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Accountancy Slice
USA
18th March 2026
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THE HOT STORY

IIA urges Congress to modernize Sarbanes-Oxley with greater focus on internal audit

The Institute of Internal Auditors (IIA) is calling on U.S. lawmakers to update the Sarbanes-Oxley Act (SOX) to better reflect the role of internal auditing in corporate governance and compliance. In a new position paper, the IIA argues that while SOX has been central to financial reporting integrity since 2002, it does not explicitly recognize internal audit functions. The group recommends clarifying the definition and role of internal auditing in law, strengthening coordination between internal and external auditors, and reassessing compliance requirements under key SOX provisions. It also suggests leveraging technology and internal audit capabilities to reduce compliance costs. The proposal comes amid renewed political interest in reviewing SOX, and aims to improve efficiency while maintaining strong investor protections as the risk environment evolves.

AI'S NEXT PHASE

From AI Assistance to AI That Actually Works

AI has dominated conversations in the accounting industry for the past two years, yet many firms are still struggling to see meaningful adoption.

One major reason is that many tools sit beside the work rather than inside it.
When staff have to pause their workflow, switch platforms, write prompts, and interpret results, usage quickly becomes inconsistent—and the value of AI is lost.

Meanwhile, the industry is already moving into the next phase: agentic AI.
Instead of waiting for prompts, agentic AI operates within the engagement workflow, automatically verifying information, extracting data, screening documents, and surfacing insights in the background.

This shift changes what’s possible. By handling repetitive tasks, AI frees teams to focus on higher-value work while keeping engagements moving forward.

Suralink’s next generation of AI is built directly into the engagement workflow—helping firms move beyond experimentation and into real, practical AI adoption. Join the interest list to be first to know when these new capabilities launch.

Join the Interest List

 

TAX

CAMT: A costly compliance conundrum

The Corporate Alternative Minimum Tax (CAMT), enacted in 2022 as part of the Inflation Reduction Act, aimed to ensure large corporations contribute fairly to income tax. However, a survey by the Tax Executives Institute revealed that over 80% of respondents reported no change or an increase in tax planning strategies due to CAMT. The findings indicate that CAMT has not significantly altered corporate tax burdens or revenue generation, with only 15 public companies reporting CAMT payments totaling $572m, far below the Joint Committee on Taxation's projection of $34bn for 2024.

California tax break on the chopping block

California is considering the repeal of the "water's edge" tax break, which allows multinational corporations to exclude foreign subsidiary income from state taxes. Assemblymember Damon Connolly stated: “The tax bills of the wealthiest, most powerful corporations in the world are at all-time lows,” as he highlighted the need for budget solutions amid an estimated $18bn deficit. While the bill may pass without Republican support, it requires backing from moderate Democrats. Kayla Kitson from the California Budget and Policy Center noted: “The stakes are really high this year,” indicating the urgency of the situation. The repeal could potentially generate “single digit billions” in revenue, but concerns about double taxation and its impact on business sentiment remain. The debate over corporate tax policy is expected to continue, with Carl Davis asserting: “There is very good reason to think this [repeal] is going to happen at some point.”

Iowa's tax hike: Health insurance providers brace

Iowa House Republicans have scheduled a public hearing on House File 2739, a proposed one-time tax increase on health maintenance organizations, for March 18. This bill aims to raise the tax on these organizations from 0.925% to 3.5% for part of the year, with a projected revenue of approximately $123m-$150m. Rep. Gary Mohr, R-Bettendorf, emphasized the need for this tax to address a projected $90.6m Medicaid deficit, which could escalate to $600m over the next five to seven years. He stated: "I don't think that's fair for the taxpayers of Iowa." While some lawmakers support the tax as a means to preserve Medicaid services, opponents warn it could lead to increased health insurance costs for Iowans. The bill also proposes drawing $296.2m from the Taxpayer Relief Fund to mitigate the impact of federal tax cuts.

NYC Mayor Mamdani's estate tax reform proposal

New York City Mayor Zohran Mamdani has proposed a significant reduction in the estate tax exemption threshold, aiming to lower it from over $7m to $750,000, while increasing the top estate tax rate from 16% to 50%. This proposal is part of a broader strategy to address a $5.4bn city budget deficit for the upcoming fiscal year. However, the likelihood of this change being enacted this year is low, as neither the state legislature nor Governor Kathy Hochul's office has included it in their budget plans. Mamdani's approach has raised concerns among wealthy New Yorkers, especially after he stated: "I don't think that we should have billionaires." A 2023 study by economists Enrico Moretti and Daniel Wilson suggests that high estate taxes can drive wealthy residents away, complicating revenue generation.

INDUSTRY

Mystery shoppers uncover widespread issues among tax preparers

Undercover investigations revealed widespread incompetence and fraud among non-credentialed tax preparers across several states. The "mystery shopping" report from the Center for Taxpayer Rights highlighted that over 56% of the 684,000 tax preparers registered with the IRS lack proper credentials. Many of these preparers failed to grasp essential tax laws, leading to significant errors in filing statuses and credits. Nina Olson, executive director of the Center, emphasized the need for regulations, saying: "It's not enough to just plug in numbers into some software and think you are competent to prepare a return." The report recommends that Congress authorize the IRS to establish a registration program for tax preparers to ensure minimum competency standards. Senator Ron Wyden said: "This report is proof that Congress needs to pass the bipartisan Taxpayer Assistance and Service Act to protect Americans." The report also calls for better consumer education and tracking of misconduct complaints.

FIRMS

Deloitte spins off Auvenir as independent firm Streamworks Tech

Accounting technology provider Auvenir has separated from Deloitte and relaunched as an independent company under the name Streamworks Tech, following a sale to its management team. Originally founded by Deloitte in 2019, the business will now focus on expanding its product offerings, particularly for small and mid-sized accounting firms. Streamworks will continue to provide audit and compliance software, including three core products: an engagements platform for CPA firms, an enterprise solution for large organizations, and a quality management system already in use in Canada and newly launched in the U.S.

EY executive takes another top post at PCAOB

The PCAOB has appointed EY executive Brent Simer as chief of staff, shortly after naming former EY leader Jim Logothetis as chair.

ECONOMY

Pending home sales rise unexpectedly as lower mortgage rates provide boost

U.S. pending home sales increased 1.8% in February, surprising economists who had expected a decline, as a temporary drop in mortgage rates improved affordability and encouraged buyers to return to the market. Gains were seen across most regions, including the West, South, and Midwest, though activity remained slightly lower than a year earlier. The improvement follows policy moves aimed at easing borrowing costs, but the outlook remains uncertain. Mortgage rates have already begun rising again in recent weeks due to higher oil prices and Treasury yields linked to the Middle East conflict, raising the risk that affordability could deteriorate once more. Structural challenges continue to weigh on the housing market, including a shortage of affordable homes, high construction costs driven by tariffs and labor shortages, and limited availability of buildable land. While policymakers have taken steps to improve access to mortgage credit and boost supply, economists note that a sustained recovery will depend on addressing these underlying constraints.

PERSONAL FINANCE

New tax laws reshape charitable giving

Recent changes in tax laws are expected to encourage 6m-8.7m more Americans to donate to nonprofits, according to research from the Indiana University Lilly Family School of Philanthropy. However, these changes may also lead to a decrease in overall charitable contributions by approximately $5.6bn annually. Jon Bergdoll, interim director of data and research partnerships at the school, observed: “I could imagine [giving] going in so many different directions this year.” The new law introduces a charitable deduction of up to $1,000 for individuals and $2,000 for married couples, benefiting the majority of taxpayers. Conversely, wealthy donors may face reduced contributions due to a lower cap on deductions and a new threshold for tax benefits. Overall, the projections indicate a potential decline in charitable giving, with estimates ranging from a drop of $2.5bn to $12bn.

REGULATORY

U.S. lawmakers push legislation to regulate prediction markets

U.S. Senator Chris Murphy and Representative Greg Casar have presented the Banning Event Trading on Sensitive Operations and Federal Functions (BETS OFF) Act, aimed at prohibiting betting on government actions and events susceptible to manipulation. The bipartisan legislation seeks to amend existing gambling laws to tackle prediction markets operating offshore. Bets on such platforms are placed on U.S. military strikes and monetary policy. “What happens to us spiritually when every moral question in this country becomes a market? Don’t we lose something? Don’t we rot a little bit inside when the question of famine in Gaza isn’t a question of what is right and what is wrong, but whether you can make money or lose money?” Murphy said. “I think it’s really important that there are certain matters that are not monetized by prediction markets.”

LEGAL

Chief Justice John Roberts calls for end to ‘dangerous’ hostility toward judges

U.S. Chief Justice John Roberts has said hostility toward individual Supreme Court members is creating a dangerous environment, in his first public comments since President Donald Trump slammed justices who had voted to strike down his global tariffs. Following that ruling, Trump said justices who ruled against him were “fools,” “lapdogs,” “unpatriotic,” “disloyal to our Constitution” and “an embarrassment to their families.” Roberts did not mention the U.S. president by name in his remarks at an event at Rice University’s Baker Institute for Public Policy. “The problem sometimes is that the criticism can move from a focus on legal analysis to personalities, and you see . . . that it’s more directed in a personal way,” Roberts said. “And that, frankly, can be quite dangerous.” He added: “Judges around the country work very hard to get it right. And if they don’t, their opinions are subject to criticism. But personally directed hostility is dangerous and it’s got to stop.”

Kalshi charged with illegal gambling operation, election wagering in Arizona

Arizona Attorney General Kris Mayes has filed criminal charges against Kalshi, accusing the prediction market platform of operating an illegal gambling ​business in the state and unlawfully allowing people to place bets on elections. "Kalshi may brand itself as a 'prediction market,' but what it's actually doing is running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law," said Mayes. "No company gets to decide for itself which laws to follow." Arizona law prohibits operating an unlicensed wagering business, and separately bans betting on elections outright.

SEC and Musk discuss 'potential resolution' to lawsuit

The SEC and Elon Musk are in talks to settle the agency's lawsuit accusing the world's richest person of waiting too long in 2022 to disclose his initial purchases of Twitter, which he eventually purchased for $44bn. In a court filing, the SEC and Musk said ​they are "engaged in discussions of a potential resolution that would mean further proceedings might not be necessary."

RISK

AI tools in accounting: A liability risk?

Ryan Costello, a former U.S. congressman, emphasizes the urgent need for federal guidance on the use of artificial intelligence (AI) in tax preparation. In his letter to Treasury Secretary and IRS Acting Commissioner Scott Bessent, he warns that without clear standards, businesses and CPAs may face significant compliance challenges. "Unregulated AI-powered providers . . . would exploit the gaps," he states, highlighting the risks of errors leading to audits and potential criminal liability for business owners. Costello advocates for mandatory disclosure of AI use, human oversight, and stricter audit scrutiny to protect taxpayers and ensure professional accountability. He points to international examples, such as Ireland and the U.K., where clear regulations have been established.

CRYPTO

SEC issues long-awaited crypto guidance

The SEC has issued guidance explaining how it will define cryptocurrencies as securities and how ​a "non-security" digital asset could meet certain conditions to become an investment contract. The SEC's new interpretation classifies crypto tokens into five categories: ​digital commodities, digital collectibles, digital tools, stablecoins and digital securities. The agency specified that federal ​securities laws only apply to digital securities. SEC chair Paul Atkins also said the agency should consider a “safe harbor proposal” to give crypto companies and some tokens a regulatory carveout. Atkins said his safe harbor proposal was made up of a “startup exemption,” a “fundraising exemption,” and an “investment contract safe harbor.” He said: “It is past time for us to stop diagnosing the problem and start delivering the solution . . . Such a safe harbor would provide crypto innovators bespoke pathways to raise capital in the US, while providing appropriate investor protections.”
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