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Tax refunds have increased by over 10% in 2026, with the average refund amounting to $3,804, which is $351 more than last year, according to the Internal Revenue Service (IRS) report released on February 27th. Despite a 1.9% decline in the number of returns processed, the IRS has issued 28.7m refunds this year, totaling $109bn. The rise in refunds is partly due to changes in tax laws from the “One Big Beautiful Bill,” which eliminated taxes on overtime and tips and increased standard deductions. The IRS anticipates that average refunds will exceed $1,000 in 2026, reflecting a significant increase from previous years. Taxpayers have until April 15th 2026, to file their returns.

 

CPA Practice Advisor

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Sen. Bernie Sanders (I-VT) and Rep. Ro Khanna (D-CA) plan to introduce legislation imposing a 5% federal wealth tax on billionaires, aiming to generate an estimated $4.4tn in revenue without raising taxes on individuals with net worths below $1bn. The proposal comes as Democrats increasingly campaign on economic inequality and affordability, with growing public support for higher taxes on the ultra-wealthy. Sanders said the measure would ensure billionaires “pay their fair share” and help fund programs benefiting working families. According to the bill summary, the revenue would finance a $3,000 direct payment to households earning $150,000 or less, reverse Republican-backed Medicaid cuts, expand Medicare to cover dental, vision and hearing, invest in affordable housing, cap childcare costs at 7% of income, raise minimum teacher salaries to $60,000, and expand Medicaid home health coverage. The proposal also follows similar efforts in Democratic-led states, including a potential California ballot measure to tax billionaires. Lawmakers estimate that under the federal plan, Elon Musk would owe about $42bn, while Jeff Bezos and Mark Zuckerberg would each owe roughly $11bn. Supporters argue the tax would address widening wealth inequality, while critics are expected to challenge its economic and legal feasibility.

 

CNBC	Washington Post

The IRS has introduced a new Schedule 1-A and updated instructions for claiming tax breaks under the One Big Beautiful Bill Act for the tax year 2025. The new guidelines detail deductions for tips, overtime, car loans, and senior citizens. Taxpayers can claim a deduction of up to $25,000 for tips, provided they report their tips and file jointly if married. Overtime compensation deductions can reach $12,500, with similar joint filing requirements. Additionally, taxpayers can deduct qualified passenger vehicle loan interest. Senior citizens can claim an enhanced deduction of up to $6,000, or $12,000 for married couples, with specific income thresholds.

 

Accounting Today

CPA Practice Advisor

The IRS has terminated its collective bargaining agreement with the National Treasury Employees Union (NTEU), following an executive order from President Donald Trump. This order, which affects over 20 federal agencies, has led to ongoing lawsuits. The IRS said: "In compliance with the President's Executive Order 14251," it has ended the agreement. NTEU President Doreen Greenwald criticized the move, asserting that the IRS cannot unilaterally terminate the contract and that the union will continue its legal fight. The cancellation could further impact morale at the IRS, which has already seen a 27% workforce reduction due to layoffs. Rep. Richard Neal condemned the decision, saying: "The Trump Administration has been clear: they see no dignity in work and have no issue violating the law."

 

Accounting Today

MSTiller, an accounting firm with offices in Georgia and New York, has merged with Armanino, enhancing the latter's presence in the Southeast. This marks Armanino's third merger in 2026, following the addition of Sales Tax Defense and Step Up Consulting. Matt Armanino, CEO of Armanino Advisory, praised MST, saying: “MST is an exceptional firm with a strong reputation, talented professionals, and trusted client relationships.” Founded in 1956, MST specializes in advising middle-market organizations and family-owned businesses. The merger allows MST clients to access Armanino's extensive services, including advanced technology and specialized tax services. Angela Griner, managing partner of MST, emphasized the importance of their long-standing relationship with Armanino, saying: “Our long history of working alongside Armanino . . . gave us confidence that we can better serve increasingly complex client needs.”

 

Accounting Today

CPA Practice Advisor

U.S. factory activity expanded for the second consecutive month in February, though at a slightly slower pace, according to the Institute for Supply Management (ISM). The manufacturing purchasing managers’ index (PMI) registered 52.4, down marginally from 52.6 in January but above economists’ expectations of 52.0. A reading above 50 signals expansion. New orders and production both remained in growth territory, though each eased from January levels. The backlog of orders reached its highest level since May 2022, indicating sustained demand. However, employment and inventories continued to contract. The prices index rose to its highest level since June 2022, with more than 45% of respondents reporting higher costs, partly due to tariffs increasing domestic raw material prices. The uptick in price pressures may complicate the Federal Reserve’s plans for potential interest rate cuts later this year. Relatedly, the S&P Global U.S. Manufacturing PMI slipped to 51.6 from 52.4 in January, though still above expectations. Production growth eased as new orders nearly stalled and exports fell sharply. Hiring remained subdued, with firms hesitant to expand payrolls amid concerns about order books and ongoing uncertainty around tariffs and the broader political environment.

 

Advisor Perspectives

Reuters

Wall Street Journal

Federal Communications Commission chair Brendan Carr has signalled that the watchdog will not seek to block Paramount’s $110bn deal to buy Warner Bros and played down competition concerns over a combination of CBS and CNN, the Financial Times reports. Carr told the FT at the Mobile World Congress in Barcelona on Monday ​that concerns had been raised in Washington about the concentration ​of power stemming from Warner Bros’ previously agreed deal ⁠with Netflix, but said that the market share implications of a ​potential Paramount purchase were “drastically different.”

 

Financial Times

Reuters

Elon Musk's social media platform X and ​artificial intelligence startup xAI plan to repay in full about $17.5bn in debt tied to the companies. Morgan Stanley, which is managing the debt for both companies, has ​been informing existing lenders that X and xAI plan to pay ​back everything they owe. The planned repayment comes as Musk looks to consolidate his businesses and take them public. 

 

Bloomberg

The U.S. Commodity Futures Trading Commission (CFTC) has appointed former federal prosecutor David Miller to lead its enforcement division. Miller was most recently at law firm Greenberg Traurig. "Under Chairman [Michael] Selig’s leadership, I look forward to working closely with the talented Commission staff to advance the chairman’s mission of fostering innovation and protecting the integrity of U.S. ​markets, including from ​fraud, abuse, and ⁠manipulation," Miller said in a statement.

 

Blockonomi

Law.com

Reuters

The Supreme Court has declined to hear a dispute over whether art generated by artificial intelligence (AI) can be copyrighted under U.S. law. The case involved Stephen Thaler, a computer scientist from Missouri who was denied a copyright for a piece of visual art made by his AI system. Thaler had appealed to the justices after lower courts upheld a U.S. Copyright Office ​decision that the AI-crafted visual art at issue was ineligible for copyright protection ​because it did not have a human creator. The Trump administration had urged the Supreme Court not to hear Thaler's appeal. "Although the Copyright Act does not define the term 'author,' multiple provisions of the act make clear that the term refers to a human rather than a machine," the administration said.

 

Reuters

A U.S. appeals court has directed tariff-related lawsuits back to the U.S. Court of International Trade, in a move which could determine decisions on how to return over $130bn in collected duties to importing companies. The Federal Circuit Court of Appeals issued a single-page ruling approving importers’ request to transfer the litigation back to the trade court where proceedings began earlier this year. The Trump administration had fought against this move, seeking a delay of up to four months to evaluate its legal strategy.

 

Reuters

The IRS Criminal Investigation (CI) division is at the forefront of combating financial crime, facing unprecedented challenges from evolving technology and shifting enforcement priorities. As cybercriminals increasingly exploit digital platforms, CI's mission to "follow the money" is more critical than ever. Criminal tax investigations have declined over the past 15 years, threatening the integrity of the tax system. Don Fort, former chief of the IRS CI Division, emphasizes that CI's effectiveness relies on experienced agents who can interpret financial evidence and adapt to new threats. The future of CI hinges on maintaining its foundational mission while embracing technological advancements and fostering strong partnerships within the enforcement community.

 

Bloomberg Tax

The digital activity of Iranian-linked cyber groups has increased tenfold since the start of the conflict in the Middle East, according to Tel Aviv-based cyber security company Check Point Software Technologies. Attacks and activities have focused on Israel and Arab countries and have included phishing attempts and alleged “hack and leak” operations, Check Point has said.

 

Wall Street Journal