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Accountancy Slice
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22nd January 2026
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THE HOT STORY

IRS issues updated safe harbor guidelines for retirement plan administrators

The Treasury and the IRS have released Notice 2026-13, which updates safe harbor explanations for retirement plan administrators following tax law changes after August 6, 2020. This notice provides guidelines for explaining eligible rollover distributions under Sec. 402(f) for both non-Roth and Roth accounts. It also addresses modifications to the 10% additional tax on early withdrawals, rules for required minimum distributions for surviving spouses, and the increased age for required beginning dates for RMDs. Administrators can tailor these explanations to fit their plans, such as omitting sections that do not apply. The guidance revises the previous safe harbor explanations found in Notice 2020-62.

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TAX

NYC Mayor Mamdani pushes for millionaire tax hikes

New York City Mayor Zohran Mamdani is advocating for tax increases on millionaires and corporations to address a looming $12bn budget gap. During a press conference, Mamdani said: “Our administration is preparing to make the case that it is the time for New York's most profitable corporations and wealthiest residents to pay their fair share.” The mayor's proposal comes as Gov. Kathy Hochul's $260bn budget plan lacks significant tax hikes, despite Mamdani's calls for them. The mayor aims to fund initiatives like universal preschool and affordable housing through a 2% tax increase on the wealthiest residents and a rise in the state's corporate tax rate. The state budget is due by April 1st, marking the start of the new fiscal year.

Idaho Dems demand pause on tax credits

Idaho Democratic lawmakers are urging the state Tax Commission to halt advance payments under the Idaho Parental Choice Tax Credit program, which allows families to receive refundable tax credits for private school expenses. Senate Minority Leader Melissa Wintrow and House Minority Leader Ilana Rubel expressed concerns about the program's lack of oversight, saying that it “opens the door to fraud and abuse.” They highlighted instances in other states where public funds were misused for non-educational expenses. The lawmakers are advocating for a pause until proper verification and auditing systems are established, as well as until ongoing legal challenges against the program are resolved. The program has already received over 3,300 applications since its launch, with a total of $50m allocated for tax credits.

Oregonians to vote on tax hikes

Oregonians will have the opportunity to vote on several proposed transportation tax and fee increases this May. Senate President Rob Wagner and House Speaker Julie Fahey announced that they will set the election date during the upcoming February short session. The proposed measures include a 6-cent increase to the state's gas tax, significant hikes to title and registration fees, and a doubling of the state's 0.1% payroll tax for transit. Wagner said: “Voters were clear that they want to have a say on this bill.” This decision follows a successful petition by Republican leaders to halt the tax increases, which had been approved as part of a larger transportation package last fall. Gov. Tina Kotek emphasized the need for funding to address the Oregon Department of Transportation's $242m budget deficit, warning of potential service cuts and layoffs without additional resources.

INDUSTRY

FASB urged to clarify stablecoin and AI accounting rules in 2026

After issuing a record 12 accounting standards updates in 2025, the FASB is expected to focus in 2026 on unresolved issues tied to decentralized finance and artificial intelligence. In a piece for Bloomberg, Jack Castonguay, a CPA and associate professor of accounting at Hofstra University, argues that the FASB should define how stablecoins should be classified on balance sheets and determine whether its 2023 crypto accounting guidance applies to “wrapped” and receipt tokens—both widely used but currently outside clear authoritative standards. Stablecoins present particular confusion because they are treated inconsistently across regulators and users (cash-like in practice, but not recognised as cash equivalents), and the GENIUS Act states they are neither securities nor commodities, complicating classification. The piece also calls for stronger disclosure requirements around increasingly circular transactions between AI firms and chipmakers, where investments and purchases may obscure true economic substance. Overall, it urges FASB to prioritise economically accurate standards over political pressures to reduce investor risk in fast-evolving, volatile sectors.

NJCPA inspires future accounting stars

The New Jersey Society of Certified Public Accountants (NJCPA) is actively engaging high school students to explore accounting careers through its Career Awareness Program. In the fall of 2025, NJCPA members visited 66 high schools, highlighting the importance of CPAs in providing financial guidance. Patrick Cleaver, CPA and vice chair of the NJCPA Student Programs and Scholarship Committee, said: “High school is a pivotal period for self-discovery,” as he underscored the program's role in helping students navigate their future paths. The NJCPA also promotes scholarship opportunities, awarding $190,000 in 2025 to support students pursuing accounting majors. Aiysha Johnson, MA, IOM, CEO of NJCPA, expressed gratitude to members for sharing their experiences and insights with students, noting the profession's evolving landscape.

FIRMS

CPA Crossings and IMA join forces

CPA Crossings is partnering with the Institute of Management Accountants (IMA) to enhance access to a variety of courses and certifications in fields such as artificial intelligence, cybersecurity, and financial planning. This collaboration marks a shift for CPA Crossings, which has primarily worked with state CPA societies. The IMA boasts a global network of around 120,000 members across 150 countries, presenting a significant opportunity for both organizations. Rob Wilker, chief executive of CPA Crossings, said: "We are excited to offer our partners a vast array of opportunities to grow and advance in their careers." The partnership will also provide discounted rates and facilitate the sharing of industry insights to improve educational offerings.

ECONOMY

Pending home sales drop to five-month low in December

Pending home sales in the U.S. fell sharply by 9.3% in December, reaching their lowest level since July 2025, according to the National Association of Realtors. The unexpected decline reflects ongoing labor market concerns and a persistent shortage of entry-level homes, which outweighed the benefits of falling mortgage rates. All four regions saw contract declines, and sales were down 3% from a year earlier. Despite an oversupply of new homes, homeowners are holding back from selling due to low existing mortgage rates and slow home price growth. The Trump administration's recent executive order limiting institutional home buying and efforts to lower mortgage rates may influence future trends. 

U.S. construction spending rebounds 0.5% in October, driven by home renovations

U.S. construction spending rose 0.5% in October, according to the Commerce Department, beating expectations after a 0.6% decline in September, largely due to increased home renovation activity. Residential investment climbed 1.3%, despite declines in new single- and multi-family projects. Private nonresidential spending fell 0.2%, while public construction edged up 0.1%, with a 2% drop in federal outlays offset by state and local gains

PERSONAL FINANCE

Cost-of-living concerns threaten Americans’ 2026 financial goals, AICPA survey finds

A new Harris Poll conducted for AICPA reveals that while 92% of Americans have financial goals for 2026 - primarily saving money and paying down debt - half fear rising living costs will derail their plans. Unexpected expenses and income uncertainty also loom as major concerns. The survey found that 81% of those with financial goals in 2025 failed to meet them, with inflation being the top obstacle. Financial experts advise setting clear, realistic goals, tracking progress, and using support resources like CPAs to stay on course.

LEGAL

Supreme Court appears skeptical of Trump's bid to fire Fed's Cook

Supreme Court justices yesterday appeared skeptical of President Donald Trump’s efforts to sack Federal Reserve governor Lisa Cook. Trump moved to fire Cook in August over accusations she committed mortgage fraud. Reuters says that skepticism was summarized most directly by ​conservative Justice Brett Kavanaugh in an exchange with Solicitor General D. John Sauer, who had been tasked with arguing why Trump should be allowed to remove Cook. "Your position that there's no judicial ​review, no process required, no remedy ⁠available, a very low bar for cause that the president alone determines - I mean, that would weaken, if not shatter, the independence of the Federal Reserve," Kavanaugh said. "We have to be aware of what we're doing and the consequences of your position for the structure of the government," Kavanaugh told Sauer.

RISK

U.S. companies expand protection services for top executives

Data from research group ISS-Corporate shows the number of S&P 500 companies providing security benefits to top corporate leadership rose to 22.5% of component companies in 2024, from 12% in 2020.

FINANCIAL PLANNING

High net worth donors face tax hurdles

High net worth donors are facing significant changes due to the One Big Beautiful Bill Act (OBBBA), effective January 1st. The new law introduces a 0.5% adjusted gross income (AGI) floor and limits tax savings for top earners, making it challenging for many to receive tax relief from smaller charitable contributions. David Perez, chief executive of Tax Maverick and Tax Plan Experts, explains that clients earning $2m must now donate over $10,000 to see any federal tax savings. He suggests that establishing donor-advised funds (DAFs) can help clients manage their contributions more effectively. "A donor-advised fund acts in the same context as a general donation," Mr. Perez notes, emphasizing its advantages in tracking and maximizing tax benefits. By consolidating donations into a DAF, clients can meet the new threshold more easily and optimize their charitable giving strategy.

TECHNOLOGY

Business leaders weigh benefits and challenges of integrating AI

Writing for Time, Ayesha Javed reports that business leaders shared their perspectives on the impact of scaling up new technologies including AI during a TIME100 Talks panel discussion in Davos on Jan. 20. Abhijit Dubey, CEO and chief artificial intelligence officer at NTT Data, observed that, unlike all other innovations, AI is the “first technology that will actually be non-human driven.” Raj Sharma, global managing partner for growth and innovation at EY, said the key ingredients in the AI era would be trust, tools, and talent. “You have to balance the equation between [the] three to make sure that AI is adopted.” 
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