Become informed in minutes...

As the end of the year approaches, corporate tax officials are facing uncertainty regarding the potential expiration of provisions from the Tax Cuts and Jobs Act (TCJA). Many anticipate that the Republican-majority Congress will attempt to extend these provisions, but the specifics remain unclear. President Trump is pushing for a reduction in the corporate tax rate from 21% to 15%, which could strain federal finances. A survey by Bloomberg Tax reveals that 81% of tax professionals are concerned about the implications of possible tax-law changes, with 88% struggling to model the effects of the TCJA's sunset. “This difficulty stems partially from reliance on manual data gathering,” Bloomberg noted, highlighting the challenges faced by tax officers in adapting to potential changes.

 

CFO

Shape your legacy as a CFO

What will your legacy be? As a CFO, the choices you make today can pave the way for lasting success, and set your organization up for the future.

The CFO’s Guide to Creating a Legacy Through Financial Excellence is packed with practical tips to help you:

• Inspire innovation and growth
  
• Lead your team through digital transformation
  
• Streamline finance with AI and automation

It’s your go-to guide for navigating challenges, driving change, and creating long-term value. Ready to take your leadership to the next level? Download the guide now and start building your legacy today.

Get the guide

 

AICPA has outlined its 2025 tax priorities, urging Congress to raise the reporting threshold for Form 1099-K from $600 to $10,000. In a letter to congressional finance leaders, Melanie Lauridsen, the AICPA's vice president of Tax Policy & Advocacy, said, "Our tax legislation priorities include recommended proposals that would reduce uncertainty and complexity for taxpayers." The AICPA also advocates for permanent tax relief for those affected by natural disasters and the extension of certain provisions from the Tax Cuts and Jobs Act. Other recommendations include maintaining the qualified business income deduction and preserving the cash method of accounting for tax purposes. The IRS has delayed the implementation of the $600 threshold, treating 2024 and 2025 as transition years.

 

Accounting Today

CPA Practice Advisor

Journal of Accountancy

Citigroup has reduced bonuses for its top executives due to the bank's ongoing turnaround efforts and regulatory requirements. According to the bank's proxy filing, the executive management committee and 250 senior managers received 68% of the maximum bonus amount in 2024, a decrease from previous years. The completion rate of performance milestones was only 53%, significantly lower than the 80% achieved in 2023 and 94% in 2022. The bank also faced a $136m fine from the Federal Reserve and the Office of the Comptroller of the Currency for failing to address long-standing data issues, which impacted the bonus structure.

 

Reuters

Microsoft is partnering with Swiss start-up Inait to deploy a new artificial intelligence model that simulates mammal brains’ real-world reasoning powers to advance fields from financial trading to robotics. “We believe that Inait’s approach to AI has the potential to bring significant value to the industry,” said Catrin Hinkel, CEO Microsoft Switzerland. “Their neuroscience-inspired technology is truly innovative, and we are pleased to collaborate with them to bring these advancements to market, starting with the fintech and robotics sectors where we see opportunities for immediate transformation.” 

 

Microsoft

Financial Times

Members of the Sackler family who own Purdue Pharma have proposed a plan involving the transfer of the company and a cash contribution of up to $7bn to settle thousands of lawsuits over the toll of the firm's powerful prescription painkiller OxyContin. The plan, submitted to a bankruptcy judge, marks a significant step in a legal battle that has persisted for over five years. The Sacklers, whose wealth is estimated at around $11bn, would relinquish ownership and contribute funds over 15 years, with the largest payment made upfront. The new entity managing Purdue would focus on combating the opioid epidemic, which has resulted in hundreds of thousands of deaths in the U.S. The settlement aims to provide direct compensation to victims, potentially exceeding $850m, and includes provisions for public access to company documents.

 

U.S. News

A U.S. judge has dismissed a lawsuit against Amazon, which accused the company of defrauding shareholders through misleading statements regarding its treatment of third-party sellers and capacity expansion plans. Shareholders accused Amazon of concealing an algorithm that ensured its private-label products would cost less than outside merchandise, raising prices for consumers generally. They also said Amazon concealed the overexpansion of its infrastructure and fulfillment network, causing its stock price to tumble in April 2022 when it incurred $2bn of costs for excess capacity. U.S. District Judge John Chun's ruling in Seattle was made with prejudice, indicating that the lawsuit cannot be refiled.

 

Reuters

PepsiCo has announced its acquisition of prebiotic soda brand Poppi for $1.95bn, a move that aims to strengthen its position in the healthier soda market. The demand for such beverages has surged, particularly among younger consumers in the U.S. who are increasingly focused on fitness and lifestyle choices. Founded by Allison and Stephen Ellsworth in Austin, Texas, Poppi's deal includes $300m in expected cash tax benefits, resulting in a net purchase price of $1.65bn. The deal comes as the soda industry is facing fresh scrutiny from the Make America Healthy Again movement, led by Health and Human Services Secretary Robert F. Kennedy Jr., who has called soda “poison."

 

USA Today

Financial Times

Reuters

Wall Street Journal

U.S. housing starts rose in February by more than forecast after a weather-related plunge, led by a pickup in single-family home construction underpinned by builder incentives. New residential construction increased 11.2% to an annualized rate of 1.5m in February, the Commerce Department reported on Tuesday, following a weak January afflicted by winter storms across large parts of the South and the Northeast. Economists had expected housing starts to increase by 1% to an annual rate of 1.380m from the 1.366m originally reported for the previous month. Single family housing starts soared by 11.4% to an annual rate of 1.108m, while multi-family housing starts shot up by 10.7% to an annual rate of 393,000. Building permits, an indicator of future demand, slumped by 1.2% to an annual rate of 1.456m. Nancy Vanden Houten, lead U.S. economist at Oxford Economics, noted the improvement in the headline numbers, but added: "We don't expect the February pace of starts to be sustained as builders face higher building costs due to tariffs and labor shortages and as buyers become more cautious in a more uncertain economic environment."

 

Bloomberg

Nasdaq

Reuters

The Federal Reserve has reported that U.S. industrial production rose 0.7% in February, beating economists’ expectations of a 0.3% rise, according to a survey by the Wall Street Journal. Manufacturing alone, which makes up three quarters of total production, jumped 0.9%. Excluding autos, factory production increased 0.3%, marking the third straight monthly advance. The pickup in February factory output reflected an 8.5% jump in motor vehicle production that was the largest since August, according to the Fed. 

 

Bloomberg

Market Watch

Nasdaq

The FASB's Private Company Council (PCC) has released its 2024 Annual Report, showcasing its significant achievements and activities, including projects on the accounting for and disclosure of software costs, accounting for environmental credit programs, and determining the acquirer in the acquisition of a VIE. “I am proud to present to you the PCC 2024 Annual Report. I have been privileged in my role as chair to witness firsthand the outstanding work that the PCC has performed in 2024,” commented PCC chair Jere Shawver. FASB Chair Richard Jones added, “The FASB appreciates the PCC’s contributions under Jere’s leadership in advising the FASB and their ongoing collaboration with the private company community. The report highlights many of those activities.”

 

CPA Practice Advisor

Adam Brewer, a tax attorney, emphasizes the importance of the “trinity of foreign accounts compliance” for tax preparers. He highlights three key forms: Schedule B, Form 8938, and FBAR, which are crucial for reporting foreign income and assets. Brewer notes that “failing to disclose large, income-generating foreign financial assets” can lead to increased audit risks and penalties. Additionally, he warns about the complications arising from automatic extensions in disaster zones, citing issues faced by San Diego County residents during recent flooding. Tax preparers must ensure accurate reporting across all forms to avoid potential tax penalties and interest assessments.

 

Bloomberg Tax

Air India chief executive Campbell Wilson has warned that the global aircraft shortage affecting airline growth is expected to last for four to five years due to production issues at Boeing and Airbus. Speaking at a Skift event, Wilson highlighted supply constraints in narrowbody jet engines and aircraft components, complicating Air India's ambitious turnaround strategy initiated by Tata Group. He said: "There is not a lot we can do. We are victims of circumstance, as is every other airline," as he emphasised the challenges in expanding operations. In 2023, Air India ordered 470 jets from Airbus and Boeing, including the delayed 777X model, but delivery timelines remain uncertain. Wilson noted that the airline is postponing additional orders until Boeing resolves its backlog.

 

Daily Mail