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USA
3rd February 2026
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THE HOT STORY

President Trump urges House Republicans to end partial shutdown

President Donald Trump is pressing House Republicans to quickly approve a bipartisan Senate-passed spending package to end a partial government shutdown, urging lawmakers not to add new policy demands that could delay passage. The $1.2tn bill would fund much of the federal government through the fiscal year while extending Department of Homeland Security funding for two weeks to allow further negotiations on immigration enforcement. Some conservative House Republicans want to attach measures such as a voter ID requirement, but Democrats warn such additions would derail the bill and prolong the shutdown. With a narrow majority, House Speaker Mike Johnson is trying to move the package forward largely with Republican votes, while Trump has called for party unity and criticized GOP holdouts. Any changes by the House would send the bill back to the Senate, risking further disruption.

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TAX

IRS updates simple payment plans for businesses

The IRS has recently updated its qualifications for Simple Payment Plans, previously known as streamlined installment agreements, to now include business taxpayers. According to the agency, these plans are long-term payment arrangements available for qualified taxpayers. To qualify, businesses must have assessed taxes, penalties, and interest of $25,000 or less, or $50,000 for out-of-business sole proprietorships. Individuals can qualify with $50,000 or less in assessed amounts. If clients do not meet these criteria, they may still be eligible for other payment plans.

Connecticut considers repeal of income taxes

Connecticut gubernatorial candidate Betsy McCaughey has proposed repealing the state's income tax, a bold move that has raised skepticism among economists. Don Klepper-Smith, chief economist at DataCore Partners, stated: “It is not feasible at this point,” highlighting the precarious fiscal situation that would arise from such a repeal. The income tax currently accounts for nearly 50% of Connecticut's $27.2bn budget. Critics, including Fred V. Carstensen from the University of Connecticut, have dismissed McCaughey's plan as “ridiculous,” pointing out the lack of a clear strategy for replacing lost revenue. McCaughey, however, remains confident, asserting that “being a high-tax, low-growth state is not an act of nature.” She cites examples of other states successfully phasing out their income taxes as a model for Connecticut.

INDUSTRY

AICPA launches 'Profession Ready' initiative for future CPAs

AICPA has launched the Profession Ready Initiative to equip early-career CPAs with essential skills for an AI-driven market. Susan Coffey, chief executive of public accounting at AICPA, emphasized the initiative's importance, saying: "We need to understand what it will take for the next generation of CPAs to thrive in an increasingly complex business world." The initiative will utilize research from SkillEdge to analyze the skills required for aspiring and licensed CPAs, focusing on their development through 2030. The AICPA will conduct surveys and discussions with various stakeholders to gather insights on necessary skills. The findings will be publicly shared in 2027, aiming to create frameworks and resources that benefit both young talent and employers in the accounting profession.

IRS opens applications for ETAAC membership

The IRS has announced that it is accepting applications for the Electronic Tax Administration Advisory Committee (ETAAC) until February 28th. The ETAAC serves as a public forum to address electronic tax administration issues, including identity theft and refund fraud prevention. The committee aims to promote paperless filing as the preferred method for tax submissions. The IRS is looking for qualified individuals with experience in state tax administration, cybersecurity, tax software development, and customer service initiatives. "The IRS also strongly encourages applications from people representing the viewpoints of average taxpayers," the agency said. Applicants must complete the ETAAC application, provide a statement of interest, and undergo background checks. The committee was established by the Internal Revenue Service Restructuring and Reform Act of 1998.

FIRMS

Grant Thornton appoints Craig Woodfield to lead assurance quality and risk

Grant Thornton US has appointed Craig Woodfield as national managing partner for assurance quality and risk, effective immediately. Based in New York, Woodfield will oversee quality control and risk management across the firm’s audit and assurance practice, succeeding Jeff Hughes, who retires in June after 40 years with the firm.

Macke joins Kirkland & Ellis as tax practice partner

Jonathan Macke has joined Kirkland & Ellis as a partner in its tax practice group, where he will provide guidance on the tax implications of corporate transactions, including mergers, acquisitions, and financing deals. He also specializes in partnerships and private investment funds. Previously, Macke was with Weil, Gotshal & Manges.

ECONOMY

U.S. manufacturing returns to growth as orders surge in January

U.S. factory activity expanded for the first time in a year in January, driven by a sharp rebound in new orders, according to data from the Institute for Supply Management. The manufacturing PMI rose to 52.6, its highest level since August 2022 and well above forecasts, signalling a return to growth after 10 months of contraction. New orders jumped to their strongest level in nearly three years, while the pace of job losses eased. However, the recovery remains fragile, with tariffs pushing up input costs, slowing supplier deliveries and keeping inflationary pressures elevated, even as broader manufacturing output and employment continue to lag.

INTERNATIONAL

U.S. agrees to cut tariffs on India to 18% in trade deal tied to Russian oil exit

The United States has agreed to reduce tariffs on Indian goods to 18% under a new trade deal, after India committed to stop buying Russian oil and significantly increase purchases from the U.S., President Donald Trump has said. The agreement removes both the previous 25% “reciprocal” tariff and an additional 25% levy imposed over India’s Russian oil imports. As part of the pact, India has also pledged to lower tariffs and non-tariff barriers on U.S. goods to zero and to buy up to $500bn of American energy and agricultural products. The deal follows months of strained negotiations but comes amid resilient bilateral trade, with Indian exports such as pharmaceuticals, electronics and smartphones continuing to grow strongly despite earlier tariff measures.

Global consultancies test China boundaries

Reuters reports that top consulting firms including KPMG, EY and Bain & Co are doing business in China in ways that some industry and legal experts say test the boundaries of Western sanctions. Interviews by Reuters with 10 current and former industry figures and a review of engagement agreements and company communications are said to demonstrate how the consultancies have sought to maneuver around evolving constraints.

Former U.K. ambassafor's emails to Epstein exposed

Documents from the Department of Justice reveal that Peter Mandelson, former U.K. ambassador to the U.S., leaked sensitive U.K. government emails to Jeffrey Epstein while serving as a minister in 2009. The emails discussed tax policy proposals aimed at encouraging private sector investment post-financial crisis, including potential asset sales worth £20bn ($27bn) to reduce government debt. Following the release, Prime Minister Keir Starmer suggested Mandelson should resign from the House of Lords, emphasizing that he should not hold a position there. Mandelson recently left the Labour Party to avoid further embarrassment amid allegations of receiving £75,000 from Epstein, which he denies. 
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