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8th December 2025
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THE HOT STORY

Andersen Group plans $176m IPO with NYSE listing

Andersen Group, the consultancy formed by ex-Arthur Andersen partners, is aiming to raise $176m through an IPO of 11m shares priced between $14 and $16, implying a potential market value of $1.75bn. For the nine months to 30 September 2025, it reported net income of $65.7m on revenue of $668.3m. The firm, employing over 2,200 people, provides tax, valuation and advisory services and is part of the global Andersen network.

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TAX

Alabama legislature flexes its muscles over tax revenues

The Alabama Contract Review Committee has placed holds on three legal contracts for Legislative Services and one from the Pharmacy Board. Senator Greg Albritton, chair of the Alabama Senate's General Fund committee, emphasized the Legislature's authority over state tax revenue, saying: “You don't need to go to the judiciary. You just come here and let's work it out.” The city of Tuscaloosa and Mountain Brook have filed a lawsuit against the Alabama Department of Revenue, claiming the Simplified Sellers Use Tax (SSUT) violates the state constitution. Mayor Walt Maddox of Tuscaloosa noted that the SSUT jeopardizes essential responsibilities, observing: “Seeking a legal remedy is not an action we have taken lightly.” The lawsuit could potentially lead to significant revenue losses for municipalities, with Montgomery County at risk of losing about $40m in tax revenues. The Alabama Legislature's session begins on January 13th 2026.

Hawaii may scale back income tax cuts for high earners

Hawaii Gov. Josh Green has signalled that the state could reduce or delay planned income tax cuts for high-income residents to address a worsening budget deficit, driven by an estimated $3bn loss in federal funds over six years. The 2024 tax law, which promised the largest state tax cuts in history, could cost over $1.1bn annually by 2029. Green said limiting breaks for wealthier taxpayers - those earning over $250,000 - could save up to $1.8bn and help fund essential services including food and housing. Final decisions will be debated with lawmakers when the new budget is released on 22nd December.

INDUSTRY

Manual processes persist in accounts payable ahead of 1099 season

As the 1099 filing season approaches, accounts payable teams face challenges due to rising form volumes, changing IRS requirements, and increased audit scrutiny. According to the 2025 Avalara 1099 Readiness Report, only 24% of businesses have fully automated tax compliance, leaving many reliant on outdated manual processes. Kevin Halverson, general manager of accelerator businesses at Avalara, said: “Manual 1099 reporting is slow, labor-intensive, and increasingly outdated.” The report highlights that U.S. companies spend an average of 40 hours each January on 1099 compliance, with larger organizations often exceeding 100 hours. Despite the challenges, 78% of AP teams plan to invest in compliance technology within the next year, indicating a shift towards modernization in tax compliance practices.

FIRMS

PwC Canada audit failures drop to 43% but remain high, PCAOB says

The PCAOB has found significant deficiencies in 43% of PwC Canada's 2024 audits, down from 63% two years earlier. Of seven audits reviewed, three featured multiple failings involving assumptions, specialist estimates, and internal controls. The report also flagged concerns over auditor independence due to financial relationships between PwC staff and audited companies. PwC Canada said it is taking responsive actions and remains committed to high-quality audits.

PCAOB fines TPS Thayer $100,000 for audit failures

The PCAOB has sanctioned TPS Thayer for audit deficiencies across five engagements involving Huadi International Group and Ostin Technology Group, including failure to supervise an unregistered Chinese firm that played a major role. The U.S.-based auditor has been censured and fined $100,000, with additional remedial conditions imposed.

Stephano Slack expands with two mergers

Stephano Slack, a prominent accounting firm based in Wayne, PA, has successfully completed two merger deals in the past month, acquiring Boyer & Boyer CPA from Wilmington, DE, and Kimmel, Lorah & Associates (KLA) in Audubon, PA. Michael Stephano, founder and managing partner, said: "Expanding our presence in Delaware through this merger is an important step for Stephano Slack." The merger with Boyer & Boyer will enhance resources for clients in various industries, while KLA's legacy will be preserved under a client-first succession plan led by Robert Stevenson. The combined firm will operate under the Stephano Slack name starting January 1, 2026, ensuring continuity and expanded capabilities in specialized services.

ECONOMY

Core US inflation eases to 2.8% in September

US core inflation rose 2.8% in September, slightly below expectations, according to delayed data from the Commerce Department’s Bureau of Economic Analysis. The core personal consumption expenditures (PCE) index rose 0.2% month-on-month, while headline PCE climbed 0.3%, also reaching 2.8% annually. The data, postponed due to a government shutdown, reinforces expectations of a Federal Reserve rate cut announcement on Wednesday, with personal income up 0.4% and consumer spending up 0.3% for the month.

CORPORATE

Trump says Netflix-Warner Bros deal 'could be a problem'

U.S. President Donald Trump has said that he would have a say whether a proposed $82.7bn merger between Netflix and Warner Brothers should proceed. "I'll be involved in that decision," Trump told reporters. Trump did not say whether he favored the deal's approval, but indicated a potential concentration of market power in the entertainment industry. At an event in Washington DC, Trump said Netflix has a "big market share" and the firms' combined size "could be a problem." Bloomberg reports that Netflix co-CEO Ted Sarandos met with Trump at the White House in mid-November to discuss the potential acquisition. Trump reportedly told Sarandos that Warner Bros. should sell to the highest bidder, and Sarandos argued that Netflix's acquisition of the company would not create a monopoly. Paramount, which triggered the auction of Warner Bros., may launch a hostile bid, Bloomberg notes.

AMD says it's licensed to ship AI chips to China and ready to pay 15% U.S. export tax

AMD chief executive Lisa Su has confirmed the company holds licences to export downgraded MI308 AI chips to China and is prepared to pay a 15% U.S. export tax under a deal announced by President Donald Trump. The MI308 complies with U.S. export controls, but faces headwinds from Chinese government policies favouring domestic AI chips for state-backed data centers.

LEGAL

Philadelphia tackles deed fraud refunds

Philadelphia is addressing a significant loophole in its tax code that allows thieves who commit deed fraud to request refunds on realty transfer taxes. City Council Majority Leader Katherine Gilmore Richardson said: “It's a nightmare for victims of deed fraud,” emphasizing the need for financial relief for those affected. Deed fraud, which often targets vulnerable homeowners, has been on the rise, with around 130 reports in 2023. The proposed legislation would enable victims to reclaim taxes paid on fraudulent transactions, potentially easing their financial burdens. James Leonard, commissioner of the Philadelphia Department of Records, noted that the bill “addresses a gap in how we help victims of deed fraud.” The city anticipates a modest fiscal impact, with estimates of 25 to 50 cases annually.

REGULATORY

New U.S. standard could reshape carbon markets

The FASB is finalizing a groundbreaking U.S. standard for environmental credits, including carbon offsets and renewable-energy certificates. Former SEC chief accountant Paul Munter and former SEC climate policy counsel Mika Morse highlight that this standard, effective for public companies starting after December 15th, 2027, will require companies to recognize environmental credits as assets only if they are likely to be used for regulatory obligations or sales. This shift could discourage voluntary credit purchases, impacting liquidity and financing for carbon-reduction projects. Mr. Munter emphasizes: “For companies that have articulated long-term climate commitments, investors have a clear interest in understanding how those commitments will be met.” The new rules may influence how markets develop and how companies approach their climate strategies, with global implications as the International Accounting Standards Board considers similar standards.

U.S. regulators ease leveraged lending rules for banks

U.S. financial regulators have rescinded their decade-old guidance on leveraged lending, deeming it "overly restrictive" and contributing to the shift of lending activity towards non-bank sectors. The decision by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation is expected to foster increased competition between banks and private lenders, potentially reinstating more leveraged lending within the regulated banking system. The previous guidelines, which imposed scrutiny on loans exceeding a 6 times debt-to-EBITDA ratio, hindered banks from employing standard risk management practices, thereby resulting in a loss of market share to non-bank lenders.

OUTLOOK

Consumer sentiment rises for first time in five months

U.S. consumer sentiment has risen for the first time in five months, with the University of Michigan's preliminary December index up to 53.3 from 51, driven by improved personal finance expectations and a moderation in inflation forecasts. One-year inflation expectations fell to 4.1%, the lowest since January, while long-term expectations dipped to 3.2%. Despite the improvement, sentiment remains weighed down by high living costs and job market concerns, as over half of employed Americans fear potential job losses. “Consumers have noted that the soaring inflation they feared in April and May 2025 at the height of tariff developments has not come to fruition at this time,” noted Joanne Hsu, director of the survey. “Still, inflation expectations over both time horizons remain higher than average readings from both 2024 and 2020," she added. 

PERSONAL FINANCE

New CRS report examines contributions to IRAs

The Congessional Research Service (CRS) has prepared a report on tax-advantaged retirement accounts. In 2022, nearly 5m taxpayers contributed to traditional IRAs, averaging $4,510 each. Over half of contributors under 50 and those aged 50 to 72 maximized their contributions, with limits set at $6,000 and $7,000 respectively. For Roth IRAs, over 10m taxpayers contributed an average of $3,482, with about 34.5% of those under 50 and 38% of those 50 and older reaching the maximum contribution. The CRS report highlights that "tax expenditures for retirement plans are one of the largest categories of revenue losses," estimated at $35.1bn for IRAs in fiscal 2025. This underscores the importance of understanding IRA contribution limits and tax benefits for effective retirement planning.
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