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Accountancy Slice
USA
27th March 2026
 

THE HOT STORY

Listening-driven leadership shapes AICPA Chair’s ‘incredible’ year

AICPA Chair Lexy Kessler has reflected on an “incredible” year in the role, highlighting how a focus on listening to members, students, and stakeholders has shaped key initiatives and reinforced confidence in the profession’s future. Drawing on insights from more than 6,000 contributors to the Rise2040 strategy and earlier work on the National Pipeline Advisory Group, Kessler emphasized that barriers such as education cost and time are being addressed through new CPA pathways, while ongoing change - driven by artificial intelligence and evolving business needs - will create more strategic opportunities rather than diminish the profession. She also stressed the importance of engagement, mentorship, and self-reflection, encouraging both students and professionals to stay connected and proactive as the accounting industry adapts.

TAX

House panel backs bill to make sexual assault settlements tax-free

The House Ways and Means Committee has unanimously advanced the “Survivor Justice Tax Prevention Act,” a bipartisan bill that would exempt settlement payments received by sexual assault survivors from federal income tax. The proposal seeks to close a gap in current law, which allows tax exemptions for physical injury settlements but often requires survivors to demonstrate “visible harm,” a standard lawmakers say is difficult and inappropriate in many sexual assault cases. Under the proposed changes, survivors would no longer need to provide medical records or additional proof of physical injury to qualify for tax-free treatment, reducing the administrative burden and emotional toll associated with interacting with the IRS. Supporters, including bill sponsor Rep. Lloyd Smucker, argue the reform would prevent survivors from having to relive traumatic experiences during tax disputes and ensure more consistent access to financial relief. The legislation will now proceed to the full House for a vote, although a timeline has not yet been set.

Call for payroll tax reform to improve H-1B visa system

Businesses seeking to attract and retain foreign talent are being urged to replace the current upfront H-1B visa fee structure with a payroll tax model, which proponents argue would reduce hiring friction, improve worker mobility, and create a more sustainable system. The existing employer-paid fees act as a “hiring tax” that discourages recruitment and limits worker flexibility, whereas a payroll-based approach - shared between employers and employees - could spread costs over time, simplify administration, and better align with labor market dynamics. Advocates also suggest such a system could fund workforce development and allow greater state-level flexibility, while improving data transparency and policy responsiveness, ultimately helping balance business needs, worker protections, and broader economic objectives.

Iowa leaders signal progress toward property tax reform deal

Iowa Gov. Kim Reynolds has expressed confidence that lawmakers will reach an agreement on property tax reform before the legislative session ends, following “positive and productive” discussions with Republican leaders despite ongoing differences between House and Senate proposals. While both chambers agree on limiting local revenue growth, key disputes remain over measures such as eliminating the rollback system and introducing a 50% homestead exemption, with leaders working to reconcile approaches and deliver taxpayer relief, potentially from fiscal year 2027, as time pressure mounts ahead of the April 21st deadline.

ECONOMY

OECD warns Middle East conflict to drive higher inflation and slow global growth

The OECD has warned that the Middle East conflict is reigniting inflation and weakening global growth, forecasting G20 inflation of 4% in 2026 and U.S. inflation rising to 4.2%, up sharply from prior estimates. While global growth projections remain relatively stable at 2.9% for 2026, the organization cautioned that higher energy prices and supply disruptions could further dampen activity and trigger financial market volatility. Central banks are expected to remain cautious, with the Federal Reserve and Bank of England likely to hold rates through 2026 and the European Central Bank considering a rate hike, as policymakers balance persistent inflation pressures against slowing economic momentum.

U.S. continuing jobless claims fall to nearly two-year low

U.S. jobless claims increased by 5,000 to 210,000 in the seven days to March 21st, the Labor Department reported on Thursday, in line with the expectations of analysts polled by the Wall Street Journal. The four-week moving average of new filings edged down to 210,500, while the total number of claims, reported with a one-week lag, fell by 32,000 to 1.819m, the lowest since May 2024. “The number of unemployed on permanent layoff had kept rising through February in the employment report, but continuing claims are one sign that you could soon see the unemployment rate level off or decline,” commented JPMorgan Chase & Co. economist Abiel Reinhart. “That depends, of course, on the magnitude and duration of the recent energy shock.”

CORPORATE

Mastercard looks to unwind biggest ever acquisition

Mastercard is exploring the sale of its real-time payments unit acquired from Nets in 2019 for $3.2bn, potentially at a significant discount, marking a reversal of its largest-ever acquisition as the business has weighed on growth. The unit generates around $370m in revenue and $100m in EBITDA, and may attract private equity interest, as Mastercard shifts focus to other areas including digital assets following its recent acquisition of stablecoin infrastructure firm BVNK for up to $1.8bn.

AUDIT & REPORTING

IRS audit efforts hampered by resource constraints and inefficiencies

A new TIGTA report found that the IRS is struggling to effectively audit large partnerships due to limited resources, inefficient processes, and declining staffing levels, raising concerns about missed compliance risks and the widening tax gap. The review highlighted issues in two key initiatives, including a “soft letter” campaign sent to 483 partnerships with balance sheet discrepancies, where a significant portion of responses were either rejected or ignored, yet no follow-up audits were conducted due to time constraints and resource shortages. TIGTA noted this created fairness concerns, as some businesses incurred costs responding while others faced no scrutiny. The audit process was also slowed by duplication, with multiple agents reviewing cases sequentially rather than simultaneously. In the Large Partnership Compliance Program, gaps in risk assessment - particularly related to fiscal year timing - meant some partnerships avoided review altogether, while 92% of completed audits resulted in no changes, suggesting inefficiencies in case selection and use of resources.

REMUNERATION

Wall Street bonuses hit record highs but fall short of city expectations

Wall Street bonuses reached a record average of $246,900 for 2025, up 6% year-on-year, driving a total payout of $49.2bn amid strong investment banking and trading activity. Despite the increase, the rise fell short of New York City’s 15% growth expectations, limiting anticipated tax revenues at a time when the city faces a budget shortfall exceeding $5bn. While the payouts are set to boost state and city tax receipts modestly, tensions remain between policymakers and the financial sector over potential tax increases, with bonuses continuing to represent a significant share of overall compensation for securities industry employees.

STRATEGY

U.S. tax changes drive shift toward onshore IP ownership

U.S. multinationals are increasingly considering relocating intellectual property back to the U.S. due to more favorable tax conditions, but the process involves complex legal and operational challenges beyond tax savings. Companies can either transfer existing IP from offshore affiliates or assign ownership of new IP to U.S. entities, both of which require significant restructuring, including updating intercompany and third-party licensing agreements, ensuring enforceability of rights, and revising employment and R&D contracts. Successful IP migration depends on close coordination between tax and legal teams to manage ownership, compliance, and protection risks in a more complex global tax environment.

TECHNOLOGY

Accountants embrace tech transformation

The accounting profession is undergoing a significant transformation due to advancements in technology, particularly automation and artificial intelligence (AI). Accountants are evolving from traditional roles focused on compliance to becoming strategic planners and technology advisors. They play a crucial role in technological planning, bridging gaps between operational needs and IT solutions. Their involvement is essential in selecting software, ensuring compliance, and identifying areas for automation. Additionally, accountants contribute to cloud migration processes and security protocols, ensuring data integrity and regulatory compliance. By collaborating with IT teams, accountants can help deploy effective technologies that enhance operational efficiency and drive growth.

INTERNATIONAL

Transfer pricing adjustments: what you need to know

Recent judgments from the Court of Justice of the European Union (CJEU) have clarified the treatment of transfer pricing adjustments for value-added tax (VAT) and customs purposes. These rulings indicate that such adjustments have broader implications for indirect tax than previously understood. Aiki Kuldkepp, a senior manager at Grant Thornton, emphasizes that "the legal uncertainty of treating inter-company transactions and transfer pricing adjustments has left the issue open to national interpretation." The CJEU's decisions, including those in the Arcomet and Tauritus cases, highlight the need for businesses to assess the VAT consequences of their transfer pricing arrangements and ensure compliance with documentation requirements. Companies are advised to engage with customs authorities proactively to navigate the complexities of VAT and customs valuation related to transfer pricing adjustments.

AND FINALLY...

Trump signature to appear on U.S. dollar bills for first time

The U.S. Treasury has confirmed that President Donald Trump’s signature will be added to U.S. paper currency, marking the first time a sitting president’s signature will appear on dollar bills. The move is tied to the country’s 250th anniversary. The decision forms part of broader efforts by the Trump administration to embed the president’s name and image across government initiatives and commemorative items, including proposed coins and federal branding, though some proposals have raised legal and political concerns.
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