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The National Association of Tax Professionals is urging Congress to protect IRS information, citing concerns that the Elon Musk-led Department of Government Efficiency “may be granted access to sensitive taxpayer data” housed there. “The Taxpayer Bill of Rights and the Taxpayer First Act highlight the critical need to protect taxpayer data,” states the letter to House Speaker Mike Johnson (R-LA) and Senate Majority Leader Johhn Thune (R-SD). “Lawmakers should carefully evaluate any proposal expanding access to IRS records and prioritize taxpayer rights in policy discussions.” The NATP, which represents roughly 23,000 tax preparers that largely serve individuals and small businesses, pivoted to take the stand after hearing concerns voiced by members and their clients that their data was at risk, Tom O’Saben, the NATP’s director tax content and government relations, said. “We are hearing from businesses who are asking, ‘what information are they gathering and who is doing it?,’” Mr. O’Saben said. “Congress could monitor the processes that DOGE is using and make sure they’re not operating with unfettered access to the information.” 

 

CFO Dive

Florida state CFO Jimmy Patronis has issued a directive to the state’s Department of Financial Services banning the use of DeepSeek, a Chinese generative artificial intelligence application, within the department, arguing that the application “presents a major national security risk.” “DeepSeek user data is collected and sent back to China, including information provided during sign-up, queries, chat histories, and uploaded files,” said Melissa Ruzzi, director, artificial intelligence at security company AppOmni. “This means the Chinese government could potentially use DeepSeek’s AI models to spy on American citizens, acquire proprietary secrets, and conduct influence campaigns.”

 

CFO Dive

Federal Reserve Vice Chair Philip Jefferson has told a conference at the San Francisco Fed that the rate at which investors respond to specific sentences in speeches by central bankers' and policy statements is increasing as a result of the use of artificial intelligence. He said: "For now, I do not think artificial intelligence is changing the way policymakers communicate, but research shows that it has affected how quickly information about policy is incorporated into asset prices." He noted concerns that this "may provide an incentive for investors to value speed over accuracy, and may reduce the long-run informativeness of asset prices, which could hurt the transmission of monetary policy."

 

Reuters

The U.S. Justice Department is investigating UnitedHealth's Medicare billing practices, according to a report in the Wall Street Journal, although the health insurer said it was unaware of any new probe. The civil fraud investigation is examining the company's practices for recording diagnoses that precipitate extra payments to its Medicare Advantage plans, the report said. The Journal last year published a series of articles which showed that Medicare paid UnitedHealth billions of dollars for questionable diagnoses. Responding to the Journal's report of an investigation, UnitedHealth claimed a year-long campaign against Medicare Advantage and said any “suggestion that our practices are fraudulent is outrageous and false.” A spokeswoman for the Journal said: “We stand by our reporting.”

 

Wall Street Journal

Walmart has lost its position as the largest retailer after more than a decade, with Amazon reporting record revenues of $187.8bn for the final quarter of 2024, surpassing the $180.6bn reported by Walmart on Thursday. GlobalData managing director Neil Saunders said: "Given the growth trajectories of the two companies, it has always been on the cards that Amazon would overtake Walmart's revenue at some point". While Walmart remains dominant in grocery sales, Amazon's diverse revenue streams, including its cloud computing service, have contributed to its growth. “This all-rounded approach—where retail is at the heart of the business, but other things generate revenue around it—is a model that’s been really successful, and it’s been an exemplar for other retailers to really copy Amazon in that strategy," Mr. Saunders added.

 

Fortune

Daily Mail

Hydrogen-truck maker Nikola has filed for Chapter 11 bankruptcy protection in Delaware, and intends to conduct a court-supervised auction of its assets. It has around $47m in cash on hand, and plans to continue to provide certain service and support operations for trucks currently in the field through the end of March, after which it would need the support of one or more partners. 

 

Wall Street Journal

Target is facing a lawsuit from the State Board of Administration of Florida, which oversees public pension funds that own Target stock. The lawsuit alleges that Target concealed risks associated with its diversity and social initiatives, resulting in a backlash that negatively impacted its stock price. Florida claims that Target misled investors and its core customer base, particularly working families, regarding its environmental, social, and governance mandates. The lawsuit cites a "disastrous" Pride Month campaign in May 2023, which led to the removal of some LGBTQ-themed merchandise due to in-store confrontations. In response to the backlash, Target announced on January 24th that it would end its diversity, equity, and inclusion initiatives this year, joining other companies like Walmart and Amazon in scaling back such efforts.

 

AP News

Reuters

Erin Slowey reports that clean energy tax credits are under the IRS's audit spotlight, causing concern among energy project investors and developers. A survey by Crux Climate Inc. revealed that many view IRS audits as their primary worry for 2025. Following the introduction of these credits in the 2022 tax-and-climate law, companies began claiming them on their 2023 taxes. However, the future of these credits is uncertain, especially with potential changes from President Donald Trump, who may seek to dismantle Biden-era policies.

 

Bloomberg Tax

Cryptocurrency firm Bybit says hackers have stolen $1.5bn worth of digital currency from its Ethereum coin digital wallet. It is believed to be the biggest ever crypto theft, exceeding the $620m of Ethereum and USD Coin taken from the Ronin Network in 2022. In 2014, crypto exchange Mt Gox saw $350m of cryptocurrency stolen due to a loophole in its security, while hackers stole stolen $41m worth of Bitcoin from the Binance exchange in 2019. “Bybit is solvent even if this hack loss is not recovered, all of clients assets are 1 to 1 backed, we can cover the loss,” Ben Zhou, Bybit’s co-founder and chief executive, posted on X. “Bybit is determined to rise above the setback and fundamentally transform our security infrastructure, improve liquidity, and be a steadfast partner to our friends in the crypto community,” Zhou said in a statement.

 

Sky News

BBC News

The Guardian

Coinbase chief executive Brian Armstrong has said the Securities and Exchange Commission (SEC) plans to drop a lawsuit against the firm. The SEC has claimed that the cryptocurrency exchange violated laws by offering investments that are subject to its rules despite not registering as an exchange, broker and clearing agency with the regulator. Armstrong said that Coinbase has reached "an agreement" with the regulator that will see it dismiss the legal action. He added that the firm will not face any fines or have to make changes to how it operates.

 

BBC News

Financial Times

Daily Mail

Deloitte China has selected its first female chief executive officer from its local talent pool in mainland China, according to people familiar with the matter. Dora Liu will become Deloitte China’s new CEO on June 1st for a four-year term, succeeding Patrick Tsang.

 

Bloomberg