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14th April 2026
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THE HOT STORY

GASB proposes major overhaul of guidance

The Governmental Accounting Standards Board (GASB) is proposing a significant change to the structure of guidance on U.S. GAAP for state and local governments, aiming for a unified approach similar to FASB's. The discussion memorandum titled "The Structure for Communicating Generally Accepted Accounting Principles for State and Local Governments" invites stakeholder feedback before GASB finalizes its stance. The goal is to assess the effectiveness of the current dual-authority structure, which complicates the maintenance of GAAP as more standards are issued. GASB is exploring whether to adopt a single-authority structure, with input requested by August 31, 2026. As stated in the memo, "the focus instead will be on considering how GAAP is communicated and maintained."

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TAX

IRS warns of AI-powered tax scams ahead of filing deadline

The IRS has warned taxpayers about a rise in artificial intelligence-driven scams ahead of tomorrow's Tax Day, highlighting increasingly realistic robocalls that use official terminology and spoofed caller IDs to appear legitimate. The agency said scammers are leveraging AI to mimic IRS language and programs, often pressuring individuals with false claims about tax relief or urgent action, while reminding taxpayers that it typically initiates contact by mail and does not demand immediate payment or threaten arrest. The IRS also cautioned against relying on AI tools for tax advice, noting risks of inaccurate information, as broader fraud losses continue to surge alongside more sophisticated scams.

IRS warns tax preparers on refunds

The IRS's Office of Professional Responsibility (OPR) has issued a warning to tax preparers regarding the endorsement or negotiation of federal refunds. This practice, often seen when taxpayers cannot afford to pay for services upfront, violates Circular 230, Section 10.31, which prohibits practitioners from endorsing checks issued by the government. Violations can lead to investigations and varying consequences, from warning letters to disciplinary actions such as censure or disbarment. The OPR emphasized that this guidance serves as a reminder for tax preparers to adhere to regulations, distinguishing endorsements from Refund Anticipation Loans, which involve separate agreements between taxpayers and lenders.

Uncredentialed tax preparer errors included fictitious deductions, review shows

An investigation by the Center for Taxpayer Rights shows that uncredentialed tax return preparers often make significant errors, leading to inflated deductions and misapplied credits. The report highlights that 56% of over 684,000 preparers registered with the IRS are uncredentialed, which poses a risk to low-income taxpayers. Melanie Lauridsen, vice president of Tax Policy & Advocacy for the AICPA, said: “You really just don't know what you're getting necessarily in [an uncredentialed] tax return preparer.” The report also noted that uncredentialed preparers accounted for 93% of preparer penalties assessed from 2018 to 2021. To improve oversight, the report recommends that Congress authorize the IRS to establish a registration program for tax preparers and launch a nationwide consumer education campaign.

Fuel tax cuts: A temporary fix?

As the war in Iran drives up energy prices, several U.S. states are considering temporary gas tax holidays to alleviate consumer burdens. Indiana has already suspended its 7% fuel tax for 30 days, costing the state $50m monthly. Georgia and Utah have also approved similar measures, with Georgia's holiday expected to cost nearly $400m. However, experts like Carl Davis from the Institute on Taxation and Economic Policy warn that these tax cuts may provide only "token relief," as benefits might not fully reach consumers. The suspension of gas taxes could strain state budgets, which are already under pressure from reduced federal funding and pandemic aid expiration. Lucy Dadayan from the Urban-Brookings Tax Policy Center highlights that while these measures aim to help, they could lead to project delays in transportation funding. "At the end of the day, cost goes up and states need to have a balanced budget," she stated.

Nonprofits push for tax hikes

In New York City, numerous nonprofit organizations are advocating for state lawmakers to support Mayor Zohran Mamdani's request for tax increases on the wealthiest residents and corporations. This appeal comes as the state budget is delayed, with Mamdani facing a $5.4bn budget gap. The nonprofits, including the Coalition for Asian American Children and Families, expressed their concerns in a letter, saying: “We are concerned about the future of our social safety net during this fiscal crisis.” They fear that without increased funding, vital services may face cuts. Mamdani remains hopeful for a resolution before submitting his next budget proposal, emphasizing the need for a finalized agreement soon.

Rethink tax strategy for success

The One Big Beautiful Bill Act (OBBBA) introduces new reporting obligations that will significantly impact international tax frameworks and domestic incentives. Bob Peebler emphasizes that companies treating OBBBA merely as a compliance task will struggle, while those rethinking their tax strategies will gain a competitive edge. Software firms, in particular, must adapt to changes affecting their operations and intellectual property. Key updates include modifications to Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI) provisions. Peebler notes: "The organizations that use these changes to rethink how tax integrates with business strategy won't just be compliant."

AUDIT & REPORTING

New rules for joint ventures unveiled

The Financial Accounting Standards Board (FASB) has introduced Accounting Standards Update (ASU) 2023-05, which establishes new guidelines for accounting in joint ventures (JVs). Effective from January 1, 2025, the ASU mandates that assets and liabilities in JVs be recorded at fair value at the formation date, addressing previous inconsistencies in practice. "The intent of the new guidance is to eliminate asymmetrical accounting by JVs and produce more comparable financial accounting and reporting for investors," the article states. This update aims to enhance the relevance of financial reporting and ensure that all contributions are recognized accurately, including in-process research and development (IPR&D) costs. The guidance also clarifies the definition of a JV and distinguishes it from collaborative arrangements, emphasizing the need for a separate legal entity.

FIRMS

PwC faces internal challenges amidst growth

PwC is navigating significant internal challenges as it continues to expand its operations globally, with reported revenues exceeding $50bn in 2023. The firm is grappling with contrasting dynamics between its traditional accounting services and its rapidly growing consulting arm, which has seen a 15% increase in demand. This dual focus has led to strategic tensions within the organization, affecting over 300,000 employees worldwide. As PwC aims to balance these divisions, it faces the challenge of integrating its services while maintaining its competitive market position, crucial for sustaining future growth in an evolving global landscape.

INDUSTRY

Grow smart: aligning space with demand

CPA firms must align their location decisions with demand patterns and operational realities to achieve sustainable growth. Adam Taylor emphasizes that "expansion is not a real estate problem; it is a strategic one expressed through space." Firms need to assess client demand trends, operational bottlenecks, and long-term occupancy costs before committing to new properties or expanding existing locations. Ownership offers cost predictability, while leasing provides flexibility, making the choice dependent on the firm's long-term vision. Ultimately, thoughtful planning ensures that growth strengthens the firm rather than strains it.

ECONOMY

Wholesale inventories jump to 13-month high

The Commerce Department has reported that U.S. wholesale inventories rose 0.8% in February, marking the largest monthly increase in 13 months and rebounding from a 0.3% decline in January, driven by gains in professional equipment and a 1.5% surge in electrical goods. On an annual basis, inventories increased 1.8%, and if sustained, could contribute positively to first-quarter GDP growth. Wholesale sales also strengthened, rising 2.7% in February, reducing the inventory-to-sales ratio to 1.22 months from 1.25, indicating improved demand alongside stock rebuilding.

White House study says DEI hurts productivity

A White House study argues that race-based hiring policies have reduced productivity in industries that adopted them. Using minority representation in management as a proxy for diversity, equity and inclusion (DEI) adoption, the authors say productivity in those industries was 2.7% lower by 2023 and estimate a 0.34% hit to U.S. output. “There is nothing inherently less productive about minority workers or minority managers,” the study says. “The issue is rapidly promoting unqualified workers in order to meet racial quotas set forth by DEI.” The report observes that the “previously virtually unknown” position of chief diversity officer became the “fastest-growing C-suite executive position.” However, some aspects of the study could raise questions about its conclusions, the Wall Street Journal notes.

TECHNOLOGY

Many employees still choose not to use AI

According to a new Gallup poll, more American workers are integrating artificial intelligence (AI) into their jobs, yet skepticism about the technology persists. The survey reveals that while 30% of employees frequently use AI, many remain concerned about job displacement due to new technologies. Scott Segal, a social worker, expressed his worries, saying: “I think everyone who works in a replaceable field or trade should be planning ahead.” The poll highlights that 40% of workers report their organizations have adopted AI tools, with two-thirds noting a positive impact on productivity. However, about half of U.S. employees said they use AI infrequently or not at all, citing ethical concerns and a preference for traditional methods. The fear of job loss is growing, with 18% of workers believing their jobs may be eliminated in the next five years due to AI advancements.

CYBERSECURITY

Bain & Co vulnerability exposed by hacker

A hacker has gained access to a Bain & Co internal AI tool used by part of the consultancy’s private equity practice to help assess companies for due diligence and investment analysis. CodeWall - an autonomous offensive security platform - said it had a foothold on the platform within 18 minutes. The hacker has previously exposed cyber security flaws in systems at rival consultancies McKinsey and BCG.

INTERNATIONAL

India overhauls income tax after 60 years

India has introduced significant changes to its Income Tax Act for the first time in over 60 years. Finance Minister Nirmala Sitharaman said the new rules aim to reduce errors and compliance costs. The act has been streamlined from 819 sections and 47 chapters to 536 sections and 23 chapters. The new rules clarify income assessment for non-resident Indians (NRIs) and simplify terminology, renaming ‘assessment year’ and ‘financial year’ to ‘tax year’. The minister said: "We want taxpayers to feel comfortable interacting with officials."

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