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Accountancy Slice
USA
23rd March 2026
 

THE HOT STORY

Insurance CFOs turn to technology and skills upgrades to drive transformation

Chief financial officers in the insurance sector are accelerating finance transformation efforts, focusing on technology adoption and workforce re-skilling to navigate rising competition, economic uncertainty, and regulatory pressures, according to an EY survey. Nearly half of CFOs cited competition as the biggest near-term challenge, while many also pointed to shifting consumer behavior and evolving regulations. The research highlights a balancing act between cutting costs and driving growth, with CFOs prioritizing process efficiency, flexible operating models, talent development, data and technology adoption, and future-ready finance structures. Re-skilling employees emerged as a top priority, particularly as firms integrate AI, with executives emphasizing that people remain critical to differentiation despite increased automation. CFOs are also expanding their roles beyond traditional finance oversight, taking on greater responsibility for strategic decision-making, capital allocation, and business performance.

TAX

Gas prices threaten tax refund boost

President Donald Trump promised significant tax refunds this year to stimulate the economy, but rising gas prices due to the Iran war are likely to negate those benefits. Lower-income households are particularly affected, as they receive smaller refunds while spending a larger portion of their income on essentials like gas. Economists predict that the average household will spend approximately $740 more on gas this year, nearly equal to the anticipated $748 increase in tax refunds, according to the Tax Foundation. Alex Jacquez, chief of policy at Groundwork Collaborative, said: “The energy shock is going to hit those who have the least cushion.” As gas prices remain high, consumer spending on discretionary items may decline, further impacting economic growth.

IRS glitch obscures $51m in political donations ahead of election cycle

A technical glitch at the IRS has prevented the disclosure of roughly $51m in political donations to state-level campaign groups in the second half of 2025, according to the Center for Political Accountability nonprofit. The issue has left required donor and spending details for multiple 527 political organizations blank, raising concerns about transparency as the U.S. approaches a key midterm election cycle. The error affects major groups on both sides of the political spectrum, including organizations tied to gubernatorial and attorney general races. While some groups have found workarounds by publishing disclosures elsewhere, many filings remain incomplete, with repeated notices citing an “IRS technical issue.” Watchdogs say the lack of transparency marks a significant departure from normal reporting practices and could hinder public oversight of political spending. With additional reporting deadlines approaching and no clear timeline for a fix, concerns are growing that the disclosure gap could persist, obscuring major flows of corporate and political funding at a critical time in the election cycle.

IRS on track with tax returns

As of March 13th, the IRS had processed 68.8m tax returns, aligning with previous years' performance. Refunds are notably higher this season, averaging $3,623 compared to $3,271 last year. This increase in refunds is significant for Republicans, who are leveraging the data to influence voter sentiment ahead of the November midterms, emphasizing that "beefier refunds" could sway opinions.

Navigating the FEOC compliance maze

Brian Murphy and Kerry Matthews of EY highlight the challenges posed by Foreign Entity of Concern (FEOC) restrictions on renewable energy tax credits. These regulations aim to prevent tax incentives from benefiting projects with foreign ownership or influence, creating a complex compliance landscape. "Absent clear, verifiable evidence of FEOC compliance, lenders and prospective buyers may simply move to the next project," the report states. Compliance requires a thorough assessment of ownership, financing, and supply chains to ensure no ties to foreign adversaries. Companies must standardize FEOC processes and embed compliance into operations to secure financing and maintain competitive standing. Delaying action could jeopardize credit eligibility, making immediate compliance efforts essential for success in the renewable energy market.

Decoding the jock tax for athletes

The jock tax, often misunderstood, is a complex issue involving multi-state wage sourcing that affects professional athletes. Following the Super Bowl, Seattle Seahawks quarterback Sam Darnold faced a $249,000 tax bill from California, leading to viral claims that he "lost" $71,000 for winning. However, as Jason Hershman explains, the reality is more nuanced. Darnold earned $2.678m from the victory, including a $2.5m incentive, making his net gain substantial despite the tax. The jock tax has roots dating back to the 1960s and varies by state, with California's rate at 13.3%. "The problem is lazy math and lazier headlines," Hershman notes, emphasizing the need for proper financial planning and understanding of duty days to navigate these tax obligations effectively.

 
CFO

Mississippi Senate committee kills NIL bill

The Mississippi Senate finance committee has unanimously rejected the Name, Image and Likeness (NIL) bill, which aimed to exempt college athletes' NIL income from state taxation. Proposed by Republican State Sen. Trey Lamar, the bill faced significant public opposition. Sen. Dean Kirby expressed concerns, saying: “I’ve had several constituents that have called me that are not happy at all about this bill.” The legislation was intended to help Mississippi's major-conference programs, Ole Miss and Mississippi State, remain competitive with states like Florida and Texas that do not impose state income tax. Although the bill passed the House, it ultimately failed in committee.

FIRMS

BDO lawsuit ruling could expand investor claims against auditors

A U.S. court decision in a long-running lawsuit against BDO USA could have far-reaching implications for the accounting industry, potentially making it easier for investors to sue auditors over negligent work. The case stems from the collapse of hedge fund Platinum Partners, where investors accused BDO of failing to detect major asset overvaluations. An arbitration panel awarded more than $9m to investors, a decision later upheld by a New York judge. Crucially, the court found that investors could establish a sufficient relationship with BDO, despite no direct communication - because the firm knew its audit reports would be shared with and relied upon by investors. This interpretation challenges longstanding legal protections that have historically shielded accounting firms from investor lawsuits unless a close contractual relationship existed. The ruling, which is under appeal, could open the door to more claims against auditors, increasing pressure on firms to strengthen audit rigor and independence. 

ECONOMY

Conference Board's Leading Economic Index signals continued U.S. growth slowdown

The U.S. economy is expected to face further slowing growth, according to the Conference Board’s Leading Economic Index, which dipped 0.1% to 97.5 in January following a prior decline. The drop reflects weakening consumer expectations and softer building activity, pointing to ongoing economic headwinds. Although the pace of decline has moderated over the past six months, the outlook remains uncertain, particularly amid geopolitical tensions, including conflict in the Middle East. As a result, the Conference Board has slightly lowered its 2026 U.S. growth forecast to 2.0%. The index, which tracks key forward-looking indicators such as manufacturing orders, housing permits, stock prices, and consumer sentiment, suggests the economy is likely to continue cooling in the near term despite some signs of stabilization.

WORKFORCE

AI threatens finance jobs, survey reveals

According to a recent survey by Randstad USA, finance, accounting, and tax employees are increasingly concerned about job security due to the rise of artificial intelligence (AI). The survey, which included 1,752 workers and 55 employers, revealed that 52% of financial services talent feel their job prospects have worsened in the past year because of AI. Despite these concerns, many employees are not opposed to AI; 70% believe their employers should invest more in AI skills, and 71% feel that AI enhances their productivity. Greg Dyer, chief commercial officer at Randstad North America, stated: "Amidst economic pressure and the growing adoption of AI in the workplace, talent in the U.S. are recalibrating what they expect from work." The report also highlighted a significant decline in entry-level roles, with a 24% drop in job postings for positions requiring less than two years of experience. In contrast, demand for senior professionals has increased by 6%.

Employees try ‘microshifting’ to reclaim their personal lives

So-called "microshifting" is seeking to transform traditional work schedules by enabling employees to manage their time in short, productive bursts. This flexible scheduling method is gaining traction because it prioritizes work-life balance, while experts such as Kevin Rockmann, a professor of management at George Mason University's Costello College of Business, also observe that such autonomy in scheduling can enhance motivation and productivity. However, while microshifting can improve personal relationships, it is feared that it could strain professional ones, because it prioritizes individual needs over team collaboration. Effective teams are committed to working together collaboratively, but "the whole idea of microshifting is taking care of yourself,” Rockmann says. “It's not that taking care of yourself is bad. It places the emphasis on the individual, not the relationships.”

TECHNOLOGY

Trump administration unveils national AI policy framework

The Trump administration has issued a legislative framework for a single national policy on artificial intelligence that aims to create uniform safety and security guardrails around the nascent technology while preempting states from enacting their own AI rules. "We need one national AI framework, not ​a 50-state patchwork,” Michael Kratsios, science and technology adviser to Trump, told The Daily Signal. "And I think one of the ​key provisions of it that will make it all work and come together is really focusing on the bipartisan consensus around protecting America’s ‌children." Daniel Cochrane, a tech policy expert at the Heritage Foundation, said the preemption could stymie states in addressing harms that “would endanger our kids and disable responsible AI governance essential for human flourishing . . . States remain the American people’s first and best line of defense against Big Tech.” 

OpenAI to nearly double workforce to 8,000 by end- of 2026

Artificial intelligence start-up OpenAI plans to nearly ​double its workforce to 8,000 ‌from 4,500 by the end of 2026, the Financial Times has reported, ​citing two people with knowledge of ​the matter. The maker of ChatGPT is ​also increasing recruitment of specialists focused on "technical ambassadorship," ‌to help businesses make better use of its tools, the report added. The hiring plans come amid a race with competitors including Anthropic and Microsoft to woo corporate customers using AI as coding assistants.

INTERNATIONAL

World’s energy watchdog urges people to work from home

The International Energy Agency (IEA) is encouraging workers to work from home to combat soaring oil prices and impending fuel shortages caused by the conflict in the Middle East. The world's energy watchdog has made 10 recommendations to help households and businesses prepare for protracted disruption to energy markets, including reducing highway speed limits by at least 10 kilometres per hour, and avoiding ​air travel if other means of transport are available. "Today's report provides a menu of immediate and concrete measures that can be taken ​on the demand side by governments, businesses and ​households ⁠to shelter consumers from the impacts of this crisis,"  said IEA executive director Fatih Birol.

China touts itself as safe, reliable and stable

Chinese Premier Li Qiang has pledged to further open ​the country's economy to foreign businesses and pursue more balanced trade with its global partners. Li told the China Development Forum in Beijing that China will import more high-quality foreign goods and work with all parties to promote optimised and balanced trade development. He also touted China as a safer, and more reliable and stable, partner in contrast to an America embroiled in a war with Iran. Li didn’t directly name the US. Global chief executives including Apple’s Tim Cook, UBS’s Sergio Ermotti and HSBC’s Georges Elhedery attended the annual two-day gathering.

AND FINALLY...

Generational divide emerges as some Americans question billionaire wealth

A growing minority of Americans believe it is morally wrong to be a billionaire, with younger generations, particularly Gen Z, far more likely to hold that view, according to a Pew Research survey. While 18% see extreme wealth as unethical, most Americans either view it as morally neutral or acceptable. The generational gap is stark: roughly one-third of Gen Z respondents consider billionaire wealth morally wrong, compared with far lower shares among older groups. Despite this divide, concern over wealth inequality is widespread, with large majorities saying the wealth gap is a serious problem and supporting higher taxes on the ultra-wealthy. Data shows the concentration of wealth in the U.S. has grown significantly, with the richest households holding an increasingly large share of total assets. The findings highlight rising unease, especially among younger Americans, about extreme wealth and its broader social impact, even as opinions remain mixed on its moral implications.
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