In The News—February 3, 2025

As tax season heats up, major shifts in the accounting industry, IRS policy updates, and economic challenges are making headlines. Meanwhile, Woody the Groundhog didn’t see his shadow, signaling an early spring—and more importantly, a $150 discount for those registering for Scaling New Heights 2025 before the end of today!
From IRS leadership changes to a $1.8 billion accounting error in South Carolina, here’s what you need to know this week.

IRS News

IRS Offers Tips to Make Tax Season Easier (IRS.gov)

The IRS has provided six key tips to help taxpayers streamline their 2024 tax return filing. These include gathering necessary documents in advance to avoid errors that could slow refunds. More details can be found on the IRS “Let Us Help You” page.

IRS Adds 18 New Members to Advisory Council for 2025 (CPA Practice Advisor)

The IRS Internal Revenue Service Advisory Council (IRSAC) has welcomed 18 new members. Since 1953, the council has served as a forum for discussing tax administration issues, providing crucial recommendations to the IRS. The council’s 2025 annual report is set for release in November. Read more...

Bipartisan Bill to Improve IRS Earns Advocacy Support (CPA Practice Advisor)

Senators Mike Crapo (R-ID) and Ron Wyden (D-OR) have released a bipartisan discussion draft of the Taxpayer Assistance and Service Act, aimed at improving IRS operations. The proposal has gained strong backing from National Taxpayer Advocate Erin Collins and the AICPA as the IRS faces budget cuts, hiring freezes, and leadership challenges. Read more...

AICPA Supports Senate Draft to Aid Taxpayers and Preparers (Journal of Accountancy)

The AICPA has endorsed a Senate draft bill designed to support taxpayers and preparers by improving IRS procedures. The organization praised the bill’s focus on reducing burdens on taxpayers, modernizing IRS technology, and increasing responsiveness to practitioners. Read more...

Technology News

DeepSeek: A Game-Changer in AI with Controversies (The Woodard Report)

The Chinese AI platform DeepSeek is making waves with its machine learning, real-time data analysis, and predictive modeling capabilities. However, concerns are rising over data collection practices and risks of manipulation, sparking a global debate on the platform’s ethical implications. Read more...

Technology’s Role in Expanding the Accounting Talent Pipeline (The CPA Journal)

To attract more students to accounting, industry leaders are pushing for the field’s recognition as a STEM discipline. A recent survey explores how enhanced federal funding and technology integration in curricula could help address the profession’s talent shortage. Read more...

Accounting News

South Carolina Treasurer Stands Firm Amid $1.8 Billion Accounting Controversy (CPA Practice Advisor)

Despite a $1.8 billion accounting error in state financials, South Carolina Treasurer Curtis Loftis has vowed to complete his term. Loftis, who previously announced he wouldn’t seek reelection in 2026, insists the controversy is being used as a “political witch hunt” against his office. Read more...

Top 10 States Most Eager for Tax Refunds (CPA Practice Advisor)

A new LLC.org study reveals that Mississippi residents are the most eager for their tax refunds, with 52,696 Google searches per 100,000 people related to refunds. The trend is strongest in southern states, many of which have lower median household incomes. Read more...

Survey Reveals the Value of a ProAdvisor (Insightful Accountant)

A new Insightful Accountant survey provides insights into what ProAdvisors are earning and how their skills are valued in today’s market. Early results show that certifications, experience, and industry specialization significantly impact ProAdvisor compensation and demand. Read more...

Mergers & Acquisitions

Ignition Appoints New CEO and CFO (CPA Practice Advisor)

Ignition, a leading practice management software provider, has announced Greg Strickland as its new CEO, succeeding Guy Pearson, who transitions to executive chairman. Amy Foo has been appointed CFO, bringing extensive experience in scaling high-growth companies. Read more...

Marsico Financial Group Acquires Care Accounting (GlobalData)

Marsico Financial Group, a U.S.-based accounting firm, has acquired Care Accounting, a Pennsylvania-based company. The merger expands the firm’s workforce to 17 employees, strengthening its services for local business owners and professionals. Read more...

Economic & Policy News

U.S. Businesses Brace for Tariffs on Canada, Mexico, and China (MSN)

The Biden administration is set to implement tariffs on imports from Canada, Mexico, and China, sparking concerns among U.S. businesses. Experts predict higher costs for manufacturers and retailers, with potential inflationary effects on consumer goods. Read more...

Pennsylvania Doubles Net Operating Loss Deduction to Boost Business Growth (The CPA Journal)

Governor Josh Shapiro has signed S.B. 654, which doubles Pennsylvania’s net operating loss (NOL) deduction to 80% of corporate taxable income starting in 2026. The move aims to make the state more attractive to startups and businesses with fluctuating profits. Read more...