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Accountancy Slice
USA
8th May 2026
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THE HOT STORY

U.S. trade court strikes down Trump’s replacement global tariffs

A U.S. federal trade court has ruled that President Donald Trump unlawfully used Section 122 of the Trade Act of 1974 to impose 10% global tariffs introduced earlier this year after the Supreme Court blocked his broader worldwide tariff regime. The divided three-judge panel at the U.S. Court of International Trade found that the statute did not give the president authority to implement the tariffs in the manner proposed, with two judges ruling in favor of the plaintiffs and one dissenting. The court barred the administration from collecting the tariffs from Washington state and the two companies that brought the legal challenge, spice importer Burlap & Barrel and toy maker Basic Fun!, although the ruling does not currently apply nationwide. Legal experts said the decision nevertheless creates an important precedent that other importers could use to seek similar relief. The tariffs had been introduced under Section 122, a Nixon-era provision allowing temporary import surcharges of up to 15% in response to serious balance-of-payments issues. Critics argued the law was never intended to support broad modern tariff policies tied to long-running trade deficits. The Trump administration is expected to appeal the decision.

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TAX

Central Ohio voters back tax renewals while rejecting most new levies

In the May 2026 primary election, over half of the tax increase levies in Franklin County and its neighboring counties were approved, according to an analysis by The Dispatch. While all five renewal-only levies passed, many additional tax requests were rejected, particularly in Licking County, where none of the six proposed levies succeeded. Only one tax question, a renewal for fire and EMS services in Hanover, was approved. Franklin County saw most tax levies pass, but a significant request for funding a second fire station failed for the third time. Thomas Hosler, chief executive of the Ohio School Boards Association, noted: “Renewals are holding, but new asks are harder,” reflecting the cautious approach voters are taking amid rising costs.

Washington Supreme Court blocks tax referendum

The Washington Supreme Court ruled on Monday that a conservative political committee's attempt to repeal the state's new income tax law via referendum is invalid. The court upheld the law's "necessity clause," which protects it from such challenges, stating it "undisputedly generates revenue for the state's existing institutions." Brian Heywood, leader of the Let's Go Washington group, criticized the decision, claiming it allows Democratic leaders to "spend beyond their means." Meanwhile, House Majority Leader Joe Fitzgibbon expressed satisfaction with the ruling, viewing it as a positive outcome for tax reform. The law imposes a 9.9% tax on household income exceeding $1m starting in 2028, and opponents now face a more challenging path to initiate a repeal.

INDUSTRY

SEC official calls for elimination of PCAOB auditor independence rules

A senior SEC official believes the PCAOB should rescind its auditor independence rules and instead rely solely on the SEC’s standards governing auditor conflicts of interest. SEC Chief Accountant Kurt Hohl said the regulator plans to review and potentially revise auditor independence rules over the next year, beginning with informal guidance addressing recurring industry questions. Broader rule changes could later address more complex issues, including how artificial intelligence tools used in financial reporting may affect auditor independence. Mr. Hohl argued that separate PCAOB independence rules are unnecessary because the SEC already has ultimate authority over auditor independence standards. He said some PCAOB rules, many of which date back to accounting industry standards from the 1980s and 1990s, now conflict with more modern SEC regulations and create unnecessary compliance challenges for companies and auditors. The SEC eased some independence requirements in 2020, while the PCAOB’s standards have remained largely unchanged aside from limited updates, including restrictions on auditors providing certain tax services to audit clients.

FASB appoints five new members to Public Markets Advisory Committee

The FASB has appointed five new members to its Public Markets Advisory Committee (PMAC), which advises the board on issues affecting public companies, particularly smaller listed businesses and firms preparing to enter public markets. The new PMAC members are Brad Broberg of RSM US, Pieter Combrink of CBIZ CPAs, Mary Hill of Kennesaw State University, Niall O’Malley of Blue Point Investment Management, and Abhay Srivastava of AS Investment Partners. FASB Chair Richard Jones said the appointees’ backgrounds in accounting, investment management, and academia would strengthen discussions around standard-setting issues impacting smaller public companies. The PMAC serves in an advisory capacity to FASB and its staff, providing feedback on accounting and reporting matters relevant to the public markets. The committee’s next meeting is scheduled for May 14th.

FIRMS

Intuit launches AI-powered workforce management platform for SMBs

Intuit has introduced QuickBooks Workforce, a new artificial intelligence (AI)-powered human capital management platform designed to help small- and medium-sized businesses manage payroll, recruiting, benefits, compliance, and employee performance within a single system. The company said SMBs often rely on between seven and 25 separate workforce management tools, creating operational complexity and adding an estimated $120,000 in annual software costs. QuickBooks Workforce aims to simplify those processes by combining workforce functions into one platform supported by agentic AI and human expertise. The system uses AI agents to automate recurring tasks, including payroll processing, time tracking validation, and identifying payment inconsistencies before payroll is completed. Higher-tier subscribers will also have access to personal HR advisers for additional support.

Plante Moran expands into Mexico

Plante Moran is set to expand its operations into Mexico with the addition of JA Del Río, effective July 1st. The move brings 500 employees from Mexico, Colombia, and Costa Rica to Plante Moran's existing team, marking the firm's largest international expansion to date. Jason Drake, managing partner of Plante Moran, expressed enthusiasm about the expansion, stating: "We're really excited about this because it continues to show the marketplace that we want to serve our clients no matter where they have operations." Bernardo Del Río will join as managing partner of LatAm offices, enhancing service capabilities across various sectors.

Boomer Consulting launches new leader circles

Boomer Consulting has introduced two new peer communities, the Tax Leader Circle and Audit Leader Circle, aimed at fostering collaboration among firm leaders. These circles address key challenges in the profession, including artificial intelligence and value-based pricing. Jon Hubbard, chief growth officer of Boomer Consulting, emphasized that "these circles are about more than networking; they're about transformation." The communities provide a platform for non-competing leaders to engage in consultant-led discussions and access exclusive insights. Boomer Consulting also offers similar communities for CIOs and managing partners, enhancing support across various leadership roles.

ECONOMY

Initial jobless claims rise modestly but layoffs remain historically low

Applications for U.S. unemployment benefits increased last week, but layoffs continue to remain near historically low levels despite inflation pressures and broader economic uncertainty. The Labor Department reported that initial jobless claims rose by 10,000 to 200,000 in the seven days to May 2nd, slightly below economists’ expectations of 205,000 claims. The previous week’s figure, which had marked the lowest level since 1969, was revised up to 190,000. The four-week moving average of claims fell to 203,250, while continuing claims, reported with a one-week lag, declined by 10,000 to 1.77m. The government’s monthly jobs report for April is due to be published later today.

Construction spending rebounded in March on stronger homebuilding activity

U.S. construction spending rose 0.6% in March, recovering from a 0.2% decline in February and exceeding economists’ expectations for a 0.2% increase, according to the Commerce Department’s Census Bureau. The rebound was driven primarily by residential construction, with spending on private residential projects increasing 1.7% and new single-family homebuilding jumping 2.7% during the month. Overall construction spending was up 1.6% year over year. Despite the improvement, analysts cautioned that elevated mortgage rates, inflation linked to the Iran conflict, and tariff-related cost pressures could limit further growth in the housing sector. Residential investment has now declined for five consecutive quarters. Private nonresidential construction spending, including offices and factories, fell 0.2% in March and has contracted for nine straight quarters, marking the longest downturn on record despite continued investment in AI-related data centers. Public construction spending also declined, slipping 0.2% as both state and local government projects and federal construction outlays weakened.

Productivity growth slows as hours worked rebound in first quarter

U.S. labor productivity continued to increase in the first quarter of 2026, though growth slowed as hours worked rebounded, according to new data from the Bureau of Labor Statistics. Nonfarm productivity, which measures output per hour worked, rose at an annualized rate of 0.8% after a revised 1.6% increase in the fourth quarter of 2025. On a year-over-year basis, productivity climbed 2.9%, marking the strongest annual gain since 2024. The slowdown partly reflected a 0.7% increase in hours worked during the quarter after a decline in the prior period. Unit labor costs, a key measure of what businesses pay workers to produce one unit of output, increased 2.3%. The data suggests companies are continuing to improve efficiency through investments in technology and artificial intelligence, helping offset rising operating costs linked to tariffs and the Iran conflict while reducing inflationary wage pressures. Hourly compensation rose at an annualized 3.1% pace before inflation adjustments, though real worker compensation declined at the start of the year. The Bureau of Labor Statistics said workers’ share of output fell to 54.1%, the lowest level recorded since the series began in 1947.

LEGAL

Wells Fargo whistleblower appeals for restoration of $180m award

Michael Bacon, the former Wells Fargo chief security officer who helped expose the bank’s fake accounts scandal, is appealing a decision to slash his whistleblower award by over $100m.

PERSONAL FINANCE

U.S. consumer borrowing posts biggest monthly rise since 2022

U.S. consumer borrowing increased by $24.9bn in March, marking the largest monthly rise since late 2022, according to Federal Reserve data, as households relied more heavily on loans and credit cards amid mounting pressure from higher fuel costs and persistent inflation. Non-revolving credit, including auto and student loans, rose by $14.8bn, the strongest increase since mid-2023, while revolving credit such as credit-card debt climbed $10bn, the largest gain since 2024. The increase significantly exceeded economists’ expectations and followed a revised $8.8bn rise in February. The sharp rise in borrowing comes as household finances are increasingly strained by elevated energy prices linked to the Iran war. U.S. petrol prices moved above $4 per gallon in late March, hitting their highest level since 2022.

TECHNOLOGY

Simplifying tax workflows for success

As the demand for a simpler, digital-first experience grows, many firms struggle with outdated systems that hinder efficiency. This case study outlines a strategy for modernizing tax workflows by integrating intake, workpaper automation, document management, and delivery into a seamless process. By minimizing manual handoffs, firms can significantly reduce administrative time and enhance client satisfaction. The blueprint includes methods for standardized intake, automated workpaper creation, centralized document management, and increased electronic delivery.

INTERNATIONAL

FSB raises alarm over private credit industry fuelling AI boom

The Financial Stability Board (FSB) has warned that the private credit industry’s role in fuelling the AI boom could backfire, and a sharp correction could precipitate “sizeable” losses. On AI loans, the global finance watchdog said that a “sharp correction in asset valuations, which have increased rapidly, could lead to sizeable credit losses to private credit investors . . . This could be triggered by any significant shortfall in the supply of electricity, a critical factor in the construction and operation of datacenters, which could lead to delays or cancellations of projects.” The FSB found that the healthcare, services, and tech sectors have become the biggest borrowers of private credit.
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