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Efforts to extend enhanced Affordable Care Act (ACA) subsidies failed in the U.S. Senate on Thursday, as both a Democratic proposal for a three-year extension and a rival Republican plan offering healthcare savings accounts fell short of the 60 votes needed to advance. The collapse of both bills leaves around 24m ACA enrollees facing sharply higher costs in 2026, with subsidies set to expire at year-end. Despite bipartisan support from a handful of senators, deep divisions remain over how to structure any extension, particularly around abortion-related provisions. With no clear path forward before open enrollment closes, the issue may now hinge on broader budget negotiations in January.

 

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Melanie Lauridsen, AICPA's vice president of Tax Policy & Advocacy, recently discussed the implications of a recent government shutdown on IRS services during the JofA podcast. She emphasized that "there are no winners in a shutdown," highlighting the negative impact on taxpayers and IRS operations. With the IRS only funded through January 30th, concerns about timely guidance and taxpayer service during the upcoming filing season are significant. Ms. Lauridsen noted that the IRS is working on guidance related to new tax provisions in H.R. 1, also known as the One Big Beautiful Bill Act, despite the challenges posed by the shutdown. AICPA is focused on ensuring that taxpayers receive the necessary information and support as they navigate these changes, particularly with the implementation of new tax laws in 2026.

 

Journal of Accountancy

The House Ways and Means Committee has passed three bills aimed at enhancing taxpayer rights. The Taxpayer Due Process Enhancement Act (H.R. 6506), introduced by Rep. Nathaniel Moran (R-TX) and Rep. Terri Sewell (D-AL), seeks to suspend the period for filing claims during collection due process proceedings, allowing taxpayers more time to receive refunds. It also prevents the IRS from applying overpayments to disputed taxes. The Taxpayer Notification and Privacy Act (H.R. 6495) mandates the IRS to inform taxpayers about the information it seeks from third parties, giving them 45 days to respond. Lastly, the Innovate Less Lethal to De-Escalate Tax Modernization Act (H.R. 4242) aims to exempt less-than-lethal devices from excise taxes. House Ways and Means Committee chairman Jason Smith (R-MO) said: "Our next two bills continue our campaign to strengthen taxpayer rights." The bills passed with unanimous support, except for the last, which had a divided vote of 26 to 15.

 

Accounting Today

Rich Petillo has joined Centri as a partner and leader of the tax advisory practice. He brings expertise in complex tax provision matters, including annual and quarterly income tax accounting, valuation allowance assessments, and global effective tax rate management. Mr. Petillo was previously a tax principal at BDO.

 

Bloomberg Tax

Patrick Accounting and Tax Services PLLC has acquired Knight Home Care Financial PC, an accounting firm based in Austin, Texas, known for its expertise in home care accounting. This acquisition, effective January 1, 2026, aims to enhance Patrick Accounting's mission of simplifying financial complexities for businesses. Matthew Patrick, president and founder of Patrick Accounting, said: “This partnership is a natural fit.”

 

CPA Practice Advisor

The U.S. trade deficit narrowed by nearly 11% to $52.8bn in September, the smallest gap since mid-2020 and well below economist expectations of $63.1bn, driven by a sharp rise in exports of non-monetary gold and pharmaceuticals. Exports rose 3% $289.3bn, while imports increased 0.6% to $342.1bn, according to Commerce Department data published on Thursday. The inflation-adjusted goods trade deficit fell to $79bn, the lowest in almost five years, with real exports of consumer goods hitting a record high. The U.S. posted its largest-ever trade surplus with Switzerland amid shifting gold flows influenced by tariff policy, while deficits with Mexico and Canada widened and the China gap narrowed to near its lowest since 2009.

 

Bloomberg

Nasdaq

Reuters

Wall Street Journal

Initial claims for unemployment benefits rose 44,000 in the seven days to December 6th to 236,000, the Labor Department reported on Thursday - the biggest claim since March 2020, and well ahead of the 220,000 expected among economists polled by Reuters. The four-week moving average of claims rose 2,000 to 216,750, while the total number of applicants for benefits, reported with a one-week lag, fell by 99,000 to 1.84m. Market watchers noted that weekly claims are typically variable around the end of the year. “Don’t read too much into the jump in jobless claims,” commented Heather Long, chief economist at Navy Federal Credit Union. “Smoothing it out, this still looks like an economy averaging 215,000 to 220,000 new jobless claims a week. That’s not a cause for concern.”

 

ABC News

Bloomberg

Reuters

Wall Street Journal

Chief financial officers remain broadly optimistic about the U.S. economic outlook but are unconvinced that President Donald Trump’s decision to replace Federal Reserve chair Jerome Powell will enhance the central bank’s effectiveness, according to CNBC’s Q4 2025 CFO Council Survey. The majority of CFOs expect economic stability in 2026, with 73% describing their outlook as optimistic and most predicting no recession or bear market. However, 77% said it is “doubtful” that Mr. Trump’s Fed nominee - widely expected to be National Economic Council Director Kevin Hassett - would make the institution more effective than under Mr. Powell’s leadership. CFOs anticipate only one or two rate cuts in the first half of next year and expect inflation to remain above the Fed’s 2% target into 2027. Despite a 16% rise in the S&P 500 this year and the extension of corporate tax cuts, 72% of CFOs rated Mr. Trump’s first year of his second term as either “fair” or “poor.” His trade and immigration policies were particular points of criticism, with many saying they are not conducive to business success. By contrast, Treasury Secretary Scott Bessent received a stronger reception, with 62% of CFOs rating his performance as “good” or “excellent.” 

 

CNBC

President Donald Trump has signed an executive order to “increase oversight” of proxy advisers that guide shareholder votes made by pension funds and some other money managers, saying top firms often "advance and prioritize radical politically-motivated agendas." Trump directed the SEC, the Federal Trade Commission and the Labor Department to review if Institutional Shareholder Services and Glass Lewis had violated rules or antitrust law related to their treatment of environmental and social issues. The executive order calls for a review of regulation relating to proxy advisers and to consider “revising or rescinding those rules, regulations, guidance, bulletins, and memoranda that are inconsistent with the purpose of this order, especially to the extent that they implicate ‘diversity, equity, and inclusion’ and ‘environmental, social, and governance’ policies.” The order also directs the agencies to consider steps such as new regulations.

 

Bloomberg

Financial Times

Reuters

Reuters reports that U.S. banks including JPMorgan Chase and Wells Fargo say artificial intelligence will likely cause job losses at their companies while boosting productivity. Wells Fargo chief executive Charlie Scharf said the lender has not reduced the number of staff, but observed "we're getting a lot more done" because of AI. "There are other places out there where we're gonna be able to look at and figure out, how are we able to do more with less people," he said. "It's not going to totally replace humans, but does create an opportunity to do things significantly different."

 

Reuters

Amazon has reached a settlement with Italy's tax authorities, agreeing to pay a total of €723m, as reported by newswire Ansa. The deal includes a €511m payment made on Wednesday, with an additional €212m paid by Amazon's logistics and transportation units in recent days. This settlement follows investigations by Milan prosecutors and Italy's tax police, highlighting the scrutiny international companies face regarding their tax payments in the country. The agreement may set compliance expectations for other large technology firms operating in Italy.

 

Bloomberg Tax

American Express has reported a 9% year-on-year rise in U.S. retail consumer spending during the week of Thanksgiving through Cyber Monday, with a 13% boost among Platinum cardholders, according to chief executive Stephen Squeri. Speaking at the Goldman Sachs U.S. Financial Services Conference in New York, he added that the group "saw 9% growth in U.S. consumer retail spending, and 13% growth in Platinum retail U.S. consumer platinum spending". The growth exceeded broader market trends and eased concerns over a potentially soft holiday season.

 

Reuters