Advisory - Recent Threads

Senate passes broad tax administration reform legislation

Nageshwaran Gopal — Mon, 05 Oct 2026 19:50:03 GMT

The road to Senate passage

Senate Finance Chair Mike Crapo (R-ID) and Ranking Member Ron Wyden (D-OR) formally introduced the TAS Act earlier this year, and it advanced out of committee in July 2026.

Committee leadership had released a bipartisan discussion draft in early 2025, along with a request for stakeholder feedback. The effort drew widespread support, including from the National Taxpayer Advocate and the American Institute of CPAs (AICPA).

On September 30, the Senate passed the TAS Act by unanimous consent. The bill passed after the Senate TAS Act’s text was substituted into a previously passed House bill, the Tax Court Improvement Act, H.R. 5349.

To dig deeper, visit the original article on the Thomson Reuters blog.

IRS adopts Trump account auto enrollment, reproposes rules

Nageshwaran Gopal — Mon, 05 Oct 2026 19:41:23 GMT

Temporary regulations

The IRS issued temporary regulations are effective September 30 and apply to tax years beginning on or after January 1, 2026. The agency invoked good cause to issue them without advance public comment, citing the need to make accounts available before children’s growth periods shorten.

Under the temporary regulations, on or about October 1, 2026, the IRS will elect to establish an “auto account” for each eligible child who has a Social Security number and for whom no one has already opened an account. The IRS estimates the approach will give Trump accounts to more than 60 million additional children in 2026 and affect 73 million children in 44 million families. The IRS will make periodic elections after that date for later-eligible children.

To dig deeper, visit the original article on the Thomson Reuters blog.

Advisory has never been a knowledge problem

Neil Vicente — Mon, 28 Sep 2026 16:28:13 GMT

Why the real promise of AI is distributing judgment, not replacing it

Highlights

Firms spent years treating advisory as a knowledge problem: train faster, hire better, buy the right tool. The real obstacle was distribution.
Between a staff member's uncertainty and the confidence to act sits a long distance, and that gap is where firms lose time, capacity, and talent.
AI's best job is not out-advising a CPA. It is helping more of the team reach good judgment faster, on top of a sound advisory process.

For years, accounting firms have treated advisory as a knowledge problem. If we could train people faster, hire better talent, and put the right technology in place, then advisory would finally scale.

Plenty of firms have run that experiment and found the same frustrating result: the knowledge was never the main obstacle. The obstacle was distribution.

This piece connects those ideas to the tool everyone keeps asking about, because the real question with AI is not whether it can out-advise a CPA, but whether it can help a firm move judgment out of a few heads and across the whole team.

To dig deeper, visit the original article on the Thomson Reuters blog.

D.C. Circuit blocks IRS from sharing taxpayer data with ICE

Nageshwaran Gopal — Tue, 15 Sep 2026 16:49:59 GMT

A federal appeals court has affirmed a preliminary injunction blocking an IRS policy that disclosed thousands of taxpayers’ addresses to immigration authorities, agreeing the agency’s automated process likely violated the strict confidentiality protections Congress built into the Tax Code. (Center for Taxpayer Rights v. IRS, 2026 WL 2635380, 9/8/2026)

The District of Columbia U.S. Circuit Court of Appeals unanimously upheld an order halting the IRS’ “Data-Exchange Procedure,” the automated system it built to answer U.S. Immigration and Customs Enforcement (ICE) requests for the last known addresses of people ICE suspects of residing in the country unlawfully. By the time the district court intervened, the IRS had turned over 47,289 records to ICE.

To dig deeper, visit the original article on the Thomson Reuters blog.

Senators decry Treasury refusal to amend private jet valuation rule

Nageshwaran Gopal — Tue, 15 Sep 2026 10:17:54 GMT

How the SIFL valuation method works

Under IRC § 61, employees must include the value of personal flights on employer-provided aircraft in their gross income, as this constitutes a fringe benefit. The regulations provide two methods for valuing these flights: the flight’s fair market charter cost or a formula-based method known as the Standard Industry Fare Level (SIFL) method.

The SIFL valuation formula, detailed in Reg. § 1.61-21(g), calculates the value of a flight by multiplying the distance traveled by a cents-per-mile rate, which is then multiplied by an aircraft weight multiple. A terminal charge is added to this amount.

To dig deeper, visit the original article on the Thomson Reuters blog.

Bipartisan duo seek to ensure nonprofit status does not constitute ‘government handout’

Nageshwaran Gopal — Tue, 15 Sep 2026 10:14:35 GMT

‘Burdens’ for organizations that receive federal financial assistance

Lloyd Hitoshi Mayer, a Notre Dame Law School professor, unpacked those compliance burdens in a recent article. The term “federal financial assistance” is used in a number of anti-discrimination statutes, including Title VI and Title IX, Mayer explains.

And in 2022, a Maryland federal district court found that a school’s § 501(c)(3) status constituted federal financial assistance for purposes of Title IX. (Buettner-Hartsoe v. Baltimore Lutheran High School Association, 2022 WL 2869041) While the 4th U.S. Circuit Court of Appeals ultimately rejected that conclusion, Mayer said the district court ruling is more notable when viewed in a broader context.

To dig deeper, visit the original article on the Thomson Reuters blog.

What advisory information does tax software not capture?

Neil Vicente — Mon, 07 Sep 2026 12:55:53 GMT

Tax software captures answers, not always meaning

Tax software is very good at collecting numbers and placing them where they belong. It can organize income, deductions, depreciation, credits, schedules, and forms. It can help produce a technically complete return, but tax software usually does not explain why something matters to the client.

A tax return may show growing profits and increasing taxable income, but it does not necessarily reveal that the owner hopes to sell the business within the next three years. That single piece of context could completely shift the advisory conversation.

The context gap is where advisory gets lost

Many advisory opportunities are missed because the team does not lack talent. They lack context.

A staff member may complete the work accurately based on what is in the file. The return may be correct. The financial statement may tie. The workflow may move forward. But if no one knows the broader story, the firm may miss the chance to ask the better question.

For example, a client requests help setting up payroll in a new state. The immediate task is administrative, but if the team knows the company plans to hire 20 employees in that state over the next year, the better question becomes whether state tax obligations and growth planning should be part of a broader advisory discussion.

Advisory often begins where the compliance data stops.

To dig deeper, visit the original article on the Thomson Reuters blog.

W-8 and W-9 best practices and what’s changing

Nageshwaran Gopal — Mon, 31 Aug 2026 19:42:51 GMT

Highlights

Use Form W-9 for U.S. payees and the appropriate W-8 for foreign payees. Request the form before the first payment. Without valid documentation, default withholding or presumption rules may apply
Most W-9 and W-8 errors are preventable at intake
The IRS draft Form W-9 (Rev. June 2026) adds a digital asset broker certification checkbox and new exempt payee Code 14. Any substitute W-9 requires updating once the final form is published
CARF (Crypto-Asset Reporting Framework) requires documentation W-8 forms do not currently capture

To dig deeper, visit the original article on the Thomson Reuters blog.

Ohio updates SSUTA taxability matrices, certificate of compliance

Nageshwaran Gopal — Mon, 31 Aug 2026 19:41:18 GMT

Per Ohio’s new Taxability Matrix: Tax Administration Practices, marketplace facilitators/providers registered for sales/use tax collection may also be liable for other taxes and fees associated with the transaction and administered by the state tax agency.

The updated Taxability Matrix: Tax Administration Practices also contains a new section providing guidance for delivery network companies (DNCs), i.e., businesses that own or operate an internet website and/or mobile application utilized to facilitate sales and deliveries of food and other tangible personal property offered by local merchants to customers. The guidance states that Ohio treats DNCs the same way as it treats marketplace facilitators/providers for sales/use tax purposes.

To dig deeper, visit the original article on the Thomson Reuters blog.

PCAOB enforcement staff drops routine no-deny requirement in settlements, citing SEC alignment

Nageshwaran Gopal — Mon, 17 Aug 2026 13:38:27 GMT

The Public Company Accounting Oversight Board’s (PCAOB) enforcement staff said that it will no longer routinely require respondents in disciplinary settlements to agree not to publicly deny findings contained in settled orders.

In a July 31, 2026, statement posted on its website, the PCAOB staff said this change aligns its enforcement practice with that of the Securities and Exchange Commission (SEC), which oversees the board, regarding public denials of findings in settled disciplinary orders.

Under the revised approach, the enforcement staff will no longer routinely condition a recommendation that the PCAOB accept a settlement offer on a respondent’s agreement not to publicly deny findings in a settled disciplinary order.

To dig deeper, visit the original article on the Thomson Reuters blog.

Congress passes taxpayer disaster relief bill

Nageshwaran Gopal — Mon, 17 Aug 2026 13:31:31 GMT

The road to passage

A day earlier, Senator Ted Cruz (R-TX) sought to amend the bill to include relief for victims of Texas fires that were not deemed to be qualified wildfire disasters under federal law. However, lawmakers on both sides of the aisle pushed back.

“This bill is very critical to my state, but it is also about more than hurricanes,” explained Senator Rick Scott (R-FL). “It is not just about hurricanes; this bill helps families affected by all natural disasters, including wildfires, tornadoes, earthquakes, and any other scenario that can be declared a federal disaster,” he added.

“This passed the House unanimously earlier this year, so if we pass this today, it will become law,” Scott stressed.

To dig deeper, visit the original article on the Thomson Reuters blog.

Guidance on new Saver’s Match program issued

Nageshwaran Gopal — Mon, 17 Aug 2026 13:13:32 GMT

Program details and eligibility requirements

The Saver’s Match program provides eligible low- and moderate-income taxpayers a matching government contribution paid directly to their retirement account. Unlike the current Saver’s Credit, the match is a direct government deposit rather than a credit against taxes owed. The program is designed to make saving for retirement easier and more rewarding for millions of Americans.

“Millions of low- and moderate-income Americans will have the opportunity to strengthen their retirement savings through the Saver’s Match program,” said IRS Chief Executive Officer Frank J. Bisignano in a statement. “The Saver’s Match makes saving easier and more rewarding by providing a direct federal contribution to an eligible taxpayer’s retirement account.”

To dig deeper, visit the original article on the Thomson Reuters blog.

Bill would allow for larger contributions to foster care children’s Trump accounts

Nageshwaran Gopal — Mon, 03 Aug 2026 18:37:13 GMT

How the bill changes contribution rules

Trump accounts, created by the One Big Beautiful Bill Act, are tax-favored investment accounts for children under 18. While family, friends, and employers can contribute up to a combined $5,000 annually, a special rule under IRC § 530A(f) allows for unlimited “qualified general contributions” from government entities and certain tax-exempt organizations.

Currently, these unlimited contributions can only be made to a “qualified class” of children, a designation based on age or geography. Because children in foster care are not a distinct qualified class, states and philanthropic groups wanting to make targeted investments for them face contribution limits.

To dig deeper, visit the original article on the Thomson Reuters blog.

IRS Announces Indexing Adjustments for 2027 ACA Affordability and Premium Tax Credit Determinations

Neil Vicente — Mon, 27 Jul 2026 11:42:51 GMT

The IRS has announced 2027 indexing adjustments for important percentages under the Affordable Care Act (ACA). The indexing adjustments are based on projections of premium growth and income growth. For 2025 and several years prior, the premium growth rate was based on per enrollee spending for employer-sponsored insurance as published in the National Health Expenditure Account. However, HHS revised the measure to also capture increases in individual market premiums, starting with the 2026 benefit year. The IRS is applying this updated premium growth measure for 2027 as well.

The required contribution percentage is used to determine whether employer-sponsored health coverage is “affordable” for purposes of employer shared responsibility under Code § 4980H. It is adjusted from a 9.5% baseline to 10.22% for plan years beginning in 2027. (This is an increase from 9.96% for 2026.) The percentages used to determine the amount of household income that individuals who are eligible for premium tax credits must contribute toward the cost of Exchange coverage vary across household income bands. The 2027 percentages range from 2.15% to 10.22%.

To dig deeper, visit the original article on the Thomson Reuters blog.

Amicus briefs urge 5th Circuit to resurrect suit challenging Johnson Amendment

Nageshwaran Gopal — Mon, 20 Jul 2026 14:25:24 GMT

Multiple groups have filed friend-of-the-court briefs with the 5th U.S. Circuit Court of Appeals, arguing that a district court wrongly dismissed a lawsuit challenging the Johnson Amendment’s ban on political campaign speech for tax-exempt organizations. (National Religious Broadcasters v. Bessent, No. 26-40237, amicus briefs filed 7/14/2026)

In March, Judge J. Campbell Barker of the U.S. District Court for the Eastern District of Texas dismissed a lawsuit brought by National Religious Broadcasters and other religious groups, ruling the court was barred from approving a proposed settlement (827 F.Supp.3d 967). The plaintiffs and the government had jointly asked the court to approve a settlement that would have narrowed the Johnson Amendment’s application to houses of worship. However, Judge Barker ruled that the Tax Anti-Injunction Act (AIA), which bars suits aimed at restraining tax collection, stripped the court of jurisdiction.

To dig deeper, visit the original article on the Thomson Reuters blog.

A third of accounting clients’ advisory work is going to rival firms, U.K. study finds

Nageshwaran Gopal — Mon, 20 Jul 2026 14:17:20 GMT

British companies are quietly ditching their accountants for outside help — and cash, surprisingly, has almost nothing to do with it, a new study reveals.

More than a third of U.K. businesses that use common accounting advisory services are getting that work done by someone other than their main accounting firm even when their own firm already offers the exact same service, according to research released July 15, 2026.

The research, based on a survey of 500 U.K. businesses, was commissioned by Ravical, a London and Belgium-based firm that sells AI software to accountants, and carried out by polling company Censuswide in May.

To dig deeper, visit the original article on the Thomson Reuters blog.

PCAOB seeks public input on standard-setting priorities for the first time

Nageshwaran Gopal — Tue, 07 Jul 2026 12:58:54 GMT

The Public Company Accounting Oversight Board (PCAOB) issued a request for public comment on June 23, 2026, seeking input on its standard-setting and research agendas. This includes revisiting old projects such as noncompliance with laws and regulations (NOCLAR) and firm and engagement performance metrics – both of which some investor protection advocates supported but were criticized by audit firms when they were developed during Erica Williams’ tenure as PCAOB chair. After Donald Trump was elected President, the board set aside these projects, which were either in advanced stages or had been recently completed.

The document also asks for input on the board’s approach to developing auditing standards, and the potential effects of a recent Securities and Exchange Commission (SEC) proposal related to optional semi-annual reporting.

To dig deeper, visit the original article on the Thomson Reuters blog.

Welcome to Tax, Audit & Accounting Community

Neil Vicente — Fri, 26 Jun 2026 16:01:35 GMT

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New initiative aims to extend Trump account benefits to foster children

Nageshwaran Gopal — Mon, 22 Jun 2026 15:13:02 GMT

The Trump administration announced plans to allow child welfare agencies to elect to open a Trump account for children in foster care. The move comes after commenters raised concerns about access to Trump accounts — a new type of tax-favored account established by the One Big Beautiful Bill Act (OBBB).

First Lady Melania Trump and Treasury Secretary Scott Bessent unveiled the initiative on June 11. Treasury said the option is available where a state, territorial, or tribal government agency is the legal guardian of a child who has a Social Security number.

To dig deeper, visit the original article on the Thomson Reuters blog.

Conservation Easement Enforcement Must Continue, Lawmakers Say

Nageshwaran Gopal — Mon, 08 Jun 2026 15:25:12 GMT

Two Senate Finance Committee members applauded the IRS’ recent settlement offer to taxpayers involved in syndicated conservation easement cases but said the agency must maintain its “enforcement posture” on these abusive arrangements.

In a May 28 letter, Senators Chuck Grassley (R-IA) and Steve Daines (R-MT) told Treasury Secretary Scott Bessent that his “dedication to preserving the integrity of the conservation-easement deduction is appreciated.”

Grassley reiterated this praise days later when Bessent appeared before the Senate Finance Committee. However, the senator also urged Bessent to stay the course. “I think the department is doing the right thing, but I think you’re getting pressure to change,” Grassley told Bessent during the June 3 hearing.

To dig deeper, visit the original article on the Thomson Reuters blog.

Dems Push for IRS Guidance on Cannabis Business Tax Treatment

Nageshwaran Gopal — Mon, 08 Jun 2026 14:36:56 GMT

Rescheduling Impacts Tax Treatment

This April, the Justice Department and the Drug Enforcement Administration issued a final order moving certain marijuana products from Schedule I to Schedule III of the Controlled Substances Act. The order applies specifically to FDA-approved products containing marijuana and marijuana products regulated by a state-issued medical marijuana license. It does not apply to other forms of marijuana, such as those sold for recreational use, which remain Schedule I substances.

This change impacts cannabis businesses’ federal income tax treatment. Section 280E prohibits businesses from taking tax deductions or credits for expenses paid or incurred while “trafficking in controlled substances” listed in Schedule I or II — but the prohibition does not apply for Schedule III substances.

To dig deeper, visit the original article on the Thomson Reuters blog.

DOJ Settlement ‘Forever’ Bars IRS Trump Audits, Sparks Backlash

Nageshwaran Gopal — Mon, 25 May 2026 14:05:38 GMT

The Department of Justice has issued an order that permanently bars the IRS from auditing past tax returns of President Donald Trump, his family, and related companies as part of a settlement that also creates a nearly $1.8 billion fund.

Under the terms of the settlement reached on May 18, the president filed a voluntary dismissal of his $10 billion lawsuit against the IRS on the same day, two days before a court deadline to address jurisdictional challenges to the case.

To dig deeper, visit the original article on the Thomson Reuters blog.

Trump Accounts for Eligible Children

Nageshwaran Gopal — Mon, 25 May 2026 14:01:49 GMT

A new type of retirement savings vehicle under IRC Sec. 530A, commonly known as “Trump accounts” for eligible children was created under the 2025 Act. Trump accounts can be thought of as individual retirement accounts (IRAs) with training wheels: IRA-type accounts subject to a specific statutory and administrative framework designed to promote long-term savings. During the account’s growth period, special rules under IRC Sec. 530A apply. Once the growth period ends, most of those special rules no longer apply, and the account is subject to the general provisions of IRC Sec. 408 governing traditional IRAs.

To dig deeper, visit the original article on the Thomson Reuters blog.

Preparing for summer 2023 audits

Nageshwaran Gopal — Mon, 25 May 2026 13:30:22 GMT

PPC’S Guide to Audits of Nonprofit Organizations

Dozens of timesaving tools will ensure you'll stay in compliance with professional standards and peer review requirements, reducing your risk of non-compliance. You’ll be able to serve your nonprofit clients with ease and have critical information and tools at hand, including:

An overview of the nonprofit environment and how it differs from business entities
In-depth guidance on how accounting and tax issues may impact your nonprofit audit engagements
Streamlined forms and checklists
Confirmation, engagement, and management representation letters
Compilation, review, audit, and Single Audit report examples

To dig deeper, visit the original article on the Thomson Reuters blog.

PCAOB Investor Advisory Group Seeks Nominations for Best Critical, Key Audit Matters in 2025 Filings

Nageshwaran Gopal — Mon, 11 May 2026 16:11:18 GMT

For the third year in a row, the Public Company Accounting Oversight Board (PCAOB) Investor Advisory Group (IAG) is inviting the public to send in nominations for the best critical audit matters (CAMs) or key audit matters (KAMs) in audit reports included in 2025 Form 10-Ks for domestic companies and Form 20-Fs for foreign private issuers.

The deadline is June 30, 2026.

Auditors of domestic public companies disclose CAMs, while KAMs apply to auditors who follow standards set by the International Auditing and Assurance Standards Board.

The request for nominations was announced by Jeffrey Mahoney, general counsel of the Council of Institutional Investors (CII) and a member of the IAG during the panel meeting in Washington on April 29.

To dig deeper, visit the original article on the Thomson Reuters blog.