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President Donald Trump has enacted the Internal Revenue Service Math and Taxpayer Help Act, mandating the IRS to provide clear explanations for tax-filing errors in its math error notices. This bipartisan legislation, introduced by Rep. Randy Feenstra (R-IA) and Rep. Brad Schneider (D-IL), aims to enhance taxpayer rights by requiring the IRS to specify the reasons for adjustments and inform taxpayers of their right to challenge these assessments within 60 days. "Americans must show the math on their tax return, and now the IRS has to as well," stated House Ways and Means Committee chairman Jason Smith (R-MO). The law also initiates a pilot program for certified mail notifications to improve communication with taxpayers.

 

Accounting Today

Tax Notes

The Guide to 2026 Tax Season

Tax laws change every year, and keeping up can be challenging...even for the most experienced professionals.  

With the 2026 tax season right around the corner, now is the time to make sure you have the insights you'll need to guide your clients with confidence.  

Join us on December 16th, and we'll share everything you need to know to tackle the season head-on.  

In this session, you'll:

• Get a clear overview of the most important individual tax changes for the 2026 season
  
• Understand how new IRS updates may impact your clients
  
• Know what to prepare now so you’re ready when filing season begins  

* Join live for 1 CPE credit!  

Register Now

 

Professional gamblers will be the first to pay taxes on unrealised income starting in 2026, due to changes in the One Big Beautiful Bill Act. The new law limits the deductibility of gambling losses to 90% of winnings, meaning that breaking even will come with a tax bill. Kevin Thompson, chief executive of 9I Capital Group, stated: "I don't understand what they're trying to accomplish with this." Experts warn that the provision could push gamblers to illegal markets, potentially leading to a net loss in tax revenue.

 

Accounting Today

The U.S. Mint has ceased production of the penny, leaving approximately 300bn pennies still in circulation. The change has led to confusion for retailers, who must now round totals to the nearest nickel. Andrew Leahey, an assistant professor at Drexel Kline School of Law, emphasizes the need for states to modernize sales tax policies through e-invoicing and real-time enforcement. He warns that without clear guidance, retailers may misinterpret tax laws, potentially harming tax revenue. Mr. Leahey suggests that states should implement a standardized digital invoicing system to ensure compliance and transparency, stating: "States shouldn't address the 'pennypocalypse' with patchwork fixes." This modernization could streamline tax processes and reduce compliance uncertainty for businesses.

 

Bloomberg Tax

President Donald Trump has proposed the potential elimination of the federal income tax, citing "hundreds of billions of dollars" in tariff revenue. During a Thanksgiving video call, he said: “I think we'll substantially be cutting - and maybe cutting out completely - but we'll be cutting income tax.” However, experts, including Erica York from the Tax Foundation, argue that this idea is “mathematically impossible.” Currently, income tax accounts for over 54% of government revenue, while tariffs only generate around $200bn annually. The disparity between income tax and tariff revenue creates a $2.3tn gap that would require unrealistic tariff increases, leading to inflation and economic instability. Ms. York emphasized that replacing income tax revenue with tariffs would necessitate astronomically high rates, which would ultimately reduce imports and revenue.

 

CPA Practice Advisor

American manufacturing contracted for the ninth straight month in November, according to the Institute for Supply Management (ISM). The organization's purchasing managers index (PMI) fell by a half-point from October to 48.2, below the 50-mark separating expansion from contraction. Economists polled by Reuters had forecast the PMI would rise to 49. The forward-looking new orders sub-index decreased to 47.4 from 49.4, while the prices paid measure increased to 58.5, from 58. Separately, the S&P Global U.S. Manufacturing PMI dropped from 52.5 in October to 52.2. "The main impetus came from a strong rise in factory production, but growth in new order inflows slowed sharply, hinting at a marked weakening of demand growth," commented S&P Global Market Intelligence chief business economist Chris Williamson. “In short, manufacturers are making more goods but often not finding buyers for these products. This combination of sustained robust production growth alongside weaker than expected sales led to a worryingly steep rise in unsold inventories." 

 

Market Watch

Reuters

Costco has joined a growing number of businesses suing the Trump administration to secure refunds if the Supreme Court invalidates the president's global tariffs policy. The lawsuit, filed on November 28th in the U.S. Court of International Trade, was prompted by concerns over the uncertainty of refunds for companies paying duties. Costco's lawyers said: "We need a court intervention immediately" due to Customs and Border Protection denying an extension for tariff determinations. The Supreme Court heard arguments on the tariffs on November 5th, and while lower courts have ruled against the administration, the tariffs remain in effect until a decision is made. Other companies, including Revlon and Kawasaki, have also filed similar lawsuits. The ongoing tariff policies have disrupted the retail sector, raising prices and affecting consumer purchasing power.

 

CNBC

NBC News

The Oregonian

Washington Post

New York's highest court has revisited a complex property tax charitable exemption case, highlighting the challenges in determining eligibility. In the Matter of First United Methodist Church in Flushing v. Assessor of Callicoon, the court ruled in favor of the church, which argued that its activities, primarily farming for low-income residents, did not violate local zoning laws. Justice Jenny Rivera, who previously denied an exemption in a different case, dissented, emphasizing the importance of the church's intended use versus actual use. The court noted, “occasional retreats may have been held at which people engaged in organized prayer, this does not constitute regular organized services as required under the code to constitute a church.” The ruling adds complexity to future exemption applications, as unique circumstances may influence court interpretations.

 

Bloomberg Tax

The Second Circuit has determined that the Sec. 6213(a) deadline for filing a Tax Court deficiency petition is a nonjurisdictional, claim-processing rule that is subject to equitable tolling. This ruling reverses the Tax Court's dismissal of a late-filed petition by taxpayers Mark Buller and Sarah Beatty, who argued that the deadline should allow for equitable exceptions. The court noted, “the government must clear a high bar to establish that a procedural rule is jurisdictional,” emphasizing that Congress did not clearly define the deadline as jurisdictional. The ruling allows for the possibility of equitable tolling, which could benefit taxpayers who miss the deadline under certain circumstances. The case has been remanded to the Tax Court to assess the taxpayers' eligibility for equitable tolling.

 

Journal of Accountancy

BDO has found that 97% of finance leaders are now willing to pay more for auditors using advanced technologies, with trust in artficial intelligence-powered firms rising 18 points to 81%. The company's 2025 Audit Innovation Report also found that perceptions of audit technology’s benefits have increased markedly, with 63% citing improved efficiency and collaboration, up from 52%; 46% see cost reductions, up from 29%; and 48% report enhanced accuracy. "Successful technology adoption depends on consistent, scalable enablement - anchored in strategic communication, thoughtful change management, and hands-on learning and support," commented Tara Pendleton, Assurance Professional Practice Principal - Enablement. "When individuals are equipped, informed, and confident, they embrace new tools and processes more effectively. By aligning enablement with transformation, organizations reduce change fatigue, accelerate adoption, and stay ahead in an ever-evolving landscape."

 

BDO - 2025 Audit Innovation Report

Nonprofit organizations will today celebrate Giving Tuesday, a global initiative promoting philanthropy following Black Friday and Cyber Monday, and Michael Thatcher, chief executive of Charity Navigator, has shared insights with Reuters on American generosity amid economic challenges. According to a recent survey, 32% of respondents plan to increase their donations this year, while 41% intend to maintain their giving levels. Mr. Thatcher emphasized that "people still want to give and are engaged," highlighting a significant rise in donations to food banks amid recent SNAP benefit cuts. He advised donors to focus on causes they are passionate about and to verify charities for legitimacy and impact. Notably, 53% of donors last year were women, with younger generations increasingly engaging through volunteering. Mr. Thatcher's key advice for Giving Tuesday is to "pick your causes first, verify the charity and look for proof of impact."

 

Reuters