In The News—January 20, 2025

The holiday weekend was shaken up when incoming President Donald Trump announced his own cryptocurrency on the brink of his inauguration, raising questions about legality and the market economy. 

Otherwise, lots of news from the IRS about tax regulations that impact you as their administrator steps down from his leadership post. 

On that note, Happy Martin Luther King Jr. Day! 

IRS news

Reminder: Wage Statements, Information Returns Due by Jan. 31 IRS.gov

As tax filing season nears, the Internal Revenue Service reminds businesses to submit wage statements and certain information returns to the federal government by Jan. 31.

Filing the required forms by deadline and without errors not only helps payers and recipients avoid penalties, it also helps the IRS fight fraud by making it easier to verify income information. Read more...

IRS Initiates Settlement Pilot Programs to Hasten Tax Dispute Resolutions IRS.gov

The Internal Revenue Service today announced three pilot programs PDF that will test changes to existing Alternative Dispute Resolution (ADR) programs.

IRS ADR programs are designed to help taxpayers resolve tax disputes earlier and more efficiently. Read more...

IRS Announces 2025 Filing Season Changes to Prevent Scams, Provide Fuel Tax Credits IRS.gov

The Internal Revenue Service and partners in the Coalition Against Scam and Scheme Threats (CASST) today released changes for the 2025 filing season designed to help protect taxpayers from becoming victims of a scam or scheme and preventing tax professionals from having their credentials compromised.

The changes to protect taxpayers include a new form involving the Fuel Tax Credit that’s designed to make it harder for well-meaning taxpayers to be misled into claiming the credit by promoters. Read more...

IRS Issues Final Regulations on Gifts to Taxpayers from Ex-U.S. Citizens Journal of Accountancy

The IRS issued final regulations regarding taxpayers who must pay taxes on gifts or bequests that they receive from certain individuals who gave up their U.S. citizenship or residency.

The final regulations, issued Jan. 10, also provide guidance on the method for reporting and paying this tax. They follow up on proposed regulations published in 2015 in the Federal Register. Read more...

IRS Chief Resigns CPA Practice Advisor

IRS Commissioner Danny Werfel is planning to resign on Jan. 20 despite having more than two years left in his term.

His decision to step down on Inauguration Day rather than be removed from his position by President-elect Donald Trump quashes any potential conflict between Werfel and the incoming administration. Read more...

Technology news

Accounting Firms Can Retain Talent with Advanced Engagement Software AccountingWEB

The need for a new generation of accounting professionals also comes as there’s a shift in what’s expected of them. More and more accountants are required to have, at a minimum, a basic understanding of data analytics and emerging accounting technologies. In a stricter regulatory environment, auditors and accountants serve as strategic partners for their clients, who rely heavily on their expertise for compliance.

Firms can remain competitive by recruiting and retaining top talent and they can do this by providing the kind of work environment young professionals' desire. Technology is critical in this process: The latest innovations make it easier to source information and work collaboratively on engagements. Technology also supports hybrid and decentralized working environments. Read more...

Accounting news  

Bill Reintroduced to Repeal CTA, Protect BOI Land Line

As the Corporate Transparency Act (CTA) continues to suffer major blows in federal courts, Republican lawmakers are trying to kill the law that requires beneficial ownership information (BOI) reporting through legislation. 

On Wednesday, Jan. 15, Sen. Tommy Tuberville, R-Ala., and Rep. Warren Davidson, R-Ohio, reintroduced the Repealing Big Brother Overreach Act, which attempts to eliminate the Corporate Transparency Act. Effective since last January before it was struck down in federal court, the latter requires small businesses to report what is called beneficial ownership information to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Read more...

Economic Optimism Rises Among CFOs Journal of Accountancy News

Finance leaders at larger companies are beginning the new year with renewed optimism.

Almost three-fourths of CFOs think the economy will improve over the next year, according to Deloitte's fourth quarter 2024 North American CFO Signals survey, dramatically up from 19% in the third quarter.

The survey found that 72% of finance leaders are confident about economic conditions, possibly because of the presidential election and a second Federal Reserve interest rate reduction in November, when the poll was conducted. The Fed made a third cut in December. Read more... 

Mergers and acquisitions  

KPMG Wants to Be First Accounting Giant to Own Law Firm Wall Street Journal

KPMG is poised to break through a longtime barrier and become the first Big Four accounting firm to practice law in the U.S., leveraging a novel Arizona program that allows nonlawyers to own law firms.

State approval for KPMG’s law ambitions is expected as soon as this month, a move that could usher in a sea change in two industries. KPMG says its Arizona-licensed lawyers could perform legal work for clients around the country. That could give it a leg up on its accounting rivals and send a shot across the bow to law firms, which would face new competition for work. Read more...  

Deals 2024: Over 100 CPA Firm Mergers and Acquisitions CPA Trendlines

Curious about the deals that went down in 2024 and how they might inform your next move? Marc Howard is, too. So, he compiled a comprehensive list.

Howard is a serial entrepreneur in the accounting space, Host of the Pitch Your Firm podcast, founder of Firmlever, founder of Taxplow, co-founder of BizPayO, and creator of Tax Advisor GPT.

Howard found upwards of 115 deals in 2024, ranging from the first deal of the year, ATA CPAs’ takeover of  Whitehorn Tankersley & Davis on Jan. 3, to the last, Platform Accounting Group’s roll-ups of Midwest Advisors and Crossroads Advisors on Dec. 23. Read more...

Other interesting things we found

Trump Launches Personal Cryptocurrency Associated Press 

President-elect Donald Trump has launched a new cryptocurrency token that is soaring in value – and potentially boosting his net worth – just before his inauguration. It’s the latest norm-defying promotion by Trump, who has also helped sell branded bibles, gold sneakers and diamond-encrusted watches. Read more...