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President Donald Trump has said that companies should no longer be required to report their earnings on a quarterly basis, and instead publish their financials every six months, arguing that it "will save money, and allow managers to focus on properly running their companies." Currently, the SEC requires corporations to report their financial statements every 90 days. Half-yearly reporting would mark a huge change in disclosure requirements and put the U.S. in line with the U.K. and several countries in the European Union. Supporters of the change say quarterly reporting is too costly and time-consuming and discourages companies from wanting to go public. They also say company executives focus too much on hitting quarterly earnings targets and not enough on long-term planning. Opponents, however, say that six-month reviews would deprive investors of important financial information. An SEC spokesperson said that the commission "is prioritizing this proposal to further eliminate unnecessary regulatory burdens on companies." TD Cowen analyst Jaret Seiberg said it could take the SEC six months to develop a proposal based on economic data. "Key indicators of the issue gaining momentum will be if [SEC chair Paul] Atkins discusses the issue in his public speeches in the coming months and if it ends up on the agenda for the SEC's Investor Advisory Committee," he added. 

 

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The IRS has introduced a draft of Schedule 1-A (Form 1040), Additional Deductions, which consolidates calculations for four deductions under H.R. 1, P.L. 119-21, known as the One Big Beautiful Bill Act. This new form allows taxpayers to calculate deductions for tips, overtime, car loan interest, and an enhanced senior deduction on a single document. Annette Nellen, Esq., CPA, CGMA, noted: “That just makes a little bit neater because these are temporary provisions in there for four years.” However, she cautioned that some taxpayers may not qualify for these deductions due to restrictions and phaseouts. For instance, only overtime mandated by the federal Fair Labor Standards Act is deductible.

 

Accounting Today

CPA Practice Advisor

Journal of Accountancy

New York State's revenue may be adversely affected by the new federal tax law unless it decouples its tax code, according to State Comptroller Thomas DiNapoli. The "One Big Beautiful Bill Act," signed by President Donald Trump, extends previous tax cuts while reducing funding for essential programs. Mr. DiNapoli stated: "Many of the tax benefits in the federal legislation... will continue to go to those with higher incomes." Approximately one-third of the tax cuts will benefit households earning over $500,000, leaving low- and middle-income New Yorkers with minimal advantages. The state has previously decoupled from certain federal provisions to protect revenue, and Mr. DiNapoli warned of a looming $34bn budget gap. He emphasized that the new federal law complicates the tax code and exacerbates inequities.

 

Accounting Today

The New York Empire State Manufacturing Index, which is compiled from a survey of approximately 200 manufacturers in New York state, and uses a level of 0.0 as a benchmark, has dropped to -8.70, from 11.90 in August. Economists had predicted a positive figure of 4.30. The new orders index dropped 35 points to -19.6, while the shipments indicator fell 30 points to -17.3, with both measures hitting their lowest since April 2024. “Manufacturing activity declined modestly in New York State in September, with the survey’s headline index turning negative on the heels of positive readings over the summer," said Richard Deitz, economic research adviser at the New York Fed. "Optimism about the outlook remained muted and employment levels are expected to be flat over the next six months."

 

Investing

Sharecast

Valuing a conservation easement hinges on determining the property's highest and best use before the easement is imposed. Taxpayers often face disputes with the IRS regarding this "before value." A recent Tax Court case, Veribest Vesta v. Commissioner, highlighted the challenges in establishing fair market value, particularly when comparable successful developments are absent. Judge Ronald Buch emphasized that equating land value with the net present value of a hypothetical business is flawed, stating such appraisals are "nonsense on its own terms." The article raises critical questions about whether existing uses, like farmland or recreation, should be disregarded in favor of potential higher values. John Barrie, a partner at McLaughlin & Stern, underscores the need for experienced appraisers to navigate these complexities and effectively communicate the rationale behind their valuations.

 

Bloomberg Tax

The SEC has said it would not object to a plan by Exxon Mobil to introduce a unique shareholder voting mechanism that will allow retail investors to automatically cast ballots in step with board recommendations during annual meetings. Individual investors currently "lack access to numerous services that make voting fast and easy for larger institutional investors. Activist groups often exploit this gap to push political goals at the expense of shareholder value," Exxon said in a statement. The company said that retail investors will soon be notified through their brokerages that they can enroll in a free program to vote their shares in line with management recommendations.

 

Bloomberg

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SEC Chair Paul Atkins has told the Financial Times that the regulator will give businesses notice of technical violations before "bashing down their door," in a shift away from aggressive enforcement actions. "I think a lot of people rightly criticized the SEC," said Atkins. "Especially in more recent years it was not grounded in precedent or predictability. It would shoot first and then ask questions later," Atkins told the newspaper, adding "What I am trying to address is a market perception that there was a lack of due process, a lack of notice, a lack of rule of law." He condemned the billions of dollars in fines that his predecessor, Gary Gensler, slapped on banks and brokers for record-keeping violations.

 

Financial Times

Reuters

The IRS has released final regulations (T.D. 10033) regarding catch-up contributions for 401(k) plans, specifically for workers aged 50 and older. These regulations, part of the SECURE 2.0 Act of 2022, provide essential guidance for plan administrators on the new Roth catch-up rule. Notably, the IRS has made adjustments based on feedback, allowing for wage aggregation from common-law employers to determine Roth catch-up requirements. The regulations also clarify compliance corrections, deemed Roth elections, and provisions for participants in Puerto Rico. The new rules mandate that higher-income participants' catch-up contributions be after-tax Roth contributions, with increased limits for those aged 60 to 63. These regulations will generally take effect for tax years starting after December 31st 2026, although earlier implementation is permitted under good-faith interpretations.

 

CPA Practice Advisor

Journal of Accountancy

The potential shutdown of the federal government in two weeks may depend on Republicans' willingness to extend the premium tax credit, which is set to expire on December 31. This credit is crucial for approximately 300,000 working individuals in Louisiana to afford health insurance. According to KFF, if the credit lapses, around 22m Americans could lose their coverage, with Louisiana alone seeing about 92,000 people unable to afford insurance. Jan Moller, executive director of Invest in Louisiana, emphasized, “We're talking about most of Tiger Stadium on a Saturday night who have insurance now but who would no longer have insurance.” The Congressional Budget Office estimates that extending the tax credit will cost about $383bn over the next decade, complicating negotiations among Republicans as they seek to avoid a government shutdown.

 

CPA Practice Advisor

In the wake of conservative activist Charlie Kirk's fatal shooting, numerous workers have been terminated for their comments regarding his death. Vanessa Matsis-McCready, associate general counsel at Engage PEO, observed: “Most people think they have a right to free speech . . . but that doesn't necessarily apply in the workplace.” The legal landscape varies by state, with many employees lacking protections for speech made outside of work. While some states have laws against punishing workers for political views, exceptions exist for conduct deemed disruptive. Amy Dufrane from the Human Resource Certification Institute observes: “HR has got to really drill down and make sure that they're super clear on their policies.” Employers are increasingly reviewing their policies on political speech to maintain workplace safety and brand reputation.

 

Los Angeles Times

Comcast has filed a lawsuit to block a new Washington law that imposes a sales tax on advertising services, which is set to take effect on October 1st. The company argues that the law violates federal regulations by applying the tax unevenly, stating: “Almost all forms of advertising conducted over the Internet are subject to the tax, while most forms of advertising conducted off the Internet are not.” If successful, Comcast's challenge could cost the state approximately $475m in revenue over the next four years. The law, part of Senate Bill 5814, is expected to generate $1.1bn in the current budget cycle and $2.7bn over four years, primarily by taxing more services, including digital advertising. The Department of Revenue is currently reviewing the lawsuit while preparing to implement the new tax law.

 

The Columbian