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14th October 2025
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THE HOT STORY

Treasury Department issues over 1,400 RIF notices

On October 10th, the Trump administration issued reduction-in-force (RIF) notices to over 1,400 employees at the Treasury Department, primarily affecting the IRS. Russell Vought, director of the Office of Management and Budget, confirmed the layoffs, which are part of a broader strategy amid a government shutdown. Doreen Greenwald, national president of the National Treasury Employees Union, said: “These actions are un-American and undeserving of the men and women who've dedicated their careers.” The IRS alone saw approximately 1,300 workers receive RIF notices, impacting various divisions, including IT and support services. The layoffs are set to begin on December 9th, and unions are seeking legal action to block them. The IRS has already lost about 25% of its workforce since January 2017, raising concerns about its ability to function effectively during the ongoing shutdown.

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TAX

IRS eases spinoff regulations for taxpayers

On September 29th the IRS withdrew two proposed regulations, REG-112261-24 and REG-116085-23, which aimed to impose stricter rules on corporate spinoffs and reorganizations. The decision returns taxpayers to pre-2024 guidance, allowing them to plan these transactions without additional burdens. The proposed rules were intended to reduce reliance on private letter rulings and provide clarity, but public feedback indicated that their benefits did not justify the compliance costs. As a result, taxpayers can now operate with less uncertainty, although they should maintain detailed records to address potential IRS inquiries. Jean R. Broderick, a retired tax attorney, emphasizes that while the withdrawal is positive, it does not signal a complete abandonment of the IRS's efforts to enforce stricter regulations in the future, adding that taxpayers should remain vigilant and prepared for possible changes ahead.

Deposit relief granted for remittance providers

The IRS has issued guidance for deposit penalty relief for remittance transfer providers for the first three quarters of 2026, as outlined in Notice 2025-55. This relief addresses challenges in implementing the new excise tax on certain remittance transfers under the One Big Beautiful tax bill. Providers can avoid penalties if they meet specific criteria and may utilize deposit safe harbor rules even with underpayments. Starting January 1, 2026, these providers must collect a 1% remittance tax from certain senders and make semi-monthly deposits, with the first due on January 29, 2026. The IRS emphasizes that "reasonable cause" must be established to qualify for penalty relief. More information is available on the IRS website.

INDUSTRY

AICPA urges IRS to act swiftly to alleviate shutdown pain

AICPA is advocating for practical relief measures to ease the burden of the government shutdown on taxpayers and practitioners. In a letter to Acting IRS Commissioner Scott Bessent, the AICPA acknowledged the IRS's efforts but expressed disappointment that not all employees were retained as recommended. The AICPA's proposals include halting compliance actions and automated collections for at least 60 days post-shutdown, maintaining online systems, and offering a reasonable cause penalty waiver for affected taxpayers. Melanie Lauridsen, vice president of tax policy & advocacy at AICPA, said: “This shutdown will create a greater backlog for the IRS and increase hardships for taxpayers.” AICPA urged the IRS to consider these recommendations to alleviate the situation.

ECONOMY

U.S. tariff threat adds pressure on retail sector ahead of holidays

President Donald Trump’s proposal last week to impose 100% tariffs on Chinese imports from November 1st has raised concerns of higher prices and weaker demand, especially during the critical holiday season. Analysts warn the move could disrupt supply chains, prompt shipment delays, and compound cost pressures already driving up consumer goods prices. While most holiday stock is already in the U.S., future pricing could rise if tensions persist. Shares in major retailers, including Abercrombie, Best Buy, and Nike, fell following the announcement.

CORPORATE

First Brands CEO resigns amid accountancy scandal

Patrick James, founder and chief executive of First Brands, has resigned following the company's bankruptcy filing amid an accounting scandal. The auto parts supplier is facing over $2bn in missing funds, leading to lender concerns. Charles Moore, the newly appointed chief restructuring officer, will take over temporarily. First Brands, which changed its name from Crowne Group, amassed significant debt through acquisitions of aftermarket auto parts brands. Jefferies Financial Group reported a $715m exposure to First Brands but downplayed the impact on its financial health. The next bankruptcy hearing is set for October 29th.

LendingTree mourns loss of CEO Doug Lebda

Doug Lebda, the 55-year-old founder and chief executive of LendingTree, passed away following an all-terrain vehicle accident at a family farm in North Carolina. The company expressed its grief, saying: “Doug was a visionary leader whose relentless drive, innovation and passion transformed the financial services landscape.” Following his death, Scott Peyree has been appointed as the new CEO, while Steve Ozonian will take over as chair of the board. Lebda founded LendingTree in 1996 to simplify the loan shopping process, and the platform has since become a key player in the online loaning marketplace.

LEGAL

IRS challenged over $88m tax deduction claim

KYRock LLC, linked to Rubicon Capital LLC, is contesting the IRS's rejection of its $88m tax deduction for a conservation easement on 137 acres in Kentucky. The IRS claims the donation does not comply with IRC Section 170, saying it was not legitimate for tax purposes. The partnership filed a petition with the U.S. Tax Court on October 2nd, asserting that the IRS has unfairly disallowed the deduction.

ESG

EU lawmakers agree to curtail ESG directives

The EU Parliament’s Committee on Legal Affairs voted on Monday to move ahead with major cuts to a set of sustainability directives. Lawmakers opted to have the Corporate Sustainability Reporting Directive (CSRD) apply only to companies with at least 1,000 employees, while for the Corporate Sustainability Due Diligence Directive (CSDDD), the threshold will be 5,000. Both were originally intended to cover companies with at least 250 employees. Business groups had argued that the directives would hurt European competitiveness. CSDDD, designed to ensure companies are held accountable for human rights and environmental violations in their value chains, had emerged as a particularly contentious framework. The US Chamber of Commerce had warned that the directives represent an "unprecedented regulatory overreach." Lawmakers will begin negotiations with the EU’s 27 member states on a final agreement next week, with the target of striking a deal by the end of the year.

MERGERS & ACQUISITIONS

Goldman Sachs acquires venture capital firm

Goldman Sachs has announced its acquisition of Industry Ventures, a prominent venture capital firm managing $7bn in assets, for $665m in cash and equity, with an additional $300m contingent on performance through 2030. Chief executive David Solomon highlighted that Industry Ventures "pioneered venture secondary investing" and noted the increasing importance of such investments as companies remain private longer. Following the acquisition, all 45 employees from Industry Ventures will join Goldman Sachs, with its founder and senior directors becoming partners within Goldman Sachs Asset Management.

INTERNATIONAL

Biofuels: the new energy battleground

Luc Vernet, Secretary General of Farm Europe, argues that “the idea that biofuels compete with food production is untrue.” He emphasizes that production exceeds food demand, adding that: “the food market does not absorb all the production” of rapeseed oil, which is diverted to biofuels and other markets. The Danish EU Presidency is attempting to reform energy taxation rules, proposing to delay the new tax on food- and feed-crop-based biofuels until 2030. Critics, including the NGO Transport & Environment, claim that crop biofuels emit “16% more CO2” than fossil fuels and compete with food production. The report warns that meeting projected biofuel demand could require land equivalent to “the size of France” by 2030. Additionally, concerns about fraud in the biofuels market have arisen, with Vernet noting that millions of tonnes are linked to “the failure of controls and the lack of robust certification.”

AND FINALLY...

Nobel Prize in Economics awarded for innovation insights

Joel Mokyr, Philippe Aghion, and Peter Howitt have been awarded the Nobel Memorial Prize in Economic Sciences for their contributions to understanding how innovation drives economic growth and human welfare. Their research elucidates the concept of "creative destruction," where new innovations replace outdated technologies, a process crucial for sustained economic progress. Mokyr emphasized that “economic growth cannot be taken for granted,” highlighting the need to support the mechanisms that foster innovation. The prize, worth nearly $1.2m, recognizes the trio's complementary approaches to economics, with Mr. Mokyr focusing on historical trends and Mr. Aghion and Mr. Howitt employing mathematical models. The Nobel Committee noted the importance of innovation, especially in Europe, where there is a growing productivity gap with the U.S. and China.
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