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Leaders from accounting organizations in the U.S., Canada, and Mexico have renewed a memorandum of understanding to facilitate cross-border practice for accountants until December 31, 2028. This extension of the Mutual Recognition Agreement, originally signed in 2017, aims to streamline the process for accountants to work internationally with fewer administrative barriers. Jim Knafo, the AICPA's director of global alliances, said: "This agreement protects the cross-border practice of U.S. CPAs and their counterparts in Canada and Mexico." Daniel Dustin, president and CEO of the National Association of State Boards of Accountancy, emphasized the importance of maintaining strong standards while allowing qualified professionals to practice across borders. More details on international mutual recognition agreements can be found on NASBA's resource page.

 

Accounting Today

CPA Practice Advisor

Journal of Accountancy

The Accountant Online

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The new legislation from Senate Finance Committee Chairman Mike Crapo (R-ID) and Ranking Member Ron Wyden (D-OR) aims to enhance IRS procedures and tax administration. The Taxpayer Assistance and Service Act (TASA) seeks to simplify tax filing and protect low-income filers from fraud by granting the IRS regulatory authority over paid tax preparers. As noted by Chuck Marr, vice president for federal tax policy at the Center on Budget and Policy Priorities, “I hope this effort will eventually generate a more robust, bipartisan effort to rebuild and modernize the agency.” However, the bill does not address the IRS's significant funding and staffing challenges, which have left it struggling to meet the demands of modern tax compliance.

 

Bloomberg Tax

The IRS has proposed removing regulations aimed at curbing abusive basis-shifting transactions by partnerships, which were introduced during the Biden administration. The IRS and the Treasury Department noted that these regulations imposed complex compliance obligations, prompting public criticism. In a notice of proposed rulemaking, they stated: "the regulations may be appropriate for removal." Initially, the crackdown was expected to recover billions in taxes, with estimates suggesting that abusive transactions could cost taxpayers over $50bn in a decade. However, the IRS has since reconsidered, indicating that around 10,000 basis adjustments would be reported without the regulations.

 

Accounting Today

California voters are being urged to consider a proposal that would nullify a controversial billionaire tax aimed at funding healthcare for the state's neediest residents. Supporters of the new initiative argue that “government has wasted billions of our tax dollars” and emphasize the need for a more accountable state government. The proposed billionaire tax, which would impose a one-time 5% tax on billionaires' assets, could generate around $100bn if approved. However, opponents warn it may drive wealthy residents out of California, leading to lost tax revenues. The campaign has attracted significant funding from Silicon Valley leaders, including Sergey Brin and Eric Schmidt. Suzanne Jimenez, chief of staff at SEIU-United Healthcare Workers West, criticized the wealthy's efforts to avoid paying their fair share, saying: “the public is crystal clear on the fact that keeping ERs and clinics open is more important than billionaires getting more tax breaks.”

 

Los Angeles Times

Craig A. Griffith, a partner at FBT Gibbons LLP and former West Virginia tax commissioner, discusses the tax provisions of H.B. 2014, which aims to attract data centers to West Virginia. The bill outlines that owners and operators of certified microgrid districts and high-impact data centers must pay business and occupation tax, collect municipal sales and service tax, and pay ad valorem property tax. Griffith notes: "H.B. 2014 was, for the most part, silent regarding tax incentives for microgrid and data center projects." The legislation introduces unique property tax valuation methods and revenue distribution rules, ensuring that a portion of the tax increment benefits the state and local governments. This approach aims to enhance the state's appeal for high-technology businesses.

 

Tax Notes

KPMG is introducing a new incentive program that offers cash prizes to employees who develop innovative uses of artificial intelligence (AI). The initiative, called the “AI Spark Innovation” awards, is designed to encourage consultants in the firm’s U.S. advisory division to create AI-driven solutions that improve client services or increase internal efficiency. According to Rob Fisher, KPMG’s U.S. vice chair of advisory, the awards will provide “outsized monetary” rewards that could exceed typical year-end bonuses. While exact amounts were not disclosed, the prizes are expected to be especially attractive to junior staff, with fixed-dollar awards potentially worth several thousand dollars. The rewards may be shared among teams depending on the scale and impact of the idea. The program aims to promote “grassroots innovation” at a time when consulting firms are investing heavily in AI. Traditionally, consultants are evaluated based on billable hours, which can leave little time to experiment with new technology. KPMG hopes that financial incentives will encourage employees to bring forward creative AI applications that can be scaled across the organization. Following a pilot earlier in 2026, the firm plans to begin awarding prizes next quarter, with nominations reviewed quarterly by a steering committee. KPMG said it may exceed its planned budget if enough ideas demonstrate significant client impact or operational benefits.

 

Business Insider

U.S. existing home sales rose 1.7% in February from January to an annualized rate of 4.09m units, but were 1.4% lower than a year earlier, according to the National Association of Realtors. The modest rebound followed slightly lower mortgage rates earlier in the winter, though housing demand remains relatively weak compared with broader economic growth. Housing supply improved slightly, with 1.29m homes on the market, up 4.9% year-on-year, but inventory remains limited at a 3.8-month supply, well below the six months typically considered a balanced market. Tight supply continues to support prices, with the median home price rising 0.3% year-on-year to $398,000. Sales were strongest in the $1m-plus segment, while activity at the lower end of the market declined. Homes are also taking longer to sell, averaging 47 days on the market, as the housing market enters the spring season facing higher mortgage rates and ongoing supply constraints.

 

The Baltimore Sun

CNBC

Reuters

Wall Street Journal

A federal appeals court has ordered the termination of the Saving on a Valuable Education (SAVE) repayment plan, a Biden administration initiative designed to lower student loan payments for millions of borrowers. The U.S. Court of Appeals for the 8th Circuit reversed a lower court decision that had dismissed a Republican-led legal challenge to the program, effectively ending the plan. The SAVE program, launched in 2023 and promoted as the most affordable repayment option for federal student loans, had reduced monthly payments for many borrowers. More than 7 million borrowers were enrolled in the plan before it was halted by ongoing legal challenges. During the court battles, those borrowers were placed in forbearance, meaning they were not required to make payments, though interest has continued to accrue since August. Education Department officials said guidance will soon be issued on how borrowers can transition to other repayment options. Experts recommend that borrowers currently enrolled in SAVE apply for a different income-driven repayment plan, such as Income-Based Repayment (IBR). Those pursuing Public Service Loan Forgiveness may also need to apply to receive credit for months affected by the program’s suspension. The ruling adds further uncertainty to the student loan system as policymakers debate broader reforms. Separate legislation already plans to phase out the SAVE plan by July 2028 while restructuring other repayment programs.

 

CNBC

U.S. small-business optimism declined for a second consecutive month in February as owners grew less confident about future sales and economic conditions. The National Federation of Independent Business (NFIB) optimism index fell 0.5 points to 98.8, reflecting softer sentiment before the Iran war pushed energy prices higher. Expectations for inflation-adjusted sales dropped sharply, with the net share of owners anticipating improved sales falling eight percentage points to 8%, after reaching a one-year high in January. Confidence in broader business conditions also weakened, while hiring plans declined to their lowest level since May, signalling caution in the labor market. Despite weaker outlooks, profit trends improved, reaching their strongest level since December 2021. Inflation pressures also eased slightly, with fewer businesses raising prices for a third straight month.

 

Bloomberg

A federal judge has said that JPMorgan Chase employees ‌may pursue part of their lawsuit accusing the bank of mismanagement of its health and prescription benefits program, which caused them to overpay for prescription drugs and premiums. U.S. District Judge Jennifer Rochon in Manhattan ruled that ​employees can seek to prove that the biggest U.S. lender allowed repeated, unauthorized excessive payments to CVS ​Caremark, to benefit the pharmacy benefits manager and avoid "blowback" from healthcare clients.

 

Reuters

One year into President Donald Trump's immigration crackdown, evidence suggests that closed borders are not improving employment opportunities for U.S.-born workers. Researchers from the American Enterprise Institute and Brookings Institution estimate that net migration may have been negative in 2025 for the first time in at least 50 years, a situation coinciding with rising joblessness among native-born individuals. “Look at what we're seeing: The U.S.-born unemployment rate has been going up. The U.S.-born labor force participation rate has dropped,” said Mark Regets, a senior fellow at non-partisan research organization the National Foundation for American Policy. “So if we've had a big withdrawal of immigrants from the labor force, we don't see any sign of the U.S.-born workers getting more employment because of that.”

 

Los Angeles Times

Microsoft is bringing Anthropic's Claude Cowork to its Microsoft 365 Copilot AI platform. The Copilot Cowork service, which the tech giant said it developed in close collaboration with Anthropic, can handle long-running, multistep tasks such as preparing for a customer meeting by assembling a presentation, pulling together financials, emailing the team, and scheduling prep time. “We really believe right now is an inflection point,” Jared Spataro, Microsoft’s chief marketing officer for AI at Work, told Fortune. “The inflection point for us is Copilot taking on these agentic capabilities and going from assistance to real doing.”

 

The Register

Yahoo! Finance

Fortune

CNBC

The Wall Street Journal reports that the International Energy Agency (IEA) has proposed the largest coordinated release of strategic oil reserves in its history - up to 400m barrels - to stabilize global crude prices following supply disruptions caused by the U.S.-Israel war with Iran. The plan, discussed at an emergency meeting of the agency’s 32 member countries, would more than double the previous record release of 182m barrels in 2022 after Russia’s invasion of Ukraine. The move aims to offset disruptions linked to the near closure of the Strait of Hormuz, through which about one-fifth of global oil supply normally passes. Member countries are expected to decide on the proposal imminently, as leaders also weigh broader energy responses amid concerns that surging oil prices could fuel inflation and economic instability.

 

Bloomberg

Reuters

Wall Street Journal