Accountancy Slice
Become informed in minutes...
Accountancy Slice
USA
26th June 2026
Together with

THE HOT STORY

PCAOB launches consultation process to help firms apply audit standards

The PCAOB has established a new firm consultation process to provide registered public accounting firms with more timely and consistent guidance on implementing and interpreting its standards. The initiative, led by the PCAOB's Office of the Chief Auditor (OCA), allows firms to submit questions directly to OCA staff and receive informal guidance on the application of new and existing auditing, attestation, quality control, ethics, and independence standards, as well as related rules and forms. PCAOB Chair Demetrios Logothetis said the staff-led process is intended to improve audit quality by helping firms implement standards more consistently and supporting the board's investor protection mission. Consultation requests will remain confidential, although the OCA may publish guidance addressing frequently asked questions that emerge through the process.

NEW WEBINAR

A Better Way to Run a High-Volume Tax Practice

High-volume tax practices are under more pressure than ever. More returns, more complexity, and higher expectations.

Many firms are rethinking their workflow and moving to cloud-based solutions that make it easier to scale without adding overhead.

Join us for one of our upcoming webinars to see how firms are:
  • Automating data flow from QuickBooks into returns
  • Reducing manual steps and review bottlenecks
  • Collaborating more effectively across teams
  • Generating tax planning insights directly from return data
Save your spot

 

TAX

IRS intensifies oversight of tax-exempt organizations

The IRS is stepping up enforcement against tax-exempt organizations through closer scrutiny, expanded use of whistleblower tips, and a coordinated compliance strategy, agency officials said at New York University's Tax Controversy Forum. Edward Killen, commissioner of the IRS Tax Exempt and Government Entities division, said tax-exempt status is a privilege that requires organizations to comply with statutory and regulatory requirements. He emphasized that the IRS is prioritizing the identification and investigation of fraud and abuse within the nonprofit sector. The IRS launched its first-ever Whistleblower Alert in April, asking the public to report suspected fraud by tax-exempt organizations. The agency is also strengthening enforcement through its Chief Tax Compliance Office, which coordinates compliance efforts across multiple divisions, including Criminal Investigation, Large Business and International, Small Business/Self-Employed, Tax Exempt and Government Entities, the Office of Professional Responsibility, the Return Preparer Office, and the Whistleblower Office.

IRS watchdog criticizes lengthy delays for ID theft victims

Victims of tax-related identity theft are waiting an average of 20 months for the IRS to resolve their cases, leaving more than 500,000 taxpayers facing prolonged delays in receiving refunds and resolving fraudulent tax filings, according to the National Taxpayer Advocate. In a report to Congress, National Taxpayer Advocate Erin Collins described the delays as “unconscionable,” warning that lengthy processing times can create significant financial hardship, particularly for low- and middle-income taxpayers who depend on timely refunds to cover essential expenses such as rent, utilities, and transportation. Tax-related identity theft occurs when a fraudster files a tax return using another person’s Social Security number to claim an unauthorized refund. Collins said the resulting administrative process is burdensome, difficult to navigate, and time-consuming for affected taxpayers, many of whom remain without access to their refunds while their cases are under review. The report comes as the IRS continues to manage significant staffing reductions and broader operational challenges, although the agency did not immediately comment on the findings.

FIRMS

Deloitte integrates agentic AI across Omnia audit platform

Deloitte has launched a unified agentic intelligence network within its Omnia audit and assurance platform, enabling multiple AI agents to work together across end-to-end audit and assurance workflows rather than operating as standalone tools. The new system is designed to support Deloitte’s nearly 85,000 Audit & Assurance professionals worldwide by delivering enhanced insights, deeper risk analysis, and real-time, context-aware support. The AI agents can perform tasks including data extraction, evidence analysis, documentation drafting, preliminary audit conclusions, and reviews of regulatory compliance and disclosure requirements, while auditors retain responsibility for professional judgment. Developed by Deloitte’s in-house engineering teams, the agentic intelligence network is designed to expand as new AI capabilities become available. The company said all AI tools within Omnia are built under its Trustworthy AI framework, which incorporates governance, controls, and compliance throughout the technology lifecycle.

ECONOMY

U.S. economy grew at 2.1% annual rate in first quarter

The U.S. economy expanded at an annualized 2.1% rate during the first quarter of 2026, according to the Commerce Department’s final estimate, an upward revision from the previous 1.6% estimate and a rebound from 0.5% growth in the final quarter of 2025. The stronger-than-expected performance was driven by robust business investment, particularly in artificial intelligence-related infrastructure. Investment excluding housing increased 10.6%, while spending on information-processing equipment surged 39.9% as companies expanded data center capacity. Federal government spending and investment also rose 9.4% following the end of the previous quarter’s government shutdown, and a smaller-than-estimated drag from imports contributed to the upward GDP revision. Consumer spending, however, was revised lower, signaling weaker household demand amid higher gasoline prices linked to the conflict with Iran. Residential investment fell 7.8%, marking its fifth consecutive quarterly decline as elevated interest rates continued to weigh on the housing market.  

Fed’s preferred inflation gauge climbs to highest level since 2023

The Federal Reserve’s preferred measure of inflation accelerated in May, with the core personal consumption expenditures (PCE) price index rising 3.4% year over year, its highest level since October 2023, while the headline PCE inflation rate reached 4.1%, the highest since April 2023. The Commerce Department reported that core PCE, which excludes food and energy, increased 0.3% for the month, while headline PCE rose 0.4%. Higher energy costs, driven by the conflict with Iran, remained the primary source of inflation, although price increases also spread to other categories, including housing, financial services, and insurance. Despite elevated inflation, consumer spending remained resilient. Personal consumption expenditures increased 0.7% in May, exceeding expectations, while personal income also rose 0.7%, lifting the personal saving rate to 3%. 

Weekly jobless claims fall more than expected

Initial claims for U.S. unemployment benefits fell by 12,000 to a seasonally adjusted 215,000 in the seven days to June 20th, outperforming economists’ expectations of 225,000 and signaling continued resilience in the labor market, according to the Labor Department. The four-week moving average was up by 750 to 224,250, while continuing claims, reported with a one-week lag, rose by 21,000 to 1.821m. 

LEGAL

SCOTUS upholds IRS authority to assess taxes in preparer fraud cases

The Supreme Court's recent decision to deny certiorari in Murrin upholds a Third Circuit ruling that allows the IRS to assess taxes indefinitely when a fraudulent return is filed, regardless of the taxpayer's intent. Stephanie Murrin, who owes $328,000 due to assessments on returns from 1993 to 1999, argued that the IRS's actions were barred by the three-year statute of limitations. However, the court ruled that under Sec. 6501(c)(1), the IRS can assess taxes at any time if fraud is involved. The government stated: “Because the statute is agnostic about who must intend to evade tax, we hold that taxpayer intent is not required.” Murrin's attorneys expressed concern that this ruling leaves taxpayers vulnerable to unexpected tax liabilities from years past.

Ex-Tricolor COO pleads guilty to fraud linked to company's collapse

David Goodgame, the former ​chief operating officer at Tricolor Holdings, has pleaded guilty to ‌fraud and conspiracy charges in connection with the now-bankrupt subprime auto lender's collapse. Goodgame said he would cooperate with prosecutors and could testify against Tricolor founder Daniel Chu in the hope of leniency on sentencing. He said: "I knew that Tricolor was deceiving and defrauding the banks." Prosecutors claim Tricolor executives acting at Chu’s direction repeatedly defrauded banks by “double-pledging” or counting “near-worthless” assets as collateral for its loans. Chu has pleaded not guilty and is scheduled to go on trial.

PERSONAL FINANCE

Reforming health savings accounts could advance MAHA goals

The Trump administration's push for a healthier America may overlook the crucial role of the IRS in managing health savings accounts (HSAs). The IRS has been actively combating fraud related to HSAs, which allow Americans to save pre-tax dollars for medical expenses. Danny Werfel, former IRS commissioner, emphasized the need for updated guidance on telehealth and wellness products to enhance access for eligible individuals. He stated: "The primary determination of HSA eligibility should depend on the purpose the expense serves—treating or preventing a specific medical condition." With the rise of telehealth and the growing obesity crisis, recalibrating HSA regulations could lead to increased preventive care and lower healthcare costs. The political climate may support this initiative, as both sides of the aisle recognize the importance of expanding access to preventive care for lower-income Americans.

RISK & COMPLIANCE

Stay compliant: why payroll tax accounts matter

Entrepreneur and CorpNet chief executive Nellie Akalp is encouraging businesses and accounting professionals to conduct mid-year reviews of payroll tax accounts to ensure compliance and avoid costly penalties as business circumstances change. Akalp notes that payroll tax accounts often need to be opened, updated, or closed when businesses hire employees, expand into new states, change their legal structure, acquire another business, elect S corporation status, or cease operations. Failure to properly manage these accounts can result in penalties, interest charges, and notices for missing tax filings. Before paying employees, businesses must obtain an Employer Identification Number (EIN) and register the appropriate federal, state, and local payroll tax accounts. New registrations may also be required when entering new states or creating entities that require a new EIN. Businesses should update payroll tax accounts when key details change, such as company names, addresses, ownership information, or entity classifications.

INTERNATIONAL

Foreign digital taxes turn U.S. companies into major revenue sources

Rep. Ron Estes (R-KS), a senior member of the House Ways and Means Committee, has been vocal against digital services taxes (DSTs), arguing they undermine American prosperity and democracy. He states: "These discriminatory levies are being used to pad foreign budgets at the expense of U.S. workers and companies." Despite victories in Canada and India, the fight continues as France and the U.K. maintain punitive DSTs. The Tholos Foundation reports that U.S. firms currently pay $2.96 bn annually in DSTs, a figure projected to rise to nearly $6 bn by 2030. Estes emphasizes that these taxes violate constitutional principles and calls for strong action to defend American interests, insisting that U.S. companies should not be treated as a revenue source for foreign governments.

AND FINALLY...

King Charles reveals $17m tax bill

King Charles has disclosed a tax payment of £12.9m ($17.04m) for 2024/2025, marking the first time a British monarch has revealed their tax bill. The size of the King's contribution places him among the top 100 taxpayers in the U.K. The Prince of Wales, meanwhile, reported a tax payment of £7.76m for the same period. Buckingham Palace said the decision to release details of the King and Prince William's tax bills comes as the Palace looks to enhance transparency and accountability.
Industry Slice

Accountancy Slice delivers the latest, most relevant and useful intelligence to accountants, practice owners, auditors, CFOs and accounting influencers, each weekday morning.

Content is selected to an exacting brief from hundreds of influential media sources and summarised by experienced journalists into an easy-to-read digest email. Accountancy Slice enhances the performance and decision-making capabilities of individuals and teams by delivering the relevant news, innovations and knowledge in a cost-effective way.

If you are interested in sponsorship opportunities within Accountancy Slice, please get in touch via email sales team

Follow us on FacebookFollow us on XFollow us on Linkedin

This e-mail has been sent to [[EMAIL_TO]]

Click here to unsubscribe