In The News—February 17, 2025

Pop quiz time, President's Day edition: What commanders in chief were born in the month of February? (Hint: Two of the greatest of all time came into the world during this 28-day stretch.)

See the answer after the news, which includes DOGE access to taxpayer data, a January drop in retail sales, and plummeting CPA exam pass rates.

IRS news

IRS Sets Stage for Musk Advisor to Access Taxpayer Data CPA Practice Advisor

The IRS is poised to hand over unlimited access to taxpayer data to an adviser from Elon Musk’s government efficiency group, according to a draft agreement seen by Bloomberg Tax.

The IRS would give a temporary detail at the agency to provide software engineering expertise to Gavin Kliger, a special adviser to the director at the Office of Personnel Management, according to a draft memo between IRS and OPM that has not yet been finalized. The draft memo was circulating within the agency this weekend, two people familiar with the memo said. Read more...

Use IRS Tools to Get Help Faster IRS.gov

The IRS has resources to help taxpayers beat the rush. On IRS.gov, taxpayers can use the Let us help You page that covers most topics for filing season and beyond. In addition, people can get free help online with self-service options.

The IRS offers several free filing options. There’s also step-by-step help about filing a personal federal income tax return. Read more...

IRS Prepares to Lay Off Thousands of Workers Reuters

The U.S. Internal Revenue Service is preparing to fire thousands of workers in the coming days, a move that could squeeze resources at the tax-collecting agency during the critical tax-filing season, two people familiar with the matter said.

Officials from the Office of Personnel Management, which oversees federal hiring, ordered all agencies on Thursday to dismiss their probationary employees, workers who are newer to their positions and do not enjoy full job protections. Read more...

Technology news

Are Noise-Canceling Headphones Messing with Your Head TechCrunch

We all know headphones can be bad for your hearing if you listen to sounds too loudly in such close proximity to your ears. But a BBC report suggests that a new health scare could be emerging around the noise-canceling feature that’s hugely popular in modern earphones.

The article considers whether the technology could essentially be rewiring the brains of people who regularly try to tune out pesky background noise using noise cancelation — reporting on the experience of a 25-year-old British woman who found she had trouble focusing on sounds and was subsequently diagnosed with audio processing disorder (APD). Read more...

Accounting news 

BOI Accounting Deadline Extension Passes House Journal of Accountancy

A bill to extend the deadline for an estimated 32 million small businesses to report their beneficial ownership information (BOI) as mandated by the Corporate Transparency Act (CTA) passed the U.S. House unanimously.

The House passed H.R. 736, Protect Small Businesses From Excessive Paperwork Act of 2025, 408–0, on Monday. The bill, which goes to the Senate next, extends the deadline for filing BOI reports to Jan. 1, 2026. The deadline for most reports previously was Jan. 1, 2025, but the reporting requirements have been caught up in numerous court cases and are now on hold.

A companion bill was introduced Tuesday in the Senate by Tim Scott, R-S.C., the chairman of the Senate Banking Committee. Read more...

U.S. Retail Sales Drop by Most in Two Years in January CPA Practice Advisor

U.S. retail sales slumped in January by the most in nearly two years, indicating an abrupt pullback by consumers after a spending spree in the closing months of 2024.

The value of retail purchases, not adjusted for inflation, decreased 0.9% after an upwardly revised 0.7% gain in December, Commerce Department data showed Friday. Read more... 

AICPA, NASBA Propose Additional Path to CPA Licensure Journal of Accountancy

The AICPA and the National Association of State Boards of Accountancy (NASBA) are proposing changes to the Uniform Accountancy Act (UAA) that would help pave the way for states to uniformly adopt an additional pathway for CPA licensure in conjunction with a shift to a different form of practice mobility.

The changes to model legislative language that NASBA and the AICPA have asked their joint UAA committee to draft aim to maintain the integrity of the CPA license while allowing individuals to earn their license by obtaining a bachelor's degree (with requisite accounting and business courses); completing two years of professional experience; and passing the CPA Exam. Read more... 

Price of Eggs Hits All-Time High CPA Practice Advisor

Egg prices don’t appear to be going down anytime soon, thanks to a massive outbreak of bird flu.

In January, the cost of eggs went up by roughly 20% from the previous month. The average cost for a dozen large Grade A eggs is now $4.95 nationwide — an all-time high according to CPI data. But in Chicago-area grocery stores, egg prices exceed well above the national average — more than $7 per dozen at some locations. Read more... 

Mergers and acquisitions 

Decimal and Puzzle Partner to Bring AI-Powered Solutions to Accounting The Woodard Report

In a move that signals the growing adoption of artificial intelligence (AI) in accounting, Decimal, a provider of modern accounting and tax services, has announced a partnership with AI-driven accounting platform Puzzle.

The collaboration involves transitioning hundreds of former KPMG Spark clients to Puzzle’s AI-native ledger, underscoring the scalability and long-term viability of AI-powered financial management solutions. Read more... 

Other interesting things we found

What Is Going On with CPA Exam Pass Rates? Going Concern

The consensus on the new exam was FAR would see higher pass rates as difficult material moved to BAR. Unfortunately, we see the lowest quarterly FAR pass percentage in at least the last 15 years.

Additionally, BAR’s pass rate is almost 40% lower than TCP’s. Read more...

SBA Fires Staff, Rescinds Firing, Cans Them Again Fortune

Staff on probation at Donald Trump’s Small Business Administration (SBA) have had a confusing past week.

On Monday, the employees were told that termination notices that had previously been sent to them were a mistake, and they still had jobs. The following day, yet another email landed in their inbox, saying their roles had indeed been axed. Read more...