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Accountancy Slice
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15th December 2025
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THE HOT STORY

Majority of CEOs to boost AI spending in 2026

According to Teneo's annual survey of over 350 public-company chief executives, 68% plan to increase artificial intelligence (AI) investment in 2026, despite fewer than half reporting returns exceeding costs so far. AI has shown the most value in marketing and customer service, with limited gains in legal, HR, and security. While 53% of institutional investors expect ROI within six months, 84% of large-company CEOs think it will take longer. Notably, 67% of CEOs expect AI to increase entry-level hiring, and 58% foresee growth in senior leadership roles.

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TAX

IRS CI uncovers $10.6bn in financial crimes

The IRS Criminal Investigation (CI) division has reported uncovering $10.59bn in financial crimes during fiscal 2025 - up 16% from the previous year - including $4.5bn in tax fraud, a 112% year-on-year increase. The unit issued 25% more search warrants and referred 14% more cases for prosecution, while launching initiatives such as CI-FIRST and OFRR to enhance collaboration with financial institutions. Despite supporting federal operations elsewhere, IRS-CI pursued 206 abusive tax preparers, securing 83 convictions with an average 27-month sentence.

Corporate tax cuts face backlash

The corporate alternative minimum tax (CAMT) is at risk of being undermined by recent tax cuts, as business interests lobby for unlegislated relief from the Treasury Department. Zorka Milin, policy director at the FACT Coalition, emphasizes that "huge, successful companies shouldn't be able to pay next to no tax year after year." The 2025 budget reconciliation bill introduced new corporate tax breaks, increasing the gap between book income and taxable income, which could lead to more corporations evading the 15% CAMT rate. The potential circumvention of CAMT could be unconstitutional and jeopardize revenue that is crucial for funding essential programs.

Oregon families face tax crisis

Annie Naranjo-Rivera and Jody Wiser, co-chairs of the Oregon Revenue Coalition, highlight the financial struggles facing Oregon families due to federal tax policies. They argue that the Trump Administration's tax cuts, which primarily benefit the wealthiest 10% of Oregonians, will cost the state nearly $900m in revenue for the 2025-2027 biennium. "We can still do what is best for working families across Oregon in 2026," they assert, advocating for the state to disconnect from federal tax code changes. The authors urge the Oregon Legislature to implement fair tax policies that hold corporations accountable and ensure that wealthy individuals contribute their fair share, especially in light of the recent budget surplus being transformed into a deficit due to external pressures.

INDUSTRY

Accountants unite to fight cancer

The American Cancer Society (ACS), founded in 1913, aims to enhance the lives of those affected by cancer. It offers 24/7 support through helplines, Hope Lodge communities, and an online Survivors Network. Peter J. Scalise, national partner-in-charge at Sax LLP, established the Accountants United to End Cancer Council to mobilize the accounting profession in this fight. With around 87,000 accounting firms in the U.S., the council seeks to raise awareness and funds for ACS's mission. The inaugural meeting is set for December 16, 2023, in New York City, focusing on 2026 goals and fundraising events. Scalise encourages accountants to get involved and make tax-deductible donations to support cancer advocacy and research.

ECONOMY

Morgan Stanley says weak U.S. jobs data could boost stocks on rate cut hopes

Morgan Stanley strategist Michael Wilson believes moderate weakness in upcoming U.S. job data could lift equity markets by raising expectations of further Federal Reserve rate cuts. With investors anticipating signs that the Fed may continue easing beyond its recent three cuts, Wilson says markets have returned to a “bad news is good news” mindset. The Fed now forecasts 2.3% U.S. growth in 2026 and lower inflation, while Citigroup also predicts a 12% rise in the S&P 500 by end-2026, driven by supportive monetary policy and strong earnings. 

U.S. wholesale inventories rebound in September

U.S. wholesale inventories grew 0.5% in September, recovering from a 0.1% decline in August, according to the Commerce Department. Economists polled by Reuters had expected a 0.1% rise. Durable goods inventories were up 0.3%, while non-durables grew 0.7%. The inventories/sales ratio for merchant wholesalers crept up to 1.29 in September from 1.28 in August.

CORPORATE

Roomba maker iRobot swept into bankruptcy

Roomba maker iRobot has filed for bankruptcy and will be taken over by Picea, its Chinese supplier, marking the end of a company that popularised the robot vacuum cleaner. The Massachusetts-based firm, founded in 1990, filed for Chapter 11 protection in Delaware bankruptcy court as it grapples with increased competition from lower-priced rivals and new U.S. tariffs. Under the plan, Picea will take 100% of the company's equity and cancel the $190m it is owed by the firm. iRobot said the bankruptcy is not expected to disrupt its app functionality, customer programs, global partners, supply chain relationships or product support.

Michael Johnson’s Grand Slam Track League files for bankruptcy

Grand Slam Track, the professional athletics league founded in 2024 by four-time Olympic champion Michael Johnson, has filed for Chapter 11 bankruptcy in the US, listing assets of no more than $50,000 against liabilities of between $10m and $50m. The league, which had raised $30m from investors including Winners Alliance, struggled with cash-flow problems after its inaugural event in Jamaica, leading to unpaid prize money and the cancellation of its final race in Los Angeles. Johnson said the filing is intended to stabilise finances and implement a more efficient operating model, despite significant challenges faced in the league’s first season.

LEGAL

Eighth Circuit shakes up tax regulations

In a significant victory for taxpayers, the Eighth Circuit reversed the Tax Court's decision in 3M Co. v. Commissioner, which had upheld the Blocked Income Regulation. The ruling reflects a shift in the regulatory landscape following the Supreme Court's Loper Bright decision, which emphasized that courts must independently interpret statutes without deferring to agency interpretations. The Eighth Circuit determined that the IRS could not reallocate income when foreign law prohibits payment, saying: “Statutes trump regulations.” The decision may signal a broader rejection of Treasury's regulatory authority, potentially impacting various pending cases, including those involving the Blocked Income Regulation. The implications of this ruling could reshape the future of tax regulations and agency interpretations.

REGULATORY

Bessent to propose major overhaul of Financial Stability Oversight Council

U.S. Treasury Secretary Scott Bessent is to recommend changing the approach of the Financial Stability Oversight Council. The agency’s focus has been tightening regulations and oversight of the institutions it oversees, but the new plan will push for looser regulation. ″[T]he Council will work with and support member agencies in considering whether aspects of the U.S. financial regulatory framework impose undue burdens and negatively impact economic growth, thereby undermining financial stability,” a letter published Thursday states. Bessent further noted that the impact of additional regulations is assessed “in isolation,” not in how it impacts the economy broadly. “The cumulative burdens of regulatory and supervisor regimes, and the interactions among individual rules, are rarely considered,” he said.

PERSONAL FINANCE

Trump accounts: a new savings strategy

The recently enacted “One Big Beautiful Bill” introduces a program aimed at providing financial support to children as they transition into adulthood. Under this initiative, children born between January 1st 2025, and December 31st 2028, will receive a $1,000 deposit into a “Trump Account.” This account can grow through additional contributions from parents, states, and charities, potentially reaching $18,100 by age 28. Rep. Michael Baumgartner (R-WA) praised the measure, stating: “It's a great measure to open up important new investment accounts.” However, concerns have been raised by Washington State Treasurer Mike Pellicciotti regarding the motivations behind these accounts, which some view as a potential alternative to Social Security.

FAFSA to flag colleges with low graduate earnings

The U.S. Department of Education has added a new “earnings indicator” to the FAFSA process, flagging colleges where graduates earn less than the average high school graduate. The warning, based on data from the College Scorecard, will be shown when students submit their federal financial aid application and applies to entire institutions, not individual programs. About 23% of U.S. colleges fall into this “low earnings” category - mainly for-profit schools, but also including some HBCUs and community colleges. Experts say the move promotes transparency as student debt hits $1.7tn, though concerns remain about its methodology and limited usefulness for program-specific decisions.

TECHNOLOGY

Counting our blessings: church finance simplified

Church finance is evolving as congregations adopt automation to enhance accountability and transparency, according to Christian Greyenbuhl, chief financial officer at Ministry Brands. With many finance teams being small and volunteer-based, maintaining clear internal controls can be challenging. "When guidance isn't built into daily workflows . . . important steps get missed," leading to confusion and mistrust, he writes. By implementing reliable workflows and utilizing AI, churches can ensure accurate fund handling and timely reporting. This not only fosters trust among congregants but also allows pastors to focus on their mission. CPAs can support this transition by creating repeatable workflows that embed good financial practices into daily operations, ultimately enhancing stewardship and community engagement.

INTERNATIONAL

EY investigated by U.K. watchdog over Shell audit

The U.K. accounting regulator has launched an investigation into EY’s audit of Shell’s accounts for last year. The Financial Reporting Council’s decision to open a probe comes after Shell said in a July regulatory filing that it breached U.K. rules on audit partner rotation which require listed companies to change the lead audit partner every five to seven years and impose cooling-off periods before they can return. At the time, the company also said it would amend its 2023 and 2024 annual reports after auditor EY failed to comply with SEC rules on partner rotation, though its financial statements would remain unchanged.

Sen. Warner says Chinese Salt Typhoon hack ‘still inside’ government

Senate Intelligence Committee Vice Chairman Mark Warner (D-VA) has said Chinese intelligence is continuing a massive hack of U.S. telecom networks in a cyber campaign that allows it to access the communications of almost every American. Warner told reporters that he still gets “conflicting” assessments from various intelligence agencies on whether the China-linked hacking group known as Salt Typhoon can still access the data from nine of the largest U.S. telecommunication companies. “I believe they’re still inside. Some parts of our government think we’ve got them out. They have not shown us,” Warner said. “I had conflicting information.”
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