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7th March 2025
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THE HOT STORY
Trump signs order to establish government bitcoin reserve
President Donald Trump has signed an executive order to create a government reserve of bitcoin, marking a significant step towards mainstream acceptance of cryptocurrency. According to David Sacks, Trump's “crypto czar,” the U.S. will retain approximately 200,000 bitcoin seized in various legal proceedings, saying: “The U.S. will not sell any bitcoin deposited into the Reserve. It will be kept as a store of value.” The order also mandates a comprehensive audit of the government's bitcoin holdings, which have never been fully assessed. Trump, who has shifted from skepticism to support for digital currencies, is pushing for favorable legislation and plans to host a “Crypto Summit” at the White House. Bitcoin has a market cap of about $1.7tn and is seen as a hedge against inflation despite criticism regarding its inherent value.
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TAX
Ohio proposes tax break for gym memberships
Ohio Senate Bill 89 proposes a $1,500 tax deduction for fitness expenses, including gym memberships and personal training, to combat the state's high obesity rate, which ranks seventh in the U.S.. Sen. Al Cutrona, the bill's sponsor, said: "Whatever we can do to incentivize and encourage folks to get healthy and fit they can do so with this bill." While some lawmakers, like Sen. Bill DeMora, support the idea, they express concerns about potential increases in gym membership fees. Cutrona plans to introduce a substitute bill that would offer a dollar-for-dollar tax credit for initial gym expenses, aiming to make fitness more accessible and reduce government healthcare costs. He believes that promoting healthier lifestyles could ultimately save the state money.
INDUSTRY
NATP offers support for tax pros impacted by IRS layoffs
The National Association of Tax Professionals (NATP) is offering a free platform to help affected tax professionals who were among those recently let go by the IRS find new opportunities in the profession. The “Looking for Positions” section on NATP’s website connects job seekers with tax and accounting firms seeking to fill their vacancies with experienced candidates. “The sudden elimination of thousands of IRS positions has left many individuals with a tax background in search of new opportunities,” commented NATP chief executive Scott Artman.  “As the trusted resource for tax professionals, NATP is committed to supporting those affected by connecting them with firms looking for skilled talent. Our goal is to strengthen the industry and ensure taxpayers continue to receive high-quality service.”
FASB's acquirer plan takes shape
The FASB is set to finalize a plan that clarifies which party is considered the acquirer in business acquisitions for financial reporting. The board unanimously agreed to advance the draft, emphasizing that the benefits of consistent rules outweigh the implementation costs. Public feedback indicated that these costs would not be significant.
ECONOMY
Trade deficit widened 34% in January
The U.S. trade deficit widened 34% in January from December, to $131.4bn, according to the Commerce Department. Imports rose 10% to $401.2bn, while exports climbed by 1.2% to $269.8bn. Consumer-goods imports rose by $6bn, mostly reflecting a rise in pharmaceutical imports. Imports of capital goods such as computers, computer accessories and telecommunications equipment rose $4.6bn. A separate report released by the Commerce Department showed wholesale inventories in the U.S. increased 0.8% in January.
Drop in jobless claims allays fears about labor market
Applications for U.S. unemployment benefits fell last week and returned to muted levels seen at the start of the year, offering some relief after other reports pointed to worsening labor market conditions. The Labor Department said Thursday that initial claims fell 21,000 to 221,000 in the seven days to March 1st, significantly below the 235,000 forecast by economists polled by Reuters. The four-week moving average was up 250 to 224,350, while the total number of people receiving benefits after an initial week of aid, reported with a one-week lag, was up 42,000 to a seasonally-adjusted 1.897m. “Initial claims from U.S. federal workers have surged, while regular state claims have abated," commented economist Eliza Winger. "Initial unemployment compensation claims for federal employees will continue to rise in coming weeks amid the Department of Government Efficiency (DOGE) cost-cutting efforts, with spillovers to claims at a national level.”
Q4 U.S. labor productivity beats expectations
The Labor Department has reported a 1.5% increase in fourth-quarter U.S. labor productivity, higher than the previously-reported 1.2% rise. Output was also upwardly revised, to 2.4% from 2.3%, while the increase in hours worked was downwardly revised to 0.8% from 1%. A 3% spike in labor costs was downwardly revised to 2.2%. Hourly compensation soared by 3.8% in the fourth quarter compared to the previously reported 4.2% spike.
CORPORATE
Boeing needs to change its insular culture, CEO says
Boeing chief executive Kelly Ortberg has said the company needs a more open culture where staff are encouraged to speak up and communicate across divisions, according to a transcript of a meeting seen by Reuters. "We're very insular" and "we don't communicate across boundaries," Ortberg said in the webcast from St. Louis, Missouri, the headquarters of Boeing's defense and space division, adding that the company's teams "don't work with each other as well as we could . . . And the power of the Boeing Company is in us all kind of rowing the boat together." He said cultural change would boost morale, and "the results will show in the marketplace."
REGULATORY
Senate committee approves McKernan's CFPB nomination
The U.S. Senate Banking Committee has voted 13 to 11 to advance the nomination of Jonathan McKernan as the director of the Consumer Financial Protection Bureau (CFPB). The party-line decision allows Mr. McKernan's nomination to proceed to the full Senate for consideration. The Trump administration has been actively working to limit the agency's powers, making the nomination significant. Meanwhile, the CFPB is allowing some offices to resume their functions, after an order last month from acting director Russell Vought to cease “all supervision and examination activity” and “shareholder engagement." 
FRAUD
Tax scams spike as deadlines loom
With the end of this year's tax season approaching, the IRS has warned taxpayers about the rise of tax scams, which peak during this time. Terry Lemons, a senior adviser at the IRS, commented: "Scammers are relentless, and they use the guise of tax season to try tricking taxpayers into falling into a variety of traps." The IRS' annual Dirty Dozen list highlights common scams, including phishing emails and misleading social media advice. Taxpayers are urged to be cautious of fake communications from entities posing as the IRS or tax software companies, as well as incorrect information shared on platforms like TikTok.
CRYPTO
Trump signs tariff exemptions for certain imports from Canada, Mexico
President Donald Trump has signed off on tariff exemptions for imports from Canada and Mexico that are covered under the 2020 U.S.-Mexico-Canada Agreement (USMCA). The levies will now not apply until April 2nd, at which point Mr. Trump has pledged to impose reciprocal tariffs on other nations with duties on American imports. The exemptions apply to some things like potash, which is used in fertilizers, but some Canadian energy products won’t qualify and will be subjected to a 10% tariff. All other goods, including computers from Mexico, will be subjected to the 25% tariff. "On April 2nd, we're going to move with the reciprocal tariffs, and hopefully Mexico and Canada will have done a good enough job on fentanyl that this part of the conversation will be off the table, and we'll move just to the reciprocal tariff conversation," Commerce Secretary Howard Lutnick said. "But if they haven't, this will stay on."
TECHNOLOGY
AI tools revolutionize tax workflows
As the 2025 tax filing season approaches, tax professionals are increasingly turning to artificial intelligence to enhance their workflows and mitigate compliance risks. AI technology can significantly reduce the time spent on tasks, allowing practitioners to focus on more strategic work. Key considerations for selecting AI tools include accuracy, integration, and industry specificity. Tax professionals should seek solutions that involve user collaboration and transparency to foster trust and compliance-ready accuracy. As AI continues to evolve, it offers exciting opportunities for tax professionals to gain a competitive edge and navigate complex challenges more effectively.

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