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Former Missouri congressman Billy Long will be ceremonially sworn in as IRS Commissioner later today. He was confirmed by the Senate in June with a 53-44 vote, despite concerns regarding his ties to a tax credit scheme. Mr. Long's appointment comes amid significant staffing cuts and leadership instability within the agency, which have raised concerns about the upcoming tax filing season. In a message to IRS employees, he said: “In my first 90 days I plan to ask you, my employee partners, to help me develop a new culture here. I'm big on culture, and I'm anxious to develop one that makes your lives and the taxpayers' lives better.” Mr. Long, who has no prior experience in tax administration, previously sponsored legislation aimed at abolishing the IRS. His connections to alleged tax loopholes have prompted calls for a criminal investigation from Democrats.

 

US News and World Report

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Earlier this week, the Institute of Internal Auditors presented its updated competency framework for internal auditors. It features three main components, with skill subcategories, proficiency levels and characteristics of demonstrating proficiencies in each of the categories, similar to the old competency framework.  "One of the key features in the new competency framework, because we've published this in an Excel workbook, is that the categories are adjustable to your organization's needs," said David Petrisk, director of standards and guidance at the IIA. "That's largely in response to feedback we were getting from public sector auditors as well as from others, that the categories needed to be flexible." Other new features in the framework include proficiency levels and job role expectations. "They can be used to help benchmark your expectations to market conditions, and also you can customize and adjust some of the details to fit your organization and market," he added. "It's a customizable framework that provides more context than we did previously."

 

Accounting Today

Brett Bissonnette from Plante Moran emphasizes the importance of adapting to the IRS' significant staffing reductions, which have seen over 9,000 workers leave the Taxpayer Services Division since January, a drop of nearly 22%. He advises tax practitioners to encourage e-filing, saying: "Practitioners who convince their clients to file electronically . . . stand to improve the taxpayer experience." With longer wait times and potential misinformation from the IRS, practitioners must utilize electronic tools and understand the IRS processes to better serve their clients. Mr. Bissonnette warns that those who fail to adapt to these changes risk being left behind in an evolving tax landscape.

 

Bloomberg Tax

Top 20 accounting firm Armanino has expanded its managed service offerings by partnering with Strategic Accounting Outsourced Solutions (SAOS), a specialized outsourced accounting firm. Matt Armanino, chief executive of Armanino Advisory LLC, said: “Their people, specialized expertise, and strong service culture align perfectly with ours.” The partnership aims to enhance Armanino's capabilities, particularly in the nonprofit and family office sectors, while providing SAOS clients access to Armanino's comprehensive services, including reporting automation and consulting support.

 

CPA Practice Advisor

Smith + Howard, an Atlanta-based top 100 accounting firm, has launched two new tax practices: Site Selection + Incentives, led by Shelly Carmichael, and State and Local Income Tax Consulting, led by Brandee Tilman. The Site Selection + Incentives practice focuses on location-based tax planning and incentives, while the SALT Consulting practice offers guidance on income and franchise tax, nexus, and M&A tax implications. With over 20 years of experience, Ms. Carmichael emphasizes data-driven decisions for long-term growth, while Ms. Tilman aims to provide clients with clarity and foresight in navigating complex tax landscapes.

 

CPA Practice Advisor

U.S. retail sales rebounded more than expected in June, the Commerce Department has reported, rising 0.6% following an unrevised 0.9% drop in May. Economists polled by FactSet expected a 0.2% gain. Ten out of 13 categories posted increases, with motor vehicle sales climbing after back-to-back declines. Auto dealerships led the rise in sales, with receipts increasing 1.2% after decreasing 3.8% in May. Building material garden equipment store sales increased 0.9%, as did receipts at clothing retailers. Online retail sales climbed 0.4%, while those at sporting goods, hobby, musical instrument and book stores rose 0.2%. Sales at food services and drinking places, the only services component in the report, increased 0.6%; however, sales at electronics and appliance stores dipped 0.1%, as did those at furniture outlets. “There’s still a lot of trepidation about tariffs and likely price hikes, but consumers are willing to buy if they feel they can get a good deal”, commented Heather Long, chief economist at the Navy Federal Credit Union. “The word of the summer for the economy is resilient.”

 

CNN

Bloomberg

Reuters

Applications for U.S. unemployment benefits declined for a fifth straight week to the lowest level since mid-April, the Labor Department reported on Thursday. Initial claims in the seven days to July 12th decreased by 7,000 to 221,000, well below the 234,000 expected among economists polled by the Wall Street Journal. The four-week average of claims fell 6,250 to 229,500, while the the total number of Americans collecting unemployment benefits, reported with a one-week lag, rose 2,000 to 1.96m. Before adjusting for seasonal factors, initial claims rose 19,539 last week to 260,900. New York, Nevada and Texas saw the largest unadjusted increases, while claims fell in Michigan, New Jersey and Tennessee.

 

ABC News

Bloomberg

RTT News

Wall Street Journal

The Trump administration has said federal staff can get permission to work from home or adjust their hours to accommodate religious fasts and prayers, after previously mandating that workers report to offices full time. Office of Personnel Management director Scott Kupor urged agencies to "adopt a generous approach" to allowing employees to work remotely before and during religious holidays, advising that workers who want to take breaks during the workday while they are fasting should also get permission to work from home. Agencies seeking to deny a request to work remotely for religious reasons must justify it with "evidence of significant operational impact," Kupor said.

 

Reuters

The World Federation of Exchanges has said the rise of private capital has undermined the traditional role of stock markets, which are “under threat” after a slump in global stock listings. In an open letter to regulators, policymakers and the investment industry, the umbrella group for exchanges around the world said: “Companies are staying private longer or bypassing public markets entirely. Investors are looking elsewhere. And, as a result, the fundamental role of public markets in supporting innovation, job creation, and equitable wealth distribution is under threat.” The group added: “We will launch a multi-year campaign to investigate and address the structural causes of public market decline, beginning with an urgent focus on the IPO drought.”

 

Financial Times

Investment Executive

World Federation of Exchanges

Two Republican senators, Todd Young (R-IN) and James Lankford (R-OK), played a crucial role in preventing a proposed 600% tax increase on the endowments of large private foundations during negotiations over President Donald Trump's tax and spending legislation. Mr. Young said: “I do have to say that this took some persuasion,” as he highlighted the efforts made to protect philanthropic organizations. The legislation, signed into law on July 4th, raised taxes on university endowments but spared philanthropic foundations, which are often criticized for their influence on social issues. The Philanthropy Roundtable and other conservative groups opposed the tax hike, arguing it contradicts conservative values. The new law also includes provisions for charitable deductions and limits on corporate giving, which could impact overall donations.

 

US News and World Report

Flavia Sundfeld, a senior indirect tax specialist at Uber, emphasizes the importance of maintaining critical thinking skills in tax firms as artificial intelligence  becomes more prevalent. She notes that while AI can process vast amounts of data quickly, it is essential for professionals to review AI-generated results to ensure accuracy. A recent survey by Ernst & Young revealed that 53% of senior leaders feel their employees are overwhelmed by the influx of AI information. Sundfeld advocates for tax firms to invest in employee growth and soft skills, saying: "Companies should train employees on soft skills that an AI or any automation could never replace." By fostering an environment that encourages creativity and collaboration, tax professionals can effectively integrate AI into their work while enhancing their own skills.

 

Bloomberg Tax

Samsung boss Lee Jae-yong has been cleared by South Korea's top court of fraud charges, concluding a years-long legal battle over his role in a 2015 merger deal. Lee, the grandson of Samsung's founder and the de facto head of the company since 2014, had been accused of using stock and accounting fraud to try to gain control of the firm. In its final verdict, the Supreme Court in Seoul upheld a not guilty verdict, after Lee was acquitted of all charges in two earlier trials. "Today, the Supreme Court has clearly confirmed through its final ruling that the merger of Samsung C&T and the accounting treatment of Samsung Biologics were lawful," said Samsung's lawyers. Prosecutors accused Lee and his advisors of inflating the value of his pharmaceutical firm, Samsung Biologics, through fraudulent accounting.

 

BBC News

A report from the Convention on Wetlands says the destruction of the world's wetlands, which support fisheries, agriculture and flood control, may mean the loss of $39tn in economic benefits by 2050. "The scale of loss and degradation is beyond what we can afford to ignore," said Hugh Robertson, the lead author of the report, which calls for annual investments of $275bn to $550bn to reverse the threats to the remaining wetlands, and said current spending was a "substantial under-investment."

 

Reuters