-Captives Not Listed Transactions
A Texas federal judge struck down the IRS’s designation of micro‑captive insurance as a “listed transaction,” eliminating the presumption of tax shelter abuse and the associated $200,000 penalties. The court retained the “transaction of interest” label, which still requires limited...
Insurers Eyeing AI Risk at CPA Firms
Professional liability insurers covering CPA firms are increasingly flagging artificial intelligence as a nascent risk that requires formal governance. While no substantive AI‑related claims have emerged, underwriters are beginning to ask firms about AI policies, data security, and oversight procedures....
Kentucky Passes CPA Pathway Bill
Kentucky enacted House Bill 45, creating an alternative CPA licensure pathway that allows candidates with a bachelor's degree and two years of verified work experience to qualify, while retaining the traditional 150‑credit‑hour route. Governor Andy Beshear signed the bill on...
Ineligible Businesses Getting Payroll Tax Credits
The Treasury Inspector General for Tax Administration (TIGTA) found that 40 small businesses incorrectly claimed the Qualified Small Business Payroll Tax Credit, receiving about $3.1 million in 2023‑24 despite not meeting gross‑receipts eligibility. The credit, expanded by the Inflation Reduction Act...
Balancing Executive Incentives with Tax Penalties
Recent FTC action revived non‑compete agreements, giving companies a new lever to offset golden parachute tax exposure. Golden parachutes—cash, stock or benefits paid on a change of control—still trigger a 20% excise tax and loss of corporate deductions when payments...
Measuring and Managing Your Firm's Technology
Accounting firms are increasingly treating technology as a strategic asset, prompting many to adopt specific key performance indicators (KPIs) to quantify its impact. The article outlines a suite of metrics across efficiency, financial impact, client satisfaction, security, and operational health,...
Hong Kong Exchange Tightens Rules to Avoid Auditor Shopping
Hong Kong Exchanges and Clearing Ltd. announced that listed companies must now obtain shareholder approval at a general meeting to appoint or remove auditors, and must disclose audit fees or fee ranges. The rule treats any auditor resignation triggered by...
Short Seller Targets AQR Backer over Tax-Loss Harvesting
Orso Partners has taken a short position against Affiliated Managers Group (AMG) after identifying more than $1 trillion invested in tax‑aware long‑short strategies managed by AQR Capital. AQR’s tax‑optimizing products have surged tenfold since 2024, now holding about $57 billion, and are...
Becoming Greater than the Sum of Your Parts
Alan Whitman, former Baker Tilly CEO, explains how Nichols Cauley is built as a private‑equity‑backed financial‑services platform that unites a CPA firm, an insurance brokerage, and an investment‑banking boutique. The firm pursues growth through a unified brand, cross‑serve model, and disciplined ROI‑driven...
FASB Plans Changes in Crypto Accounting
The Financial Accounting Standards Board (FASB) announced tentative decisions to broaden crypto‑asset accounting guidance and to clarify when stablecoins can be treated as cash equivalents. It will expand Subtopic 350‑60 to cover tokens that give holders a right to receive...
IRS Encourages Whistleblowers to Report Fraud at Tax-Exempt Groups
The IRS issued a new Whistleblower Alert urging the public to report fraud, misuse, or diversion of federal funds by tax‑exempt organizations. The alert lists specific misconduct such as false grant statements, self‑dealing, and misclassification, and reiterates that whistleblowers can...
On the Move: CBIZ Names New CIO/CTO
CBIZ announced that Peter Scavuzzo has been promoted to senior vice president and chief information and technology officer, succeeding retiring CIO John Fleischer after a 12‑year tenure. Scavuzzo will assume the expanded role on May 1 while continuing as president of CBIZ Technology....
Tech News: Xero Announces Xero OS
Xero unveiled Xero OS, an AI‑native operating system that embeds its proprietary JAX model as an always‑on CFO to automate transaction reconciliation and deliver real‑time financial insights. The announcement coincided with a wave of AI‑driven launches, including Tieout’s benefit‑plan audit...
Protect Margins and Retain Talent in a Rising Wage Era
In 2026, minimum wages jumped in 19 states and numerous localities, with New York reaching $17 per hour, tightening profit margins for service‑sector firms. Executives are urged to shift from one‑time compliance to continuous labor‑cost planning, using weekly real‑time monitoring and...
States Rush to Build Clean Energy Projects to Tap Expiring Incentives
U.S. states are accelerating large‑scale renewable projects to capture a 30% federal investment tax credit that expires soon. California, Colorado, New York, New Jersey, Minnesota and Oregon are fast‑tracking solar, wind and battery‑storage builds that must break ground by July 4 and finish...
Lawmakers Propose Tax and IRS Bills as Filing Season Ends
On Tax Day, Senate leaders introduced three major tax bills aimed at overhauling IRS operations and closing loopholes. The bipartisan Improving IRS Customer Service Act would create an online dashboard, expand electronic refunds and add callback options for taxpayers. The...
Lack of Governance Coordination on AI Costing Companies
Grant Thornton’s 2026 AI Impact Survey reveals that weak governance and compliance barriers are the top reason—cited by 46% of respondents—AI projects fail or underperform. Although 75% of organizations continue to approve major AI spend, nearly half have not set...
IRS Creates Online Tax Debt Tool
The Internal Revenue Service unveiled the Tax Debt Help tool on its website a day after the April 15 filing deadline. The interactive service walks individuals and businesses through a series of financial questions to recommend payment plans, temporary collection...
Offshoring Vs. Outsourcing Accounting and Tax Work
U.S. accounting firms are turning to offshore teams to offset a talent shortage, rising hiring costs, and margin pressure. The AICPA MAP Survey shows 29% of firms already offshore work, rising to 46% among top‑performing firms. Two offshore models exist:...
Mythos Poses Risk to SEC Market-Tracking Database, Group Says
Anthropic’s new AI model Mythos could exploit the SEC’s Consolidated Audit Trail (CAT), a database that tracks every trade in U.S. equities. The American Securities Association warned that the model enables mass identity theft, portfolio exposure, and insider‑threat amplification, and...
Accountants Worried About War in Iran
A joint ACCA‑IMA survey of 557 accountants shows the war in Iran has vaulted geopolitical risk to the top priority for Q1 2026, pushing economic concerns to third place behind cyber threats. Respondents reported operating‑cost pressures at their highest since the...
Only 18% of Organizations Track AI ROI
A Thomson Reuters 2026 report shows only 18% of professional‑service firms track AI ROI. While 40% of firms now use generative AI—34% of tax firms—the majority measure internal metrics like cost savings and employee usage. External outcomes such as new...
Protect Clients From Post-Closure Payroll Tax Notices
The guide explains how advisors should help clients properly close federal, state, and local payroll tax accounts after payroll ends, emphasizing that stopping payroll does not automatically terminate tax obligations. It outlines required final filings—Forms 941/944, 940, W‑2/W‑3—and the process to...
IRS Struggles Against Nonfilers with Large Foreign Bank Accounts
The Treasury Inspector General for Tax Administration released a report showing the IRS’s Offshore Private Banking Campaign identified 405 high‑net‑worth taxpayers with undisclosed foreign accounts, yet enforcement was minimal. Only 12 of the 164 examined cases resulted in additional tax,...
Wyden Introduces Bills to Close Tax Shelters
Senate Finance Committee ranking member Ron Wyden introduced two bills targeting tax shelters used by the ultra‑wealthy. The Getting Rid of Abusive Trusts Act would tighten grantor retained annuity trusts (GRATs) by imposing a 15‑year minimum term and treating transfers...
In the Blogs: HIPAA HIPAA Hooray
The U.S. Department of Health and Human Services has issued a December 2024 proposal that represents the most significant update to the HIPAA Security Rule since 2013, aiming to close long‑standing cybersecurity gaps in healthcare. The IRS released IR‑2026‑46, expanding Business...
IRS Braces for Last-Minute Surge of Tax Filings
The Internal Revenue Service is bracing for a last‑minute surge of tax‑return filings as procrastinating taxpayers await guidance on new deductions. Staffing and budget cuts have trimmed the agency’s workforce by roughly 25‑27% and halved the $80 billion Inflation Reduction Act...
AI Is Delivering Tangible Benefits This Tax Season
Tax professionals are increasingly deploying AI tools such as Thomson Reuters CoCounsel Tax & Audit to streamline workflows, reduce manual research, and improve accuracy during the busy tax season. At Minnesota‑based Copeland Buhl, 67 staff members using AI have cut...
PwC Shakes up UK Consulting Unit in Global Integration Drive
PwC’s UK practice is merging its consulting and risk divisions, shrinking its portfolio from five service lines to four to deliver a more globally integrated advisory model. The restructured unit will be led by consulting head Jonathan House, while risk...
IRS Fraud Rings Move Beyond Tax Refund Theft
Cybercriminals are escalating tax fraud by converting stolen identities into bogus businesses, securing legitimate Employer Identification Numbers (EINs) and opening bank accounts. The scheme follows a four‑stage pipeline—identity theft, LLC registration, EIN acquisition, and credit line requests—causing credit applications to...
IRS Warns Preparers About Misappropriating Refunds
The IRS Office of Professional Responsibility (OPR) issued a reminder that tax preparers may not endorse or negotiate federal refund checks, as prohibited by Circular 230 Section 10.31. The guidance targets the common practice of splitting refunds with unbanked or cash‑strapped clients,...
IFIAR Sees Global Uptick in Audit Inspection Problems
The International Forum of Independent Audit Regulators (IFIAR) reported a slight rise in audit inspection findings for 2025, with 35% of audited engagements showing at least one issue, up from 34% in 2024. The share of audits with findings had...
GASB Considers Restructuring Accounting Literature
The Governmental Accounting Standards Board (GASB) has issued a discussion memorandum proposing to replace its dual‑authority GAAP framework for state and local governments with a single‑authority structure modeled on the FASB Accounting Standards Codification. The current system separates Original Pronouncements...
Santa Clauses Get a Tax Break on Tips, but Not Accountants or Tax Pros
Congress’s 2023 tax overhaul introduced a $25,000 tip deduction, and the Treasury has now clarified that Santa Claus impersonators and more than 70 other niche occupations qualify as entertainers eligible for the break. The final rule places Santa, caricature artists,...
Maryland Approves Licensure Pathways Bill
Maryland lawmakers approved House Bill 643, creating a third pathway to Certified Public Accountant licensure that will take effect on October 1, 2026 pending the governor’s signature. The new route allows candidates with a bachelor’s degree, two years of relevant experience and a...
13 Issues Worrying Firm Leaders
Accounting firm leaders surveyed by Accounting Today identified 13 inter‑linked challenges reshaping the profession. Private‑equity‑driven mergers, heightened regulatory scrutiny, and the need for rapid technology adoption top the list, while talent shortages and pricing pressures add urgency. Executives stress that...
CAQ, Deloitte Gauge Audit Committee Priorities
The Center for Audit Quality and Deloitte issued a new report on audit‑committee effectiveness, drawing on a survey of 27 chairs and members. The findings confirm cybersecurity as the top priority, with many committees expanding training and relying on external...
IRS Proposes Remittance Transfer Tax Rules
The IRS and Treasury released proposed regulations to enforce a 1% excise tax on U.S. remittances sent via cash, money orders, cashier’s checks, and similar physical instruments, effective Jan. 1 2026. The sender is responsible for the tax, but remittance‑transfer providers must...
The Retirement Opportunity Accountants Can't Afford to Miss
Gusto’s research shows small‑business retirement plan adoption jumped 58% between 2019 and 2025, expanding coverage to 5.6 million workers. State mandates now exist in over 20 states, and the SECURE 2.0 Act provides tax credits of up to $5,000 per year for...