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Accountancy Slice
USA
8th July 2026
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THE HOT STORY

ACA insurers request steep 2027 rate hikes as costs rise and enrollment falls

Major insurers participating in the Affordable Care Act (ACA) marketplace are seeking another round of double-digit premium increases for 2027, citing rising healthcare costs, higher spending on prescription drugs and hospital care, and declining enrollment following reductions in federal subsidies. According to an analysis by KFF, the median requested premium increase across 77 publicly available filings is 14%, following a median 20% increase for 2026. Some insurers have requested especially large increases. Centene is seeking a 28% rate hike in Washington state after raising premiums 35% in 2026, while Blue Cross & Blue Shield of Illinois has requested a 15% increase following a 28% increase this year. Elevance Health has also requested double-digit increases in several states, including Indiana, Connecticut, Kentucky, and Maine. Insurers say reduced federal subsidies have led millions of healthier consumers to leave the ACA marketplace, leaving a smaller, less healthy, and more expensive risk pool. ACA enrollment fell from 22.1m to 19.2m between February 2025 and February 2026, and actuaries expect further declines.

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TAX

Public officials not exempt from IRS criminal tax investigations

High-profile taxpayers, including government officials and attorneys, often mistakenly believe their status protects them from tax issues. However, federal authorities do not exempt anyone from audits or investigations. David Klasing, a dual-certified tax attorney and CPA, emphasizes that "once the government believes the conduct was willful, a taxpayer's legal training can make the case far more damaging." Recent cases illustrate this, such as a former U.S. Tax Court judge sentenced to 34 months in prison for defrauding the IRS. The IRS Criminal Investigation reported identifying $10.59bn in financial crimes in FY2025, highlighting a sophisticated enforcement environment. High-profile individuals must act swiftly when facing tax inquiries, as casual explanations can lead to severe consequences, including criminal charges and reputational damage.

Illinois leads nation with digital asset tax

Illinois has become the first state to implement a transaction-based tax on digital asset activities, known as the Digital Asset Tax Act, effective January 1st 2027. This tax, part of Senate Bill 3019, imposes a 0.2% levy on the value of digital assets involved in each transaction. Critics, including the Crypto Council for Innovation, argue that this approach unfairly targets digital assets compared to traditional financial activities, saying: “Taxing a transaction based on the medium through which it occurs is akin to taxing correspondence because it is delivered by email rather than by post.” The long-term viability of this tax is uncertain, with House Bill 5798 introduced to repeal it entirely. The tax raises significant compliance challenges for digital asset brokers, who must register and remit taxes monthly, potentially leading to operational burdens and legal challenges.

Washington millionaires tax repeal campaign qualifies for likely November ballot

Opponents of Washington’s new 9.9% tax on household adjusted gross income above $1m have submitted more than 511,000 signatures to place Initiative 645 on the November ballot, seeking to repeal the measure. The campaign, led by hedge fund manager Brian Heywood, argues the tax could eventually expand beyond high-income households and contends the state’s budget challenges stem from excessive spending rather than insufficient revenue. Supporters of the tax say repealing it would create a multibillion-dollar budget shortfall, jeopardizing funding for K-12 education, higher education, healthcare, childcare, and other public services, while also eliminating tax relief measures included in the legislation, such as expanded Working Families Tax Credit eligibility and small business tax breaks. The tax is projected to generate $3bn-$4bn annually beginning in 2029. The initiative requires 308,911 valid signatures to qualify, making the submitted total likely sufficient pending verification.

INDUSTRY

PCAOB launches new audit guidance initiative

The PCAOB has initiated a consultation process aimed at enhancing the clarity and consistency of its auditing standards. PCAOB Chair Demetrios Logothetis said: “Delivering clear guidance is essential to the PCAOB's efforts to drive further improvement in audit quality.” This new process allows registered public accounting firms to submit inquiries to the Office of the Chief Auditor for informal guidance on the interpretation and application of PCAOB standards. While individual consultation requests will remain confidential, the PCAOB may publish general guidance based on frequently asked questions.

FIRMS

CBIZ shareholder pushes for change

Reference Equity, a long-only fund, is urging CBIZ to reconsider its capital allocation strategy, particularly its share buyback plan, and to refocus on acquisitions. Ryan Bunn, the fund's portfolio manager, stated: "CBIZ has a unique value proposition," emphasizing the need for equity-financed M&A to drive growth. CBIZ's shares have dropped 52% over the past year, leading to a market value of $1.9bn. The company has been using acquisitions to expand, including a $2.3bn deal for Marcum LLP in 2024. Bunn argues that continuing buybacks could weaken CBIZ as the accounting industry shifts towards investing in artificial intelligence. He believes the firm should prioritize its long-term business model over immediate returns.

UHY expands New York presence with merger of Hudson Valley firm RBT CPAs

UHY has combined with RBT CPAs, the largest accounting firm in New York's Hudson Valley, adding more than 175 professionals, including 23 partners, to its business. The merger strengthens UHY's presence in New York while expanding its capabilities across audit, tax, consulting, transaction advisory, and wealth management services. The combination also significantly enhances UHY's wealth management business, bringing assets under management to approximately $1.5bn less than a year after the firm launched its national wealth management practice.

Citrin Cooperman grows in New England with LGA acquisition

Citrin Cooperman has expanded its presence in New England by acquiring substantially all of the assets of LGA, adding approximately 150 professionals and strengthening its accounting and advisory services for middle-market businesses and high-net-worth clients. Financial terms of the transaction were not disclosed. The acquisition enhances Citrin Cooperman's position in the Boston market and broadens its expertise in accounting, business advisory, and wealth-related services. The combined firm plans to leverage greater investment in technology and AI-enabled capabilities while preserving LGA's client relationships and advisory-focused approach, continuing Citrin Cooperman's strategy of growth through acquisitions and digital transformation.

LEGAL

CEO pleaded guilty to trading on insider tips from lawyers

Arya Bolurfrushan, the founder and chief executive of Abu Dhabi-based AI startup AppliedAI, secretly pleaded guilty last year to participating in ​a long-running scheme in ​which ​law firms' attorneys tipped traders about mergers their employers were advising on. The former Goldman Sachs banker pleaded guilty ​after reaching a deal with federal prosecutors in Boston who were working to ​build cases against dozens of other people accused of taking part in the scheme, including Nicolo Nourafchan, who had worked at Sidley Austin, Latham & Watkins ​and Goodwin Procter, and 29 others accused of engaging ​in a scheme to profit from confidential information about mergers underway. Prosecutors agreed to recommend that Bolurfrushan be sentenced to two years in prison and forfeit $954,496 he derived ​from the scheme. Nourafchan has pleaded not guilty to securities fraud and other charges and is awaiting trial.

PERSONAL FINANCE

New federal scholarship tax credit creates planning opportunity for charitable donors

A new federal scholarship tax credit, available beginning January 1, 2027, will give financial advisors and taxpayers an additional charitable giving and tax planning tool. The nonrefundable credit, worth up to $1,700 per individual, applies to cash donations made to qualifying scholarship-granting organizations in participating states, which provide K-12 education scholarships for public, private, and charter schools. Twenty-eight states have opted into the program so far, and the Treasury Department expects to issue implementing regulations by the end of September. Unlike a charitable deduction, the credit directly reduces a taxpayer's federal tax liability, making it potentially more valuable for eligible donors. Advisors said the credit is likely to appeal to charitably minded clients who want greater control over how some of their tax dollars are used, although it is unlikely to benefit donors seeking scholarships for their own children because of income eligibility rules. Tax professionals expect the credit to have niche appeal, with many donors likely to support scholarship organizations connected to specific schools or communities.

WORKFORCE

Rise of non-compete clauses blamed for harming productivity

Companies’ growing use of non-compete clauses is harming productivity in rich economies, according to OECD research that found about a third of private sector employees restricted from joining a rival, limiting their outside options, and thereby weakening their bargaining power and reducing wage growth. The OECD said stronger rules alone may not stop the misuse of non-compete clauses, as unclear or overly broad terms are still common. Governments can improve transparency, simplify regulations and increase enforcement, including sanctions for clauses that are too broad, the OECD said.

INTERNATIONAL

Survey finds growing number of Canadian manufacturers considering U.S. expansion

Trade tensions with the United States are prompting a growing number of Canadian manufacturers to reconsider their long-term investment strategies, with a KPMG Canada survey finding that 42% have moved or are considering moving production south of the border. Of those exploring relocation, 77% expect to do so within the next two years as businesses seek greater certainty amid ongoing tariff disputes and the review of the Canada-United States-Mexico Agreement (CUSMA). The survey also found that 57% of manufacturers have paused, reduced, or canceled capital investment projects in Canada, raising concerns that future investment could increasingly shift to the United States. While 80% of companies expect to keep their headquarters in Canada, 11% plan to relocate their head offices to the U.S. within five years, a move KPMG warned could have a meaningful impact on Canada's economy.
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