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Accountancy Slice
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18th November 2025
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THE HOT STORY

TIGTA's 2026 audit roadmap revealed

TIGTA has announced its Fiscal Year 2026 Program Plan, detailing nearly 100 audits and evaluations focused on the IRS. The plan addresses significant challenges, including the impact of workforce reductions from the Trump administration and the elimination of paper checks. "We conduct a strategic planning process that identifies high-risk or emerging issues impacting federal tax administration," TIGTA stated. Upcoming reports will examine the effects of staffing cuts on IRS operations, including overtime and the Criminal Investigation division's resources. Additionally, assessments will be made on the IRS's Drug-Free Workplace Program and the effectiveness of its controls over premium pay during the filing season.

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TAX

Chicago aldermen reject Mayor Johnson's budget plan

In a significant move, Chicago aldermen have voted against Mayor Brandon Johnson's 2026 budget during a committee meeting, marking a historic rebellion against the freshman mayor. The vote, which resulted in a 25-10 rejection of the revenue package, highlights Johnson's struggle to gain support for his controversial head tax aimed at closing a $1.19bn budget gap. Ald. Pat Dowell, the mayor's finance chair, indicated that the meeting was expected to be contentious, stating, “a Monday vote would be premature.” The mayor's proposed head tax, projected to raise $100m, has faced criticism and modifications, including raising the minimum company size subject to the tax. Johnson's administration now faces the challenge of revising the budget to secure the necessary votes by the end of the year, as the council's dynamics shift amid growing dissent.

ECONOMY

Surge in Empire State Manufacturing Index surpasses expectations

The Federal Reserve Bank of New York's Empire State Manufacturing Index has significantly outperformed expectations, rising to 18.7 from a prior reading of 10.7 and well above the 6.1 forecast. A figure above zero indicates improving conditions, and this latest surge suggests New York’s manufacturing sector is gaining momentum. The index, derived from a monthly survey of around 200 manufacturers across the state, is a closely watched economic gauge. The stronger-than-expected result is also seen as supportive for the U.S. dollar, as upbeat manufacturing data typically bolsters sentiment around economic growth and monetary policy prospects.

CORPORATE

Lugano Diamonds files for bankruptcy

Lugano Diamonds & Jewelry has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, seeking a buyer after allegations against its founder, Mordechai “Moti” Ferder, of fraudulent diamond sales. The company aims to sell “substantially all of its assets” while securing $12m in debtor-in-possession financing to maintain operations. Interim chief executive Josh Gaynor expressed gratitude for the support from employees and clients, commenting: “As this process is underway . . . we look forward to continuing to provide our valued clients with unique, timeless pieces.” Lugano's financial troubles stem from lawsuits alleging Ferder misrepresented the company's finances, with liabilities estimated between $500m and $1bn.

LEGAL

IRS faces scrutiny over summons scandal

Julia Jenkins Fancelli has filed allegations against IRS personnel in the US District Court for the Middle District of Florida, claiming that an IRS auditor backdated a summons related to her financial records. The auditor allegedly altered a document that had already been approved by a supervisor, raising concerns about the integrity of IRS practices. Fancelli argues that this backdating renders the summons invalid under United States v. Powell, which requires proper supervisory approval for enforcement actions. The IRS has yet to respond to these claims, but the situation highlights the need for improved training on document integrity and supervisory approvals within the agency. As Fancelli noted, the IRS's failure to comply with sound tax administration practices is evident, suggesting that further reforms are necessary to protect taxpayer rights. The case is Jenkins Fancelli v. United States, M.D. Fla., No. 8:25-cv-02918, petition to quash summons 10/27/25.

PERSONAL FINANCE

Consumers face rising utility costs

An analysis by The Century Foundation reveals that utility bill delinquencies in the U.S. have increased by 9.7% annually, reaching $789. This rise coincides with a 12% increase in monthly energy costs. Julie Margetta Morgan, president of the think tank, noted that consumers typically prioritize utility payments. Nearly 6m households face severe utility debt, risking collection agency involvement. Mike Pierce, executive director of Protect Borrowers, stated: "Voters are frustrated and families are hurting." The Trump administration claims it is not responsible for rising utility prices, attributing them to state regulations.

TECHNOLOGY

Google boss: 'No company immune' if AI bubble bursts

Alphabet chief executive Sundar Pichai has told the BBC that every company would be affected if the artificial intelligence (AI) bubble were to burst. Mr. Pichai said the growth of artificial intelligence investment had been an "extraordinary moment", but there was some "irrationality" in the current AI boom. Asked whether Google would be immune to the impact of the AI bubble bursting, Pichai said the Alphabet-owned tech giant could weather that potential storm, but also warned: "I think no company is going to be immune, including us."  Pichai said Google's unique model of owning its own "full stack" of technologies - from semiconductors to YouTube data, to models and frontier science - meant it was in a better position than others to ride out any AI market turbulence.

CRYPTO

SEC drops emphasis on crypto sector exams for 2026

The SEC has ditched its focus on the oversight of companies offering crypto asset-related services for 2026, according to the regulator's annual statement. The SEC's Division of Examinations said it would focus on fiduciary duty, standards of conduct, and asset custody as well as new requirements for customer data privacy, among other subjects. The annual statement contained no standalone section explicitly focusing on crypto activity and the volatility of digital assets, Reuters notes.

INTERNATIONAL

Grant Thornton mulls future of India unit

Grant Thornton International is exploring strategic options for its Indian subsidiary, Grant Thornton Bharat, including selling a minority stake or merging with the firm’s U.S. or European operations. Vishesh Chandiok, chief executive of Grant Thornton Bharat, said the company may either join Grant Thornton’s global private-equity–backed platform or raise PE funding independently, with interest already shown by firms such as New Mountain Capital and Cinven. Grant Thornton Bharat is seeking a valuation above $2bn for any merger or stake sale and expects to remain the largest shareholder in a merged entity. 

Tax debates heat up in South Africa

The tax deductibility of debt funding and preference shares in South Africa remains a contentious issue, particularly for private capital firms and those involved in mergers and acquisitions. As Benjamin Mbana from Bowmans notes, "While there have been developments, these have not always created the certainty investors and lenders have been hoping for." Recent court rulings, including a January 2025 Tax Court case, have indicated that raising fees related to loan funding may be tax deductible, but this is not yet settled law. Additionally, the South African National Treasury is set to amend interest deductibility rules, limiting deductions to 30% of adjusted taxable income starting January 1st 2027. The proposed changes to hybrid equity instruments have been withdrawn, but concerns remain about future tax implications for preference shares. Overall, while some clarity is anticipated, uncertainty continues to loom over various tax-related funding issues.

AND FINALLY...

Outage at Cloudflare disrupts internet services

Web infrastructure company Cloudflare said it is experiencing problems across its network on Tuesday, curtailing access to some popular websites. In a statement, the firm said it had seen "a spike in unusual traffic to one of Cloudflare's services" this morning, which had caused errors for traffic passing through its network. Impacted companies included social media platform X, ChatGPT, Shopify, Dropbox, Coinbase, and Moody's.
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