Accountancy Slice
Become informed in minutes...
Accountancy Slice
USA
7th January 2026
Together with


THE HOT STORY

IRS urged to automate disaster relief

AICPA has recommended that the IRS implement an automated system for processing Sec. 1033 replacement period extension requests for taxpayers affected by federally declared disasters. In a letter, the AICPA stated: “The IRS could leverage such online accounts to streamline many disaster-related administrative tasks.” Currently, taxpayers face uncertainty due to inconsistent approval times for extension requests. Daniel Hauffe, J.D., AICPA senior manager–Tax Policy & Advocacy, emphasized that automating this process would reduce the IRS's resource allocation and provide certainty for taxpayers replacing property destroyed by disasters. The AICPA also suggested automatic approval for requests pending over a specified timeframe, such as 30 to 60 days. This recommendation aligns with the IRS Advisory Council's similar suggestion in its November 2024 report, IRS Publication 5316.

FILING 1099s

Efficient 1099 E-Filing for Accountants

We live in an increasingly digital world. As we replace old, manual processes with faster, more efficient electronic options, it's not surprising that tax filing has experienced the same shift. For your 1099, W-2 and ACA form processing, turn to efile4Biz, a reputable, IRS-authorized e-file transmitter to file tax information online and save valuable time and money. Let them handle printing and mailing your recipient copies, too! With a 4.8/5.0 customer rating, efile4Biz makes e-filing simple, secure, and efficient.

Visit efile4Biz.com today

 

TAX

Rhode Island Governor considers wealthy surtax

Rhode Island Gov. Dan McKee is reconsidering a proposed 3% surtax on incomes exceeding $640,000 to address a projected budget deficit of at least $101m, adding: "We are in a spot where we're going to have to address some of those headwinds that are coming our way from D.C." The proposal comes as Democrats nationwide explore higher taxes on the wealthy to support state budgets. Massachusetts' successful 4% surtax on incomes over $1m has inspired Rhode Island lawmakers. The state is also facing economic challenges, including job losses and federal funding cuts, prompting McKee to seek new revenue sources while balancing tax cuts for businesses and seniors. The legislature will debate the surtax as part of the annual budget process.

Iowa embraces federal tax credit program

Iowa is set to participate in a federal tax credit program established by President Donald Trump, which will provide scholarships for students attending private schools. Gov. Kim Reynolds announced that the program, which will commence in 2027, allows taxpayers to receive a tax credit of up to $1,700 for donations to approved scholarship granting organizations. Eligible students must come from families with incomes below 300% of the federal poverty level, approximately $96,000 for a family of four. The funds can be used for various educational expenses, including tuition and technology. The initiative complements Iowa's existing educational programs, enhancing school choice opportunities for families.

FIRMS

Anna Scally appointed Global TMT leader at KPMG

KPMG has named Anna Scally as global head of its technology, media and telecommunications (TMT) practice, succeeding Mark Gibson following his retirement in October. Based in Dublin and a partner at KPMG Ireland, Scally brings over 20 years of senior leadership experience and previously led the firm’s TMT efforts across the U.K., Europe, Middle East, India, and Africa. She will now oversee KPMG’s global strategy to support clients amid rapid technological change.

Accenture appoints Head of AI and Data for U.S. Products division

Accenture has appointed Denise Zheng as AI and Data Lead for its U.S. Products Client Group, where she will oversee artificial intelligence deployment across sectors including life sciences, retail, manufacturing, and aerospace. Zheng previously led AI and data initiatives at Accenture Federal Services, focusing on national priorities. She described the new role as a shift toward commercial applications of AI to drive transformation across global value chains. In other Accenture news, the company is buying AI company Faculty in a deal valuing the U.K. start-up at more than $1bn, as the consulting group attempts to adapt to disruption from AI.

Sales Tax Defense joins Armanino

Sales Tax Defense, a Deer Park, New York-based firm specializing in sales and use tax, has merged with Armanino. The financial details of the merger remain undisclosed. This strategic move enhances Armanino's capabilities in addressing multistate compliance and audit defense challenges. Matt Armanino, chief executive of Armanino Advisory LLC, said: “This is a powerful combination that significantly strengthens our tax consulting capabilities.” Founded in 2008, Sales Tax Defense offers a range of services, including audit defense and multistate tax research. Mark Stone, CPA, MST, managing partner of Sales Tax Defense, emphasized that joining Armanino allows them to extend their specialized expertise to a wider client base, particularly larger enterprises facing complex tax issues.

ECONOMY

U.S. services growth hits eight-month low as demand and hiring weaken

U.S. services activity slowed in December, with the S&P Global Services PMI falling to 52.5 – its weakest reading since April, but above the 50-mark separating expansion from contraction – as new business inflows and hiring momentum faded. Export demand contracted sharply, and employment growth stalled for the first time in nine months. Rising input costs and tariffs drove the fastest increase in service prices since August, while business confidence softened amid growing concerns over policy, affordability, and economic resilience heading into 2026.

CORPORATE

Creditors allege 300% kickback scheme behind First Brands' collapse

First Brands Group creditors have accused key financier Onset Financial of orchestrating a kickback scheme with the founder’s brother, Edward James, that saddled the now-bankrupt auto parts supplier with ultra-high-cost debt, delivering average internal rates of return over 300%. The alleged scheme involved hundreds of millions in fees and personal investments, with some funds purportedly diverted to founder Patrick James. Onset, which previously lent up to $2.5bn, has recovered $2.9bn and is seeking a further $1.9bn through bankruptcy claims. The creditors’ committee is investigating potential lawsuits against individuals linked to the firm’s collapse.

REGULATORY

Regulators are lowering capital demands 17 years after financial crisis

Reuters reports on how a Trump administration-supported lowering of banks' capital requirements is worrying some observers that the U.S. is precipitating a global rowback from rules designed to keep financial systems safer, at precisely the time when concerns about market bubbles and financial stability risks are intensifying. Enrico Perotti, an economist at the University of Amsterdam, says the latent message from the White House is “to get regulators off the backs of banks.”

LEGAL

Tariff decision could come as soon as Friday

The Supreme Court has scheduled Friday as an opinion day - offering the first chance for a ruling on President Donald Trump’s global tariffs. The justices take the bench at 10:00 a.m. Bloomberg says a tariff decision is a possibility given the court’s expedited handling of the case to date. “We have a big Supreme Court case,” Mr. Trump told House Republicans Tuesday. “I hope they do what’s good for our country. I hope they do the right thing. The president has to be able to wheel and deal with tariffs.”

Court allows challenge to Michigan's marijuana tax

The lawsuit against Michigan's 24% wholesale marijuana tax, effective January 1st, may proceed, as ruled by Court of Claims Judge Sima G. Patel. The Michigan Cannabis Industry Association and businesses including PG Manufacturing argue the tax violates the intent of the 2018 Michigan Regulation and Taxation of Marihuana Act. The tax aims to generate $420m for road projects, but opponents claim it could drive customers back to the black market. “It is not certain on this record whether the 24% wholesale excise tax will impact prices to the extent purchasers will be driven to the illicit marijuana market,” Patel stated. A scheduling conference is set for January 13th.

CYBERSECURITY

Cybersecurity: a CPA must-have

Accounting firms are increasingly vulnerable to cyberattacks, facing up to 900 attempts weekly during tax season. Experts have labeled this a "CPA Data Breach Epidemic." Ransomware is the most prevalent threat, often demanding payment for access to compromised data. Attack vectors including phishing and AI-driven deepfakes are becoming more sophisticated, tricking employees into unwittingly aiding cybercriminals. Additionally, third-party vendor risks can exacerbate vulnerabilities, as seen in the July 2024 CloudStrike-Microsoft outage. CPA firms must prioritize cybersecurity, especially during mergers and acquisitions, where IT assessments of potential targets are crucial.

INTERNATIONAL

Rush to invest in Venezuela is ‘nuts’

CV Advisors chief executive officer Elliot Dornbusch has ridiculed the rush to invest in Venezuela after the removal of Nicolas Maduro. Mr. Dornbusch - who was raised in Venezuela - said in an interview: “Everybody and their mother is calling their financial adviser, is calling their family office on ‘where do we invest? How do we take advantage of this? You’re from Venezuela, can you look for assets there? . . . I’m like, are you nuts?” He said a "political transition must come first." 

VAT landscape set for transformation

The VAT landscape is poised for significant changes by 2026, driven by the EU's VAT in the Digital Age (ViDA) reform and global digital reporting mandates. As tax administrations increasingly adopt technology, including AI and advanced analytics, businesses must modernize their invoicing and compliance processes. Eugen Trombitas, a global indirect tax expert, emphasizes that "automation and data quality will be the new currencies." The ViDA aims to standardize e-invoicing and real-time data transmission, requiring businesses to adapt to new regulations. The scrutiny over VAT is expected to intensify, particularly following the Court of Justice of the European Union's ruling on transfer pricing adjustments, which highlighted the VAT implications of intercompany transactions. Companies must strategically prepare for these changes to ensure compliance and optimize their tax positions.
Industry Slice

Accountancy Slice delivers the latest, most relevant and useful intelligence to accountants, practice owners, auditors, CFOs and accounting influencers, each weekday morning.

Content is selected to an exacting brief from hundreds of influential media sources and summarised by experienced journalists into an easy-to-read digest email. Accountancy Slice enhances the performance and decision-making capabilities of individuals and teams by delivering the relevant news, innovations and knowledge in a cost-effective way.

If you are interested in sponsorship opportunities within Accountancy Slice, please get in touch via email sales team

Follow us on FacebookFollow us on XFollow us on Linkedin

This e-mail has been sent to [[EMAIL_TO]]

Click here to unsubscribe