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Accountancy Slice
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13th January 2026
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THE HOT STORY

AICPA updates stablecoin reporting criteria

AICPA has revised its criteria for stablecoin reporting to enhance trust and oversight in the sector. The new framework aims to help issuers identify risks and establish control objectives for stablecoin operations. Di Krupica, AICPA senior manager of assurance and advisory innovation – digital assets, said: "Last year saw significant momentum around stablecoin regulation," as she highlighted the growing focus on how stablecoins are issued and managed. AICPA's 2025 Criteria for Stablecoin Reporting: Specific to Asset-Backed Fiat-Pegged Tokens seeks to standardize reporting practices among issuers, thereby promoting transparency and trust in stablecoins, which are digital assets pegged to various backing assets. The first part of the criteria, published last year, aimed to eliminate reporting inconsistencies by providing a common framework for disclosure.

BUSINESS TAXES

2026 Business Tax Updates Explained

Business tax season preparation starts earlier every year, especially as new rules, credits, and compliance requirements continue to evolve.
In this live webinar, Canopy’s tax experts break down the most important business tax updates for 2026 so firms can prepare proactively instead of reacting under pressure.

You’ll learn what’s changing, what matters most for your business clients, and how to adjust your planning and communication ahead of filing season.
The session focuses on practical insights you can apply immediately—helping you reduce surprises, streamline workflows, and guide clients with confidence.

Attend live to earn 1 CPE credit and get clear, timely guidance on the updates that will shape the upcoming tax season.

Register Now

 

TAX

IRS unveils final 2026 wage statement

The IRS has released the final version of the 2026 Form W-2, Wage and Tax Statement. A key update clarifies the instructions for Box 14b, which reports Treasury tipped occupation codes. It specifies that "only when code 000 is reported by itself does that mean an employee's tips are not subject to the deduction provided in the One Big Beautiful Bill Act (Pub. L. 119-21)." Additionally, the IRS has provided counterparts of the Form W-2 for American Samoa and Guam.

Time to retire NASCAR tax break?

As Congress prepares to renew various tax provisions Andrew Leahey, an assistant professor of law at Drexel Kline School of Law, argues that it should consider allowing the motorsports entertainment complex depreciation break, known as the NASCAR tax break, to expire. This measure, which has been extended for over 20 years without substantial justification, allows NASCAR facilities to be depreciated over seven years - faster than other commercial properties. Leahey argues that the provision benefits a small group of wealthy track owners and lacks economic justification. He says: "Ending the NASCAR carveout would restore a sliver of horizontal equity to the tax code."

Newsom vows to block California billionaire wealth tax ballot measure

California Gov. Gavin Newsom has pledged to defeat a proposed wealth tax targeting billionaires, warning it could drive high earners out of the state and damage the local economy. The proposed ballot initiative, backed by the healthcare workers’ union SEIU-UHW, seeks a one-time 5% tax on individuals with a net worth over $1bn, retroactive to January 1st 2026. While the tax could raise tens of billions of dollars for healthcare, food assistance, and education, Newsom argues it would lead to long-term losses by encouraging the wealthy to leave California. He’s working behind the scenes to oppose the measure, even as union supporters gather signatures to qualify it for the November ballot.

INDUSTRY

Gen Z: Accounting's new wave of talent

The accounting profession faces a significant challenge as approximately 124,000 accountant and auditor positions will open annually over the next decade. To attract and retain Gen Z workers, firms must adapt their strategies beyond salary, focusing on flexibility and professional development. Offering remote work options and flexible hours can enhance employee satisfaction, especially during peak seasons. Additionally, Gen Z is eager for learning opportunities, including AI training, with 87% open to using generative AI. As they seek to work for multiple companies to expand their skills, firms must invest in their career paths to build a robust talent pipeline and address the looming accountant shortage.

ECONOMY

Central bank chiefs unite behind Jay Powell amid probe into Fed chief

Central bank governors from 11 major institutions, including the European Central Bank, Bank of England, and Bank of Canada, have issued a joint statement backing U.S. Federal Reserve Chair Jay Powell as he faces a criminal investigation into a $2.5bn Fed headquarters renovation. The show of solidarity comes amid concerns that the probe, launched by the Trump administration, threatens the Fed’s independence. Mr. Powell has called the investigation a political pretext to undermine monetary policy autonomy.

AUDIT & REPORTING

Five key audit takeaways for 2023

At the recent AICPA Conference on Current SEC and PCAOB Developments, George Botic, acting chair of the PCAOB, shared five essential imperatives for auditors. He emphasized that “independence is the linchpin of credibility,” and urged firms to embed it within their quality control systems. Botic also highlighted the importance of understanding a company's operations, fostering professional skepticism, and ensuring adequate time for audits. He said: “The integrity of the audit matters more than the deadline,” as he advocated for a culture that supports thoroughness over speed. Additionally, he discussed the significance of critical audit matters (CAMs) in showcasing the auditor's toughest judgments, which are vital for investor transparency. Botic warned that while AI and private equity present opportunities for the profession, they also pose risks to audit quality.

REGULATORY

U.S. withdraws policy expressly barring lending bias against immigrants

The U.S. Consumer Financial Protection Bureau and ​the Department of Justice have withdrawn guidance - issued by former President Joe Biden in 2023 - which expressly prohibited lenders from discriminating against immigrants and ‌non-citizens. "The withdrawal of this joint guidance really underscores the Trump administration's two key priorities: A harder line on immigration and ⁠a continued effort to scale back enforcement of the federal fair lending laws," observed Lori Sommerfield, a partner at Troutman Pepper Locke.

FINANCIAL PLANNING

Navigating trust tax nexus complexities

Families with substantial wealth in multigenerational trusts can potentially minimize state income tax exposure by regularly reviewing the income tax situs of their trusts. A nexus review is crucial during initial planning and should be revisited with any changes in law or circumstances. Various factors, such as the location of assets and trustees, influence trust nexus. This article highlights significant court cases, including the Supreme Court's decision in North Carolina Dept. of Rev. v. The Kimberley Rice Kaestner 1992 Family Trust, which ruled that “the presence of in-state beneficiaries alone does not empower a State to tax trust income.” As states evolve their tax laws, understanding these nuances is essential for effective trust management.

TOOLS

Revolutionizing tax compliance with AI

Zenwork Tax1099 has launched its Model Context Protocol (MCP) server, which simplifies the management, validation, and filing of IRS tax returns through conversational commands. This innovation reduces the need for manual form-filling and extensive coding, allowing users to connect AI agents for the entire e-filing process. Sanjeev Singh, founder and chief executive of Zenwork, emphasized: "AI tools should be developed using trustworthy sources to ensure reliability," as he highlighted the shift from traditional SaaS solutions to advanced AI-driven options. The platform supports various tax forms and automates workflows, ensuring compliance with security standards like SOC 2 and ISO 27001. Zenwork aims to make tax compliance faster and more intuitive, aligning with evolving regulatory needs.

INTERNATIONAL

President Trump announces 25% tariff on countries ‘doing business’ with Iran

U.S. President Donald Trump said Monday that countries "doing business" with Iran will be subject to a 25% tariff on trade with the U.S., a move that could hit major economies such as China, Russia and India. The threat follows reports from human rights groups that hundreds of people have been killed in a brutal crackdown on protests against the Iranian regime that intensified over the weekend. Mr Trump has previously warned that the U.S. could intervene if Iran’s government uses violence against the protesters. The latest proclamation did not define what qualifies as "doing business" with Iran, raising questions regarding how these additional tariffs could work, exactly which countries would be targeted and whether services and not just goods would face higher duties.

IESBA aims to improve accounting firm culture and governance

The International Ethics Standards Board for Accountants (IESBA) has published a document detailing eight essential elements of an ethical culture and governance framework for accounting firms. This initiative aims to stimulate global discussions on ethical leadership and governance, which are crucial for shaping ethical behavior in the profession. IESBA leaders are currently visiting Singapore, Malaysia, and Hong Kong to engage with local firms on various topics, including sustainability standards and the implementation of the Non-compliance with Laws and Regulations (NOCLAR) standard. IESBA chair Gabriela Figueiredo Dias said: "Asia is at the forefront of many of the developments reshaping the accounting profession." The newly released booklet outlines the objectives of the Firm Culture and Governance Project, which aims to establish a global baseline for firm culture and governance by 2026.
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