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Accountancy Slice
USA
3rd July 2026
 

THE HOT STORY

Senate Democrat seeks records on DOJ, IRS settlement involving Trump

Rhode Island Sen. Sheldon Whitehouse, the top Democrat on the Senate Judiciary Committee, has requested records from the Justice Department, Treasury Department, and IRS related to a settlement agreement that reportedly shields President Donald Trump and certain family members from federal tax audits. Whitehouse is seeking internal IRS memoranda discussing legal defenses against Trump's $10bn lawsuit over the disclosure of his tax records, as well as documents detailing coordination between the agencies and the identities of officials involved in negotiating an addendum that provides protection from future federal tax investigations. The request follows reports that the IRS had recommended dismissing Trump's lawsuit before the settlement was reached, raising questions about whether the Justice Department overlooked potential legal defenses. Whitehouse has asked the agencies to provide the documents by July 14, one day before Acting Attorney General Todd Blanche's Senate confirmation hearing.

TAX

TIGTA uncovers widespread errors at taxpayer assistance centers

IRS Taxpayer Assistance Centers frequently provided incorrect or incomplete guidance during unannounced visits, according to a new TIGTA report, with employees giving inaccurate tax law advice in 46% of the cases where assistance was provided. Inspectors conducted 91 visits to 82 centers nationwide and found that one-third of visits resulted in incomplete assistance, denial of entry by security personnel, or unexpected office closures. In several cases, front-desk staff failed to fully address taxpayers' questions, while some visitors were turned away despite seeking assistance. The report also found shortcomings in customer service practices, including the failure to distribute customer satisfaction surveys during most visits where they were required. Although the IRS expanded weekday hours and hosted additional Taxpayer Experience Day events during the 2025 filing season, the agency assisted about 925,000 taxpayers, a 7% decline from the previous year despite holding more outreach events. 

IRS sets hearing on gambling losses

The IRS has announced a hearing on July 17th regarding proposed regulations that would impose a new cap on the deductibility of gambling losses. The proposed rules, identified as REG-113229-25 and RIN 1545-BR73, aim to update existing regulations in light of the 2025 tax-and-spending law, which establishes a 90% cap on deductible wagering losses based on winnings starting in the tax year 2026. Additionally, the regulations will revise the information reporting threshold for companies required to issue certain 1099 forms and Form W-2s related to gambling winnings.

FIRMS

PwC appoints Lynne Baber as Global Sustainability Leader

PwC has appointed Lynne Baber as its new Global Sustainability Leader, succeeding Colm Kelly following his retirement after leading the firm's global sustainability practice since 2020. Baber, who joined PwC in 2003, most recently led the firm's UK sustainability practice and served as Global Sustainability Deputy Leader. In her new role, she will oversee PwC's global sustainability strategy, support clients as sustainability becomes increasingly integrated with business strategy, risk, technology, and capital allocation, and advance the firm's own sustainability commitments.

ECONOMY

U.S. job growth slows sharply in June as hiring falls short of expectations

The U.S. economy added just 57,000 jobs in June, well below economists' forecasts of 115,000, signaling a slowdown in hiring after stronger gains earlier this spring. The Labor Department report also found that unemployment rate unexpectedly edged down to 4.2%, largely because the labor force shrank by 720,000 people during the month, pushing the labor force participation rate down to 61.5%, its lowest level since March 2021. Healthcare and social assistance accounted for most of the month's job gains, while leisure and hospitality shed 61,000 positions, and previously reported payroll growth for April and May was revised down by a combined 74,000 jobs. The weaker-than-expected employment report also reduced market expectations for a near-term Federal Reserve interest rate increase, even as wage growth remained modest at 3.5% year over year and inflation continued to outpace earnings. The Labor Department's weekly jobs report, published separately, found that the number of filings for unemployment benefits in the seven days to June 27th fell by 1,000 to 215,000. Analysts had expected 225,000 new applications. The four-week moving average fell 2,500 to 222,000, while the total number of filings, reported with a one-week lag, rose 2,000 to 1.81m.

Factory orders decline in May as aircraft demand weakens

New orders for U.S. manufactured goods fell 1.3% in May, reversing part of April's 5.3% gain, as a sharp drop in commercial aircraft orders outweighed continued strength in other manufacturing sectors. Orders for commercial aircraft fell 51.8%, with Boeing receiving 27 orders in May compared with 136 in April, while demand for computers and electronic products, machinery, primary metals, and fabricated metal products remained strong, supported in part by investment in artificial intelligence. Orders for non-defense capital goods excluding aircraft, a key measure of business investment, increased 1.4%, indicating that underlying business spending remained resilient despite the broader decline in factory orders.

AUDIT & REPORTING

Audit quality is critical to maintaining trust in the nonprofit Sector, CPA says

Grassi nonprofit practice leader David Rottkamp argues that high-quality audits are essential to maintaining public trust in nonprofit organizations, emphasizing that auditors must combine technical expertise, rigorous processes, and a strong culture of accountability to address the sector's unique regulatory and financial reporting challenges. The article highlights common audit risks, including weaknesses in grant compliance, nonprofit accounting, related-party transactions, and decentralized operations, while recommending stronger nonprofit-specific risk assessments, enhanced technical training, greater use of professional judgment, and robust quality management practices. Rottkamp concludes that improving audit quality not only helps nonprofits meet regulatory requirements, but also protects donor confidence, strengthens governance, and supports the long-term sustainability of mission-driven organizations.

PERSONAL FINANCE

Treasury says Trump Accounts will accept stock donations for eligible children

The U.S. Treasury Department has announced that individuals and corporations will be able to donate publicly traded shares to Trump Accounts, the government-backed investment accounts for children created under President Donald Trump's tax and immigration law. The program, which launches July 4th, will provide a $1,000 federal contribution for eligible children born between 2025 and 2028, while parents and guardians can open and manage the accounts, choose from five approved investment funds, and receive additional private contributions. More than 6m families have signed up for the program, although only 1.4m qualify for the federal seed payment, with the remainder able to benefit from the accounts' tax advantages and flexible investment structure.

WORKFORCE

More than one-third of employees still work from home, research shows

The share of U.S. employees working from home grew in 2025 from the year before, according to a survey from the Bureau of Labor Statistics. Last year, more than one-third (35%) of employed people did some or all work remotely, up from 33% in 2024, according to the bureau's latest American Time Use Survey. Workers with a bachelor's degree or higher were more likely to work from home, at least some of the time, and women were also more likely to work from home than their male counterparts, and spend more time on childcare and other household tasks, the data found. 

Women taking obesity drugs 'more likely to land a job'

Women taking weight-loss drugs are more likely to land a job, according to research by Harvard University economics professor Rebecca Diamond, who found that the employment rate for women who weren't working before taking the medicine rose after about eighteen months. Those women who were already working weren’t more likely to get a better job, she said. “What does not change for women is equally informative. The arrangements that do not respond are the ones already in place, where any first impression occurred long ago and where weight is one characteristic embedded in a much richer stock of information,” Diamond concluded. Single women taking the medication were also more likely to get married or start living with a partner, the research found.

SUSTAINABILITY

Most companies struggle to measure financial impact of sustainability, KPMG finds

A new KPMG survey has found that while 72% of executives say they have a strong understanding of their companies' sustainability strategies, only 19% report using robust financial valuation methods to quantify sustainability's impact on value creation and future performance. Surveying more than 2,000 senior executives across 19 countries, KPMG found that 60% of companies incorporate sustainability risks and opportunities into financial planning and 50% have embedded sustainability into their business strategies, but many lack the tools and frameworks needed to connect sustainability with financial outcomes. The report found the banking and capital markets sector leads in applying advanced valuation techniques at 33%, followed by energy and natural resources and automotive, both at 31%, with KPMG warning that companies unable to quantify sustainability risks and opportunities risk mispricing investments and missing long-term value creation opportunities.

INTERNATIONAL

KPMG Australia appoints first independent chair amid governance overhaul

KPMG Australia has appointed Michael Ebeid as its first independent chair as part of a broader governance reform program launched in response to recent integrity issues and allegations involving the misuse of confidential client information. Subject to partner approval, Ebeid will oversee efforts to strengthen independent oversight, reshape the firm's board with equal independent and partner representation, and introduce independent participation in the CEO selection process. The firm also expects to appoint a new CEO before the end of July, following the departures of its chief executive, chief operating officer, two audit partners, and national chairman amid the ongoing governance review.

AND FINALLY...

Rising food and fuel costs push Fourth of July cookout prices higher

Americans are expected to pay more for their Fourth of July celebrations this year as higher production, labor and transportation costs continue to drive up the prices of food and fuel. The American Farm Bureau Federation estimates the cost of a cookout for 10 people has risen 4% year-on-year, broadly in line with inflation, while Wells Fargo's Agri-Food Institute estimates barbecue costs have increased 2.4%. Beef prices remain at record highs, with ground beef and steak up 14% from a year ago due to tighter cattle supplies, higher feed and labor costs, drought conditions and supply chain disruptions. Other notable increases include pork and beans, up 13.8% as aluminum can costs rise, strawberries, and hamburger buns, up 7.7% because of increased production and distribution costs. The National Retail Federation expects consumers to spend a record average of $94.41 per person on Independence Day food this year.
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