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Managing the rapid pace of technological change and the growing impact of artificial intelligence has become the leading long-term concern for CPA firms, according to AICPA's latest CPA Firm Top Issues Survey. The biennial survey, which gathered responses from 629 practitioners across firms of all sizes, found that “change management due to technology and AI” ranked as the top issue over the next five years across every firm-size category. It also featured among the top current concerns for most firms. AICPA Vice President of Firm Services Lisa Simpson said the profession is undergoing significant transformation in technology, workforce skills, and operating models. While firms are working to keep pace with advances in AI, many are also struggling to integrate new technologies effectively and use them to enhance client services. Current priorities vary by firm size. Solo practitioners and firms with up to 10 professionals identified tax law complexity as their biggest challenge, while cybersecurity and data privacy also ranked highly. Firms with 11–30 professionals cited recruiting experienced staff as their top concern, followed by IRS-related issues and workload management. Among firms with 31–100 professionals, succession planning and finding the next generation of leaders emerged as the leading challenge. For firms with 101–500 professionals, technology adoption and integration topped the list, while the largest firms, with more than 500 professionals, ranked managing change related to technology and AI as their most pressing current issue, alongside employee retention. The survey was conducted online between April 20th and May 22nd, highlighting the growing influence of AI and digital transformation across the accounting profession.

 

Journal of Accountancy

The Accountant Online

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A new report from TIGTA found that weaknesses in the IRS’s process for referring taxpayer inquiries between business units can lead to delays, lost referrals, and longer resolution times. The review found that customer service representatives frequently failed to record required information in case histories, making it difficult for employees to track prior actions when taxpayers follow up on unresolved issues. TIGTA also highlighted the complexity of the referral system, which requires staff to choose from 151 electronic fax numbers across 20 IRS locations, increasing the risk that inquiries are sent to the wrong destination. The watchdog recommended improving documentation requirements and creating a centralized intake, tracking, and resolution process for referrals, recommendations that IRS management has agreed to implement as part of efforts to strengthen oversight and improve taxpayer service.

 

Accounting Today

A proposed half-cent sales tax increase in Los Angeles aims to generate $345m annually for the Fire Department, with the City Council voting 14-0 to place it on the November 3rd ballot. Supporters, including the United Firefighters of Los Angeles City Local 112, argue that the funds will enhance emergency response capabilities by hiring more firefighters and acquiring new equipment. Union secretary Ryan Quigley stated: “This is our plan to undo decades of under-investment in the department.” The proposal comes amid ongoing challenges, including a recent warehouse fire in Boyle Heights and a previous fire that devastated coastal areas. If approved, the tax would raise the city's sales tax rate to 10.75%.

 

Los Angeles Times

Accounting and advisory firm Eide Bailly has agreed to sell a majority stake to Reverence Capital Partners and co-investors in a deal valuing the business at approximately $1.8bn. The firm said the investment will help accelerate its adoption of artificial intelligence and support expansion of its services and operations, with management targeting a doubling of revenue within the next three to four years. Eide Bailly, which generated about $840m in revenue in its most recent fiscal year, joins a growing number of large U.S. accounting firms turning to private equity funding to finance growth and technology investments. To comply with regulatory independence requirements, the investment will be made in the firm's non-audit business, while its audit practice will remain a separately licensed CPA firm.

 

Wall Street Journal

Intuit chief executive Sasan Goodarzi has announced that accountants will now be treated as customers rather than just a channel for reaching new clients. "We are here to be your partner. Not compete with you," he stated, emphasizing the importance of strengthening relationships with accountants. Intuit will cease marketing bookkeeping services to businesses that already work with accountants, aiming to reduce friction. Ashley Still, general manager of the small business and mid-market group, noted that businesses without accountants will still receive support for bookkeeping until they find one. The new ProPartner Accountants program will introduce a tiered system to match businesses with accountants, enhancing collaboration and growth opportunities. Goodarzi highlighted Intuit's commitment to investing in accountant growth, saying: "We are all-in to invest in your growth." The company is also rolling out new features based on user feedback, including improved automation and customization options.

 

Accounting Today

U.S. private sector business activity continued to expand in June, with the S&P Global Flash U.S. Composite PMI rising to 52.2 from 51.5 in May, signaling ongoing economic growth. Manufacturing output increased at its fastest pace since July 2021, supported by the strongest rise in new orders in more than four years, while the services sector reached a four-month high. The survey also found that businesses reduced staffing levels amid concerns about the economic outlook and rising costs, particularly for raw materials. “The service sector continues to grow at an especially subdued pace, reflecting push-back from customers over high prices amid low levels of consumer confidence in particular,” said Chris Williamson, chief business economist at S&P Global Market Intelligence. “While there is better news from the manufacturing sector, we remain concerned as factory growth continues to be temporarily buoyed by inventory building amid supply fears.”

 

Quartz

Reuters

Wall Street Journal

President Donald Trump has nominated veteran tax attorney James Gadwood to serve as IRS chief counsel. Mr. Gadwood, currently vice chair of the tax department at Washington law firm Miller & Chevalier, advises large corporations and high-net-worth individuals on tax disputes and policy matters. If confirmed by the Senate, he will lead the IRS Office of Chief Counsel, which employs about 2,300 people and provides legal guidance, oversees tax regulations, and handles litigation before the U.S. Tax Court. The nomination follows Trump’s withdrawal of his previous choice, former IRS Chief Counsel Donald Korb, after criticism from conservative activists over his past political donations. Mr. Gadwood’s appointment would also allow Kenneth Kies, who has been serving simultaneously as acting IRS chief counsel and the Treasury Department’s top tax policy official, to step back from the interim role.

 

Bloomberg Tax

Wall Street Journal

The U.S. Supreme Court has dismissed a challenge to tax foreclosure sales, denying homeowners the ability to retain more proceeds from the sale of their properties. The case involved a Michigan family whose home was sold for less than half its market value to settle an unpaid tax bill exceeding $2,000. They contended that the sale violated their rights, as the property could have sold for nearly $200,000 in a typical real estate transaction. However, Isabella County argued that auction prices are inherently lower due to cash payment requirements. The court's decision follows a previous ruling that prohibited counties from retaining tax sale proceeds beyond the owed amount, highlighting ongoing tensions between tax collection and homeowners' rights.

 

US News and World Report

For the first time since 2023, a majority of U.S. consumers say they would rather buy a home than rent or live with family, according to Bank of America’s latest Homebuyer Insights Report, signaling improving confidence in homeownership despite ongoing affordability challenges. The survey of 2,000 consumers found that 53% now prefer buying a home, compared with 47% who favor renting or moving in with family. The shift is being driven largely by Gen Z and millennial buyers, who appear increasingly willing to enter the market rather than wait for conditions to improve. While affordability remains the biggest obstacle, fewer prospective buyers are delaying purchases in anticipation of lower rates or home prices. About 71% of respondents said they are waiting for interest rates and home prices to decline before buying, down from 75% a year earlier. The report also found growing confidence among existing homeowners, with 22% planning to purchase another property within the next year, up from 15% in 2025. Bank of America’s head of consumer lending, Matt Vernon, said buyers are becoming more realistic about the likelihood that mortgage rates will remain elevated, with the bank expecting rates to stay in a range of 6.25% to 6.75% this year.

 

US News and World Report

EY has identified 10 strategic forces that it believes will reshape the global wealth management industry by 2030, with artificial intelligence (AI) emerging as the most significant driver of change. The firm argues that AI will transform operating models, client experiences, advisory services, and business processes, requiring firms to rethink their structures rather than treat AI as a standalone technology project. Other major trends include the growing demand for tailored services among affluent clients, expanding access to private market investments, the rise of self-directed investing supported by AI tools, increasing emphasis on tax-efficient wealth management, and mounting pressure on traditional fee models. EY also expects firms to adopt more automated compliance systems, develop AI-powered client advisory platforms, and build more efficient global operating structures as they compete for assets during a period marked by technological disruption and the largest intergenerational wealth transfer in history.

 

Wealth Professional

U.S. employers are expected to face another year of historically high healthcare cost increases in 2027, with group medical expenses projected to rise 9% for the second consecutive year, according to a new analysis from PwC. The report attributes the sustained increase to several factors, including providers' growing use of artificial intelligence (AI)-powered revenue management tools, rising reimbursement demands from hospitals and health systems, increasing prescription drug spending, higher utilization of behavioral health services, and escalating payment disputes under the No Surprises Act. PwC noted that healthcare providers are increasingly using AI-driven documentation tools that can capture more detailed patient information, potentially resulting in higher reimbursement rates. At the same time, hospitals continue to face elevated labor, drug, and supply costs, prompting many to seek higher payments from insurers. The findings are based on surveys and interviews with actuaries from 27 U.S. health plans covering more than 103m employer-sponsored members.

 

CFO

Reuters reports that U.S. curbs on artificial intelligence (AI) - including the White House ordering San Francisco-based Anthropic to suspend access to its Fable 5 and Mythos 5 models for foreign nationals - are encouraging European companies to spread the technology's risk across multiple providers and reinforcing the need for a greater number of domestic alternatives. "You ​need flexibility," Cedrik Neike, chief executive of Digital Industries at Siemens, told Reuters. "Sovereignty often gets confused with autarky (economic self-sufficiency), and autarky is absolutely not the way to do it." Siemens uses Chinese models such as DeepSeek and Alibaba's Qwen alongside U.S. and European models.

 

Reuters

U.N. Secretary-General António Guterres has urged AI companies to disclose their environmental impact, including carbon emissions, water, and land usage. Speaking at London Climate Action Week, he proposed the AI Environmental Transparency Initiative, as he highlighted the need for standardized reporting. Mr Guterres noted that data centers, which support AI, accounted for 1.5% of global electricity consumption in 2025. This is projected to rise to nearly 3% by 2030. “By 2030, [data centers] could use ⁠more power than all but five countries – and enough water to meet the basic needs ​of all 1.3 billion residents of sub‑Saharan Africa for an entire year,” he said. “If AI is to help build a better ​future, it must be honest about what it costs us now.”

 

Reuters