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The National Taxpayers Union's Pete Sepp emphasizes the urgent need for the IRS to reform its Freedom of Information Act (FOIA) process to restore public trust. He notes that the agency's current FOIA system has deteriorated, with a staggering 93% denial rate on appeals since 2008, leading to significant delays and undermining taxpayer rights. A recent federal court case involving Arden Row Assets, Basswood Aggregates, and Delwood Resources highlights the consequences of this dysfunction, as the IRS struggles to access records related to penalties on tax deductions. Sepp argues that "FOIA is not just about documents - it's about power," stressing the importance of transparency in government operations. He advocates for modernization efforts and increased oversight to ensure the IRS complies with FOIA requirements and fosters a culture of transparency.

 

Bloomberg Tax

Catch inefficiencies before they cost you.

With tax season behind you, now’s the time to reassess. Before extension season sneaks up, take a moment to audit your firm’s workflows, tech, and team capacity. Our handy checklist helps you spot what’s slowing you down so you can fix it fast and head into the next busy season stronger. It’s how your firm can get practical and boost efficiency where it counts.

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The IRS recently ruled that a networking organization, which facilitates business referrals among its members, does not qualify for tax-exempt status under Section 501(c)(7). The organization, incorporated as a nonprofit mutual benefit corporation, was found to primarily serve its members' business interests rather than operate for pleasure or recreation. The IRS stated "the main objective is to organize events for its members to connect and conduct business referrals," which disqualifies it from tax exemption. The ruling emphasizes that activities benefiting members' private interests do not align with the requirements for tax-exempt status. As a result, the organization must reassess its operations to comply with IRS regulations.

 

Journal of Accountancy

The Gazette highlights unresolved issues from the Iowa Legislature's 2025 session, particularly focusing on property taxes. Despite being a priority, no property tax bill was passed, with Rep. Bobby Kaufmann stating the legislation was “80 percent there.” Gov. Kim Reynolds plans to take a more active role in discussions next year, emphasizing the need for a new approach to service delivery. Other potential repeat issues include pesticide lawsuits and child care legislation, with Reynolds' child care plan introduced post-session. “When individuals, businesses, and government all work together to solve a problem, Iowans benefit,” Reynolds noted. The session also saw limited progress on cancer-related bills, with only one of five supported by the American Cancer Society passing.

 

The Gazette Cedar Rapids Iowa

Accounting enrollment has experienced a significant increase, marking the third consecutive semester of growth across various undergraduate institutions. According to the National Student Clearinghouse Research Center, spring 2025 saw a 12% rise in accounting enrollment, adding 29,312 students for a total of 266,507. AIPCA chief executive Susan Coffey said: “More bright minds are choosing accounting, where graduates find dynamic career opportunities.” Notably, two-year institutions reported a 24% increase, while four-year institutions saw an 11% rise. Factors influencing students' decisions to major in accounting include job demand (66%) and earning potential (56%). Various initiatives are underway to enhance the accessibility and appeal of accounting careers, including scholarships and outreach programs.

 

Bloomberg Tax

CPA Practice Advisor

Journal of Accountancy

A survey of 218 finance leaders by Vena Solutions, which provides an artificial intelligence-powered FP&A platform for users of Microsoft technology found that, while finance departments are placing increased value on AI and machine learning, skills in those areas are, at least for now, unlikely to be the determining factor in a professional landing a job or getting a promotion. Fifty-seven percent of those questioned said that their teams are using AI to handle various operations, such as data entry, reconciliations and forecasting. That proportion will rise, as an additional 21% said they’ve acquired AI solutions but not yet adopted them. However, when asked to identify the single most important skillset to prioritize in building a strong finance team, only 4.6% of those polled selected AI/machine learning. Three times that many (14.7%) picked advanced knowledge of Excel. Despite the growing adoption of AI tools, “Excel remains the workhorse many teams rely on to power or supplement [their] capabilities and automation solutions,” said Craig Schiff, chief executive of BPM Partners, a business performance management advisory firm that collaborated on the survey with Vena.

 

CFO

College campuses are prime locations for recruiting future accountants. To attract top talent, firms should provide clear information about career advancement, work/life balance, professional development, and compensation. “Students are often flooded with redundant information... but most of them really just want to know the details of what sets you apart as a firm,” said Karley Carron-Campbell, a Master of Accountancy student. Engaging with students through presentations and networking events is crucial for showcasing a firm's unique benefits. Building relationships with local universities enhances the recruitment process, as emphasized by Ray Chipman, CPA, who noted that involvement helps students understand the firm's culture and opportunities. By increasing campus presence, firms can better position themselves to attract the best accounting talent.

 

Journal of Accountancy

Thomson Reuters has launched CoCounsel, an agentic AI designed specifically for tax, audit, and accounting professionals. This innovative tool automates tasks such as client reviews, memo drafting, and compliance checks, while providing clear explanations of its outputs. Kevin Merlini, vice president of product at Thomson Reuters, said: "This isn't GenAI in a prettier wrapper - it's a fully integrated, intelligent system built to do the work." The development of CoCounsel was significantly supported by the acquisition of Materia, an AI-development firm specializing in tax and accounting. This strategic move allows Thomson Reuters to integrate AI agents across its product line, enhancing their capabilities in various domains, including legal and compliance. David Wong, chief product officer, emphasized that they are "engineering full agentic systems - backed by trusted content, custom-trained models, and real domain expertise."

 

Accounting Today

CPA Practice Advisor

U.S. manufacturing activity contracted further in May, hitting its lowest level since November. The Institute for Supply Management (ISM) said Monday that its purchasing managers’ index of manufacturing activity fell to 48.5 in May, from 48.7 in April, below the 50-mark separating expansion from contraction, and matching a consensus of economists polled by the Wall Street Journal. Measures of demand were mixed, said Susan Spence, chair of the ISM Manufacturing Business Survey Committee. New orders and backlog of orders indexes declined at slower rates than April, though customers’ inventories and new export orders contracted more strongly. A separate survey from S&P Global Market Intelligence, however, suggests that the sector actually picked up last month, remaining in expansionary territory for the fifth straight month, with the PMI at 52. New orders rose to their strongest level in three months, there was a record-high increase in input inventories, and employment grew for the first time in three months. S&P chief business economist Chris Williamson said: "Encouragingly, manufacturers regained some optimism in May after sentiment had been hit hard by tariff announcements in April, partly reflecting the pauses on new levies. However, uncertainty clearly remains elevated amid the fluid tariff environment, and factories have so far shown a reluctance to expand headcounts in the face of such volatility."

 

BloomingBit

Advisor Perspective

Forex Live

Wall Street Journal

U.S. construction spending unexpectedly fell in April,  the Commerce Department reported on Monday, weighed down by a decline in outlays on single-family housing projects amid higher borrowing costs and a rising supply of unsold homes. Spending was down 0.4% from March, and by 0.5% on an annual basis. Economists polled by Reuters had expected a monthly rise of 0.3%. Spending on private construction projects slipped 0.7%. Investment in residential construction dropped 0.9%, with outlays on new single-family housing projects declining 1.1%. Outlays on multi-family housing units dipped 0.1% in April. Public construction work spending rose 0.4%, was up 0.3% on state and local government projects, and grew 2.7% at the federal government level. 

 

Reuters

Google parent company Alphabet is to spend at least $500m over the next 10 years on rebuilding its global compliance structure to settle with shareholders suing it for alleged antitrust violations. The changes include creating a standalone board committee to oversee risk and compliance, which was previously the responsibility of the Alphabet board's audit and compliance committee. Alphabet has also said it would create a senior vice president-level committee to address regulatory and compliance issues and a compliance committee consisting of Google product team managers and internal compliance experts. “Over the years, we have devoted substantial resources to building robust compliance processes," the company said. "To avoid protracted litigation we're happy to make these commitments." Google denied wrongdoing in agreeing the settlement. 

 

Financial Times

Reuters

Cryptocurrency exchange Coinbase was aware of a data breach involving its outsourcing partner TaskUs as early as January. Sources indicate that the breach was partly due to a TaskUs employee in India taking photographs of sensitive data with her personal phone. Coinbase had previously blamed "support agents overseas" for the breach, which it estimated could cost up to $400m. Coinbase was aware of the incident as early as January but only realised the full extent when it received an extortion demand in early May.

 

Reuters

The emergence of agentic artificial intelligence is poised to transform the accounting profession significantly. As Randy Johnston, chief executive of Network Management Group, explains, agentic AI can autonomously solve complex problems, allowing accountants to focus on analysis and strategy. Donny Shimamoto, founder of IntrapriseTechKnowlogies LLC, emphasizes that this technology will enhance productivity, stating, “It will free accountants up more for the analysis and strategy to help people make decisions.” Agentic AI is expected to automate client advisory services, improve real-time auditing, and assist in research. However, challenges remain, including the need for human oversight and understanding of AI processes. As Byron Patrick, CEO of VERIFYiQ, notes, “Human creativity looks outside the box,” highlighting the importance of human involvement in decision-making. With the integration of agentic AI into existing software, accountants must adapt to this evolving landscape.

 

Journal of Accountancy

Morgan Stanley has said it will contest a Dutch public prosecutor's investigation into alleged tax evasion related to dividends on Dutch shares. The Dutch Public Prosecution Service said that between 2009 and 2013, an Amsterdam-based subsidiary of a foreign bank filed five corporate tax returns in which a total of €124m in withholding tax was offset, related to €825m in dividends that were distributed on Dutch listed shares. "Following an investigation . . . there is suspicion that the subsidiary has unlawfully offset the withholding tax and is therefore suspected of tax evasion," the prosecutor said.

 

Reuters