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Accountancy Slice
USA
15th June 2026
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THE HOT STORY

Trump threatens 100% tariff on French wine over digital tax dispute

President Donald Trump has threatened to impose a 100% tariff on French wine and champagne unless France removes its 3% digital services tax on major American technology companies. Speaking ahead of the G7 summit in France, Trump said he had warned French President Emmanuel Macron that the U.S. would have “no choice” but to levy the tariffs if France continues to tax U.S. tech giants. Trump argued that eliminating the digital tax would remove the need for retaliatory trade measures. The threat escalates a long-running dispute over France’s digital services levy, which applies to companies generating more than €25m ($29m) of revenue in France and €750m globally. The tax has been in place since 2019 and primarily affects large U.S. technology firms. French wine and spirits exporters criticized the proposal, warning that the industry could become collateral damage in a broader trade conflict. Industry groups urged both governments to seek a balanced resolution, noting that French alcohol exports are heavily dependent on the U.S. market. The latest warning comes despite recent efforts to ease transatlantic trade tensions. Wines and spirits imported from the European Union currently face a 15% U.S. tariff, and French officials have been lobbying for those duties to be reduced or eliminated.

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TAX

IRS notice sparks taxpayer confusion

AICPA has called for the IRS to provide clearer guidance on CP53E notices, which were sent to 3m taxpayers requesting bank account information. The notices have caused significant confusion, especially for those not due a refund. "In the middle of the filing season, taxpayers and practitioners were spending significant time, expense, and effort to determine the cause of these notices," AICPA stated. The IRS created the CP53E notice to facilitate the transition to electronic payments but failed to clarify its issuance criteria. The AICPA recommends that the IRS define the circumstances under which these notices are sent and allow taxpayers to self-identify as excepted taxpayers to prevent unnecessary notices.

NBA Finals betting boom creates new tax pitfalls for gamblers

The growing popularity of sports betting, fueled by major events such as the NBA Finals, is creating increasingly complex tax challenges for both recreational and professional gamblers, prompting tax advisers to warn clients about stricter reporting requirements and new limits on deductions.  Tax professionals are encouraging bettors to maintain detailed records, including app-generated reports and personal logs, to support tax filings. A key concern is that gambling winnings remain fully taxable, whether or not they are reported by betting platforms. At the same time, changes introduced under last year's federal tax law, effective for the 2026 tax year, limit the deductibility of gambling losses. Taxpayers can now deduct only 90% of their losses, and those deductions still cannot exceed total gambling winnings. The same limitation applies to professional gamblers' business expenses, including travel and tournament entry fees. Another unresolved issue is how to define a gambling "session" for tax purposes. The IRS and Tax Court have generally treated gambling activity as a session rather than individual wagers, but there is little guidance on how that applies to modern online betting. The definition can materially affect taxable income because losses within a winning session may offset gains before the 90% limitation is applied.

Des Moines weighs ending tax abatement program amid property tax reform

Des Moines officials are considering scaling back or eliminating the city’s long-standing tax abatement program after new Iowa property tax legislation threatened to reduce future revenue growth. City staff said ending the incentive program may be the only fiscally responsible option as the city faces an estimated $12m budget shortfall in fiscal 2028 and an additional $5m gap the following year. The tax abatement program, which has been in place since 1979, temporarily reduces property taxes on new construction and building improvements to encourage development and neighborhood revitalization. However, Iowa’s new law imposes a 2% cap on local government revenue growth, limiting the city’s ability to benefit from future property value increases tied to projects receiving abatements. City officials estimate Des Moines currently has $1.3bn in taxable value under abatement and has averaged 4% annual growth in taxable property values over the past decade. Development Services Director Cody Christensen warned that continuing the program could further strain city finances because new growth associated with abated properties would not fully offset revenue constraints under the new law.

New Jersey proposes tax on detention centers

New Jersey is advancing a bill, A4077, that would impose new taxes on immigration detention centers, including a $15 daily fee per detainee and a percentage-based tax on government contracts. The bill aims to ensure that taxpayers are not burdened by the costs associated with corporate incarceration. However, the U.S. Department of Homeland Security criticized the measure, asserting that "no tax will stop ICE from deporting criminal illegal aliens." The legislation follows a failed attempt in 2021 to end immigrant detention in New Jersey, which was struck down by a federal appeals court.

ECONOMY

World Cup to deliver major short-term economic boost

The 2026 FIFA World Cup is expected to deliver a significant short-term economic boost, with FIFA and the World Trade Organization projecting a $17.2bn increase in U.S. GDP and a $40.9bn gain globally. The five-week tournament, spanning three countries and 16 cities, is forecast to attract 6.5m attendees and engage around 6bn people worldwide, generating spending across tourism, hospitality, retail, and sports betting. Host cities are expected to see between $160m and $620m in additional economic activity, while international visitors are projected to spend more than $5,000 each during their stay in the U.S. The event is also anticipated to become one of the largest gambling spectacles in history, with an estimated $60bn wagered through legal sportsbooks worldwide. While economists expect the tournament to provide a temporary lift to economic activity and employment, Goldman Sachs noted that historical data suggests World Cups have little lasting impact on economic growth. The bank said most long-term benefits are negligible, as a substantial share of spending on merchandise, food, beverages, and related products occurs outside the host countries.

U.S. consumer sentiment rises as lower fuel prices ease inflation concerns

U.S. consumer sentiment rose in early June for the first time in four months, as declining gasoline prices eased some of the pressure on households facing elevated inflation. The University of Michigan’s preliminary consumer sentiment index increased to 48.9 from a record low of 44.8 in May, surpassing economists’ expectations, though it remains the second-lowest reading since the 1970s. Consumers’ inflation expectations also moderated, with one-year expectations falling to 4.6% from 4.8%, and five-to-ten-year expectations declining to 3.4%. Lower gasoline prices improved views of personal finances, particularly among lower-income households, which tend to spend a larger share of their budgets on fuel. Despite the improvement, overall sentiment remains historically weak amid inflationary pressures linked to the Iran conflict. Nearly half of survey respondents now expect interest rates to rise over the next year, up from 25% before the conflict began. The survey’s current conditions measure edged higher but remained near record lows, while the expectations index climbed to a three-month high of 49.3.

PERSONAL FINANCE

Understanding 831(b) plans

For years, accountants have been cautious about 831(b) micro-captive insurance plans due to the IRS's scrutiny, which often labeled them as tax avoidance schemes. However, recent court rulings are shifting this narrative, emphasizing a more nuanced evaluation of these plans. As Dustin Carlson, president of SRA 831(b) Admin, notes: "The question is no longer whether 831(b) plans are inherently problematic. It's whether a specific plan reflects real insurance activity." This change allows CPAs to engage clients in meaningful discussions about risk management rather than solely focusing on tax implications. With traditional insurance becoming less predictable, 831(b) plans can help businesses formalize their risk strategies, ensuring they are prepared for unexpected losses. The evolving landscape presents both opportunities and responsibilities for tax professionals to align client strategies with their actual risk realities.

WEALTH MANAGEMENT

Foundation wealth expands amid tax reform concerns

The number of private tax-advantaged foundations and their assets have surged to nearly $2tn, according to research from FoundationMark presented at a PKF O'Connor Davies event. Assets have increased from approximately $653bn in 2010 to $1.8tn by 2025. Despite a steady growth of about 1.5% per year, around 3,000 to 4,000 foundations close annually. Thomas Blaney, a partner at PKF O'Connor Davies, noted, "Many times people change their minds on sunsetting," indicating that many foundations reconsider their closure plans. Foundations disburse $118bn annually, with giving growth averaging 7% over the past 15 years. However, without incoming contributions, many foundations could deplete their funds in 14 years. The IRS is also planning to revamp Form 990 to enhance transparency regarding funding sources.

TECHNOLOGY

Agentic AI offers practical benefits for indirect tax functions

Agentic AI is emerging as a tool that can help indirect tax teams manage growing compliance demands, improve data quality, and free up resources for higher-value advisory work, according to Deloitte. As tax authorities increasingly adopt e-invoicing, real-time reporting, and more detailed transaction monitoring, tax departments face pressure to remain audit-ready while supporting broader business decisions. Unlike traditional automation or generative AI, agentic AI uses digital agents that can work across multiple systems, execute end-to-end workflows, and surface results for human review. Deloitte argues that the technology is designed to reduce manual coordination and repetitive tasks, rather than replace professional judgment or accountability. Potential applications include improving data quality by identifying errors earlier in transaction processes, automating aspects of VAT, sales tax, and GST filings, and supporting more accurate tax accruals. By reducing time spent on reconciliations, data cleansing, and routine compliance tasks, tax teams can focus more on strategic activities such as risk management, audit preparation, and business advisory work.

R&D credits: The limits and opportunities of AI for CPAs

In the evolving landscape of accounting, AI-enabled tools are becoming essential for managing tax compliance, particularly in the realm of Research and Development (R&D) tax credits. As Charles Rettig, former IRS commissioner, says: "Technology is critically important for the future of tax administration." The article emphasizes the importance of maintaining professional judgment, as CPAs cannot fully rely on software or offshore teams for critical thinking. While AI can enhance accuracy and reduce costs, it cannot replace the human effort required to evaluate eligibility for tax credits. The recommended approach is to use software for data organization while ensuring a licensed R&D tax specialist reviews and signs off on claims, ensuring compliance with Circular 230 standards. This model aims to create defensible tax credit claims while preserving the integrity of the profession.

INTERNATIONAL

Javier Milei’s top aide admits hiding $500,000 from Argentine tax agency

Argentina’s cabinet chief Manuel Adorni has admitted to hiding $500,000 in savings from tax authorities. In a television interview on the LN+ television news channel, Adorni said that he and his wife had saved money “en negro [“off the books”] . . . like everyone else in Argentina.” The funds “pre-date my time in government,” he said, adding: "Of course I made a mistake. I will pay every tax I am required to pay, every fine, all the interest and everything arising from this error." Adorni revealed that he has now submitted a revised asset declaration to the Anti-Corruption Office, and he has also enrolled in a simplified tax regularization regime. His wife had joined the program 10 days earlier.  The scheme, introduced by Javier Milei's government, allows participants to disclose previously undeclared income and assets without facing criminal prosecution or tax penalties.

MNCs turn to tax treaties to settle cross-border disputes faster

Law firms in India are witnessing a significant increase in mandates from multinational companies (MNCs) seeking to resolve cross-border tax disputes through the mutual agreement procedure (MAP), a treaty-based dispute resolution mechanism, as they turn away from protracted litigation in favor of negotiated settlements. "We are seeing a clear increase in both enquiries and active mandates around the mutual agreement procedure, particularly in matters where a purely domestic remedy does not fully answer the commercial problem," said Rahul Charkha, partner at Economic Laws Practice.

AND FINALLY...

Todd and Julie Chrisley sue law firm for $25m

Reality TV personalities Todd and Julie Chrisley are suing Balch & Bingham and attorney Chris Anulewicz, claiming that legal errors led to their conviction on charges of conspiracy to commit bank fraud, conspiracy to defraud the United States, and tax fraud. Filed on June 5 in U.S. District Court for the Northern District of Georgia, the lawsuit alleges that Anulewicz lacked meaningful criminal defense experience and prioritized his own interests over the couple's. The Chrisleys assert that an unlawful search by the Georgia Department of Revenue was the foundation of their federal case, and Anulewicz failed to suppress critical evidence derived from this search. “That illegal search launched the entire federal case,” the lawsuit states. They are seeking $25m in damages, citing lost income, reputational harm, and the emotional toll of their prison sentences. Todd Chrisley received a 12-year sentence, while Julie was sentenced to seven years. In 2024, their daughter Savannah appealed to President Trump for their release, which resulted in a full pardon.
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