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The Senate has passed a bipartisan bill by unanimous consent that would provide tax-filing relief for taxpayers in states that have issued state-level disaster declarations after unanimous passage earlier this year in the House, sending the bill to President Trump for his signature. The bill, known as the Filing Relief for Natural Disaster Act, authorizes the IRS to postpone federal tax deadlines for taxpayers affected by a qualified state-declared disaster once there's a declaration by the state governor.  Historically, the process of receiving tax-filing and payment relief from the IRS during a disaster is triggered by a federal disaster declaration, which can come days, weeks or months after a disaster. That means affected taxpayers may need to wait for months before knowing if they will be entitled to much-needed tax relief. The legislation promises to expedite the issuance of federal tax relief and give the IRS the authority to grant tax relief once the governor of a state declares a disaster or state of emergency.

 

Accounting Today

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President Donald Trump's new tax law introduces a federal tax deduction for interest on auto loans, allowing taxpayers to deduct up to $10,000 annually on loans for new American-made vehicles from 2025 to 2028. This deduction is available to all taxpayers, even those who do not itemize deductions. However, it applies only to new vehicles assembled in the U.S. and excludes fleet purchases. Jonathan Smoke, chief economist at Cox Automotive, estimates that around 3.5m new vehicle loans could qualify for this tax break. While some believe this will incentivize purchases, others, like Smoke, express skepticism, stating: “I don't think it moves the needle on somebody on the fence of buying a new vehicle or not.”

 

US News and World Report

Rhode Island Gov. Daniel McKee has enacted a new law establishing a tax amnesty program for municipalities, allowing them to offer a waiver of interest and penalties on overdue real estate and tangible taxes every three years. This initiative aims to provide relief to taxpayers under specific conditions. The program is expected to enhance tax compliance and support local governments.

 

Bloomberg Tax

The International Ethics Standards Board for Accountants (IESBA) and the International Auditing and Assurance Standards Board (IAASB) have set up technical expert groups to support global implementation of their sustainability standards. The IESBA's IESSA Implementation Monitoring Advisory Group will support implementation of the International Ethics Standards for Sustainability Assurance (including International Independence Standards) and revisions to the IESBA code for sustainability reporting, while the IAASB's ISSA 5000 Technical Implementation Contact Group will support implementation of the International Standard on Sustainability Assurance.

 

Accounting Today

The PCOAB has issued a disciplinary order against Canada's Raymond Chabot Grant Thornton, stating that it took too long to report that it was the under the scrutiny of a Canadian regulator. According to the PCAOB, Raymond Chabot Grant Thornton failed to timely report the initiation and conclusion of three proceedings brought against it by a local regulator, in violation of PCAOB Rule 2203, Special Reports. Without admitting or denying the findings, both firms settled with the PCAOB and consented to the PCAOB’s orders and disciplinary actions. “Failures to document required audit work or to make required disclosures on time undermine trust in the audit and prevent investors and others from accessing important information,” said PCAOB Chair Erica Y. Williams.

 

Canadian Accountant

U.S. customs duty collections surged again in June as President Donald Trump's tariffs gained steam, topping $100bn for the first time during a fiscal year and helping to produce a $27bn budget surplus for the month. The Treasury Department said that total budget receipts last month rose 13% to $526bn, while outlays fell 7% to $499bn. Receipts for the first nine months of the fiscal year rose 7%, to a record $4.008tn, driven in part by withheld taxes from higher employment and wages, while outlays grew 6% to a record $5.346 tn.

 

Reuters

U.S. companies underpaid as much as £8.8bn ($11.85bn) in tax in the U.K. last year, according to data from UHY Hacker Young, up 57% from the year prior. U.S. companies account for the most underpaid tax out of all overseas countries – 46% of the £19bn of tax underpaid by all foreign companies. “The amount of tax owed that HM Revenue & Customs (HMRC) suspects that U.S. companies owe is continuing to grow at a scale that HMRC knows it can’t ignore," commented UHY Hacker Young partner and head of tax Phil Kinzett-Evans. “HMRC is under a lot of pressure to help fill the shortfall in tax revenues by cracking down on large companies. However, that conflicts with the need to keep the U.S. government onside but not to be seen as too aggressive towards U.S. companies. The U.S. has threatened to retaliate against countries that impose unfair taxes on U.S. companies. The list of the taxes defined as 'unfair' by the U.S. has previously included 'diverted profit tax' and digital services tax – both of which exist in the U.K. HMRC needs to tread carefully as it faces the challenge of ensuring the U.K. keeps a good relationship with the current U.S. administration whilst also investigating U.S. companies for underpaying tax. The less tax collected from U.S. companies, the more has to be paid by other taxpayers.”

 

Accountancy Today

International Tax Review

John Barrie from McLaughlin & Stern provides insights on pursuing litigation when the IRS fails to process amended tax returns revealing overpayments. Recent reports indicate that the IRS is facing significant staffing reductions, with TIGTA noting a loss of over 1,000 employees responsible for processing these returns. This has led to delays, with over 64% of amended returns not meeting the 45-day processing goal. Mr. Barrie suggests that taxpayers may file a tax refund suit under Section 7422 of the tax code if their claims remain unprocessed. He emphasizes the importance of ensuring that the amended return contains sufficient facts to support the claim, and concludes that "it may be an appropriate option to consider when a refund claim is sitting with the IRS with no signs of movement soon. It also may be the right choice if there's a strong chance that the refund claim, when and if processed, will be denied, and the taxpayer will need to file suit to claim the refund due in any event".

 

Bloomberg Tax

The U.S. Consumer Financial Protection Bureau (CFPB) has reached a settlement with FirstCash Inc. for alleged violations of the Military Lending Act, which requires the company to set aside $5m for affected servicemembers and their families. In addition to the restitution, FirstCash will pay a $4m fine and must comply with the Military Lending Act moving forward. The settlement is pending court approval and addresses concerns over unlawful pawn loans issued by the company.

 

Reuters

Following the passage of President Donald Trump's One Big Beautiful Bill Act, many Americans received an email from the Social Security Administration celebrating the legislation. However, experts, including Marc Goldwein from the Committee for a Responsible Federal Budget, argue that the email was misleading. It suggested that the bill eliminated federal income taxes on Social Security benefits, but in reality, it only introduced a new tax deduction for seniors aged 65 and older. This means that while some seniors may pay fewer taxes, the overall taxation of Social Security benefits remains unchanged. Howard Gleckman from the Urban-Brookings Tax Policy Center criticized the email for overstating the bill's impact, saying: "The email was really pretty misleading." The new deduction primarily benefits middle- to upper-middle-class seniors, while lower-income individuals will see no change. The legislation could also jeopardize Social Security's trust funds, with estimates suggesting insolvency by late 2032.

 

NPR

Earlier this year, the Deloitte Center for Health Solutions found that, among 32 health systems and 32 health plans, 73% of finance leaders reported revenue growth and operating profitability as being among their top organizational concerns. Additionally, 81% cited business conditions, such as the impact of potential health care regulatory and policy changes, the current economic situation and supply chain disruption. “Prescription drugs, medical equipment and other medical supplies account for about 20% of the average hospital’s expenses — and a large share of these items are imported,” Deloitte wrote in its survey report. Potential new tariffs on these imports could increase such costs by 15% or more, according to the report. Such external concerns have supplanted workforce challenges, cost reduction and cybersecurity, all of which had ranked among health care finance leaders’ top priorities for at least four of the previous five years.

 

CFO

The One Big Beautiful Bill Act will, analysts say, provide a more attractive environment for U.S. merger-and-acquisition dealmaking, in terms of tax policy. The legislation permanently reinstates 100% bonus depreciation for qualified assets acquired after Jan. 19, 2025, eliminating a previously scheduled phase-down. It also restores a more generous definition of “adjusted taxable income” for purposes of determining a taxpayer’s allowable business interest expense deduction. PwC U.S. Deals Platform Leader Kevin Desai said the bill "re-arms corporate America with the same tax tools that fueled the post-2017 deal boom — 100% bonus depreciation for certain assets, generous interest deductibility and, crucially, no new carried-interest curb." He added: This should mean there are more tax shields, more debt capacity, and a relative valuation boost for asset-heavy U.S companies. The question is whether the bill’s long-term debt load will come back to clip valuations once the sweeteners expire." Separately, Mitch Berlin, Ernst & Young Americas vice chair, EY-Parthenon, said: “We anticipate M&A is entering an era defined by fewer, but significantly larger, transactions, driven by a clear tax landscape for 2026 and beyond. This clarity and the administration’s agenda are poised to spur near-term activity especially across energy, financial services and manufacturing.” 

 

CFO Dive

The European Union is preparing to step up its engagement with other countries hit by U.S. President Donald Trump’s tariffs, such as Canada and Japan, following a slew of new threats to the bloc and other U.S. trading partners. “We need to explore how far, how deep we can go in the Pacific area with other countries," commented E.U. competition chief Teresa Ribera this morning. She also highlighted the E.U.’s continuing trade talks with India, which are expected to be completed by the end of the year.

 

Bloomberg