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5th June 2026
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THE HOT STORY

House Democrat seeks to block Trump IRS settlement with new legislation

U.S. Rep. Jamie Raskin (D-MD), the top Democrat on the House Judiciary Committee, has introduced legislation aimed at overturning key elements of President Donald Trump’s recent settlement with the IRS, arguing the agreement amounts to a “super pardon” that shields the president from future scrutiny. The proposed BLANCHE Act would prohibit sitting presidents from receiving financial awards, damages, attorney fees, or other benefits from settlement agreements with the federal government. It would also require federal courts to review and approve any such agreements to ensure they are not collusive and are supported by a legitimate legal basis. While the administration has abandoned plans for a proposed $1.8bn “anti-weaponization” compensation fund that was part of the agreement, Acting Attorney General Todd Blanche has confirmed that other provisions remain in place, including a permanent ban on new government investigations into Mr. Trump’s past tax returns. Mr. Raskin also introduced a separate bill that would create a clearer legal pathway for individuals seeking damages when their constitutional rights are violated by the federal government.

WORKFLOW EFFICIENCY

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TAX

IRS offers new settlement initiative

The IRS has introduced a new settlement initiative for Syndicated Conservation Easements (SCEs), urging taxpayers to take advantage of the offer. This initiative allows eligible partnerships to deduct only out-of-pocket expenses and incur a 10% penalty. The IRS claims this is a favorable deal, but the terms resemble previous initiatives, raising concerns about their effectiveness. Bill Curtis and Crystal L. Howard, attorneys at Spencer Fane, highlight that “SCE funds that rolled the dice in tax court have significantly worse outcomes than those who settle.” Taxpayers now face a tough decision: accept the IRS's terms or risk worse future offers.

New tax agreement eases World Cup burden for national teams

A new agreement between FIFA and the U.S. Treasury is expected to allow national soccer associations participating in the 2026 FIFA World Cup to seek exemption from U.S. federal income tax on certain tournament-related earnings, reducing a key financial concern for teams competing in the United States. According to KPMG, the agreement represents a significant breakthrough for national federations, aligning the U.S. more closely with Canada and Mexico, which have also provided forms of tax relief for World Cup participants. The move should substantially reduce or eliminate federal tax exposure on core tournament income at the team level. However, the agreement does not extend to players, coaches, or support staff. Nonresident individuals generally remain subject to U.S. federal income tax on U.S.-source income unless relief is available through domestic law or applicable tax treaties. Income from sponsorships, endorsements, media appearances, and other commercial activities may also remain taxable. KPMG notes that state and local tax obligations continue to pose significant challenges, as many states can impose their own income taxes regardless of federal exemptions or treaty benefits.

San Diego voters reject second home tax

San Diego voters have rejected Measure A, a proposed tax on second homes without full-time residents. Shane Harris, spokesperson for the No on Measure A campaign, stated, “There is a hefty rebuke from the taxpayers of San Diego that they don't want another tax.” The measure aimed to impose an initial annual tax of $8,000 on unoccupied second homes, increasing to $10,000 in subsequent years. Proponents argued it would help address the city's housing crisis, while opponents claimed it infringed on property rights. The campaign against the measure raised nearly $1.4m, significantly outspending the supporters. The city's Office of the Independent Budget Analyst estimated that the tax could yield between $9.2m and $21.4m in its first year, but the measure's failure means those funds will not be realized.

INDUSTRY

New FASB guidance highlights complexity of accounting classifications for JVs

A recent analysis of the FASB’s Accounting Standards Update (ASU) 2023-05 argues that determining whether a newly formed entity qualifies as a joint venture for accounting purposes remains more complex than the new guidance may suggest. While the standard, effective for joint ventures formed on or after January 1st 2025, aims to improve consistency by requiring contributed assets and liabilities to be recorded at fair value upon formation, classification questions remain under existing accounting rules. The authors note that entities seeking joint venture treatment must first be evaluated under variable interest entity (VIE) and voting interest entity (VOE) guidance to determine whether they should instead be consolidated as subsidiaries. Even if an entity avoids consolidation under those frameworks, it must still satisfy a "purpose test," demonstrating that the venture was created for a specific shared business objective, such as developing a new product, market, or technology, with all venturers participating in management. They conclude that further implementation guidance from the FASB would help reduce uncertainty and improve consistency in how joint ventures are classified and reported under U.S. accounting standards.

ECONOMY

Jobless claims rise to highest level since February amid holiday-week volatility

New applications for U.S. unemployment benefits rose by 13,000 to 225,000 in the seven days to May 30th, the Labor Department reported on Thursday, the highest level since February and above economists’ expectations of 215,000. The four-week moving average of initial claims, which smooths weekly fluctuations, climbed 6,500 to 214,750, also the highest level since February. Continuing claims, reported with a one-week lag, fell 8,000 to a seasonally-adjusted 1.777m. "The big picture remains that the trend in both initial and continuing claims still is very subdued," said Oliver Allen, senior U.S. economist at Pantheon Macroeconomics. "It would be unwise, however, to conclude that all is fine and well with the labor market simply because claims are low. Low fire, low hire remains an apt description of labor market conditions, and only around one of four of those unemployed make a claim."

Productivity growth revised lower, but underlying trend remains solid

U.S. worker productivity rose at a revised 0.3% annualized rate in the first quarter, down from an earlier estimate of 0.8% and marking the slowest pace since the first quarter of 2025. The Bureau of Labor Statistics found that productivity increased 2.8% from a year earlier and has grown at a 2.1% rate since the fourth quarter of 2019. Unit labor costs were also revised lower, rising 1.8% in the first quarter instead of the previously reported 2.3%, while fourth-quarter growth was cut sharply to 2.1% from 4.6%. Economists expect wider adoption of artificial intelligence to support productivity growth and help contain labor costs over time.

PERSONAL FINANCE

Trump Accounts could provide children a pathway to tax-free Roth IRA growth

Financial planners say the new Trump Accounts, a tax-advantaged savings vehicle for children launching in July, could offer families a unique opportunity to build long-term retirement wealth by creating an indirect pathway into Roth IRAs without requiring children to earn income. The accounts, also known as 530A accounts, can receive contributions from family members, employers, governments, and charitable organizations, including a federal seed contribution of up to $1,000 for eligible children. Funds grow tax-deferred, and certain contributions, including the government seed money and employer contributions, are treated as pretax funds. Experts note that beneficiaries may later convert these balances into a Roth IRA, potentially during early adulthood when their income and tax rates are relatively low. While taxes would be due on the converted amount, the strategy could allow decades of future investment growth and retirement withdrawals to occur tax-free. However, financial advisors caution that Trump Accounts are best viewed as retirement savings vehicles rather than general-purpose savings accounts. Alternatives such as 529 college savings plans may be more advantageous for education expenses because qualified withdrawals are tax-free.

WORKFORCE

Professional services firms face productivity crisis

Research by Unit4 reveals that over 25% of client-facing staff in professional services firms spend significant time on manual administrative tasks instead of core client work. The report, commissioned by Pierre Audoin Consultants, found a quarter of professional services organisations have yet to automate more than 20% of their core systems. Such operational inefficiencies are causing frequent project delays for 30% of firms worldwide. Donna Dobson, director of professional services at Unit4, noted: "Professional services firms are facing possibly the biggest inflection point in a lifetime as technology disruption and volatile economic conditions encourage clients to re-evaluate their use of consulting expertise."

MERGERS & ACQUISITIONS

EY-Parthenon forecasts stronger corporate M&A activity in H2

EY-Parthenon expects U.S. mergers and acquisitions activity to increase 8% by the end of 2026, driven primarily by corporate buyers seeking to acquire technology capabilities and remain competitive amid rapid advances in artificial intelligence and other emerging technologies. The consulting firm's latest M&A outlook predicts a "tale of two markets," with corporate deal volume projected to rise 11% this year, while private equity activity is expected to remain broadly flat. Corporate acquisitions were already up 22% year-over-year in the first quarter of 2026, compared with an 11% decline in private equity deal volume over the same period. According to EY-Parthenon, strategic buyers are increasingly pursuing acquisitions as a faster route to obtaining new technologies rather than developing them internally. Despite economic and geopolitical headwinds, including higher borrowing costs, inflation, and global conflicts, corporations are viewed as having greater urgency to act to avoid falling behind competitors. The report also suggests that uncertainty surrounding the long-term impact of artificial intelligence is causing some investors to delay transactions, particularly in sectors such as software, where AI could significantly alter business models and valuations.

 
CFO

CRYPTO

Major banks plan tokenized deposit network to counter crypto competition

JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and other major U.S. banks are planning to launch a tokenized deposit network in the first half of 2027, aiming to modernize payments infrastructure and compete with growing threats from stablecoins and cryptocurrency firms. The new platform, to be operated by The Clearing House, will connect traditional banking systems with blockchain technology, allowing tokenized bank deposits to move instantly with 24/7 settlement capabilities. The network is expected to support applications such as real-time liquidity management, programmable treasury operations, and cross-border payments. The initiative comes as banks face increasing competition from crypto firms and stablecoin issuers, particularly amid regulatory changes that could encourage wider adoption of digital payment assets. While banks have explored issuing stablecoins themselves, many executives see tokenized deposits as a more natural extension of existing banking services.

INTERNATIONAL

IRS softens proposed tax rules for sovereign wealth funds

The IRS and the Treasury Department have issued new guidance offering transition relief and grandfathering protection for foreign governments investing in U.S. companies. This follows proposed regulations under Section 892 of the Internal Revenue Code, which raised concerns among taxpayers. The new guidance allows foreign governments a transition period of at least 90 days to adapt to the final regulations. IRS CEO Frank Bisignano stated, "In response to comments on the recent proposed regulations, the IRS heard the concerns of many taxpayers and decided to provide transitional relief." The guidance aims to support sovereign wealth fund investments while preserving established market practices.
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