Accountancy Slice
Become informed in minutes...
Accountancy Slice
USA
25th February 2026
Together with
Finquery Brand Logo

THE HOT STORY

President Trump proposes TSP-style retirement plan for workers without 401(k)s

President Donald Trump has announced plans to create a new tax-advantaged retirement savings option for private-sector workers who lack access to employer-sponsored 401(k) plans. In his State of the Union address on Tuesday, Mr. Trump said the proposed plan would be modeled after the federal government’s low-fee Thrift Savings Plan (TSP) and would include a government matching contribution of up to $1,000 per year. The move aims to address what he described as a disparity between workers who have workplace retirement plans and the roughly 56m private-sector employees who do not. The proposal builds on the “Savers Match” program included in the 2022 Secure 2.0 legislation passed under President Joe Biden, though Trump plans to modify it to ensure portability and potentially allow philanthropic contributions. Additional details are expected from the administration. Mr. Trump also criticized the Supreme Court justices who struck down most of his tariffs as "very unfortunate" and "disappointing," a rare instance of high court criticism during a State of the Union address.

CONTINUOUS LEASE ACCOUNTING COMPLIANCE

The Ultimate Lease Accounting Guide

Lease accounting compliance was not a one-time project; it is a continuous cycle of updates and reconciliations. This 44-page guide is designed for accountants managing the ongoing complexities of ASC 842, including lease modifications, term reassessments, and asset impairments. Ensure your balance sheet reflects the current reality of your portfolio. Gain the technical clarity needed for accurate payment reconciliations and robust disclosures with CPA-tested examples and step-by-step instructions.

Get the Guide

 

TAX

States rethink property tax policies

More than a dozen states are exploring reforms or outright elimination of property taxes, which provide over a third of funding for K-12 schools in the U.S. Mark Lieberman reports that GOP politicians are leveraging homeowner dissatisfaction with rising property tax bills to advocate for reduced government spending. However, proposals to completely abolish property taxes face significant challenges, as voters often reject cuts to essential public services. Recent reforms in states like Indiana and Ohio highlight the potential turmoil for school finance officials. Various strategies are being considered, including replacing property taxes with other revenue sources and amending state constitutions to restrict property tax imposition.

Proposed land port maintenance tax 'shouldn’t become Trump’s backup tariff strategy'

The Trump administration's proposed 0.125% land port maintenance tax aims to align land port shippers with those paying the Harbor Maintenance Fee (HMF). However, the initiative appears more like a contingency plan following the US Supreme Court's ruling against the administration's tariff program, according to Andrew Leahey, an assistant professor at Drexel Kline School of Law. He argues that the tax proposal lacks a meaningful connection to land-border infrastructure needs, saying: "When a fee isn't tied to the thing it claims to maintain, it begins looking more like a subsidy." The proposal raises concerns about its potential to distort trade and impose additional costs on US importers and consumers. Instead of implementing this tax, Mr. Leahey suggests reforming the HMF to better address shipping decisions and cargo routing.

INDUSTRY

AICPA seeks clarity on R&E rules

AICPA is urging the Treasury Department and the IRS to provide guidance on the capitalization and amortization of domestic research and experimentation (R&E) under IRC Section 174A(c). In a letter dated February 19th, Cheri Freeh, chair of the AICPA Tax Executive Committee, highlighted conflicting language in Revenue Procedure 2025-28, which has led to varying interpretations of the election process. AICPA recommends that the IRS clarify that the election under Section 174A(c) should be applied on a project-by-project basis and provide a simplified methodology for determining when taxpayers first realize benefits from R&E expenditures. Reema Patel, senior manager for tax policy and advocacy at AICPA, said: “The AICPA strongly believes that allowing taxpayers to either make the election under Section 174A(c) on a project-by-project basis or on a taxable-year basis will appropriately balance flexibility with administrability.”

Fractional accounting: the future is here

The evolving workforce landscape is reshaping how accounting professionals serve businesses, leading to the rise of the fractional model. Meredith Arlinghaus, founder of Empower Accounting Professionals, explains that this model allows experienced accountants to provide part-time financial leadership across multiple clients, offering strategic insights without the overhead of full-time hires. As businesses face increasing complexity and demand for flexibility, fractional accounting provides access to seasoned professionals who can adapt to varying needs. Arlinghaus notes: "The full-time-or-nothing assumption about financial leadership is fading," highlighting the shift towards a more accessible and flexible approach in the accounting profession. This model not only benefits businesses but also creates new career pathways for accountants seeking work-life balance and autonomy.

FIRMS

Basis secures $100m funding boost

Artificial intelligence (AI)-for-accounting startup Basis has achieved unicorn status after raising $100m in funding, bringing its valuation to $1.15bn. Led by Accel and supported by GV and Lloyd Blankfein, Basis aims to transform the accounting industry with its AI technology. Founded in 2023, the company provides AI agents to assist accounting firms with tasks such as preparing financial statements and filing tax returns. Chief executive Matt Harpe said: "If rote tax returns and financial statements are automated, accountants can focus on higher-level work." Basis has raised a total of $138m and plans to expand its customer base and enhance its tax and audit capabilities.

ECONOMY

U.S. home-price growth slows to weakest pace since 2011

U.S. home-price growth cooled in December to its slowest annual rate in more than a decade, as high mortgage rates and persistent inflation continued to pressure buyers. The S&P Cotality Case-Shiller National Home Price Index rose 1.3% in the 12 months through December, down slightly from November’s 1.4% increase. It marked the weakest full-year gain since 2011. According to S&P Dow Jones Indices, inflation has outpaced home-price appreciation since mid-2025, eroding real home values and reversing a long-standing trend of positive real returns. Elevated borrowing costs have also weighed on the market, with the 30-year mortgage rate ending 2025 at 6.2%, well above its 10-year average of 4.8%. At the metro level, Chicago, New York, Cleveland and Minneapolis posted the strongest annual gains, while Tampa, Denver, Phoenix, Dallas and Miami recorded the steepest declines.

Wholesale inventories edge up in December as sales strengthen

U.S. wholesale inventories rose modestly in December, increasing 0.2% for the second consecutive month, according to Commerce Department data. The report, delayed by last year’s government shutdown, showed inventories were up 2.9% compared with a year earlier. Stock levels saw strong gains in motor vehicles and furniture, while inventories of professional equipment and computer equipment declined. Despite marking a third straight quarterly drawdown, inventories contributed to fourth-quarter GDP growth, which slowed to a 1.4% annualized pace after a stronger 4.4% expansion in the previous quarter. Wholesale sales climbed 1.0% in December following a 1.4% rise in November. At the current sales pace, it would take 1.27 months to clear inventories, slightly down from 1.28 months in November.

AUDIT & REPORTING

Moody's cites data centers accounting gap

Credit rating agency Moody's has warned that U.S. accounting rules let Big Tech companies hide billions in AI data center liabilities, noting that lease costs may not be fully disclosed.

REGULATORY

SEC to give probe subjects more notice

The SEC has said it will give the subjects of investigations more time at the outset to respond to notices of potential charges and an opportunity to meet with staff within four weeks, as the agency moves to update its internal enforcement protocols, which were last published in 2017. The updated enforcement manual will ensure "greater uniformity," SEC enforcement director Margaret Ryan said. "We're trying to be more efficient. This gives [subjects of probes] enough time to focus on legal or factual issues and to respond in a meaningful way," she added. "We're hoping to underscore the importance of open, informed dialogue." Robert Frenchman, a defense lawyer with Dynamis, said: "More predictability is a good thing here. In the past, the process was very ad hoc and informal."

LEGAL

IRS sets new rules for retirement withdrawals

The IRS is preparing to implement final regulations regarding required minimum distributions, which will take effect no sooner than six months after their publication in the Federal Register. In a recent announcement, the agency emphasized the importance of understanding the timing of these changes to avoid tax penalties for savers. Until the new rules are in place, the IRS advises that “taxpayers must continue to apply a reasonable, good-faith interpretation of the statutory provisions underlying the regulations.” These updates stem from the SECURE 2.0 Act, which was announced in July 2024.

BSA data helps IRS-CI nab criminals

The IRS Criminal Investigation unit (IRS-CI) is increasingly relying on data from financial institutions under the Bank Secrecy Act (BSA) for its investigations. In fiscal year 2025, 94% of IRS-CI cases utilized BSA data, leading to over 3.9m searches. IRS-CI Chief Guy Ficco said: "BSA data is often the first signal that something isn't right," as he highlighted its importance in identifying financial crime patterns. From FY23 to FY25, IRS-CI investigated 1,394 cases of refund fraud totaling $2.9bn, with 99% linked to BSA filings. The unit achieved a 98% conviction rate in cases using BSA data, resulting in significant asset forfeitures and restitution for victims. New initiatives like CI-FIRST and the Optimizing Financial Records Request aim to enhance collaboration with financial institutions to combat financial crime more effectively.

Trump administration appears unlikely to win bid to shut down CFPB

A full federal appeals court is exploring the Trump administration's efforts to fire most employees at the Consumer Financial Protection Bureau (CFPB). Judges at the U.S. Court of Appeals for the District of Columbia appeared skeptical of White House claims that federal courts do not have the power to block the government from firing 90% of workers at the consumer financial watchdog.  Deputy Assistant Attorney General Eric McArthur told the full bench of 11 judges that a specialized labor panel known as the Merit Systems Protection Board was the place for workers to challenge their firings and acknowledged that the administration did not have the power to shut the CFPB down entirely because Congress mandated that it exist.

OUTLOOK

U.S. consumer confidence edges higher as job outlook improves

U.S. consumer confidence rose modestly in February, driven by improved expectations for the economy, incomes and the labor market. The Conference Board’s consumer confidence index increased to 91.2 from a revised 89 in January, beating economists’ expectations of 87.1. A measure of expectations for the next six months climbed sharply to 72 - the biggest gain since July - while the gauge of present conditions continued to decline. The uptick comes amid signs that the labor market is stabilizing and inflation pressures have eased, though many Americans remain cautious about job prospects and continue to feel the lingering effects of high post-pandemic prices. The share of consumers saying jobs are plentiful rose to a three-month high of 28%, but the proportion who said jobs are hard to get also increased. The gap between the two measures widened to 7.4 percentage points, a key indicator watched by economists.

WORKFORCE

Mental health days: a workplace necessity

In today's fast-paced work environment, prioritizing mental health is crucial. Bonnie Lane emphasizes the importance of mental health days, saying: "Workers who are burned out from work are nearly three times more likely to be actively searching for another job." Despite the need, less than 5% of employees report receiving additional paid time off (PTO) specifically for mental health. Many workers save their PTO for physical illnesses or family responsibilities, leaving little room for mental health needs. While some companies like LinkedIn and Nike offer mental health days, they often do so on their own schedules. Lane advocates for recognizing the signs of needing a mental health day, such as persistent fatigue and irritability, and encourages employees to take proactive steps for their well-being. Ultimately, creating a culture that supports mental health can lead to improved morale and productivity.

STRATEGY

AI transforms accounting marketing strategies

The landscape of search marketing for accounting firms is evolving as artificial intelligence (AI) gains prominence. Traditional search remains vital, but firms must also optimize for AI platforms like Gemini and ChatGPT. According to Alexander Bick, an economist at the Federal Reserve Bank of St. Louis, "over 55% of people have used generative AI tools" as of August 2025. A 2024 Harris Poll indicates that nearly half of filers are open to using AI for tax assistance. To enhance visibility in AI searches, firms should aim to be cited in reputable media outlets. Shauna Wekherlien, CPA and owner of Tax Goddess, emphasizes the importance of staying updated with tax legislation using AI tools. "AI agents have become an important tool in that process," she states. As AI becomes integral to marketing, accounting firms must ensure their content remains original and authoritative.
Industry Slice

Accountancy Slice delivers the latest, most relevant and useful intelligence to accountants, practice owners, auditors, CFOs and accounting influencers, each weekday morning.

Content is selected to an exacting brief from hundreds of influential media sources and summarised by experienced journalists into an easy-to-read digest email. Accountancy Slice enhances the performance and decision-making capabilities of individuals and teams by delivering the relevant news, innovations and knowledge in a cost-effective way.

If you are interested in sponsorship opportunities within Accountancy Slice, please get in touch via email sales team

Follow us on FacebookFollow us on XFollow us on Linkedin

This e-mail has been sent to [[EMAIL_TO]]

Click here to unsubscribe