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Accountancy Slice
USA
7th November 2025
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THE HOT STORY

IRS clarifies crypto reporting rules

The IRS has released guidance regarding digital asset broker reporting through the new Form 1099-DA, which will be mandatory starting with the 2025 tax year. This requirement, established under the Infrastructure Investment and Jobs Act of 2021, mandates that crypto exchanges report customer gains and losses annually. Tomer Siegal, vice president of product at Ledgible, noted: "Several questions address the treatment in some cases of transfers and transactions based on customer-provided acquisition information." The FAQs clarify various scenarios, including the reporting obligations for digital asset kiosks and custodial brokers. Additionally, the IRS acknowledged an error in the 2025 Form 1099-DA regarding NFT sales reporting. Jessalyn Dean, senior policy advisor at Ledgible, highlighted the confusion caused by the incorrect instructions for reporting NFT proceeds. The guidance aims to streamline compliance for brokers and customers alike.

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TAX

IRS recalls furloughed workers as deadline looms

The IRS has recalled 112 furloughed employees as the tax filing season approaches, according to an updated contingency plan released on October 18th. This brings the total number of exempt workers to 39,982, up from 39,870, out of a total workforce of 74,299. The agency had furloughed nearly half of its staff during the ongoing government shutdown.

Illinois tax code shake-up ahead

Illinois lawmakers are sending a bill to Gov. JB Pritzker that modifies the state's tax code in response to new federal tax provisions, which could lead to a $267m deficit in fiscal year 2026. The bill aims to "decouple" parts of Illinois' corporate tax code from federal policies to mitigate revenue loss. Mr. Pritzker said: “The purpose, ultimately, is to make sure that we can pay the bills in the state of Illinois.” The changes include stopping a federal deduction for manufacturers, potentially saving $144m, and redefining a tax on overseas profits to secure $90m in revenue. However, some business leaders, like Illinois Manufacturers' Association chief executive Mark Denzler, argue these changes could hinder economic growth and competitiveness. Despite concerns, FY26 revenue remains up 2.9% compared to FY25, although corporate income taxes have decreased by 14.1%.

Ohio voters back school funding measures

Earlier this week, Ohio voters approved approximately two-thirds of school district levies, reflecting a 15-point increase from the previous year. Renewal levies, which maintain current tax levels, were particularly successful, while only one-third of new funding requests received approval. "A school board doesn't place a levy on the ballot lightly," stated Tom Hosler, chief executive of the Ohio Association of School Boards, emphasizing the careful consideration behind these decisions. Despite concerns over high property taxes, voters also supported funding for local services, including the Columbus Zoo and mental health initiatives. Notably, Westerville City Schools successfully passed a 0.75% income tax levy, showcasing a shift in funding strategies as districts seek alternatives to property taxes amid rising home values.

Washington state's tax on ads sparks outcry

Washington state's recent expansion of its sales tax to include digital advertising has raised significant concerns among local businesses. Richard D. Pomp, a professor at the University of Connecticut Law School, argues that this move violates fundamental sales tax principles and could lead to cascading taxes on business inputs, saying: "Without that exemption, the tax will cascade through the production and distribution network." The law, which took effect on October 1st, has already faced legal challenges, including a lawsuit from a Comcast Corp. subsidiary claiming it violates the Internet Tax Freedom Act. As Washington attempts to modernize its tax code, experts warn that it risks harming its business environment and could drive companies to states with more favorable tax conditions.

FIRMS

H&R Block reports Q1 loss

H&R Block has reported an adjusted first-quarter loss of $1.20 per share, beating expectations of a $1.40 loss, though wider than the $1.17 loss last year. Revenue rose to $203.6m from $193.8m, exceeding estimates by 2.1%. The company has reaffirmed its 2026 outlook, targeting up to $3.895bn in annual revenue and earnings per share between $4.85 and $5.00.

Jackson Hewitt announces hiring plans

Jackson Hewitt has announced plans to hire 15,000 seasonal employees for the upcoming tax season, for a variety of full- and part-time roles in tax preparation, client support, sales and customer services. "This upcoming tax-filing season will be one of the most significant in recent history due to the major tax law changes that went into effect for 2025, estimated to impact millions of hardworking Americans," commented Gregory Macfarlane, chief executive and president of Jackson Hewitt Tax Services. "[It] is about finding individuals who are eager to learn and want to make a meaningful difference helping those in their communities successfully navigate the filing of their annual tax return."

ECONOMY

Chicago Fed: U.S. unemployment rate hit 4.4% last month

The Federal Reserve Bank of Chicago estimates that the U.S. jobless rate rose to 4.36% in October, its highest level in four years, from 4.35% in September. "The October 2025 reference week (October 12th through October 18th) for the BLS survey used to estimate the unemployment rate overlapped with the federal government shutdown that began in early October," the Chicago Fed said. "This special factor is likely to be only partially reflected in the October 2025 Final release of the Chicago Fed Labor Market Indicators. The Congressional Budget Office expects that as many as 750,000 federal government workers have been furloughed during the government shutdown, representing up to 0.4 percent of the civilian labor force (as of August 2025 data)."

CORPORATE

UBS to liquidate Chicago funds with big exposure to bankrupt First Brands

UBS is liquidating several investment funds due to their over-$500m exposure to First Brands Group, which recently declared bankruptcy.

LEGAL

Tax-exempt entities under criminal scrutiny

Criminal investigations into tax-exempt entities are gaining traction, shifting from traditional civil examinations. President Donald Trump's memorandum directed the IRS to ensure that no tax-exempt organizations are financing political violence or domestic terrorism, leading to potential referrals to the Department of Justice for prosecution. The IRS can initiate criminal investigations through grand juries, which are powerful tools for uncovering tax crimes. High-profile cases have shown that violations can result in severe consequences, including convictions for fraud and tax evasion. With the current administration's focus, tax-exempt organizations must be vigilant to avoid criminal charges that could far exceed the loss of their tax-exempt status.

REGULATORY

Google's $32bn deal for Wiz clears DOJ antitrust review

Wiz chief executive Assaf Rappaport has told the Wall Street Journal that the cybersecurity company has cleared a U.S. Justice Department (DOJ) antitrust review of its acquisition by Google parent Alphabet. The deal, valued at about $32bn, will integrate Wiz into Google's cloud unit, enhancing the company's cybersecurity solutions to help businesses mitigate critical risks.

RISK

Insurers warn climate is the 'risk that amplifies all others'

Insurance leaders say climate risk is pervasive and the one risk which is most likely to worsen every other threat businesses face. Speaking at a panel discussion on emerging corporate risks at the Insurance Innovators Summit in London, Beazley climate risk specialist Nicholas Gough observed that climate change remains the key emerging risk due to its systemic nature. “It affects every sector, every geography, every supply chain,” he said. “And it doesn’t just create new risks; it increases the severity of existing ones.”

SMALL BUSINESS

Small businesses brace for tax shifts

The One Big Beautiful Bill Act introduces significant tax changes for small businesses, with key updates including the immediate expensing of R&D deductions, which allows small businesses to deduct domestic R&D expenses incurred after December 31st 2024. Additionally, the Childcare and FMLA credits have been enhanced, aiding companies in talent retention. The Act also modifies the SALT cap, increasing it from $10,000 to $40,000, and introduces new deductions for qualified overtime and tips. Michael Smith, Director of Tax, Strategic Partnerships & Alliances at ADP, emphasizes the importance of understanding these provisions, observing: "Now is the time to help your clients understand the provisions most relevant to their circumstances." Employers are encouraged to prepare for compliance as federal guidance is anticipated.

HEALTH CARE

Public support remains strong for ACA tax credits

Public backing for extending Affordable Care Act (ACA) tax credits remains robust, with a recent KFF poll indicating that 74% of U.S. adults support the continuation of these subsidies, although this is slightly down from 78% in September. These credits, introduced during the COVID-19 pandemic, have significantly increased health insurance enrollment to 24m since 2021. Without an extension, enrollees could face an average premium hike of 114%. The poll also revealed a decline in Republican support for the credits, dropping to 50% from 59%. Democrats and independents largely favor the extension, 94% and 76% respectively. As the government shutdown continues, Democrats insist that any funding package must include the ACA subsidies.

INTERNATIONAL

Germany announces 18 arrests after probe of online fraud involving payment providers

Eighteen people have been arrested in Germany and a number of other countries in connection with an alleged international online fraud and money laundering network. The network made fraudulent charges for online subscriptions at bogus websites, precipitating more than €300m ($345m) in damages, according to Germany's Federal Criminal Police (BKA) and public prosecutors in the western German city of Koblenz. Some employees at four major German payment providers are accused of collaborating with the network.
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