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Canadian goods imported into the U.S. will face a blanket 35% tariff starting next month, President Trump said Thursday, in an announcement that came in the midst of active trade negotiations between the two countries. However, an exemption for goods that comply with the nations’ free-trade agreement, the U.S.-Mexico-Canada Agreement, would still apply, according to a White House official. “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter," Mr. Trump said in the letter to Canada Prime Minister Mark Carney. “These Tariffs will be modified, upward or downward, depending on our relationship with your Country. You will never be disappointed with the United States of America."

 

Politico

Washington Post

Wall Street Journal

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AICPA has requested further guidance from the Treasury and the IRS regarding catch-up contributions designated as Roth contributions under Section 603 of the SECURE 2.0 Act of 2022. In a letter dated July 1st, AICPA highlighted the need for clear regulations to ensure compliance with the Roth mandate, which affects employees eligible for catch-up contributions based on income thresholds. Kristin Esposito, director of Tax Policy & Advocacy at the AICPA, said: “Post-SECURE 2.0, employers and plan administrators will need clear guidance to ensure compliance of the law regarding Roth-mandated catch-up contributions.” AICPA also recommended the creation of a safe harbor for using Form W-2 information to determine employee eligibility for the Roth mandate and requested clarification on the treatment of disregarded entities in this context.

 

Journal of Accountancy

BDO USA has revealed that Matthew Becker, currently its national managing principal of tax, has been ratified to succeed Wayne Berson as the firm's chief executive, effective July 1st 2026. Mr. Becker is already a member of BDO's executive leadership team and a member of BDO International's global tax advisory committee. He has also served as chairperson of BDO USA's board of directors. Mr. Berson has served as CEO since 2012, since when the firm has grown nearly 400% to annual revenues of around $3bn, and transformed from a partnership to a corporation, and finally to an ESOP company in 2023. He will continue to serve on BDO USA's board of directors and BDO International's global board of directors until his retirement.

 

Accounting Today

CPA Practice Advisor

International Accounting Bulletin

The PCAOB has sanctioned CPA firm Michael Coglianese for failing to meet quality review standards in 17 audit and attestation engagements. The firm violated AS 1220, Engagement Quality Review, by assigning a senior manager, rather than a qualified partner, to the role of engagement quality reviewer. PCAOB chair Erica Williams stated: "Engagement quality reviews protect investors by providing an important safeguard against erroneous or insufficiently supported audit opinions." The PCAOB also found deficiencies in the firm's quality control system. Without admitting to the findings, Coglianese consented to a censure, a $50,000 civil penalty, and agreed to undertake remedial actions to enhance its quality control system.

 

Accounting Today

CPA Practice Advisor

Madison Street Advisors, previously known as McCormick Tax Group, has joined Platform Accounting Group, enhancing its presence in the Midwest. Based in Chicago, Madison Street Advisors specializes in tax planning and audit mitigation, offering services such as audit defense and bookkeeping. Michael T. McCormick, managing partner at Madison Street Advisors, expressed enthusiasm about the partnership, stating: “We know our clients intimately and understand their unique demands and needs.” Platform Accounting Group has experienced significant growth, doubling in size annually for the past decade, and now employs nearly 1,000 staff across 16 states, providing a wide range of professional services from tax to wealth management.

 

CPA Practice Advisor

Automakers are urging consumers to purchase electric vehicles (EVs) before the $7,500 U.S. tax credit expires on September 30th 2025. Tesla prominently displayed a banner on its homepage, warning customers of the impending deadline. Ford has extended its offer of free home chargers to attract buyers. The elimination of these tax credits, part of recent legislation, is expected to significantly impact EV sales, with General Motors chief executive Mary Barra stating, "The $7,500 tax credit is driving demand; without that, that'll slow." Analysts predict a potential 27% drop in electric vehicle registrations without the credit. As the deadline approaches, experts like Sam Fiorani from AutoForecast Solutions anticipate a surge in EV purchases, saying, "Consumers believe there is a deadline to reach now."

 

U.S. News

The number of Americans filing new applications for jobless benefits unexpectedly fell to a seven-week low last week, the Labor Department reported on Thursday, suggesting employers may be holding on to workers despite other indications of a cooling labor market and creating no urgency for the Federal Reserve to resume its interest rate cuts. Initial claims fell for a fourth straight week in the seven days to July 5th, slipping 5,000 to a seasonally-adjusted 227,000. Economists were expecting claims to move higher to 238,000, according to FactSet. The four-week moving average fell to 235,500, the lowest since late May, while continuing claims, reported with a one-week lag, rose by 10,000 to 1.965m. “It’s difficult to find a new job right now. Young people are struggling to get their first jobs and anyone who has been laid off is having a hard time landing their next role,” Heather Long, chief economist at Navy Federal Credit Union, wrote Thursday. “The labor market is frozen outside of healthcare, education and law enforcement jobs. Hiring is anemic in other sectors as companies remain cautious in this environment.”

 

CNN

Bloomberg

Reuters

Apple, Visa, and Mastercard have persuaded a U.S. judge to dismiss a lawsuit accusing them of conspiring to suppress competition in the payments network market and causing merchants to pay inflated transaction fees. The lawsuit, filed by beverage retailer Mirage Wine & Spirits and other businesses, was brought on behalf of a proposed class of thousands of merchants. It alleged that Visa and Mastercard paid Apple what amounted to a “very large and ongoing cash bribe” of hundreds of millions of dollars a year to keep it from competing with them. In his ruling, U.S. District Judge David Dugan in Illinois said the merchants’ allegations “completely ignore the difficulties, costs and time, risks, and potential for failure associated with such an endeavor".

 

Reuters

Fraud continues to drain billions from businesses, with the Association of Certified Fraud Examiners' 2024 Report to the Nations revealing that 29% of fraud cases stem from inadequate internal controls. Small and medium-sized businesses are particularly vulnerable due to limited resources, which can lead to significant financial losses. While technology like AI can help detect fraud, the report emphasizes that "42% of frauds are detected through tips," highlighting the importance of fostering a strong ethical culture. Accountants play a crucial role in establishing internal controls and promoting transparency, ensuring that organizations do not overly rely on technology alone. The modern accountant must integrate technical skills with behavioral insights to effectively combat fraud and build resilient businesses.

 

Accounting Today

The One Big Beautiful Bill Act (OBBBA) has permanently reinstated 100% bonus depreciation for qualified properties placed in service after January 19th 2025, provided the acquisition contract is signed on or after that date. Sean Graham, CPA and founder of Maven Cost Segregation, emphasizes the importance of understanding the timing of these dates, as they can significantly impact tax treatment. For instance, a client who spends $250,000 on improvements may only qualify for 40% bonus depreciation if the property is placed in service before the cutoff date. The article outlines key opportunities for CPAs, including modeling depreciation scenarios and coordinating with tax and engineering teams to ensure clients maximize their deductions. With the urgency of a phase-out eliminated, strategic timing remains crucial for effective tax planning.

 

CPA Practice Advisor

Avalara has introduced Avi for Tax Research, a generative artificial intelligence (AI) solution designed to enhance tax compliance. The tool leverages two decades of Avalara's data to provide contextually aware answers to complex tax inquiries. Avi allows users to check tax statuses using plain language and access real-time guidance for compliance. Existing users can access the AI tool immediately, while new customers can sign up for a free trial. This announcement follows Avalara's recent launch of new APIs for its 1099 and W-9 solutions, streamlining compliance workflows for businesses.

 

Accounting Today

Durran Dunn, a partner at Bennett Thrasher's Risk Advisory Services, shares his inspiring journey from Jamaica to becoming a CPA. He initially had no knowledge of the profession until his senior year at the University of Southern Mississippi. Dunn faced cultural challenges after moving to the U.S. and later became a well-known figure as "The Freeze," a sprinter at Atlanta Braves games. He emphasizes the importance of discipline, stating: "You can't outwork me," and is passionate about mentoring young accounting candidates. Dunn also serves on AICPA's Board of Examiners, advocating for diversity and awareness in the accounting profession. His mission is to educate students about the opportunities in accounting and to inspire them to pursue their goals.

 

Journal of Accountancy