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Accountancy Slice
USA
30th January 2026
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THE HOT STORY

President Trump sues IRS and Treasury for $10bn over alleged tax record leak

President Donald Trump has filed a $10bn lawsuit against the IRS and the Treasury Department, claiming they failed to prevent the leak of his tax information to the media between 2018 and 2020. The lawsuit, submitted in a Florida federal court, includes Mr. Trump's sons, Eric Trump and Donald Trump Jr., as plaintiffs. The suit alleges that the leak caused "reputational and financial harm" and negatively impacted Mr. Trump's public standing during the 2020 presidential election. The leak was attributed to Charles Edward Littlejohn, a former IRS contractor, who was sentenced to five years in prison for disclosing sensitive tax records, including those of other billionaires like Jeff Bezos and Elon Musk. The Treasury Department recently cut ties with Booz Allen Hamilton, the firm that employed Mr. Littlejohn, citing inadequate data protection measures.

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TAX

More states consider eliminating property taxes for homeowners

Anti-tax advocates are increasingly pushing to eliminate property taxes for homeowners, a move that could cost states billions. House Speaker Jon Burns said: “No one should ever face the loss of their home because they can't pay rent to the government.” Various states, including Georgia and Florida, are exploring ways to phase out these taxes, but concerns remain about funding for local services and schools. In North Dakota, state oil revenue is being used to gradually eliminate property taxes, with Gov. Kelly Armstrong saying: “It works, and we know we can build on it to provide even more relief.” However, the feasibility of such initiatives varies, and local governments may struggle to replace lost revenue.

NYC Mayor Mamdani pushes wealth tax hike as $10bn budget gap threatens city finances

New York City Mayor Zohran Mamdani has said he will urge state lawmakers to raise taxes on the city’s wealthiest residents and corporations to address a projected budget deficit of more than $10bn, which he described as the largest since the Great Recession. While Gov. Kathy Hochul has opposed income-tax hikes, she may be open to corporate increases, and Mamdani is also seeking additional state funding while pledging to balance the budget without cutting working-class programmes.

ECONOMY

Deal reached to avert federal shutdown

A U.S. government shutdown has been avoided after Senate Democrats reached a deal with Republicans and the White House to extend current funding levels for the Department of Homeland Security (DHS) for two more weeks, until February 13th. The extension allows continued negotiations over proposed reforms to federal immigration enforcement tactics. While most of the government is now funded through September, DHS funding remains separate and under negotiation. President Donald Trump has endorsed the temporary agreement and called for bipartisan support.

President Trump nominates Kevin Warsh to lead Federal Reserve

President Donald Trump has selected Kevin Warsh, a former Federal Reserve governor and Wall Street veteran, as his nominee to lead the Federal Reserve, succeeding Jerome Powell. “I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” the president said in a Truth Social post announcing the selection. Mr. Warsh, who served at the Fed during the 2008 financial crisis and currently works at Stanford’s Hoover Institution, is expected to align with Mr. Trump’s desire for significantly lower interest rates, despite Mr. Warsh’s historically hawkish stance on inflation. His nomination comes amid Mr. Trump's broader efforts to reshape the central bank, including previous attempts to replace board members and challenge the Fed's independence. He is anticipated to face questions about maintaining central bank autonomy during his Senate confirmation, though a Republican majority makes confirmation likely. Mr. Warsh, if confirmed, would take over when Mr. Powell's term expires in May.

U.S. jobless claims dip slightly following upward revision

U.S. jobless claims declined slightly last week, the Labor Department reported on Thursday, but remained consistent with a relatively low level of layoffs. Initial claims in the seven days to January 24th fell 1,000 to a seasonally-adjusted 209,000. The previous week's level of claims was revised up by 10,000 to 210,000. Economists surveyed by the Wall Street Journal were expecting to see 205,000 new claims. The four-week moving average rose 2,250 to to 206,250, while continuing claims, reported with a one-week lag, fell 38,000 to 1.827m. The Labor Department also reported Thursday that U.S. worker productivity grew at its fastest pace in two years in the third quarter, rising 4.9%. Economists polled by Reuters had expected third-quarter productivity growth would be ‌unrevised. Productivity growth in the April-June quarter was also unrevised ​at a 4.1% pace. Unit labor costs - the price of labor per single unit of output - decreased at an unrevised 1.9% rate in the third ​quarter.

U.S. trade deficit nearly doubles in November as imports surge, exports fall

The U.S. trade gap widened by 94.6% to $56.8bn in November - its sharpest monthly increase since 1992 - driven by a 5% rise in imports while exports dropped 3.6%, Commerce Department data showed. Despite recent volatility tied to Trump-era tariffs, the overall deficit remains smaller than in recent years, though economists see import growth recovering as businesses restock. The inflation-adjusted merchandise deficit reached $87.1bn, the highest in four months.

CORPORATE

Saks Global to close majority of off-price stores amid bankruptcy restructuring

Saks Global will shut 62 off-price retail outlets, including 57 Saks OFF 5th stores and all five Neiman Marcus Last Call locations, as part of its ongoing bankruptcy proceedings and shift toward full-price luxury retail. The group cited projected losses of $139m from its off-price operations in fiscal 2025. Just 12 Saks OFF 5th stores will remain to manage excess inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, which will continue operating. The company will also wind down its e-commerce business, including the SO5 Digital platform, as part of its strategic overhaul.

PERSONAL FINANCE

Banks to match $1,000 U.S. contributions to employee ‘Trump accounts’

JPMorgan Chase, Bank of America and Wells Fargo have said that they will match the U.S. government’s one-time $1,000 contribution to children’s retirement savings accounts for eligible employees. The so-called Trump accounts, enacted through the One Big Beautiful Bill Act, are part of a pilot program that deposits $1,000 from the U.S. Treasury into tax-advantaged accounts for eligible children born in the U.S. between Jan. 1, 2025, and Dec. 31, 2028. Fortune notes that critics view the Trump Accounts as misleading or elitist. “While we support direct investments in families, the Trump Accounts being hailed by the White House are a policy solution that doesn’t meet most families’ needs,” said Amy Matsui, vice president of income security and child care at the National Women’s Law Center. “As currently structured, these accounts will just become another tax shelter for the wealthiest.”

RISK

Hedging of dollars for clients 'could test banks' capacity'

Ben Pearson, a senior trader at UBS who is described by Reuters as one of the world's top currency dealers, has said banks' ability to meet demand for hedging could be tested by investors rushing to protect their U.S. assets against dollar ​depreciation. "If dollar hedging ​were to increase materially, and it’s a conversation we’re having more and more with clients, the issue is structural capacity," Pearson said.

FRAUD

Whistleblower receives $1m reward under new DOJ program

A whistleblower has received a $1m reward for reporting illegal bid-rigging of used car auctions to federal authorities under the auspices of a Justice Department program announced last year. The information led to a deferred prosecution agreement that will see eBlock Inc. pay a $3.28m criminal fine. “This whistleblower helped expose a brazen $16 million scheme that made it more expensive for hardworking Americans to afford second-hand cars across the country,” said Omeed Assefi, deputy assistant attorney general for criminal antitrust enforcement. “Whistleblowers serve as the Justice System’s greatest disinfectant against criminal antitrust conspiracies.”

TECHNOLOGY

CFOs doubt AI's data accuracy

Only 14% of CFOs fully trust AI for accurate accounting data, according to a Wakefield Research study. The majority, 97%, stressed the need for human oversight to ensure data accuracy. The report highlights a significant "trust gap" that may impede CFOs' AI ambitions. While 88% of CFOs use at least one AI tool, only 40% have fully integrated AI into their finance functions. The study indicates that CFOs believe AI should know when to act independently and when to involve humans for control.

CRYPTO

Crypto money-laundering skyrockets to $82bn in 2025

Research from Chainalysis reveals that money laundering using cryptocurrencies reached at least $82bn in 2025, a sharp increase from $10bn in 2020. The study highlights the rapid growth of Chinese-language money-laundering networks, which processed $40m worth of crypto daily, and cited the identification of nearly 1,800 active wallets involved in processing $16.1bn. Chainalysis pointed out that these networks have developed "a complex and resilient ecosystem" that adapts to enforcement actions, making it challenging to disrupt their activities.

INTERNATIONAL

Tax dispute resolved by Mexican billionaire

Mexican billionaire Ricardo Salinas Pliego has reached a settlement with the government, agreeing to pay 32bn pesos ($1.85bn) to resolve a decade-long tax dispute. The Mexican tax authority said that Salinas's business group will make an initial payment of 10.4bn pesos and the remainder in 18 instalments.
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