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Accountancy Slice
USA
13th April 2026
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THE HOT STORY

IRS pullback changes tax behavior

The Wall Street Journal reports that the Trump administration’s cuts to IRS staffing and enforcement are weakening audits, collections, and deterrence, while encouraging riskier taxpayer behavior. Enforcement staff are projected to fall below 30,000, audits of people earning at least $10m are dropping sharply, and lawyers say some taxpayers now assume they can evade scrutiny. Carolyn Schenck, former IRS national fraud counsel, said: “The IRS isn’t going to catch me” is becoming a broader mindset. Officials argue AI and digital tools can offset losses, but critics warn of lower revenue, weaker oversight of complex taxpayers, leadership instability, and lasting institutional damage that could take years to reverse.

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TAX

Senate Dems blamed for planned 2028 end of senior tax relief

U.S. Rep. Derrick Van Orden (R-WI) has emphasized the importance of Social Security tax reductions for seniors in President Donald Trump's One Big Beautiful Bill Act, stating that these benefits would have lasted beyond 2028 without Senate Democrats' intervention. During a meeting with seniors, he expressed concern over their financial worries, saying: “These folks built our nation, and I don't want our seniors wringing their hands at night.” The law ensures that 88% of seniors will pay no tax on their Social Security income through 2028. However, some seniors voiced concerns about the bill's limited duration. Van Orden criticized Senate Democrats for their role in the bill's temporary nature, claiming: “The reason that this is expiring in 2028 is because we had to get the Democrats to vote for a tax break.” Meanwhile, U.S. Sen. Tammy Baldwin's office pointed out that Senate Republicans passed the bill through reconciliation to bypass the filibuster.

NAM backs removal of basis-shifting rule

The National Association of Manufacturers (NAM) supports removing regulations that classify certain partnership related-party basis adjustment transactions as transactions of interest. This change is expected to reduce compliance costs associated with reporting 10,000 basis adjustments. The NAM raised concerns about the compliance burden of the previous regulations. The removal aligns with pro-growth tax policies and deregulatory efforts under Executive Order 14219. The NAM said it looks forward to collaborating with the Department of the Treasury to maintain favorable tax policies for U.S. manufacturing. 

IRS clarifies tip deduction rules

The Treasury Department and IRS have finalized rules for the “No Tax on Tips” provision under the One, Big, Beautiful Bill, defining eligible occupations and what counts as “qualified tips.” The final list covers more than 70 tip-based roles, grouped under Treasury Tipped Occupation Codes. Gig workers and self-employed individuals may also qualify if their job appears on the list and other conditions are met. IRS CEO Frank J. Bisignano said the rules “help implement an important tax benefit for American workers.”

IRS proposes excise tax on remittances

The IRS has proposed new regulations for a 1% excise tax on remittance transfers from the U.S. to foreign countries, set to take effect for transactions initiated after January 1, 2025. This tax could impact U.S. citizens, green card holders, visa holders, and non-resident aliens sending money abroad. The White House Office of Information and Regulatory Affairs is actively involved in the rule-making process, indicating heightened regulatory scrutiny on international money transfers. 

LEGAL

Medicaid work rules unsettle states

States and Medicaid insurers are preparing for new work or volunteer requirements that begin January 1, but key federal guidance is still pending and the $200m implementation fund is widely seen as insufficient. Experts cited uncertainty around exemptions, volunteer verification, and reporting systems, with some states expecting technology costs to exceed federal support. Matt Salo, CEO of Salo Health Strategies and former head of the National Association of Medicaid Directors, said the rollout will resemble “a soft opening of a restaurant,” suggesting a staggered and uneven start rather than immediate coverage losses.

President Trump still seeking to expunge his civil record in New York

President Donald Trump wants the New York Court of Appeals to vacate a judge’s finding that he was liable for inflating the value of his real estate assets, saying that his former lawyer Michael Cohen has since cast doubt on his own testimony against the president. The appeal was precipitated by a Substack post by Cohen, who testified in the civil fraud case. In the post published at the beginning of the year, Cohen said he had felt “compelled and coerced” to testify at the behest of New York Attorney General Letitia James.

White House warned staff not to place market bets amid Iran war

The ⁠White House ⁠warned U.S. government ​staff against improperly ‌leveraging their positions ‌to ⁠place ⁠bets in futures markets in an email ​on March 23. The announcement was made hours ​after ⁠U.S. President Donald Trump wrote on ⁠Truth Social he would order the military ⁠to postpone any strikes against Iranian power plants and energy infrastructure. The White House confirmed the authenticity of ⁠the warning reported by the Wall Street Journal. Trump spokesman Davis Ingle said that “the only special interest that will ever guide President Trump is the best interest of the American people.”

REGULATORY

Kraken’s Fed account raises concerns over crypto risks to financial system

Kraken’s newly approved Federal Reserve master account has sparked concern among regulators and banks over potential risks to financial stability, transparency, and oversight as crypto firms gain closer access to core payment infrastructure. The account, granted by the Kansas City Fed with restrictions such as limited balances and no access to interest or emergency lending, allows Kraken to process payments directly through Fedwire, bypassing traditional banks, but critics warn this could introduce operational vulnerabilities, money-laundering risks, and reduce deposits in the banking system. Lawmakers have questioned the opaque approval process and are seeking further details, while experts caution that extending Fed access to lightly regulated crypto firms, despite safeguards, may expose the financial system to new and largely untested risks.

ECONOMY

U.S. inflation jumped to 3.3% in March as energy prices surge

U.S. inflation accelerated sharply to 3.3% in March, marking its highest level in two years, driven primarily by a surge in energy costs following the Iran war. Energy prices rose 12.5% year-over-year, with gasoline up 18.9% and fuel oil soaring 44.2%, pushing up transportation costs and contributing to broader price pressures, while core inflation, excluding food and energy, increased a more moderate 2.6%. Despite some easing in areas such as used-car prices and grocery inflation, rising costs in categories like apparel and airline fares, alongside falling real wages, highlight growing pressure on household finances, while economists warn that higher energy and input costs may continue to feed through into the wider economy in the coming months. The data presents a challenge for the Federal Reserve, as persistent inflation combined with a slowing labor market complicates decisions on interest rates, particularly amid concerns that businesses may continue passing higher costs on to consumers. 

Factory orders hold steady, beating expectations of decline

U.S. factory orders remained flat at 0.0% in February, outperforming expectations for a 0.3% decline and signaling resilience in the manufacturing sector despite ongoing economic pressures. The unchanged reading, matching the previous month, suggests stable demand across both durable and non-durable goods, even as factors such as supply chain disruptions and global uncertainty continue to weigh on the industry. While the data points to a more stable outlook than anticipated, analysts view it as a neutral signal for the broader economy, with attention now turning to upcoming indicators to assess whether manufacturing strength can be sustained.

Trump blockade vow lifts oil

President Trump's vow to impose a naval blockade on Iran and the Strait of Hormuz sent oil sharply higher, with Brent and WTI both jumping more than 7% as markets reopened. For CEOs and boards, the significance is immediate: the threat revives a major geopolitical choke point for global energy flows, raises the risk of renewed inflation, and could quickly feed through to transport, manufacturing and consumer costs. Analysts warn shipping volumes through the strait could remain far below prewar levels, while U.S. gasoline prices were already elevated. The move also increases pressure on China and other major buyers of Iranian crude, potentially widening the conflict's economic reach. The story matters well beyond energy, with implications for supply chains, margins, central banks and corporate planning across sectors.

CORPORATE

IBM to pay $17m in DEI settlement

IBM has agreed to pay roughly $17m to resolve allegations of illegal diversity, equity and inclusion (DEI) practices. The DOJ had said the company “knowingly” made “false claims” about its hiring and employment practices in its federal contracts. IBM allegedly identified “diverse” candidates for hiring or promotions, while developing race and sex demographic goals. “IBM is pleased to have resolved this matter,” an IBM spokesperson told CNN. “Our workforce strategy is driven by a single principle: having the right people with the right skills that our clients depend on.”

INTERNATIONAL

Argentina football chief placed under formal investigation over tax evasion

Claudio Tapia, the president of Argentina’s football federation, along with other members of the federation, has been placed under formal investigation for tax evasion. Argentina’s tax authorities accuse the AFA and its leaders of failing to pay taxes and social security contributions. The total loss has been estimated at 19bn pesos (€11.8m).
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