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Accountancy Slice
USA
17th October 2025
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THE HOT STORY

Federal Reserve, FDIC withdraw Climate Risk Management Framework for banks

The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC), announced on Thursday that they are withdrawing the interagency Principles for Climate-Related Financial Risk Management for Large Financial Institutions. Introduced in 2023, the principles were designed to help banks with over $100bn in total consolidated assets manage climate-related risks. In a statement, the regulators said: “The agencies do not believe principles for managing climate-related financial risk are necessary because the agencies’ existing safety and soundness standards require all supervised institutions to have effective risk management commensurate with their size, complexity, and activities." Five of the Fed Board’s seven members voted to approve the withdrawal. In a statement released after the decision, Governor Michael Barr, who voted against the withdrawal, said that “revoking the principles as climate-related financial risks increase defies logic and sound risk management practices," adding: “The rescission contains literally no evidence to support taking this step only two years after putting the principles into effect. We owe the public a rational, evidence-based explanation for our actions, and this rescission fails that test.”

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TAX

New tax rules shake up private equity landscape

The enactment of the One Big Beautiful Bill Act (OBBBA) introduces significant changes to federal tax legislation affecting the M&A lifecycle. Key provisions include reverting the adjustable taxable income calculation back to an Ebitda base and making 100% bonus depreciation permanent for qualified property after January 19th 2025. The OBBBA also expands benefits under Internal Revenue Code Sec. 1202 for qualified small business stock and restores immediate expensing of domestic research and experimental expenditures. CPA advisors are encouraged to leverage these changes for early-stage planning, as proper documentation can lead to substantial tax savings. The legislation presents an opportunity for private equity investors and public accounting professionals to enhance their advisory roles, with the potential for significant post-tax value creation.

Chicago Mayor Johnson's budget targets the ultra-rich

Chicago Mayor Brandon Johnson is proposing a plan to address a $1.19bn deficit by introducing new taxes on large corporations and wealthy individuals. His strategy aims to generate approximately $586.6m in additional revenue, including a head tax of $21 per employee per month on companies with over 100 employees, which is expected to raise $100m for community safety programs. Mr. Johnson said: "Instead of asking our residents to sacrifice even more, we are asking large corporations and Big Tech companies that have made trillions of dollars to pitch in a little bit more." The plan also includes a social media amusement tax and an increase in the cloud computing tax. Mr. Johnson's previous attempts to raise taxes on the wealthy have faced opposition, but he said he remains committed to reducing the financial burden on working-class residents. The budget proposal requires city council approval.

INDUSTRY

Accounting firms embrace advisory services

Wolters Kluwer's latest “Future Ready Accountant” report reveals a significant increase in accounting firms offering business advisory services, with 93% of surveyed professionals indicating their firms now provide these services, up from 83% last year. Cathy Rowe, senior VP at Wolters Kluwer, said: “We absolutely see advisory as the growth engine,” highlighting the shift towards strategic advice that opens new revenue streams. The report notes that firms are leveraging data and artificial intelligence tools to enhance their advisory offerings, with 87% of respondents using client data to identify opportunities. However, concerns about AI risks persist, with 40% of respondents citing security risks as a top concern. Ms. Rowe emphasized the importance of integrating technology carefully, advising firms to “pick a clear use case, align technology with business goals and build for sustainable transformation.” The report is based on a survey of 2,768 tax and accounting professionals conducted in April and May.

 
CFO

Closing the COVID gap in accounting

A recent study identified a "COVID gap" affecting foundational professional and communication skills in the CPA profession. This gap highlights the importance of people skills over technical knowledge, as the profession relies heavily on trust and relationships. The Illinois CPA Society's 2025 Insight Special Feature reveals a disconnect between how early-career professionals rate their skills and how managers perceive them, indicating a relationship gap. The Maryland Association of CPAs is responding by creating programs to foster connections across firms and generations. As the report emphasizes: "Talent readiness is a shared responsibility," underscoring the need for community engagement to close these gaps and support the next generation of leaders. Investing in collaborative learning can strengthen both individual professionals and the profession as a whole.

ECONOMY

U.S. budget deficit edged lower in fiscal 2025

The U.S. budget deficit edged lower for fiscal 2025, as record-setting tariff collections helped offset what also were unprecedented numbers for payments on the spiraling national debt. The Treasury Department said on Thursday that the shortfall shrank by 2.2%, or $41bn, to $1.78tn. Officials estimate that the dip in the budget shortfall will bring the ratio of deficit to gross domestic product to 5.9%, the first time it has been below 6% since 2022. Interest on the debt totaled more than $1.2tn. Total outlays for the fiscal year increased to $7tn from $6.7tn the previous year, an increase of 4%, while total receipts rose 6% to $5.235tn. Gross corporate tax receipts plunged some 41%, to $65bn.

Economists say U.S. retail sales growth likely slowed last month

Credit-card data and other private-sector alternatives to the official U.S. retail sales report largely suggest consumer demand moderated last month after a vigorous stretch of spending this summer. Economists surveyed by Bloomberg had expected a retail report, the release of which has been cancelled due to the federal government shutdown, to have shown a smaller advance in the value of purchases after 0.6% increases in the prior two months. Bloomberg Second Measure, which analyzes credit and debit card data, showed less appetite last month for discretionary items such as furniture, electronics and appliances. Credit-card data from Bank of America, meanwhile, also shows cooler demand. “There is a sequential slowdown from the months of June to August, you’re not going to get the same kind of spending growth that you saw in the last three months", said Shruti Mishra, an economist with Bank of America. “I think broadly, the consumer can keep on spending at this business-as-usual pace going into November, December”.

U.S. homebuilder sentiment increases the most since 2024

Confidence among U.S. homebuilders rose this month by the most since early 2024, boosted by lower mortgage rates. An index of market conditions compiled by the National Association of Home Builders (NAHB) and Wells Fargo increased five points to 37, below the 50-mark separating optimism and pessimism, but above the 33 expected among economists surveyed by Bloomberg. A gauge of future sales rose from 45 to 54, while the component measuring current sales hit 38 from 34. Confidence rose across the country, led by the Northeast and South, which is the U.S.’s biggest homebuilding region. Gains were less pronounced in the West and Midwest. "The HMI gain in October is a positive signal for 2026 as our forecast is for single-family housing starts to gain ground next year," said NAHB Chief Economist Robert Dietz. "The 30-year fixed-rate mortgage fell from just above 6.5% at the start of September to 6.3% in early October. Combined with anticipated further easing by the Fed, builders expect a slightly improving sales environment, albeit one in which persistent supply-side cost factors remain a challenge."

CORPORATE

Glass Lewis to end benchmark voting recommendations on proxy issues

Advisory firm Glass Lewis has said it would stop issuing single voting positions on proxy issues and instead offer multiple perspectives to clients, after facing criticism from Republicans over diversity and environmental criteria. Glass Lewis said disagreements between U.S. and European investors on sustainability matters are “challenging the traditional model of proxy voting organizations that rely on a single house view," adding: “Transitioning to a fully client-driven policy model will ultimately put all proxy voting control in the hands of shareholders, empowering them to vote in accordance with their specific beliefs and priorities.”

LEGAL

Delaware Supreme Court urged to restore Musk's $56bn payday

An attorney has argued to the Delaware Supreme Court that Tesla CEO Elon Musk’s $56bn pay package from the electric vehicle maker should have been restored by a vote of the company’s shareholders last year. The legal battle is in its final stage after a lower court judge rescinded Musk's record compensation in January 2024. Reuters reports that the outcome of the case could have substantial consequences for the state of Delaware, its widely used corporate law, and its Court of Chancery.

SCOTUSblog co-founder's tax evasion case continues

SCOTUSblog co-founder Tom Goldstein's attempt to dismiss tax evasion charges has been denied by Judge Lydia Kay Griggsby of the U.S. District Court for the District of Maryland. The judge ruled that the statute of limitations had not expired due to several tolling orders obtained by the government. Additionally, she rejected Mr. Goldstein's request to suppress statements made to federal immigration authorities in 2018.

REGULATORY

Feds crack down on Puerto Rico tax schemes

Recent developments indicate that federal prosecutors are intensifying their scrutiny of Puerto Rico residency claims, particularly targeting high-net-worth individuals. David W. Klasing, JD, CPA, highlights that the IRS, Justice Department, and Congress are actively investigating taxpayers' actions and the advice provided by their advisers. A notable case involves investor Suresh Gajwani, who pleaded guilty to filing a false document to retroactively convert his company to an S corporation, attempting to shelter nearly $30m in gains. The IRS has launched a compliance campaign, and grand-jury subpoenas have been issued to law firms involved in Puerto Rico tax planning. Mr. Klasing warns that “the penalty for missteps can be severe,” urging CPAs to maintain rigorous documentation and annual evaluations to protect their clients.

HEALTH CARE

Shutdown showdown: health care at stake

As the federal government shutdown continues, U.S. House Speaker Mike Johnson (R-LA) faces pressure regarding the extension of premium tax credits for health care. Democrats argue that “if the Speaker doesn't relent and these credits expire, people go bankrupt,” highlighting the urgency of the situation. Without action, health insurance costs could double, affecting 3.8m households, according to the Congressional Budget Office. Mr. Johnson has maintained that there is time to address these concerns, saying: “That's a December 31st issue.” However, the complexity of extending the Affordable Care Act tax credits complicates negotiations, with some Republicans, including Rep. Marjorie Taylor Greene (R-GA), advocating for immediate action to prevent rising premiums. Enrollment begins on November 1st.

FRAUD

777 Partners co-founder Josh Wander charged with fraud

777 Partners’ Josh Wander, whose Miami-based investment group tried to buy Everton Football Club in the U.K., has been charged with wire and securities fraud by federal prosecutors in New York. He is alleged to have defrauded lenders and investors out of nearly $500m, and to have offered more than $350m in assets as collaterol in the knowledge that the monies were not available. 

TOOLS

Verito launches new support suite for accounting firms

Verito has launched the VeritComplete program, an integrated solution designed for accounting firms that combines dedicated cloud infrastructure, 24/7 security operations monitoring, and comprehensive IT support. Chief executive Jatin Narang emphasized, “Accounting firms shouldn't need three vendors to handle their technology,” highlighting the program's efficiency and cost-effectiveness, which is about 20% less than purchasing services separately. The platform addresses security gaps and coordination delays by providing a single team familiar with accounting workflows. Key features include password management, VPN access, dark web monitoring, and automated backups. The VeritComplete program is available for firms of all sizes, starting at $249 per user per month.
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