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Accountancy Slice
USA
24th October 2025
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THE HOT STORY

Lawmakers push back against 'politicization' of IRS

On October 22, 2025, a group of U.S. Senators, including Ron Wyden (D-OR) and Elizabeth Warren (D-MA), expressed serious concerns regarding reported plans to "politicize" the IRS. They highlighted that federal law prohibits political interference in tax investigations, adding: "IRS-CI cannot be the President's political attack dog." Reports suggest that the IRS is restructuring its criminal-investigative division to target left-leaning individuals and organizations, with a list of potential targets already drawn up. The senators demanded information on these changes by November 4th 2025, emphasizing the need for transparency and adherence to legal standards. They warned that any attempt to weaponize the IRS against political opponents undermines democratic integrity and could lead to severe legal consequences for those involved.

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TAX

New IRS rules for online sales reporting

The Republican tax-and-spending law has reverted the online sales reporting threshold for Form 1099-K back to $20,000 and 200 transactions per year, effective retroactively for the 2022 tax year. The IRS issued Fact Sheet 2025-08 on October 23rd, detailing these changes. Previously, the American Rescue Plan Act of 2021 had lowered the threshold to $600, but this was delayed. The IRS plans to phase in the new reporting thresholds, starting with amounts over $5,000 in 2024, $2,500 in 2025, and $600 in 2026 and beyond. The IRS emphasizes that "third party information reporting... has been shown to increase voluntary tax compliance." Taxpayers should be aware that they will receive a Form 1099-K if they exceed the reporting threshold, which is crucial for determining tax obligations.

Connecticut GOP proposes tax credit boost

Connecticut House Republicans have proposed a significant expansion of the state's property tax credit, raising the maximum credit from $300 to $1,000 and increasing eligibility thresholds for over 800,000 residents. House Republican Leader Vincent Candelora stated: “Property taxes driven by revaluation are crushing Connecticut's middle class,” emphasizing the need for relief. The plan aims to utilize $501m from the state's $1.9bn in volatile revenue, contrasting sharply with Gov. Neil Lamont's $50 increase proposal. Local officials, including Bristol Mayor Jeff Caggiano, expressed support, highlighting the financial strain on residents due to rising property values. The proposal seeks to provide substantial relief to middle-class families facing increasing tax burdens.

INDUSTRY

FASB reviews decade of lease standards

Nearly ten years after the introduction of its lease accounting standards, the FASB is concluding a formal review of the lessons learned. The review revealed that the costs of compliance were “significantly higher” than anticipated, with an average implementation cost of about $450,000 per company. Board member Christine Botosan emphasized the importance of considering ongoing costs, stating: “Implementation cost is a one-time thing, ongoing costs are forever.” Despite the challenges, Board Member Joyce Joseph noted benefits for investors, including improved comparability and transparency. The review also highlighted how the new rules have influenced business decisions, leading companies to adjust lease terms and payment structures. The FASB aims to apply these insights to future standards and transition processes.

ACCA and AACSB unite for education reform

The Association of Chartered Certified Accountants (ACCA) and the Association to Advance Collegiate Schools of Business (AACSB) have formed a strategic partnership to enhance business and accounting education. The three-year memorandum of understanding aims to explore common interests, including the future of work, graduate employability, and social impact. ACCA chief executive Helen Brand emphasized the importance of collaboration, stating: “Accountancy is changing: accountants are driving sustainability... and enabling innovative technologies.” Lily Bi, president and CEO of AACSB, noted the profound transformation in business education and the need to equip learners for a rapidly evolving profession. Jillian Couse, head of ACCA North America, also expressed enthusiasm for the impactful collaboration ahead.

FIRMS

Capstone expands with Nissen & Meyer acquisition

Capstone Accounting and Tax, based in Bend, Oregon, has enhanced its presence in central Oregon by acquiring the Redmond-based CPA firm Nissen & Meyer. Financial details of the acquisition have not been disclosed. Capstone, formerly known as Capstone CPAs, received outside investment from Seaside Equity Partners last April to support its growth and service expansion. Founded in 2004, it offers comprehensive accounting, tax, and advisory services.

ECONOMY

Economists report rise in new jobless claims

The number of Americans filing new applications for jobless benefits increased last week, according to economist estimates made in the absence of Labor Department data. In the seven days to October 18th, initial claims for state unemployment benefits rose to a seasonally adjusted 232,000, from 220,000 the prior week, economists at Citigroup and Nationwide calculated. Goldman Sachs estimated claims at 227,000 while JPMorgan put the number at 229,000. States continue to collect the claims figures, submitting them to the Labor Department despite a shutdown of the U.S. government that has caused an economic data blackout. Economists have taken the unadjusted data to make estimates using seasonal adjustment factors the government published earlier this year, providing some view of the labor market.

Home sales rise as mortgage rates decline

In September, U.S. home sales saw a 1.5% increase from August, reaching an annual rate of 4.06m units, according to the National Association of Realtors, marking the fastest sales pace since February and a 4.1% rise compared to the previous year. Home sales jumped 4.1% on a year-over-year basis. The national median sales price also rose by 2.1% to $415,200, continuing a 27-month streak of annual price increases. The housing market has struggled since 2022 due to rising mortgage rates, which began to decline in July. The average rate for a 30-year mortgage fell to as low as 6.27% last week, encouraging buyers. Sales increased in the Northeast, South and West regions, but declined in the Midwest. Home sales jumped 4.1% on a year-over-year basis. The inventory of existing homes rose 14% to 1.55m, representing a 4.6 month supply at the current sales pace. 

REGULATORY

Shutdown stalls IPOS as SEC freezes

As the government shutdown extends into its fourth week, the SEC has halted the approval of IPOs, causing significant delays for companies eager to go public. Unilever recently postponed the spinoff of its Magnum Ice Cream Co. unit due to this freeze. The IPO market had previously seen a surge, raising over $30bn in September alone. Stacie Aarestad, a partner at Foley Hoag, remarked: “It’s difficult for the company and underwriters to get comfortable with the disclosure because you haven’t had that process come to a conclusion.” The SEC has introduced new guidance allowing companies to file with limited pricing information, but uncertainty looms as the shutdown continues, potentially impacting Chairman Paul Atkins' goal to “make IPOs great again.”

STRATEGY

IRS shutdown: tax strategies for business owners

The IRS shutdown poses significant challenges for U.S. business owners, coinciding with the new Republican tax package that offers various benefits. With nearly half of the IRS's workforce furloughed, processing delays are rampant, affecting tax planning and cash flow. Business owners must adapt to this unpredictability, as "refunds delayed by months can disrupt cash flow," particularly for small and mid-sized businesses. However, this period can also be seen as an opportunity for proactive tax strategy development. Entrepreneurs are encouraged to strengthen their financial defenses and prepare for the IRS's eventual return to normal operations. Michael Moffa, founder of Prosperity Tax Advisors, emphasizes that those who plan ahead will maintain control over their financial situations despite bureaucratic disruptions.

INTERNATIONAL

Trump ends trade talks with Canada

President Donald Trump has abruptly ended U.S.-Canada trade negotiations, citing a Canadian ad using Ronald Reagan’s voice to criticize tariffs. Trump labeled the ad “FAKE” and claimed it interferes with ongoing court decisions on tariffs. Sponsored by Ontario’s government, the $53m campaign uses Mr. Reagan’s 1987 radio address to highlight the harms of protectionism. The Reagan Foundation said it wasn’t asked for permission and is reviewing legal options. The announcement intensifies an already tense trade relationship, which includes Mr. Trump’s 50% tariffs on Canadian steel and aluminum and pending reviews of the U.S.-Mexico-Canada Agreement.

Tax reform sparks heated debates in Brazil

Gabriel Caldiron Rezende from Machado Associados highlights the complexities surrounding Brazil's tax reform transition, particularly the calculation of old taxes alongside the new system. The reform aims to simplify the indirect tax structure by introducing the Contribution on Goods and Services (CBS) and the Tax on Goods and Services (IBS). However, disputes over the taxable base persist, especially regarding the inclusion of taxes like ICMS in the taxable amount. Mr. Rezende noted: "The non-inclusion of CBS and IBS in the taxable base of the current taxes is a necessary measure to ensure tax neutrality." The reform is set to gradually implement until 2033, with ongoing debates about maintaining tax revenue during this transition.
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