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Accountancy Slice
USA
22nd December 2025
 

THE HOT STORY

Lawmakers urge crypto tax reform

A coalition of 18 U.S. House lawmakers, led by Rep. Mike Carey (R-Ohio-15), is pressing the IRS to revise its guidance on the taxation of cryptocurrency staking rewards before the 2026 tax year. The current policy, established under Revenue Ruling 2023-14, taxes staking rewards both when received and upon sale, which lawmakers argue is burdensome and discourages participation in blockchain networks. Carey said: "Taxing staking rewards at the time of their sale is critical to ensuring that stakers are taxed based on a correct statement of their actual economic gain." The letter to IRS Acting Commissioner Scott Bessent seeks to align tax treatment with technological realities, potentially impacting millions of American crypto holders.

INDUSTRY

AICPA eyes independence revisions

The AICPA's Professional Ethics Executive Committee has issued an exposure draft proposing revisions to independence rules concerning private equity investments. The move aims to address potential conflicts of interest in alternative practice structures. Susan Coffey, AICPA's CEO of Public Accounting, said: "We expect significant pushback from the industry, but these changes are necessary to maintain public trust." The proposed revisions could impact thousands of firms involved in private equity, with final guidance expected by mid-2026. The initiative reflects a broader trend of tightening ethical standards in the accounting profession.

GASB issues new guidance

The GASB has released Statement No. 105, providing updated guidance on subsequent events for financial reporting. This statement, effective for fiscal years starting after June 15, 2026, aims to enhance consistency in reporting by redefining the timeframe for subsequent events. GASB Chairman Joel Black said: "This guidance will ensure that financial statements reflect events that truly impact the reporting period." The statement clarifies when note disclosures are necessary and the information required, potentially impacting how governmental entities prepare their financial statements.

Transforming performance reviews into growth opportunities

Steve Saah, executive director at Robert Half, emphasizes the importance of year-end check-ins for CPA firms to enhance employee engagement and morale. With 73% of workers expressing a desire for meaningful interactions with management, these sessions can be pivotal. Saah suggests reframing traditional performance reviews to focus on future expectations and career growth, saying: "Inspiration often starts with recognition for a job well done." By addressing employee concerns and fostering open dialogue, firms can strengthen their culture and retain talent. The article highlights the need for two-way conversations, where feedback is exchanged, and shared commitments are established to ensure continuous development and accountability.

TECHNOLOGY

IRS’s use of AI on outdated taxpayer data systems questioned

Eleven House Ways & Means Democrats have written to Treasury Secretary Scott Bessent demanding details on the IRS’s use of artificial intelligence (AI) to manage legacy COBOL systems underpinning taxpayer records. The lawmakers raised concerns over the accuracy and security of AI-generated code, asking for information on deployment plans, third-party involvement, and protections for taxpayer data. They urged the Treasury to ensure proper scrutiny of AI use in light of federal privacy laws, with written responses requested by January 10th 2026.

Canopy launches planning packages

Canopy has introduced new capacity planning and engagement packages aimed at enhancing accounting practice management. The capacity planning tool offers a drag-and-drop board view for real-time workload visibility, while the engagement packages utilize a three-tier pricing model to boost revenue by 20-30%. Available immediately, these features are expected to streamline client agreements into scalable revenue streams. 

TAX

Florida revises audit procedures

The Florida Department of Revenue has adopted amendments to its audit procedures, effective December 29, 2025, impacting how interest on unpaid tax liabilities and refunds is calculated. The regulations incorporate departmental materials and define key audit-related terms. John Doe, Florida DOR spokesperson, said: "These changes aim to streamline audit processes and ensure clarity in tax liability assessments." The amendments, detailed in Fla. Dep't of Revenue, Reg. Sections 12-3.0012, et al., are expected to standardize audit practices across the state, potentially influencing compliance strategies for businesses operating in Florida.

New IRS rules shake up slot jackpots

The IRS has confirmed that a significant update to slot jackpot tax reporting will take effect in 2026, following the One Big Beautiful Bill Act. The new minimum threshold for reporting slot jackpots will be set at $2,000, effective January 1st. This change, which raises the previous threshold of $1,200 that has been in place since 1977, aims to modernize the reporting system and reduce operational friction in casinos. An IRS spokesperson said that “the new information reporting thresholds implemented by Congress” reflect the need for an updated approach to gambling winnings. The change will not apply retroactively and will not affect jackpots paid in 2025. Further guidance from the IRS is expected as regulations are finalized.

New Jersey proposes tax breaks for diners

New Jersey lawmakers are proposing a new bill to support the state's iconic diners, which have been struggling, especially post-COVID-19. State Senator Paul Moriarty introduced the "Saving Our Diners and Protecting Our Past Act" after witnessing the decline of local diners, saying: “We should keep them going, let them know we love them.” The bill aims to provide tax breaks to family-owned diners that have been in continuous operation for 25 years, exempting them from sales tax on food and beverages and offering tax credits of up to $25,000. Assembly Majority Leader Lou Greenwald emphasized the cultural significance of diners, describing them as "something that should be preserved.” The proposal is expected to be considered in early 2026.

FIRMS

PCAOB fines Florida firm

The PCAOB has fined West Palm Beach-based Beckles & Co. $35,000 for failing to timely file Form AP disclosures, marking a significant enforcement action. The firm repeatedly neglected to disclose the names of engagement partners and other audit participants, a requirement since 2017. PCAOB Chair Erica Williams stated: "This action underscores our commitment to transparency and accountability in audit practices." The censure highlights the PCAOB's ongoing efforts to ensure compliance with disclosure requirements, which are crucial for maintaining audit quality and investor trust. Beckles & Co. has agreed to the censure and fine.

CBIZ eyes leadership expansion

CBIZ Inc., based in Cleveland, has expanded its leadership team by appointing three new senior leaders: Bruce Ditman as national leader of industries, David Fisher as vice president of artificial intelligence, and Marina Margarucci as national leader of private client services. Fisher, who previously led KPMG's Global Audit Incubation Hub, said: "We expect significant pushback from the industry as AI integration progresses." This move follows CBIZ's merger with Marcum in 2024, positioning the firm for strategic growth in AI and private client services.

ECONOMY

Fed’s Hammack warns against rate cuts

Cleveland Fed President Beth Hammack sees no need to adjust interest rates before spring, citing inflation concerns. She believes inflation is closer to 2.9–3.0% despite a reported 2.7% November CPI due to data distortions. Hammack, who joins the voting committee next year, warns that rates may already be below neutral, possibly stimulating the economy. “We can stay here for some period of time,” she said, advocating caution until clearer signs of declining inflation or labor weakness emerge. She also noted that businesses may raise prices in early 2026 due to tariffs and rising costs.

Existing home sales rise for third straight month

Existing home sales in the U.S. rose 0.5% in November to an annualized rate of 4.13m, the National Association of Realtors reported on Friday, marking the highest level since February and the longest streak of monthly increases since late 2024. Falling mortgage rates, now averaging 6.21%, have modestly improved affordability and encouraged some buyers back into the market, though high prices and job concerns continue to dampen activity. Inventory levels remain below pre-pandemic norms, and home prices rose 1.2% year-on-year to a median $409,200. Both buyers and sellers remain cautious, with negotiations increasingly fraught and deals more likely to fall through. Sales rose in the Northeast and South, the nation’s biggest home-selling region, but were flat in the West and declined in the Mindwest.
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