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9th December 2025
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THE HOT STORY

SEC pushes for global accounting unity

The SEC is advocating for enhanced collaboration between U.S. and international accounting standard-setters to reduce costs and complexity for multinational firms. During AICPA's Conference on Current SEC and PCAOB Developments, SEC chair Paul Atkins emphasized the need for accountants to "get back to basics," focusing on integrity and objectivity. Chief accountant Kurt Hohl highlighted the importance of cooperation between the FASB and the International Accounting Standards Board (IASB) to expedite the development of high-quality standards. Hohl noted: "If the IASB takes up a topic first . . . they can basically learn from the feedback that the IASB has gotten." The SEC's push for convergence could signal a renewed effort to align U.S. GAAP with international standards, benefiting investors and reducing compliance costs.

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TAX

IRS faces mounting telework request backlog

The IRS is currently facing a significant backlog of over 8,000 requests for telework as a reasonable accommodation, raising concerns about compliance with federal disability laws. An anonymous IRS employee said: “There are tons, and I don't know what's going on. These are clear violations of the Americans With Disabilities Act.” The approval process has become increasingly complex, leading to delays, with very few requests being approved. Snider Page, director of the Treasury Office of Civil Rights and Equal Employment Opportunity, highlighted the urgency of the situation, noting that the backlog exceeds the Equal Employment Opportunity Commission's processing timeframe. The National Treasury Employees Union has urged the IRS to address this issue promptly, emphasizing that these delays hinder the agency's ability to serve the public effectively.

Tax credit deadline fuels solar frenzy

As the January 1st deadline approaches for the solar tax credit, homeowners in Southern California are rushing to install solar panels and batteries to qualify for the 30% incentive. Lengthy utility permitting times pose a significant risk, with delays potentially costing homeowners an additional $10,000 for typical projects. Emily Walker from EnergySage noted that permitting has long been a barrier, saying: "Installers are working around the clock to meet the rush." Utilities like Southern California Edison are experiencing significant delays, with installation times stretching to six to ten weeks. Barry Cinnamon, chief executive of Cinnamon Energy Systems, has even switched to a more expensive installation method to avoid utility delays.

INDUSTRY

AICPA calls for PTE tax simplification

AICPA has urged the Department of the Treasury and the IRS to simplify tax reporting for passthrough entities (PTEs), particularly those with tiered structures. In a letter, AICPA Senior Manager for Tax Policy & Advocacy, Michelle Zou, said: “Our comments encourage Treasury and the IRS to adopt a proactive vetting process that promotes transparency, simplification and coordination to ease the administrative burden of PTE reporting.” The AICPA's recommendations include prioritizing stakeholder input, simplifying current requirements, and enhancing implementation processes to reduce the paperwork burden on tax practitioners. These changes aim to improve efficiency and accuracy in PTE tax reporting.

FASB updates accounting standards for clarity

The FASB has released an accounting standards update aimed at enhancing the clarity and navigability of interim reporting disclosures. FASB chair Richard Jones said: "We expect that these clarifications will enhance consistency in interim reporting for all entities." The update does not alter existing interim reporting requirements but provides clearer guidance on their application. It includes a comprehensive list of required interim disclosures under U.S. GAAP and mandates the disclosure of significant events occurring after the fiscal year-end. The amendments will take effect for public business entities after December 15th 2027, and for other entities after December 15th 2028, with early adoption permitted. Mr. Jones also mentioned that the search for his replacement will begin next year, as his term ends on June 30th 2027.

ECONOMY

U.S. execs note signs of K-shaped economy

A growing number of U.S. corporate executives are citing the “K-shaped economy” to describe a widening gap in consumer behavior, where higher-income households continue spending while lower-income groups cut back. Chief executives from Lifetime Brands, Travel & Leisure Co., and Natural Grocers referenced the trend in recent earnings calls, highlighting its impact on demand forecasts and strategic planning. Some, like Home Depot CEO Ted Decker, noted signs of softening in big-ticket spending, though not always directly linked to income levels. Others, including Sally Beauty and Natural Grocers, described a clear bifurcation in customer behavior, with more pronounced caution among lower-income shoppers.

BIS raises concerns of gold and stocks bubble

The Bank for International Settlements (BIS) has warned that the combination of gold and share prices soaring together has not been seen in at least half a century and raises questions of a potential bubble in both. “The past few quarters represent the only time in at least the last 50 years in which gold and equities have entered this territory simultaneously,” the BIS said its latest quarterly review. “Following its explosive phase, a bubble typically bursts with a sharp and swift correction.” The BIS also gave a broader warning about the "growing fragility" of the risk-on environment amid concerns about artificial intelligence valuations and the recent 20% plunges in cryptocurrencies.

LEGAL

Michigan's tax on marijuana upheld by judge

A Michigan judge has ruled against marijuana businesses, allowing a new 24% wholesale tax to take effect on January 1st. Judge Sima Patel stated that the tax aligns with the original ballot proposal from 2018, which recognized "other taxes." The Michigan Cannabis Industry Association argued that the tax required supermajority support, which it did not receive. Patel noted that there are still "questions of fact" regarding the tax's impact on the 2018 proposal, indicating that further discovery is needed. Rose Tantraphol, spokeswoman for the association, expressed frustration and announced plans for a "swift appeal," saying: "The fight is far from over." The tax is projected to generate approximately $420m annually for road funding.

HEALTHCARE

GOP senators push for ACA tax credit extension

U.S. Senators Bernie Moreno (R-OH) and Susan Collins (R-ME) are introducing the Consumer Affordability and Responsibility Enhancement (CARE) Act to extend Affordable Care Act premium subsidies for two years while imposing new eligibility restrictions. The proposed legislation would cap subsidy eligibility at $200,000 in household income and require a minimum premium payment of $25 per month, eliminating zero-premium plans for lower-income Americans. Moreno criticized the Democratic party for creating a healthcare crisis, saying: “the American people shouldn't have to pay the price for their incompetence.” The Congressional Budget Office warns that without an extension, the number of uninsured individuals could rise significantly, with premiums potentially doubling for many enrollees. The CARE Act aims to prevent these increases and ensure subsidies are directed to those in need.

TECHNOLOGY

President Trump prepares to sign executive order blocking state AI regulations

President Donald Trump has announced plans to sign an executive order creating a national standard for artificial intelligence (AI), aiming to simplify regulations that currently vary across U.S. states. The move, which seeks to support Big Tech companies, is expected to face bipartisan opposition from state leaders who wish to maintain local control over AI legislation. Mr. Trump said that "there must be only One Rulebook if we are going to continue to lead in AI," as he highlighted the necessity of a unified regulatory framework amid a complex landscape of state laws. “The president cannot pre-empt state laws through an executive order, full stop,” said Travis Hall, the director for state engagement at the Center for Democracy and Technology, a think tank that promotes tech policy. “Pre-emption is a question for Congress, which they have considered and rejected, and should continue to reject.”
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