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Accountancy Slice
USA
30th March 2026
 

THE HOT STORY

Usage-based billing creates hidden VAT risks for tax teams

Tax teams are facing growing challenges as usage-based billing models clash with VAT requirements, with risks increasingly driven by system design issues - such as timing, data flows, and service classification - rather than misunderstandings of tax rules. Key problem areas include the treatment of “free” usage within paid plans, where systems may incorrectly split a single taxable supply; prepayments and unused credits, where VAT is often due upfront regardless of revenue recognition; and delayed “true-up” billing, which can trigger penalties if VAT is not reported in the correct periods. Additional risks arise from misclassifying services - particularly when bundled offerings mix automated and human elements - leading to incorrect tax treatment across jurisdictions. Aleksandra Bal, global tax technology lead at Stripe, says that VAT compliance in modern billing environments depends heavily on system architecture, requiring tax teams to engage closely with billing and data systems to ensure accurate and timely tax reporting. 

TAX

OpenAI investor says AI requires an income tax overhaul

Vinod Khosla, an early investor in OpenAI, advocates for a significant overhaul of the U.S. tax system in response to the rise of artificial intelligence (AI). He proposes exempting nearly 125m lower- and middle-income Americans from income tax, funded by increasing capital gains taxes. Khosla stated: "The biggest thing is fear of AI taking their job." He predicts that AI could perform 80% of tasks in 80% of jobs within 25 years, making universal basic income essential. Khosla also criticizes the current tax system for favoring wealth over work.

Iowa raises insurer tax to secure federal Medicaid funding

Iowa Gov. Kim Reynolds has signed legislation increasing taxes on private health insurers to help fund the state’s Medicaid program and unlock additional federal support. The law temporarily raises the tax rate on health maintenance organizations from 0.925% to 3.5% through September before dropping to 0.95%, a move expected to generate over $120m and help address a projected $167.6m Medicaid shortfall in fiscal 2027. The measure also allocates $89m to cover the current year’s Medicaid deficit and draws $347m from the state’s Taxpayer Relief Fund to offset budget impacts from federal tax changes. While Republicans argue the policy is necessary to secure federal matching funds, critics warn it could lead to higher insurance premiums, with some lawmakers from both parties opposing the bill.

INDUSTRY

Mastering BSA/AML for accountants

Accounting firms are increasingly scrutinized by banks and regulators regarding Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) risks. Although not banks themselves, these firms influence their clients' risk profiles through services like trust accounting and international tax planning. To mitigate risks, firms must implement strong internal controls, clear documentation, and effective IT practices. Key actions include standardizing client onboarding, defining risk triggers, and training staff. Additionally, firms should ensure their technology supports their risk posture by securing client-fund systems and monitoring system activity. By aligning BSA/AML readiness with existing quality-control practices, firms can enhance client relationships and streamline banking interactions.

ECONOMY

U.S. consumer sentiment falls in March as fuel prices surge

U.S. consumer sentiment declined in March, with the University of Michigan index falling to 53.3 from 56.6 in February, as rising gasoline prices and uncertainty linked to the Iran war weighed on confidence. The drop, which was steeper than expected, was driven by weaker short-term economic expectations, although longer-term outlooks remained relatively stable for now. Higher fuel costs, up around 33% month-on-month to nearly $4 per gallon, alongside stock market declines that hit wealthier households, contributed to the downturn. The survey also showed rising short-term inflation expectations, raising concerns for policymakers that sustained pessimism could influence spending behavior and wage demands. “The persistence of high prices continues to be the dominant factor for consumer views of the economy, with 47% of consumers spontaneously noting that prices are currently eroding their personal finances,” Joanne Hsu, director of the survey, said in a statement. “Consumers with middle and higher incomes and stock wealth, buffeted both by escalating gas prices and volatile financial markets in the wake of the Iran conflict, exhibited particularly large drops in sentiment."

REGULATORY

FTC warns major payment firms over alleged 'debanking' practices

The Federal Trade Commission (FTC) has issued warnings to Mastercard, Visa, PayPal, and Stripe against denying customers access to financial services based on political or religious views, citing a recent executive order from President Trump targeting so-called “debanking.” FTC Chair Andrew Ferguson said that removing customers or restricting access in ways inconsistent with company policies could trigger investigations and enforcement under consumer protection laws, with particular scrutiny on allegations that some platforms have excluded users for ideological reasons. The move forms part of a broader push by the administration to address claims of discrimination within the financial system, though the companies have not publicly responded to the warnings.

LEGAL

U.S. appeals court overturns YPF judgement against Argentina

Judges in New York’s federal appeals court have overturned a ruling that found Argentina liable to pay $16bn to former shareholders of the oil major YPF. Burford Capital, which financed the case, described the decision that overturned a judgement against Argentina for nationalising YPF in 2012 "very disappointing" and an "abandonment of minority shareholder rights." Bloomberg observes that the ruling is a significant victory for Argentine President Javier Milei, who had refused to negotiate with the plaintiffs, and helps clear his government’s path to a return to international markets at some point.

Elon Musk’s lawyer accuses San Francisco jury of bias

Elon Musk’s defense attorney Alex Spiro has accused a San Francisco federal jury of “mocking” the billionaire by including “$4.20” among the figures pertaining to damages in a class-action suit that accused the billionaire of misleading Twitter investors. In a letter to U.S. District Judge Charles Breyer, Spiro argued the verdict was “corrupted” by bias and denied his client a fair trial. The number 420 is associated with marijuana culture, Reuters explains. Musk has often ⁠mentioned 420 in interviews and tweets, and used it in business activities. Spiro said the jury's "numerical joke" was "no doubt intentional," but Frank Bottini and Mark Molumphy, two of the investors' lawyers, in a joint statement ‌called ⁠Spiro's letter meritless.

Taxpayers push for interest suspension

Recent decisions from the U.S. Tax Court and the U.S. Court of Federal Claims have led taxpayers to argue for the suspension of interest on tax deficiencies during the Covid-19 pandemic, from early 2020 to mid-2023. The crux of their argument is based on Section 7508A(d), which allows for a mandatory disaster relief period. The potential benefit of a 39-month interest suspension has resulted in numerous lawsuits and motions. Taxpayers are increasingly claiming that interest on deficiencies should not accrue until July 2023, following the end of the pandemic declaration. The IRS has shown signs of agreeing with this stance in recent cases, indicating a possible shift in its approach to interest suspensions. Taxpayers are encouraged to review their IRS interest computations and consider claims for refunds of excessive underpayment interest.

REMUNERATION

Demand for AI skills in accounting roles surges as salaries diverge

A new report from Datarails highlights a rapid shift in the finance job market, with mentions of artificial intelligence and machine learning in accountant job postings rising 67% year-on-year, from 18% in January 2025 to 30% in January 2026, signalling that AI capability is becoming a core expectation rather than a niche skill. The trend spans the wider finance function, with AI referenced in 43% of FP&A roles (up from 33%), 24% of controller roles, and 31% of all finance job postings overall, while CFO roles remain steady at 27%. Employers are increasingly seeking candidates who can apply AI and automation to improve workflows, efficiency, and decision-making, reflecting a broader transformation of the “CFO’s office” toward data-driven and technology-enabled operations. At the same time, the report shows a divergence in compensation and role value. CFO salaries are rising, with lower-range pay up 9% to $176,000 and upper ranges reaching $219,000, while accountant salaries have declined, with top-end pay falling from $123,000 to $111,000. This suggests growing concentration of value at senior, strategic levels, while automation pressures mid-level roles. 

ESG

AI boom is undermining Big Tech’s climate targets

The rapid expansion of artificial intelligence (AI) is driving a surge in energy demand that is increasingly forcing major technology companies to rely on fossil fuels, putting their climate commitments at risk. Companies such as Google, Microsoft, Amazon, and Meta are struggling to meet ambitious emissions targets as they build energy-intensive data centers, with many now acknowledging their goals may be delayed or harder to achieve. Despite record purchases of renewable energy, overall emissions have risen sharply—by nearly 50% at Google and more than 60% at Meta—while natural gas has become a key power source for data centers amid limited clean energy supply and grid constraints. Policy shifts, including reduced support for renewables, are further complicating the transition, prompting companies to adopt an “all-of-the-above” energy strategy that risks prolonging reliance on fossil fuels even as they continue investing in clean technologies.

CRYPTO

Stablecoins increasingly used as payment rails, not assets, CFOs say

A PYMNTS report shows that corporate adoption of stablecoins remains cautious, with 88% of firms converting them into U.S. dollars immediately, signaling that chief financial officers view them primarily as transactional tools rather than stores of value. This behavior reflects a risk-focused mindset, as CFOs prioritize financial stability, regulatory clarity, and balance sheet certainty, avoiding exposure to concerns around issuer transparency, compliance, and systemic risk. Instead of holding stablecoins, companies are using them selectively to improve payment efficiency - particularly in cross-border transactions, real-time payouts, and operations in regions with weaker banking infrastructure - where they can reduce settlement times and potentially lower costs. Adoption remains modular rather than transformational, with firms integrating stablecoins into specific workflows where benefits are clear, while maintaining traditional currency frameworks for core accounting and treasury functions.

INTERNATIONAL

EY boosts U.K. provisions for legal claims and regulatory fines amid audit scrutiny

EY has increased its U.K. provisions for legal claims and regulatory penalties by £188m to £232m ($307.9m) for the year to June 2025, reflecting mounting scrutiny over its audit work and ongoing investigations. The rise from £44m the previous year comes as the firm faces multiple regulatory probes, including a continuing Financial Reporting Council investigation into its audits of NMC Health, alongside several other inquiries. The move follows EY’s settlement of a £2bn claim related to NMC Health, for an undisclosed amount and without admission of liability, although it is unclear whether the new provision is linked to that case; the firm also paid £48m against claims during the year.
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