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Senate Republicans are set to request the Senate parliamentarian, Elizabeth MacDonough, to evaluate a plan to make President Donald Trump's 2017 tax cuts permanent. Critics warn this could lead to an additional $4.6tn in debt over the next decade. The Republicans, holding a slim 53-47 majority, are attempting to navigate a complex budget process to pass the tax cuts and spending increases for border security and military. Sen. Jeff Merkley (D-OR) criticized the GOP's fiscal responsibility claims, saying: "Republicans love to talk about fiscal responsibility — until they're the ones in charge." If MacDonough rejects the plan, Republicans may consider extending the tax cuts for another 10 years or attempt to override her decision.

 

Reuters

The PCAOB has reported notable improvements in deficiency rates among the six largest global auditing firms in its 2024 inspection results. The aggregate Part I.A deficiency rate for all inspected firms decreased to 39%, down from 46% in 2023. Erica Williams, PCAOB chair, said: "We challenged the audit profession to do better for America's investors, and these significant improvements demonstrate real progress in protecting investors." The Big Four firms saw their deficiency rate drop to 20% from 26%. While progress is evident, Williams emphasized the need for continued efforts to enhance audit quality, urging firms to build on this momentum. The PCAOB's initiatives include increasing transparency and providing resources to improve audit practices.

 

Accounting Today

AICPA's Accounting and Review Services Committee has clarified a standard regarding financial statement preparation in client advisory services. The new Statement on Standards for Accounting and Review Services (SSARS) No. 27 states that a CPA is not obligated to apply AR-C Section 70 when financial statement preparation is not the primary goal of a consulting services engagement. This change reflects the rapid growth of client advisory services, where accountants often take on roles like outsourced chief financial officer. Sue Coffey, chief executive of public accounting at AICPA, emphasized: "Our goal is to ensure that accountants have the necessary knowledge, tools and resources to serve their clients efficiently." The revised standards will be issued over the coming weeks.

 

Accounting Today

CPA Practice Advisor

The IRS has placed 50 senior IT leaders on administrative leave, adding to the thousands of jobs already cut during tax season. This move comes as the National Treasury Employees Union (NTEU) filed a lawsuit against President Donald Trump's executive order that strips collective bargaining rights from federal employees. According to an email sent to affected employees: "This paid administrative leave status will remain in effect until further notice." The IRS has already reduced its workforce by about 7,320 workers, or 13%, with estimates suggesting planned cuts could reach up to 50%. Additionally, the IRS faces a budget cut of $20.2bn as part of a recent government shutdown deal. Doreen Greenwald, NTEU national president, criticized the executive order, saying: "It is an attempt to silence the voices of our nation's public servants." The lawsuit challenges the legality of the order affecting two-thirds of federal workers.

 

Accounting Today

The IRS has issued over 55.7m refunds to taxpayers, amounting to nearly $179.5bn this tax season, marking increases of 1.3% in the number of refunds and 5.9% in total refund amounts compared to last year. The average refund amount on March 22nd was $3,221, up from $3,081 last year. 

 

CPA Practice Advisor

Aprio and RSM US have entered into an agreement for Aprio to acquire RSM’s Professional Services+ practice operating in the U.S. and Canada. The transaction is expected to close on 30 April 2025, pending satisfaction of customary conditions. The practice serves almost 80 firms across the U.S. and Canada and provides resources and advisory services related to strategy and leadership, talent development, business processes and operations, and access to group buying solutions.

 

Accountancy Today

The Chicago Purchasing Managers’ Index (PMI), a key indicator of the economic health of the manufacturing sector in the Chicago region, has reported an unexpected rise, from 45.5 to 47.6. The reading, which is below the 50-mark separating expansion from contraction, beat analyst expectations for 45.5. 

 

Investing

Hooters has filed for Chapter 11 bankruptcy protection in North Texas. The HOA Restaurant Group, which operates many locations, aims to resolve its financial issues while keeping the restaurants open. The company said: “Our renowned Hooters restaurants are here to stay and we are taking action to strengthen our business”. Founded in 1983, Hooters has faced various challenges, including financial difficulties and lawsuits regarding its hiring practices. Despite these setbacks, the original founders plan to acquire more outlets to revitalize the brand.

 

Killeen Daily Herald

Wall Street Journal

The U.S. Supreme Court is set to hear a case involving the Catholic Charities Bureau, which is seeking a religious exemption from Wisconsin's unemployment insurance tax. The bureau argues that the denial of this exemption infringes on the First Amendment's guarantee of free exercise of religion. The Wisconsin Supreme Court previously ruled against the bureau, stating that its activities were "primarily charitable and secular." The Catholic Charities Bureau has been providing services since 1917, but the state determined in 1972 that it was subject to the unemployment tax. The outcome of this case could have significant implications, as the Freedom from Religion Foundation warned that a ruling in favor of the bureau could allow many religious organizations to exempt themselves from various regulations, potentially jeopardizing unemployment benefits for hundreds of thousands of employees. A decision is expected by the end of June.

 

US News and World Report

Johnson & Johnson's $10bn proposal to resolve lawsuits linking its baby powder to ovarian cancer has been rejected by U.S. Bankruptcy Judge Christopher Lopez, marking the third failure of the company's bankruptcy strategy. Lopez said: "While the Court's decision is not an easy one, it is the right one," as he emphasized that J&J does not belong in bankruptcy. The company faces over 60,000 lawsuits alleging its talc products contained asbestos and caused ovarian cancer, claims that J&J denies. The rejected settlement aimed to end these lawsuits and prevent future claims.

 

Reuters

U.S. banking leaders are advocating for significant regulatory changes under President Donald Trump's administration, and have expressed optimism that regulators are receptive to their requests. Proposed changes include raising the threshold for anti-money laundering reports from $10,000 to potentially $75,000 or $100,000. The push for deregulation follows a period of stricter rules under the Biden administration. However, advocates for tougher regulations, like Dennis Kelleher of Better Markets, warn that easing rules could jeopardise consumer protection and financial stability.

 

Reuters

The U.S. Treasury Department's Office of the Comptroller of the Currency has withdrawn its principles for guiding banks on climate-related financial risks. Acting Comptroller of the Currency Rodney Hood said: "The principles providing guidance to banks for climate-related financial risk are overly burdensome and duplicative." The decision aligns with President Donald Trump's broader agenda, which includes withdrawing from the Paris Agreement and cancelling U.S. global climate finance initiatives.

 

Reuters

The Federal Deposit Insurance Corporation (FDIC) has announced that banks can now engage in certain cryptocurrency activities without prior regulatory approval, provided they manage their risks effectively. This marks a significant shift from previous FDIC policy, which mandated advance clearance for such activities. The decision follows a similar move by the Office of the Comptroller of the Currency, which also aims to facilitate banks' entry into the crypto sector.

 

Reuters

For the first time since its founding in 2003, the Canadian Public Accountability Board will publish individual, “firm-specific” public inspection reports, commencing with 2025 inspections and expected to be published in the first quarter of 2026. The Canadian audit watchdog worked with the relevant legislative and regulatory bodies to adopt changes to CPAB’s rules and legislation — most notably, Ontario’s Canadian Public Accountability Board Act and national instrument 52-108 of the Ontario Securities Commission.  “This is a significant milestone for CPAB,” said CPAB CEO Carol Paradine in a statement, “and I sincerely appreciate the support of our stakeholders, the relevant provincial government and securities regulators, and the CPAB team. These approvals are a final step in our initiative to enhance the information we disclose and will allow us to provide greater transparency for the investing public, audit committee chairs and other stakeholders across Canada.” 

 

Canadian Accountant

Wile E. Coyote is back in the spotlight as Ketchup Entertainment has acquired worldwide distribution rights for the film “Coyote vs. Acme,” previously shelved by Warner Bros. in 2023. The acquisition revives one of the three completed films that Warner Bros. opted for a tax write-off instead of releasing. The company chose to take a $115m impairment charge on the films, which also included "Batgirl" and "Scoob! Holiday Haunt." Directed by Dave Green and based on a New Yorker article by Ian Frazier, the film features Wile E. Coyote suing Acme Corporation for its faulty products. The film, which stars John Cena and Will Forte, is set for a theatrical release at an unspecified date. Ketchup reportedly paid around $50m for the film, which had a production cost of $70m.

 

USA Today

The Hollywood Reporter

The Oregonian