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Accountancy Slice
USA
20th March 2026
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THE HOT STORY

SEC forms new team to police accounting issues

The SEC is forming a new ‌enforcement unit for accounting matters while cutting staff at the PCAOB, moves which Reuters says suggest the SEC is seeking to absorb some functions normally assigned ​to the PCAOB, a nonprofit which has fallen into disfavor in Republican-controlled Washington. The ⁠SEC has posted jobs online for a new "SOX" group, which will "investigate and litigate matters involving potential violations of auditing and related professional standards and provisions of the Sarbanes-Oxley Act and other relevant federal securities laws." An SEC spokesperson said that auditors were "critical gatekeepers" for maintaining the integrity of financial markets and ​helping prevent ⁠fraud. "Additional hires in the enforcement division will continue the commission's longstanding efforts to crack down on bad actors in the profession," the spokesperson said.

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

Plans to raise sales taxes seen hitting lower-income households hardest

Several U.S. states, including South Dakota, are increasing sales taxes to offset property tax cuts, a move that critics argue disproportionately affects lower-income residents. Republican Senate Majority Leader Jim Mehlhaff acknowledged: “It is regressive,” but believes the sales tax increase will provide relief from rising property taxes. South Dakota's sales tax will rise from 4.2% to 4.5%, generating an estimated $114m annually. This shift aims to alleviate homeowner tax burdens, but advocates warn it may lead to greater financial strain on lower-income families who spend a larger share of their income on necessities. As states grapple with budget constraints, the debate continues over the fairness of tax structures that favor wealthier individuals.

IRS extends digital asset identification relief through 2026

The IRS has extended temporary relief through December 31, 2026, allowing taxpayers greater flexibility in identifying which digital asset units are being sold, transferred, or disposed of when calculating tax obligations. The relief, originally introduced in 2025, enables taxpayers to use alternative methods - such as their own books and records or pre-established standing instructions - to identify specific units, rather than relying solely on broker-provided identification systems. Under the extended guidance, taxpayers can record details like purchase date, time, and price to determine cost basis and holding period, or maintain standing orders that specify how assets should be treated in future transactions. The measure is intended to address practical challenges in tracking digital assets across platforms and ensure more accurate tax reporting, while remaining subject to existing compliance requirements and safe harbor provisions.

California voters split on billionaire tax

New polling indicates that only 52% of California voters back a proposed one-time 5% tax on billionaires aimed at funding healthcare, with a stark divide along party lines: 72% of Democrats support it, while 72% of Republicans oppose it. The billionaire tax, which could raise $100bn, is backed by the Service Employees International Union-United Healthcare Workers West, but faces opposition from wealthy individuals who may relocate to avoid the tax, including Google co-founder Sergey Brin, who has increased his contributions to $45m to a Super PAC opposing the measure. alongside additional donations from other tech figures including Eric Schmidt. Proponents have until June 24th to gather enough signatures to qualify for the November ballot.

Iowa lawmakers clash over property tax cuts

Iowa's House and Senate Republicans are pursuing different strategies to reduce property taxes as the legislative session nears its end. The House, backed by Gov. Kim Reynolds, proposes a 2% cap on local government revenue growth, while the Senate aims to eliminate the property tax rollback and link revenue growth to inflation. Sen. Dan Dawson emphasized the need for "political courage" to address the system's underlying issues, warning that without deeper reforms, property tax bills will remain high. House lawmakers are optimistic about aligning their proposal with the governor's plan, which includes a new residential tax exemption. Meanwhile, the Senate's plan suggests a 50% tax exemption on primary homes and increased tax credits for seniors. "I sincerely hope the Iowa Legislature can rise to the occasion and deliver the property tax reform that our constituents — whether it be farmers, whether it be business owners, whether it be homeowners, whether it be seniors — have sent us up here with a mandate to do," Mr. Dawson said.

INDUSTRY

AICPA seeks clarity on expanded paid leave tax credit

AICPA has urged the Treasury and IRS to issue guidance on recent changes to the paid family and medical leave tax credit under the One Big Beautiful Bill Act, which expands eligibility but lacks implementation details. AICPA is requesting clarification on areas including how to calculate the credit, employee eligibility rules, and employer qualification requirements, as well as transitional support to help businesses comply with updated policy requirements ahead of the 2026 rollout.

Rethinking the CPA firm structure

In the evolving landscape of accounting, AI is poised to transform CPA firms significantly. Kyle Walters, a partner at L&H CPAs and Advisors, emphasizes the need for firms to focus on what clients will always want, such as trustworthy judgment and timely communication. He notes, "Clients will always want trustworthy judgment, a human being who makes the process feel easy." The traditional pyramid structure of CPA firms, which relies heavily on labor, is becoming obsolete as artificial intelligence (AI) takes over routine tasks. Instead, an hourglass model is proposed, with an Advice Layer at the top, a Relationship Layer at the bottom, and a Processing Layer in the middle where AI operates. This shift allows firms to concentrate on delivering value while adapting to technological advancements.

FIRMS

Accenture revenues and bookings rise on strong AI demand

Accenture has reported solid second-quarter results, with revenue rising 8% to $18bn and new bookings increasing 6% to $22.1bn, driven by growing demand for artificial intelligence services. The company also posted higher earnings, with net income reaching $2.93 per share, beating analyst expectations. The consulting firm said clients are increasingly investing in scaling AI across their operations, supporting both revenue growth and deal activity. Reflecting this momentum, Accenture raised the lower end of its full-year guidance, now expecting revenue growth of 3%-5% and adjusted earnings of $13.65-$13.90 per share.

ECONOMY

New jobless claims fall to 205,000 as layoffs remain historically low

U.S. jobless claims dropped by 8,000 to 205,000 in the seven days to March 14th, the Labor Department reported on Thursday. Analysts polled by FactSet had expected the number of claims to be unchanged. The four-week moving average of new filings fell 750 to 210,750, while the total number of fresh claims, reported with a one-week lag, grew 10,000 to 1.86m.

U.S. new-home sales fall to lowest level since 2022

U.S. new-home sales fell 17.6% in January to an annualized rate of 587,000, according to the Census Bureau, the lowest level since 2022 and well below expectations, as weak demand and severe winter weather weighed on activity. Despite price cuts and incentives from builders, affordability pressures and rising mortgage rates continue to deter buyers, with declines seen across all regions and inventories remaining elevated, signaling potential further softness in housing construction. The median sales price of a new home decreased 6.8% in January from a year earlier to $400,500, while new-home inventories fell 4%. 

Wholesale inventories decline, signaling potential drag on growth

U.S. wholesale inventories fell 0.5% in January, a sharper decline than December’s 0.1% drop, raising concerns that inventory investment could weigh on first-quarter GDP growth if the trend continues. The Commerce Department said the decline was broad-based, with notable reductions in stocks of motor vehicles, lumber, metals, chemicals, and petroleum, although some categories such as furniture, apparel, and electrical goods saw increases. Despite the inventory drawdown, wholesale sales rose 0.5% in January following a strong 1.3% increase in December, indicating steady demand and improving inventory turnover. The inventory-to-sales ratio edged lower to 1.25 months, suggesting businesses are holding leaner stock levels relative to sales.

REGULATORY

U.S. regulators propose easing banks' capital requirements

The Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency have published proposals to relax capital requirements for Wall Street banks which could potentially unleash billions of dollars for lending, share buybacks and dividends. Top regulatory officials appointed by President Donald Trump say rules imposed following the 2008 financial crisis have grown ​to be too onerous and are hindering lending and the economy. Proposed changes to the "Basel III" and "GSIB surcharge" rules, alongside ‌tweaks to banks' annual "stress test" health checks, will calibrate capital in line with real risks, while still keeping the financial system safe, the officials  said. “These changes would strengthen our overall capital framework, which would remain robust under the new regime,” Fed Vice Chair for Supervision Michelle Bowman said. Fed governor Michael Barr was the sole dissenting vote on the proposals. “I fear that, if this much weaker version of Basel III is adopted in the U.S., it could trigger a race to the bottom on standards, harming the global financial system,” he said.

PERSONAL FINANCE

Ed. Dept. unveils plan to shift $1.7tn student loan portfolio to Treasury

The Department of Education has outlined a phased plan to transfer its nearly $1.7tn student loan portfolio to the Treasury Department, a significant move in the Trump administration’s ongoing effort to wind down the agency. The transition will be executed through an interagency agreement in three stages, beginning with loans already in default, followed by non-defaulted loans where legally and practically feasible, including servicing responsibilities. In the final phase, Treasury will also take on a role in enforcing school eligibility for federal student aid programs, building on its existing involvement in verifying borrower income data. Officials said the plan has been developed over several months to ensure a smooth handover, and they expect borrowers to experience no disruption, although no timeline or cost details have been disclosed. Education Secretary Linda McMahon and Treasury Secretary Scott Bessent argued that Treasury is better equipped to manage the portfolio, citing its financial expertise and the high proportion of borrowers in default.

HEALTHCARE

ACA subsidy expiry leaves millions without health insurance

Millions of Americans are losing health coverage following the expiration of enhanced Affordable Care Act (ACA) subsidies, with a survey showing that 9% of last year’s enrollees have become uninsured and around one-third have exited the ACA marketplace entirely. The loss of subsidies has driven sharp increases in premiums, forcing many individuals, particularly younger and healthier policyholders, to drop coverage due to affordability concerns. Among those who remain insured, financial pressure is intensifying, with many reporting higher out-of-pocket costs such as deductibles and copays, and some cutting back on basic household spending to keep up with premiums. Around 17% of current enrollees say they are unsure they can afford coverage for the full year, suggesting further declines in enrollment may follow. The shift is also affecting the broader insurance market, as rising costs and a shrinking risk pool have led some insurers to increase prices or exit the ACA exchanges altogether. 

TECHNOLOGY

OpenAI plans launch of desktop ‘superapp’

OpenAI plans ‌to fold its ChatGPT app, coding platform Codex and browser into a single desktop "superapp" to simplify user ​experience. “We realized we were spreading our efforts across too many apps and stacks, and that we need to simplify our efforts,” Chief of Applications Fidji Simo shared in an internal note with employees. “That fragmentation has been slowing us down and making it harder to hit the quality bar we want.”

INTERNATIONAL

Brussels launches ‘EU Inc’ plan to cut red tape across the single market

The European Commission has proposed allowing firms to set up in as little as 48 hours and operate according to a ‌single set of rules across the 27-nation bloc, in an attempt to to cut bureaucracy across the single market and narrow the gap with the startup scene in the United States. "We need to incentivise companies to stay in Europe and encourage those who once looked elsewhere to return,” ‌European Commissioner ⁠Michael McGrath said. "Europe has the talent, ideas, and ambition - but too often, bureaucracy drives our best entrepreneurs elsewhere." Unions are however sceptical of the plan, warning that it may lead to employees losing influence within their companies. In the past, concerns regarding workers’ rights have led to the failure of similar proposals, EurActiv notes.
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