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Businesses are moving more artificial intelligence pilots into production in concert with strengthened governance, according to KPMG’s latest AI Quarterly Pulse Survey of 130 C-suite and business leaders in organizations with annual revenues of $1bn or more. More than 40% of comapnies in the third quarter are actively deploying AI agents, up from 11% in the first quarter, and 33% in the second. Businesses are increasingly bolstering guardrails and oversight; more than three in five leaders said they are putting humans in the loop due to a lack of trust, up from 45% last quarter. In addition to human-in-the-loop oversight and limiting sensitive data access, a majority of leaders are also accessing the technology via trusted providers to hedge risk. “Traditional AI was static — you trained it, deployed it, monitored it,” commented Bryan McGowan, trusted AI leader at KPMG U.S. “But agentic AI systems can perceive, reason, plan and even act autonomously.” He added: “The organizations getting this right understand that scaling agentic capabilities and scaling trust aren’t separate initiatives.”

 

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Starting in 2026, a new child tax credit will increase from $2,000 to $2,200 and will be indexed to inflation. However, significant changes will restrict eligibility, particularly affecting low-income families and immigrants. For the first time, at least one parent or guardian must have a Social Security number for children to qualify, potentially excluding 2.7m American kids. Christopher Yera, a research analyst at the Center on Poverty and Social Policy, said: “Families of all sizes are going to need higher levels of income to be eligible for the full credit amount.” The changes come amid cuts to other vital services, raising concerns about the impact on families already struggling to meet basic needs.

 

The Baltimore Sun

California's Department of Tax and Fee Administration (CDTFA) is intensifying its audit efforts, particularly targeting businesses with significant sales. The audit program operates on a three-year cycle, focusing on high-risk accounts and utilizing data-driven methods. As David Klasing notes, "Buyers are secondarily liable for a seller's unpaid tax up to the purchase price unless they withhold enough or obtain a tax clearance certificate." To avoid complications, parties involved in a sale should request tax clearance early and ensure proper documentation is in place. The consequences of failing to comply can include penalties and personal liability for unpaid taxes.

 

Bloomberg Tax

Leodus Thomas Jr., a developer in Chicago's West Side, is concerned about rising property taxes that threaten his ability to invest in affordable housing. After purchasing his home for $135,000 in 2016, its assessed value skyrocketed from $163,000 to $260,000, resulting in a $700 increase in his annual tax bill. “Coming from the top, they want affordable housing in the city,” Thomas said, highlighting the challenges posed by these tax hikes. The median homeowner in Chicago saw a 22% increase in assessments, with some neighborhoods experiencing even steeper rises. The Cook County Assessor's office acknowledged that properties with increases above the citywide median are at risk for higher tax bills. As property values rise, many long-term homeowners are left questioning their financial stability and future in their neighborhoods.

 

Chicago Tribune

Ohio lawmakers are in a standoff with Gov. Mike DeWine over property tax relief after he vetoed several legislative proposals. House and Senate Republicans are planning to override these vetoes, but any changes are unlikely to impact January tax bills. DeWine's vetoes were based on concerns that too many changes could harm schools. "I strongly worry about another third of the counties spiking again in January," said Rep. David Thomas, R-Jefferson. Meanwhile, Democrats are advocating for a circuit breaker to assist those most affected by property taxes. The governor's working group is expected to release policy recommendations by the end of September, but both Thomas and House Minority Leader Dani Isaacsohn, D-Cincinnati, fear the proposals may not address the core issues effectively.

 

The Columbus Dispatch

Jackie Kelley has joined BDO USA as Business Development Market Leader for Southern California. She will drive go-to-market business development strategies, aligning with the firm’s strategic objectives across key industries and service lines. 

 

Orange County Business Journal

The Trump administration's new $100,000 fee for H-1B visas has had a mixed reception among economists, with some casting doubt on the extent to which it will benefit workers. Under the new system, the administration argues, only the best high-skilled workers will be worth the price, leaving more opportunities for U.S.-based labor. “We’re having people come in, people that in many cases are very successful or whatever, as opposed to walking over the borders,” President Donald Trump said in the Oval Office on Friday. A slice of native-born workers, such as some computer programmers, would likely benefit from the reduction in new workers on H-1B visas the fee would spark. However, other workers could be hurt. A 2015 paper by economists Giovanni Peri, Kevin Shih and Chad Sparber found influxes of foreign-born workers boosted wages for native-born workers. And a 2023 paper by economist Britta Glennon found that when H-1B immigration is restricted, U.S. multinationals tend to shift work to other countries. “This misguided measure could shut down the H-1B program entirely,” commented Rutgers University economist Jennifer Hunt. “And if that happens, it’ll have a very detrimental effect on the economy as a whole.” Overall, Hunt said H-1B workers don’t substitute for U.S. workers, but complement them instead, helping them do their jobs and making them more productive.

 

Wall Street Journal

The Wall Street Journal reports that the Trump administration is working on a plan to encourage the construction of infrastructure projects such as factories, to jump-start the American manufacturing sector. A $550bn fund established as part of trade negotiations with Japan would be used to invest in the development of semiconductors, pharmaceuticals, critical minerals, energy, ships and quantum computing. The administration is considering granting leases to companies that would give them access to federal land and water. 

 

Wall Street Journal

Blackstone has named Katie Keenan as chief executive of its real estate income trust and global head of the Core+ business, following the fatal shooting of Wesley LePatner in New York in July. She is currently the global co-chief investment officer of Blackstone's real estate debt strategies and CEO of BXMT, its publicly traded commercial mortgage REIT. Blackstone also announced that Tim Johnson will occupy her vacated real estate debt strategies role, and has named Zaneta Koplewicz as the co-president and director of the REIT.

 

Bloomberg

Reuters

Wall Street Journal

SEC chair Paul Atkins has said investors and banks are likely to help set any new timeline for public company reporting as regulators press ahead following President Donald Trump's call for U.S. companies to be allowed to report earnings every six months instead of on a quarterly basis. "For the sake of shareholders and public companies, the market . . . can decide, you know, what the proper cadence is," Atkins told CNBC, adding "Investors . . . will demand that sort of information at the cadence that's appropriate to what the company's doing and what it's up to." Atkins said that banks "will have something to say" for companies with debts, issuances and other similar issues. He did not indicate any timeline for the change.

 

CNBC

Reuters

In the current surge of start-up investments, with funding increasing by 75.6% year-over-year to $162.8bn in the first half of 2025, understanding tax implications is crucial for founders. Pablo Martell, CPA and founder of Alpine Mar, emphasizes that "making the right decisions and taking the proper steps early" can save startups significant tax expenses. Key considerations include business structuring, incentive-based compensation, and utilizing R&D tax credits. For instance, the Research and Development tax credit can provide immediate cash flow relief for eligible start-ups. Additionally, founders should be aware of the §83(b) election, which allows for lower tax costs on stock grants. Overall, strategic tax planning is essential for start-up growth and sustainability.

 

Bloomberg Tax

Keith Altamirano, a Vancouver man, pleaded guilty to 16 counts of tax fraud in U.S. District Court in Tacoma. He operated a tax business named Integrity Investments, where he prepared fraudulent returns from 2017 to 2021, costing the U.S. Treasury over $5m. Altamirano falsified clients' income submissions by listing fake medical expenses, inflated business expenses, and more. He agreed to pay $104,518 in restitution to the IRS. In a separate incident, Altamirano was sentenced to 13 years for attempted murder of his son, Christopher Altamirano, who suffered serious injuries. His federal sentence will run concurrently with this prison term, with a sentencing hearing scheduled for December 19th.

 

The Columbian

Bernard Arnault, chairman and chief executive of LVMH, has criticized a proposed 2% tax on billionaires, calling it an attack on France's economy. The tax targets wealth exceeding €100m ($117m) and has gained traction amid pressure on Prime Minister Sébastien Lecornu from the Socialist Party. Mr Arnault said: "This is clearly not a technical or economic debate, but rather a clearly stated desire to destroy the French economy." He accused economist Gabriel Zucman, the plan's architect, of being a "far-left activist." Mr. Zucman defended himself, asserting that his work is based on research, not ideology. Public support for the tax is high, with an Ifop poll showing 86% approval.

 

Reuters

Two businessmen have been found guilty of falsifying documents for senior executives at German fintech firm Wirecard as part of one of Europe’s biggest accounting frauds. Shan Rajaratnam, a 59-year-old Singaporean, and James Henry O'Sullivan, a 50-year-old Briton, used the documents to deceive auditor EY into thinking the start-up had more money stored away than actually existed. The pair will return to court for mitigation and sentencing in November.

 

CNA	Financial Times

A report from KPMG has found that 57% of workers would be happy to work at a job for a wage 10% below the market rate in exchange for working with close friends. The Big Four firm's survey of more than 1,000 full-time professionals also found that 45% reported feelings of isolation and loneliness in the workplace, nearly doubling from 25% in 2024. Workers said the top professional benefits of close work friendships include increased productivity and motivation to surpass job requirements. “Working with friends or having a higher salary, of course the answer is ‘both,’” commented Sandy Torchia, KPMG’s U.S. vice chair of talent and culture. “This finding underscores that as talent leaders navigate disruptions from AI and economic uncertainty and create competitive compensation and benefits packages, we cannot miss the importance of fostering workplace friendships, which are critical for a healthy, engaged and productive workforce.”

 

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