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Accountancy Slice
USA
17th February 2026
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THE HOT STORY

Average U.S. tax refunds up nearly 11% early in filing season

Early tax filers in the U.S. are receiving significantly larger refunds this year, with the average refund reaching $2,290 as of February 6th 2026, nearly 11% higher than at the same point last year, according to IRS data. The increase is partly attributed to new tax provisions introduced in legislation signed in July 2025. Analysts expect refunds to rise further as the season progresses, particularly once claims for credits such as the Earned Income Tax Credit and Additional Child Tax Credit are processed. So far, the IRS has received about 22.4m returns, slightly fewer than last year. Refund amounts typically peak in mid-February before tapering off. While higher-income households are expected to see the largest gains, lower-income taxpayers will also benefit, though to a lesser extent.

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TAX

Massachusetts considers delaying tax changes

Massachusetts Gov. Maura Healey has proposed postponing the implementation of five costly changes in the federal tax code from the One Big Beautiful Bill Act until next year. Advocates, including Phineas Baxandall from the Massachusetts Budget and Policy Center, are urging lawmakers to permanently opt out of these tax changes to protect state-funded programs. Baxandall said: “Massachusetts has an opportunity to better protect our financial security and reject the inequitable and ineffective policies being thrust upon us by the federal government.” The proposed delay aims to mitigate a projected $442m reduction in state revenues for the fiscal year. Healey's plan includes delaying a provision that would allow businesses to fully deduct research costs, potentially saving the state $288m in the next fiscal year. Critics argue that the state should tighten its spending instead of delaying tax reforms.

Wisconsin GOP tax relief plan faces hurdles

Republican leaders in Wisconsin, including Senate Majority Leader Devin LeMahieu and Assembly Speaker Robin Vos, have proposed a tax relief package to Gov. Tony Evers, aiming to address rising property taxes and costs amid a $2.5bn surplus. In their letter, they stated: "This is a generous, good-faith attempt to achieve our mutual goals." However, the proposal lacks the $450m in funding for schools that Evers requires for agreement. The GOP's plan includes $500m for the school levy tax credit, $1.5bn in income tax rebates, and $200m for special education costs. Evers has indicated openness to negotiations but has emphasized the need for substantial school funding increases. The Assembly is expected to finalize its work this month, while the Senate will reconvene in March.

INDUSTRY

AICPA urges IRS to simplify tax rules for controlled foreign corporations

AIPCA has asked the Treasury Department and the IRS to simplify the "determine and document" requirement for taxes imposed on controlled foreign corporations. In a letter addressing Notice 2025-75, the AICPA highlighted that U.S. taxpayers may encounter significant challenges in obtaining necessary tax information, especially for transactions that have already closed. Reema Patel, senior manager for tax policy and advocacy at AICPA, said: "This guidance does not explain what level of analysis, substantiation or third-party information is required to comply with the 'determine and document' requirement." AICPA recommends that the IRS either eliminate or significantly reduce the documentation requirements to ease compliance burdens for taxpayers.

FIRMS

PwC Canada launches ISO 42001 AI Governance Certification

PwC Canada has introduced a new certification solution aligned with ISO 42001, the world’s first international standard for AI management systems, aimed at helping organizations govern artificial intelligence responsibly. The firm says it is the first of the Big Four to offer accreditation services for the new standard, which provides an auditable framework for AI governance. The certification is designed to give organizations independent assurance that their AI systems are developed and managed in a trustworthy and transparent manner. The new offering helps businesses strengthen AI oversight frameworks, assess data management practices to reduce bias and model risk, enhance security controls, and test monitoring systems. PwC leaders said embedding trust into AI systems from the outset will enable organizations to scale AI confidently while managing risks and demonstrating accountability to customers and regulators.

ECONOMY

Federal Reserve set to loosen U.S. bank rules in attempt to boost mortgage lending

The Federal Reserve is preparing to loosen capital requirements for U.S. banks in an effort to encourage greater participation in mortgage lending, according to Fed vice-chair for supervision Michelle Bowman. The proposed changes aim to reverse the long-term shift of mortgage origination and servicing from banks to non-bank lenders, whose market share has grown significantly since 2008. Bowman said current capital rules overstate the risks of mortgage activities, making them too costly for banks. Planned reforms include removing the requirement for banks to deduct mortgage servicing rights from regulatory capital and reconsidering their high risk weighting. The Fed may also allow banks to adjust capital levels based on loan-to-value ratios rather than applying a uniform standard. Officials argue the changes would strengthen bank involvement in home lending without undermining financial stability.  

CORPORATE

Toys ‘R’ Us Canada stops accepting gift cards amid creditor protection

Toys “R” Us Canada has stopped accepting gift cards as part of its ongoing creditor protection proceedings. Court documents show the retailer had more than C$36m ($26.38m) in outstanding gift card liabilities when it filed for protection earlier this month. A judge approved a 14-day grace period for customers to redeem cards, which expired Monday, and also authorized potential liquidation of more of its remaining 22 stores if lease talks fail. With e-commerce sales still paused during a website revamp, customers can only use gift cards in-store before the deadline.

DEI

Goldman Sachs plans to drop DEI from board-candidate criteria

Goldman Sachs plans to eliminate race, gender identity, sexual orientation, and other diversity-related factors from the criteria its board uses to assess prospective candidates. The bank's decision follows a request that it removes the DEI criteria from the conservative activist nonprofit National Legal and Policy Center, a small shareholder in the lender. The Wall Street Journal notes that the DEI climate has changed radically for companies in recent years. A turning point was President Trump’s executive order last year directing federal departments and agencies to launch civil investigations into corporate DEI programs.

TECHNOLOGY

AI threatens millions of office jobs, says Microsoft boss

Mustafa Suleyman, Microsoft's AI chief, predicts that most white-collar jobs could be fully automated within 12 to 18 months. He said that AI is nearing "human-level performance" in tasks including law, accounting, and project management. Suleyman noted that AI-assisted coding is already common in software engineering. The potential job losses could be severe, with estimates suggesting up to 80% of entry-level positions might be at risk.

CRYPTO

Tax enforcement chiefs warn on crypto trading and payments

The Joint Chiefs of Global Tax Enforcement, a group of five national tax authorities including the Internal Revenue Service's Criminal Investigation unit, along with the U.K., Canada, Australia and the Netherlands, has issued advisories on the risks posed by over-the-counter (OTC) cryptocurrency trading desks and payment processors. The group says these platforms facilitate illicit activities, allowing users to bypass anti-money laundering controls. Daily trading on OTC desks has reached $1.44bn, significantly overshadowing crypto exchanges. The advisories highlight that nearly $236bn in suspicious activity has been reported to the Financial Crimes Enforcement Network. The J5 recommends using specific keyword searches to identify money laundering patterns.

INTERNATIONAL

KPMG partner fined for AI cheating

A partner at KPMG Australia has been fined A$10,000 ($7,000) for using artificial intelligence to cheat on an internal training exam on AI. The unnamed partner uploaded training materials to an AI platform to answer questions, violating company policy. Over two dozen KPMG Australia staff have been caught using AI tools to cheat on internal exams since July, according to the firm. Andrew Yates, chief executive of KPMG Australia, said: "Like most organizations, we have been grappling with the role and use of AI as it relates to internal training and testing. It's a very hard thing to get on top of given how quickly society has embraced it."

New tourist taxes hit U.S. travelers hard

In 2026, travelers will face increased costs due to new tourist taxes and fees implemented globally. These changes aim to manage crowds and ensure local communities benefit from tourism. Notable changes include the United Kingdom's Electronic Travel Authorization (ETA) costing £16 (about $22) and the European Union's ETIAS, which will charge €20 (about $24) for short trips. Additionally, cities like Kyoto in Japan will raise their tourist tax by 900%, while Hawaii will impose a 10% tax on hotel stays. Edinburgh in Scotland will introduce a 5% levy on accommodations, which is projected to raise over £100m by 2030.

U.S. tariffs hit South African wine exports, U.N. warns

U.S. tariffs of up to 30% on South African agricultural goods are hurting the country’s wine and fruit producers, making exports less competitive in the American market, according to the United Nations Conference on Trade and Development (UNCTAD). The duties have made South African wine around 17 percentage points more expensive relative to other imports compared with 2024 prices. As a result, U.S. imports of affected goods fell 11% in the third quarter and 39% in the final quarter of the year. UNCTAD said the tariff regime is reshaping competitiveness unevenly across sectors and urged countries to diversify export markets and closely monitor their relative tariff positions.
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