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Erica Williams, chair of the PCAOB, expressed serious concerns on Tuesday regarding draft legislation from the House Financial Services Committee that could eliminate the PCAOB by transferring its duties to the SEC. "The SEC was my professional home for 11 years. I have deep admiration and respect for the incredible professional staff there. They are excellent at what they do," she said. "It is different from what we do here at the PCAOB. The unique experience and expertise built up by the PCAOB over decades cannot simply be cut and pasted without significant risk to investors at a time when markets are already volatile. The disruption to inspections alone while a new program gets up and running could last years." Ms. Williams highlighted the importance of the PCAOB's established agreements for conducting inspections globally, particularly in China, and noted the potential risks to investors if these agreements are renegotiated. She concluded by stressing the irreplaceable role of the PCAOB team in protecting investors in U.S. markets.

 

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Sens. Todd Young  (R-IN) and Maria Cantwell (D-WA) are reintroducing a bill to expand the low-income housing tax credit, aiming to construct up to 1.6m affordable homes over the next decade. Mr. Young said: “This measure will leverage private sector investment to increase the stock of affordable housing for families in both urban and rural communities.” The bill seeks to increase tax credits allocated to states and ease financing requirements for housing developments. Despite its bipartisan support, the measure faces competition from other tax priorities as Republicans finalize their budget reconciliation package. The legislation has garnered support from various organizations, including the ACTION Campaign and the Affordable Housing Tax Credit Coalition, and is projected to create 2.4m jobs while generating nearly $94bn in new tax revenue over ten years. Meanwhile,  U.S. Treasury Secretary Scott Bessent said on Tuesday that discussions with House Speaker Mike Johnson (R-LA) over plans to extend President Donald Trump's tax cuts are going well, that the bill is moving forward better than expected, and that "this tax portion [could be] done by the Fourth of July." 

 

Accounting Today

The Columbian

US News and World Report

The IRS is grappling with significant challenges, including staffing cuts, reduced funding, and high turnover rates. Ian Comisky, a partner at Fox Rothschild LLP, stated that the IRS "is not operating properly" and is being "taken apart." Currently, the agency is at least 20% understaffed, which is expected to worsen. Despite receiving funds from the Inflation Reduction Act, many resources were clawed back, impacting enforcement and modernization efforts. Kelly Myers, a veteran IRS employee, noted that cuts are affecting all areas, leading to longer response times for audits and returns. Comisky warned that without adequate enforcement, noncompliance may rise. 

 

Accounting Today

Oregon lawmakers are evaluating House Bill 2977, which proposes a 1% increase in the state tax on hotel, camping, and Airbnb stays to generate up to $30m annually for wildlife conservation. The bill has received backing from hunting and conservation groups, who argue that the state's Fish and Wildlife Department has been underfunded. However, local tourism and restaurant associations oppose the increase, fearing it will deter visitors. State Rep. Ken Helm stated, “there's a perfect nexus between people who want to go out and recreate... and then probably before they go home, whether it's they stay a few days or just one, they're going to have a meal.” The bill awaits a public hearing in the House Revenue Committee.

 

OregonLive.com

The Oregonian

The PCAOB has released new downloadable datasets related to its inspection reports, which were previously only available in PDF format. PCAOB chair Erica Williams said: "With the release of these downloadable datasets, we are continuing our efforts to drive audit quality by increasing transparency." The datasets include information from Part I.A and Part I.B of inspection reports, covering deficiencies and noncompliance with PCAOB standards. The data spans back to 2018 for annually-inspected firms and 2019 for triennially-inspected firms, with updates planned on a quarterly basis. This initiative aims to enhance accessibility and transparency in audit quality.

 

Accounting Today

U.S. job openings fell last month to the lowest since September, indicating weaker labor demand amid increased economic uncertainty. The Job Openings and Labor Turnover Survey (JOLTS) found that new job postings slipped to 7.19m, from a revised 7.78m in February. The figure was near levels last seen in 2020 and below all estimates in a Bloomberg survey of economists. It also found that the number of Americans quitting their jobs rose modestly, while layoffs fell to their lowest level since June. “The job market is continuing to hold its own, but barely,” said Robert Frick, economist with the Navy Federal Credit Union. “While job openings dropped below forecasts, they haven’t hit a post-COVID low. Hiring holds steady and layoffs dipped a bit, showing that, overall, employers are clinging to the employees they have. But this is likely the calm before the storm, as layoffs are pending in government contractors and manufacturers, and other sectors affected by government layoffs and tariffs.”

 

AP News

Bloomberg

Market Watch

The U.S. trade deficit in goods widened to a record high in March, the Commerce Department reported on Tuesday, as businesses ramped up efforts to bring in merchandise ahead of President Donald Trump's slate of tariffs. Goods imports rose $16.3bn to a new record of $342.7bn, driven by a 27.5% jump in imports of consumer goods. Imports of food, and industrial supplies, declined. Goods exports rose $2.2bn to $180.8bn in March. They were lifted by shipments of automotive vehicles, food and industrial supplies, but exports of capital and consumer goods declined. Stockpiles at wholesalers increased 0.5% for a second month. Retail inventories fell 0.1% last month, reflecting a decline at car dealers. Economists estimated trade could have sliced off as much as 1.9 percentage points from GDP last quarter. "This report predicts that net exports will subtract powerfully from first-quarter GDP growth," said Carl Weinberg, chief economist at High Frequency Economics. "The rise in inventories suggests some stockpiling of goods, but the amounts are very small and will not affect the GDP print very much." The goods trade gap increased 9.6% to $162bn, the highest on record, the Commerce Department's Census Bureau said.

 

Bloomberg

Market Watch

Reuters

The S&P CoreLogic Case-Shiller House Price Index, a key indicator of the health of the U.S. housing market, eased in February as more properties came up for sale. The national gauge of prices climbed 3.9%, just below the 4.1% annual increase seen in January. A measure of values in 20 cities was up 4.5% in February from a year earlier, compared with a 4.7% gain in January, according to the S&P CoreLogic Case-Shiller indices. New York posted the biggest gain, with a 7.7% increase. “Buyer demand has certainly cooled compared to the frenzied pace of prior years, but limited housing supply continues to underpin prices in most markets,” said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices. “Rather than broad declines, we are seeing a slower, more sustainable pace of price growth.” Additionally, the total supply of homes for sale rose in February and hit the highest level in five years in March, according to Redfin Corp.

 

Bloomberg

Investing

Walmart, Target, Amazon and other American retail giants are attempting to keep prices low on everyday household products amid rising tariffs by pressuring suppliers to absorb cost increases, dropping free perks from corporate offices, pausing some shipments of goods from China, and leaning on imported inventory. The average price of some 10,000 everyday household products sold online by these retailers is effectively flat since April 2nd. However, the chief executives of Walmart, Target, and Home Depot met with President Donald Trump last week, warning him that higher prices would be difficult to avoid and that certain products could become scarce if retailers decide not to sell them to avoid tariff costs. The success of these retailers has come partly due to efforts to import more items ahead of some tariff increases.

 

Wall Street Journal

President Donald Trump's nominee, Ken Kies, has advanced in the confirmation process for the role of assistant Treasury secretary for tax policy. The Senate Finance Committee voted 14-13 along party lines to approve his nomination. This decision reflects the partisan divide observed during Kies's confirmation hearing, where Republicans focused on Mr. Trump's fiscal agenda while Democrats raised concerns about potential conflicts of interest due to Mr. Kies's extensive lobbying background. As the process continues, Mr. Kies's confirmation appears likely if he can address these concerns.

 

Bloomberg Tax

Americans' confidence in the economy has dropped for the fifth consecutive month, reaching its lowest point since the COVID-19 pandemic began. The Conference Board reported a decline of 7.9 points in its consumer confidence index, now at 86, missing the Dow Jones estimate for 87.7, and reflecting growing concerns over tariffs and their impact on future growth. The board’s expectations index, which measures how respondents look at the next six months, tumbled to 54.4, a decline of 12.5 points and the lowest reading since October 2011. Board officials said the reading is consistent with a recession. “The three expectation components - business conditions, employment prospects, and future income - all deteriorated sharply, reflecting pervasive pessimism about the future,” said Stephanie Guichard, the board’s senior economist for global indicator.

 

CNN

CNBC

Reuters

US News and World Report

Wells Fargo has said the Consumer Financial Protection Bureau had terminated a 2018 consent order related to the bank's compliance risk management. This is the sixth consent order for the lender that regulators have closed since the beginning of the year, the bank said. "Today's termination, along with the recent closure of other consent orders, demonstrates that we have completed much of our common risk and control infrastructure work," Wells Fargo CEO Charlie Scharf said.

 

Reuters

The IRS has provided clarity for fraud victims regarding tax deductions for financial losses incurred from scams. In a recent memo, the IRS Office of Chief Counsel stated that victims can deduct the tax basis of their losses for the year they discovered the theft. This guidance is crucial as it allows victims of compromised accounts and phishing scams to claim deductions, while generally excluding romance and kidnapping scam victims. James Creech from Baker Tilly emphasized the importance of this ruling, stating, "The mechanisms that the fraudsters use are so polished and organized." The memo also highlights the need for reform in tax rules to better support fraud victims, as many still face penalties for early IRA withdrawals. National Taxpayer Advocate Erin Collins noted that the memo "offers important clarification on when and how taxpayers may claim a theft loss deduction," while also exposing gaps in current laws that leave many without relief.

 

Accounting Today

AICPA is working with the SEC's newly formed Crypto Task Force, led by Commissioner Hester Peirce. Under the leadership of chair Paul Atkins, the SEC aims to adopt a more supportive stance towards the crypto industry compared to its previous administration. In a comment letter, AICPA highlighted its experience in the digital assets sector, noting: "Given our extensive experience over seven years working in the digital assets and blockchain space, we are well-positioned to assist the Crypto Task Force." AICPA has previously hosted the Blockchain in Accounting Symposium and established a Digital Assets Working Group to develop guidance for practitioners. Additionally, it published the 2025 Criteria for Stablecoin Reporting to enhance the reliability of stablecoin operations.

 

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