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Accountancy Slice
USA
7th April 2026
 

THE HOT STORY

Average tax refund hits $3,521

In the week ended March 27th, the average tax refund rose to $3,521, marking an 11.1% increase from 2025's $3,170, according to the IRS. The agency has issued 62.9m refunds so far this year, compared to 61.5m at the same time last year. Direct deposit refunds average $3,512, up from $3,236 in 2025, with total refunds reaching $221bn, up from $195bn. Despite this increase, the number of returns filed and processed has decreased by 1.3% and 1.1%, respectively. The rise in refunds is partly due to changes in the tax code from the One Big Beautiful Bill Act, which eliminated taxes on overtime and tips and increased the standard deduction. The White House anticipates average refunds will exceed $1,000 in 2026, although they have not yet reached that level. Taxpayers must file their 2025 returns by April 15th 2026, to avoid penalties.

TAX

New tax rules for opportunity zones revealed

The IRS and the Treasury Department have released guidance for states, territories, and the District of Columbia on nominating census tracts as qualified opportunity zones (QOZs) under the One Big Beautiful Bill Act (OBBBA). This act permanently extends the opportunity zone program from the Tax Cuts and Jobs Act, allowing for more rural areas to attract long-term investments. IRS CEO Frank Bisignano said: "Permanently extending and expanding Qualified Opportunity Zones offers states an opportunity to attract long-term investment into underserved, rural, and economically distressed areas." Starting July 1st 2026, state chief executives can nominate eligible tracts, with the first designations effective January 1st 2027. The OBBBA also introduces specific tax benefits for investments in rural QOZs, enhancing economic development in these communities.

Tax typo costs New Yorkers thousands in refunds

A typo by the New York State Department of Taxation and Finance has led to over 50,000 tax filers either paying more taxes or receiving smaller refunds. The error, identified in a withholding table on tax forms, primarily impacted those married filing jointly or qualifying as a surviving spouse with an adjusted gross income between $107,650 and $161,550. The department said: “affected returns will be reprocessed automatically, and corrected notices, including any additional refund amounts, will be sent directly to affected taxpayers.” The issue has affected approximately 52,000 individuals, which is less than 1% of the expected filers this season. As of now, around 6m New Yorkers have filed their tax returns, with the deadline approaching on April 15th.

Wisconsin Gov. vetoes tax relief for tips

On Friday, Wisconsin Gov. Tony Evers vetoed legislation aimed at eliminating state taxes on tips, citing the lack of broader tax relief for middle-class earners. Evers stated: “We should not be at the whims of a Republican-controlled Congress that has no problem gutting basic necessities and services.” The vetoed bill, Senate Bill 36, would have removed state income taxes on up to $25,000 of qualified tips, aligning with recent federal policy. Evers also rejected a bill that would have eliminated state income taxes on overtime. In response, Rep. Amanda Nedweski criticized Evers, saying: “Evers just turned his back on service workers.”

INDUSTRY

FASB tackles emerging financial trends

The FASB has initiated a new project to explore current trends and challenges in areas like data infrastructure and nontraditional lending, particularly the private credit market, which is under scrutiny. The FASB's staff will gather feedback from stakeholders to assess the relevance of existing standards and identify potential enhancements. This initiative comes as investors express concerns over the private credit market, leading firms like Blue Owl Capital to limit redemption requests. Additionally, data infrastructure providers are struggling to meet the rising demand for data centers, especially for artificial intelligence, amid local opposition to new constructions.

FIRMS

Sax expands with Faz Forensics acquisition

Sax, a top 75 accounting firm, has acquired Faz Forensics, a boutique CPA firm based in Saratoga Springs, NY, effective March 20th. This acquisition adds 18 team members, including five partners, and two new offices in Saratoga Springs and Boston. The deal marks Sax's fourth M&A deal this year, enhancing its resources and expertise in complex disputes and investigations. Founded in 2016, Faz Forensics is known for its rigorous analysis in high-stakes financial matters and aims to maintain its personalized service while expanding capabilities through this merger.

ECONOMY

U.S. services inflation jumps as Iran war drives costs higher

Inflation pressures across the U.S. services sector accelerated sharply in March, with the ISM prices index rising to 70.7 from 63.0, marking its largest monthly increase in more than 13 years and the highest level in four years. The surge was driven primarily by rising energy costs linked to the ongoing Iran war, with businesses warning that higher oil prices are feeding through into broader input costs and threatening to erode consumer purchasing power. Despite these mounting cost pressures, the services sector continued to expand, with the headline ISM index easing to 54 from 56.1, indicating slower but still positive growth. The majority of industries reported expansion, though retail, agriculture and public administration contracted, pointing to uneven performance across the economy. Notably, employment in the sector weakened, with the jobs index falling into contraction territory at 45.2 from 51.8, signalling potential softening in labor demand. The combination of persistent inflation and slowing growth highlights a more challenging outlook for the U.S. economy, as policymakers monitor whether energy-driven price increases begin to spread more broadly ahead of upcoming inflation data.

REGULATORY

U.S. Treasury calls in regulators for talks on private credit risks

The U.S. Treasury plans to meet domestic and international insurance regulators over the risks in private credit after recent upheaval in the multitrillion-dollar market. "This first series of meetings will facilitate greater ​regular communication with the state insurance regulators, who serve as the insurance ⁠industry's primary regulators, and lay the groundwork for sustained close collaboration," the department said. Initial meetings “will allow participants to survey recent market events, emerging risks, risk management practices and outlooks for the sector,” it added. The meetings are scheduled to begin this month and continue through early May.

PERSONAL FINANCE

BNY and Robinhood team up for Trump accounts

Bank of New York Mellon and Robinhood Markets will manage the "Trump accounts" for children, part of the One Big Beautiful Bill Act. BNY will oversee the initial accounts and develop an app, while Robinhood will act as the brokerage and initial trustee, according to the U.S. Treasury Department. The initiative aims to automatically seed an account with $1,000 for each child born from January 1, 2025, to the end of 2028. The accounts will be invested in U.S. stock index funds and locked until the child turns 18. Michael and Susan Dell have pledged $250 each to 25m children, totaling $6.25bn, to kickstart the investment accounts.

LEGAL

Supreme Court declines to hear tribal tax case, leaving Oklahoma ruling in place

The Supreme Court has declined to hear a case brought by Muscogee (Creek) Nation citizen Alicia Stroble challenging Oklahoma’s authority to impose state income tax on tribal members living and working on tribal land, leaving in place a prior state court ruling against her. The decision, issued without comment, effectively ends the immediate legal challenge but leaves broader questions over tribal sovereignty and state taxing powers unresolved, with tribal leaders signaling potential further action in federal courts and state officials arguing the outcome reinforces limits on the landmark McGirt ruling’s application to civil and tax matters.

OpenAI wants California and Delaware to probe Elon Musk's 'anti-competitive behavior’

OpenAI is calling on the California and Delaware attorneys general to consider investigating Elon Musk and his associates' "improper and anti-competitive behavior" ​ahead of a trial between the two sides that is due ‌to begin this month. The upcoming jury trial will consider claims that the generative AI company defrauded Musk by ditching the nonprofit structure that it had when he initially donated to the startup. OpenAI and Microsoft - a subsequent $13bn investor in the startup - have denied Musk's claims. Musk is seeking as much as $134bn in damages from OpenAI and Microsoft. On Monday, the ChatGPT maker sent a letter to ​California Attorney General Rob Bonta and Delaware Attorney General Kathy Jennings, saying ‌the ⁠lawsuit would effectively cripple the organization.

LEADERSHIP

H&R Block CEO: Fear of reaching out holds many back from leadership roles

H&R Block chief executive Curtis Campbell has said the biggest barrier preventing middle managers from reaching the C-suite is a deeply human fear of rejection that stops them from seeking mentorship, building relationships, and learning from others. Campbell, who rose from a modest background to lead the company, emphasized that career advancement depends less on raw intelligence and more on persistence, strong performance, and a willingness to ask for guidance. He encourages professionals to actively seek out colleagues with specific strengths, noting that learning directly from high performers can accelerate development more than formal programs. He stresses that visibility and networking only matter when backed by consistently high-quality work, arguing that credibility is built through excellence in any role. Ultimately, Campbell said those who overcome hesitation, deliver strong results, and proactively learn from others are more likely to break out of mid-level roles and advance into senior leadership. 

CYBERSECURITY

Hackers steal $280m from decentralized finance crypto exchange Drift

Hackers have stolen $280m from Drift, the largest so-called perpetual futures exchange on the Solana blockchain. Blockchain analytics firm Elliptic said the heist shows multiple hallmarks of North Korean state-sponsored DPRK hackers. “It is a continuation of the DPRK’s sustained campaign of large-scale cryptoasset theft, which the U.S. government has linked to the funding of its weapons programs. DPRK-linked actors are believed to be responsible for billions of dollars in cryptoasset theft in recent years,” Elliptic said.

INTERNATIONAL

U.K. tax compliance yield hits £24.2bn

HM Revenue & Customs (HMRC) in the U.K. has reported a significant compliance yield of £24.2bn ($32bn) over nine months in 2025-2026, alongside preventing £8.5bn in tax losses. This focus on large corporates, particularly those with revenues exceeding £200m, is driven by the need to address substantial tax losses from these entities. Matthew Greene, a partner at Stewarts, emphasizes that "businesses with exposure to the U.K. should act now to ensure that their audit trails are robust and complete." The report indicates that HMRC's increased scrutiny and modernized IT infrastructure will likely lead to more disputes and resource-intensive investigations, making it crucial for businesses to prepare adequately.

AND FINALLY...

IRS CEO entangled in legal dispute over Muhammad Ali fight shorts

IRS chief Frank Bisignano is embroiled in a long-running legal dispute with entrepreneur Eric Inselberg over the alleged possession of Muhammad Ali’s 1977 boxing shorts, which Inselberg claims were used as collateral for a $500,000 loan and never returned. Mr. Bisignano denies ever receiving the trunks, with the case hinging on conflicting accounts, disputed evidence, and witness testimony ahead of a trial now delayed until September.
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