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Accountancy Slice
USA
22nd October 2026
 

THE HOT STORY

IRS citizenship question raises concerns over tax filing

The IRS has proposed adding a citizenship and work authorization question to Form 1040 for the 2027 tax filing season, raising concerns that the requirement could discourage millions of taxpayers, particularly undocumented immigrants, from filing returns. The draft form asks taxpayers and their spouses to disclose their citizenship or legal work status, while a proposed Schedule 3-A would introduce additional eligibility questions for refundable tax credits. Senate Democrats have urged the IRS to remove the question, citing concerns about taxpayer privacy and potential information sharing with Immigration and Customs Enforcement (ICE). Tax experts have warned that the proposal could also create uncertainty for temporary visa holders and international business travelers. The agency has not finalized the forms or released accompanying instructions, leaving questions about implementation, confidentiality, and potential revisions unresolved.

TAX

IRS eases red diesel tax rules to help lower fuel costs

The IRS is preparing to temporarily waive tax reporting, filing, and recordkeeping requirements for red-dyed diesel as part of the Trump administration's efforts to reduce high fuel costs. According to an administration official, the relief will apply to taxable uses of dyed diesel between October 1st 2026, and January 1st 2027, with the IRS agreeing not to impose related civil penalties or additional taxes under the president's directive. Red diesel, traditionally restricted to off-road uses such as farming and construction, is exempt from the federal diesel excise tax of 24.4 cents per gallon. The measure aims to encourage broader purchases and use of the fuel, including in on-road vehicles, as national diesel prices average approximately $6.32 per gallon. The IRS is also considering a grace period to address concerns about residual red dye in fuel tanks after the temporary relief expires.

Los Angeles filming declines despite tax credit incentives

Los Angeles' film and television industry has reported a continued decline in on-location production despite California's tax credit incentives helping attract more projects to the region. According to FilmLA Research, the greater Los Angeles area recorded 4,171 shoot days in the third quarter of 2026, down 4.8% year over year and nearly 29% below the five-year average. Television production fell 2.8% to 1,400 shoot days, although the proportion supported by tax incentives increased from 9% to 23%. Television comedy was a notable exception, with filming surging 143% to 192 days, while feature film production rose 2.1% to 533 days. Commercial production declined nearly 16% to 562 days, and other production activity fell 4.2% to 1,676 days. FilmLA has emphasized that while tax credits are helping attract productions and support local employment, overall filming activity remains significantly below historical levels.

New York quadruples tax credits for volunteer firefighters and ambulance workers

New York Gov. Kathy Hochul has signed legislation quadrupling annual income tax credits for volunteer firefighters and ambulance workers to address persistent recruitment and retention challenges. Beginning in the 2027 tax year, eligible individuals will receive an $800 credit, up from $200, while married couples will qualify for $1,600, up from $400. Volunteers can choose between the increased state income tax credit and a qualifying local property tax exemption. The legislation comes as New York's volunteer firefighter workforce has declined from approximately 120,000 in 2000 to 80,000 in 2026, reaching a 40-year low. Staffing shortages have forced some fire departments to merge or close, while nearly 100 ambulance services shut down between 2013 and 2023. Emergency service advocates have also proposed additional financial incentives, including mileage reimbursements, childcare assistance, and direct compensation, to strengthen volunteer retention and maintain emergency response coverage.

INDUSTRY

Global accountant confidence falls despite U.S. gains

The Association of Chartered Certified Accountants (ACCA) and Institute of Management Accountants (IMA) have reported a slight decline in global accountant confidence during the third quarter of 2026, although sentiment improved in North America, particularly the United States. Their quarterly Global Economic Conditions Survey found that confidence remained historically weak amid persistent inflation, rising energy costs, and geopolitical uncertainty. Nearly 70% of accountants globally reported increased operating costs, including 82% of chief financial officers, while almost 50% anticipated higher interest rates over the following three months. In the United States, confidence strengthened alongside improvements in capital expenditure and employment indicators, despite 77% of respondents reporting higher costs. Economic pressures remained the leading global concern, cited by 24% of respondents, compared with 45% in the United States. The organizations highlighted artificial intelligence investment as a significant driver of economic growth, while warning that sustained inflation, elevated borrowing costs, and tighter monetary policy could undermine business confidence.

ECONOMY

Citadel CEO calls for reforms to tackle mounting debt

Citadel chief executive Ken Griffin has warned that America's $40tn national debt and $2tn annual budget deficit are unsustainable, and is calling for stronger economic growth, productivity improvements, and reforms among European allies. Speaking at a Citadel Securities conference in New York, Mr. Griffin criticized European labor restrictions, particularly in France, arguing that U.S. allies must strengthen their economies while relying on American defense spending. He also described the U.S.-Europe tariff dispute as counterproductive to shared economic growth. He urged the U.S. administration to prioritize investment in domestic data centers, nuclear fusion, robotics, and emerging technologies to drive long-term productivity. He additionally emphasized education and immigration policies that attract highly skilled international talent, arguing that expanding economic output across Western economies offers a more effective solution to mounting fiscal pressures than trade disputes or austerity alone.

CORPORATE

Meta reaches stock agreement with Zuckerberg to keep CEO in California

Meta Platforms has negotiated a new stock agreement with chief executive Mark Zuckerberg to encourage him to remain in California amid concerns over the state's proposed billionaire wealth tax. According to an SEC filing, Mr. Zuckerberg had considered relocating because of Proposition 40, prompting Meta to establish arrangements designed to preserve his presence near its Menlo Park headquarters. The company has agreed to issue additional shares to provide Mr. Zuckerberg with liquidity without reducing his voting control, which currently stands at 61%. Meta warned that the proposed tax could otherwise forcehim to sell or borrow against his shares, potentially weakening his control over the company. California voters are scheduled to decide on the measure in November. However, the proposed one-time tax is based on residency in January 2026, meaning relocation would not necessarily eliminate his liability.

LEGAL

Federal court rulings stand as Trump administration drops student loan forgiveness appeals

The Trump administration has dropped two appeals challenging federal court rulings that blocked proposed changes to the Public Service Loan Forgiveness (PSLF) program, which provides student debt relief to eligible public-sector and nonprofit employees after ten years of qualifying payments. The administration had sought to give Education Secretary Linda McMahon authority to exclude employers deemed to have a "substantial illegal purpose," potentially affecting organizations supporting undocumented immigrants and transgender youth. Federal judges in Massachusetts and Washington blocked the changes, finding that the rules exceeded the Education Department's authority and raised constitutional concerns over free speech. The Justice Department has now withdrawn both appeals without explanation, leaving the rulings in place. Advocacy groups have welcomed the decision, which preserves existing protections for a program that has forgiven student loans for more than 1m Americans.

New Mexico sues Jeffrey Epstein's former lawyer and accountant

New Mexico Attorney General Raul Torrez has filed a civil lawsuit against Jeffrey Epstein's former attorney Darren Indyke, former accountant Richard Kahn, and Mr. Epstein's estate, alleging that the two advisers facilitated, financed, and concealed his sex trafficking operation, including activities at his former Zorro Ranch near Santa Fe. The lawsuit seeks damages for survivors of alleged sexual abuse and aims to prevent Mr. Epstein's private trust, which holds more than $100m, from making further payments. The action follows New Mexico's decision in February to reopen its investigation into alleged abuse at the ranch and represents the first law enforcement action against Mr. Indyke and Mr. Kahn, according to the attorney general's office. New Mexico has also established a legislative commission to investigate Mr. Epstein's alleged connections to local officials and has sought access to unredacted federal investigative records. 

PERSONAL FINANCE

ACE Scholarships partners with 5,000 CPAs to promote new federal education tax credit

ACE Scholarships has partnered with approximately 5,000 CPAs and tax professionals to promote the new federal Education Freedom Tax Credit, which takes effect on January 1st. Introduced under the One Big Beautiful Bill Act, the program offers individuals tax credits of up to $1,700, or $3,400 for married couples filing jointly, for qualifying contributions to nonprofit Scholarship Granting Organizations. These organizations fund education-related expenses, including private school tuition, tutoring, extended-day programs, and supplies. ACE has launched an eight-figure national awareness campaign, called "Make It Possible," targeting taxpayers, parents, educators, and financial professionals through digital advertising, television, social media, and community outreach. The initiative comes as nearly 70% of Americans remain unfamiliar with the credit. While supporters argue that the program will expand educational opportunities for families, critics warn that it could redirect federal resources away from public schools.

FAMILY OFFICES

Family offices urged to modernize accounting systems

Family offices and accounting firms are being urged to adopt specialized, multi-entity accounting software to reduce administrative burdens, improve financial accuracy, and free up accountants to provide strategic advice. In an Accounting Today opinion article, Alexandre Lin, co-founder and chief executive of SumIt, argues that traditional platforms such as QuickBooks and Xero struggle to accommodate the complex ownership structures, intercompany transactions, and investment portfolios of wealthy families. Many family offices manage 20 to 80 entities, sometimes exceeding 250, with just two or three back-office employees. Manual consolidation can take two to three weeks each quarter, increasing the risk of reporting errors, inaccurate asset valuations, and costly tax or estate planning mistakes. Mr. Lin advocates purpose-built systems that automate intercompany reconciliations, standardize accounting records, and incorporate ownership percentages. He argues that improved technology would enable CPAs to spend less time processing financial data and more time delivering valuable financial and estate planning advice.

CYBERSECURITY

Websites taken down worldwide

The identification of two critical vulnerabilities in PHP, a programming language which underpins around 70% of the world’s websites, has led to government agencies and businesses worldwide taking their websites offline. In the U.S., Utah-based HR software company BambooHR took its platform offline, Human Resources Director reports. The flaws could allow hackers to take control of web servers without a password. The organization behind the language issued a patch on Wednesday after researchers testing cyberdefenses discovered the flaws. Prof Alan Woodward, a cybersecurity expert at Surrey University in the U.K., said: “The big thing is for everyone using [the patch] to get that in to make sure their systems are safe. The troubling part is there is going to be a long tail of websites who may not be maintained as well and they are going to remain vulnerable, which means we may see weeks and months of ongoing attacks.”

TECHNOLOGY

Deloitte urges greater investment in employees as AI adoption tests workplace trust

Deloitte's U.S. Human Capital Practice leader Simona Spelman has warned that declining workplace trust can dramatically undermine employee motivation, particularly as companies accelerate artificial intelligence (AI) adoption. Speaking at Fortune's Most Powerful Women Summit, Ms. Spelman identified reliability, transparency, capability, and humanity as the four pillars of trust. Deloitte data shows that 82% of employees are motivated to perform at their best when none of these factors is distrusted, but that figure falls to 37% when just one is distrusted, and to 7% when all four are distrusted. Catalyst research also highlights concerns about AI-related workplace changes, with 68% of leaders reporting employee reskilling plans, while only 34% of employees believe AI training is accessible to everyone. Ms. Spelman noted that approximately 93% of AI investment goes toward technology, compared with just 7% toward people, emphasizing that organizations must prioritize employee development, transparency, and human capabilities to maintain trust and engagement.

INTERNATIONAL

U.S. tax incentives draw British startups toward Delaware

British startups are increasingly considering relocating their corporate holding structures to Delaware to attract U.S. investment and benefit from favorable tax incentives, potentially weakening London's public equity markets. The strategy, known as a "Delaware flip," involves establishing a U.S. holding company above an existing U.K. business, allowing eligible investors to exclude up to $15m in capital gains under Qualified Small Business Stock rules after five years. Recent changes have introduced additional benefits for shorter holding periods, increasing the appeal to venture capital investors. However, legal advisers warn that restructuring can create significant costs, complex tax obligations, and potential double taxation, particularly if companies remain effectively managed from Britain. The trend comes amid declining London stock market listings, growing interest in U.S. IPOs, and increasing private equity takeovers. Industry experts caution that continued migration toward U.S. capital markets could further erode London's investor base and discourage future U.K. listings.

Saudi Arabia postpones ‘Davos in the desert’

Saudi Arabia has postponed until next year the Future Investment Initiative, the Kingdom's big investor conference that was originally scheduled to take place in Riyadh October 26th-October 29th. The decision comes after Houthi militants attacked the international airport in the Saudi capital, leaving at least 12 people dead and hundreds injured. Saudi Arabia’s sovereign wealth fund launched the so-called 'Davos in the desert' in 2017. The conference has played a key role in the kingdom's plans to diversify its oil-dependent economy. Expected speakers for this year's event included Goldman Sachs chief executive ​and chair David Solomon, Standard Chartered CEO Bill Winters and Citi's CEO Jane Fraser.
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