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A New York Times analysis raises alarm over President Trump’s escalating efforts to politicize the IRS, citing threats against Harvard University as part of a broader campaign to punish perceived adversaries. After Harvard refused to comply with federal directives targeting campus activism and diversity policies, Trump threatened to revoke the school’s tax-exempt status and freeze visas for international students. The administration also suspended over $2.2bn in grants to Harvard. The analysis points to a troubling pattern: Treasury officials recently flagged IRS audits of Trump allies like Mike Lindell, and the president has named other groups he believes should lose tax-exempt status. Historically, presidents have avoided direct interference in IRS investigations, but experts say Trump’s approach is a significant departure. “This is an administration that is saying it’s going to get revenge,” said former IRS commissioner John Koskinen. Analysts warn that politicizing the IRS could undermine public confidence and damage civic institutions long reliant on nonpartisan enforcement.

 

AP News

CNN

New York Times

U.S. homeowners saw their property taxes rise more slowly last year compared with 2023, while the number of counties where the average bill tops $10,000 continued its steady increase, according to a new study. Real estate data firm ATTOM reports that the average U.S. homeowner paid $4,172 in property taxes in 2024, a year-on-year increase of 2.7%, down from the 4.1% increase seen in 2023 from 2022. By state, the highest average tax bills tended to be in the Northeast. Top-ranked New Jersey was followed by Connecticut ($8,402), New Hampshire ($7,723),  Massachusetts ($7,720) and California ($7,131). New York was excluded from the analysis due to data availability limitations. 

 

Accounting Today

Republican Senator Dave McCormick, of Pennsylvania, has expressed skepticism about the proposed tax hike on millionaires, stating, “I don't think that's likely to happen.” This proposal, which aims to introduce a new 40% tax rate on income exceeding $1m, is gaining traction among some lawmakers and the White House. McCormick, who previously earned $22.5m as chief executive of Bridgewater Associates, believes that Congress should focus on cutting federal spending instead of raising taxes, which he argues would “slow the economy and hurt working families.” The proposal faces resistance from some Republican lawmakers, and with slim majorities in Congress, party leaders need nearly unanimous support for any tax package.

 

Bloomberg Tax

The Iowa House Ways and Means Committee has unanimously advanced several tax break bills aimed at supporting service workers and addressing everyday expenses. House File 268 proposes to exempt cash tips from Iowa's 3.8% income tax, benefiting individuals earning up to $155,000. Rep. David Young stated, “We are showing our appreciation to the commitment of these valued service workers.” Additionally, House File 110 seeks to exempt overtime pay from state income taxes, responding to constituents' concerns about their earnings. The committee also approved bills to exempt essential items like toilet paper and laundry detergent from sales tax, aiming to ease the financial burden on Iowans. Furthermore, a tax credit for radon mitigation systems was advanced to combat rising cancer rates in the state, with Rep. Austin Baeth emphasizing the urgency of the issue. The proposed Iowa Major Events and Tourism Program aims to attract tourism by providing financial assistance for major events.

 

The Gazette Cedar Rapids Iowa

Democratic lawmakers in Washington state are proposing a series of tax increases to address a $16bn budget shortfall. The plan includes hikes in business and capital gains taxes, new sales taxes on services, and increased property tax collections. House Majority Leader Joe Fitzgibbon said “We think he understands there is a need for revenue,” referring to Gov. Bob Ferguson's awareness of the proposals. The new measures aim to generate nearly $12bn over the next two budget cycles, with a focus on wealthier taxpayers and large corporations. However, the proposals have faced criticism, with Senate Minority Leader John Braun arguing that they add to the financial burden on families already struggling with inflation. Protests against the tax increases have also emerged, highlighting public discontent.

 

The Columbian

In 2024, accounting-related securities class-action filings slightly increased to 57, according to a new study from Cornerstone Research. Despite the number of settlements remaining steady at 35, their total value dropped significantly from $1.6bn in 2023 to $1.1bn, marking the second-lowest level in a decade. The median pre-disclosure market capitalization of issuer defendants fell to $445.6m, the lowest in 10 years. Frank Mascari, a coauthor of the report, noted: "For many years, revenue recognition had been the most common GAAP violation... That changed in 2024 when... allegations related to asset valuations... were the most common." The average settlement amount also declined from $47m to $30.1m, reflecting the reduced resources of smaller defendants.

 

Accounting Today

CPA firms are grappling with a challenging landscape characterized by a shortage of experienced professionals, rising salaries, and high turnover rates. As internal resources dwindle, the repercussions of inaction escalate, leading to missed growth opportunities and employee burnout. A webinar featuring industry experts will delve into innovative hiring models, including hybrid structures and fully outsourced teams, aimed at creating a scalable and sustainable workforce. Key discussion points will cover the impact of churn on hiring decisions, evaluating hybrid or outsourced models, and integrating suitable external partners. The session promises practical insights for firms reassessing their support strategies, with the goal of fostering a more resilient workforce.

 

Accounting Today

Carla McCall, CPA, CGMA, is redefining the role of chair at AICPA through active engagement and advocacy. Her tenure has been marked by extensive travel and outreach, including attending multiple regional council meetings and speaking to students about the accounting profession. Speaking to the Journal of Accountancy Ms. McCall emphasized the importance of happiness in the workplace, stating: “If you have happy people, you have happy clients, and growth will follow.” She advocates for work/life integration and meaningful work, encouraging leaders to create environments that foster satisfaction. Ms. McCall also highlights the exciting opportunities for new CPA candidates, noting that “earning CPA status guarantees fluency in the language of business.” Her leadership at AAFCPAs has resulted in significant growth, with annual revenue increasing five-fold since she became managing partner.

 

Journal of Accountancy

The Consumer Financial Protection Bureau (CFPB) plans to dismiss up to 90% of its workforce, equating to around 1,500 employees, following a federal court ruling that allows the Trump administration to adjust staff levels. The agency, which was established to protect consumers from predatory practices, will retain only 200 staff members. The decision has sparked legal action from employee unions and consumer advocates who argue it is an illegal dismantling of the agency. Senator Elizabeth Warren, a key figure in the CFPB's creation, stated: "Donald Trump ran his campaign on lowering costs for working families... Now he and his co-president, Elon Musk, have tried to shut down the agency that has delivered $21bn to hardworking families."

 

Politico

The U.S. has unveiled a plan to impose fees on Chinese ships and Chinese-built vessels, aiming to weaken China’s grip on global shipping and revive domestic shipbuilding. Beginning in six months, Chinese-owned ships will face $50-per-ton fees per voyage, rising annually. Non-Chinese operators of Chinese-built ships will pay lower rates. The policy, developed by the USTR following a Biden-era probe, includes incentives for carriers ordering U.S.-built ships and exemptions for certain trade routes. Additional fees and LNG shipping restrictions are planned. The initiative is part of a wider Trump administration effort to bolster the U.S. maritime sector despite concerns over cost impacts. The Wall Street Journal editorial board criticizes the proposed shipping tax, warning it could spike freight costs and cripple U.S. exports.

 

Wall Street Journal

Wall Street Journal