There’s a lot to keep up with in the world of accounting, bookkeeping, and business advisory services. If you’re a parent, doing so in the midst of back-to-school season can be even more hectic. Don’t worry—The Woodard Report is here with a roundup of the top stories from the past week to help you stay on top of the latest updates.
Significant developments impacting PwC made the news last week. The IRS also announced relief to victims of tropical storm Francine in Louisiana, and the Georgia Society of CPAs raised over $1 million for food banks. Plus, don’t miss the most recent episode of The Woodard Report Podcast—you can find our writeup of it, along with download links in the section below.
TWR Podcast Episode 95: Outsourcing and Offshoring Strategies [The Woodard Report]
In Episode 95 of The Woodard Report Podcast, Joe Woodard explores the intricacies of outsourcing and offshoring strategies for accounting professionals. This episode delves into how firms can leverage global talent to improve workflow efficiency, reduce costs, and manage tasks more effectively. Joe highlights the challenges and solutions that firms face when looking to offload work to external partners, particularly in the areas of data security and maintaining service quality.
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China Bans PwC from Auditing Firms Citing Accountability Failures [AP News]
The Chinese government has banned PwC from auditing firms within its jurisdiction, following accusations of misconduct and failures related to the audit of Evergrande, a heavily indebted property developer. The move, which comes with a significant fine, signals China’s intent to hold auditors more accountable amid ongoing financial turmoil. PwC’s failure to flag risks and irregularities in Evergrande’s financial statements has led to increased scrutiny on the auditing profession in China.
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Standard Deduction vs. Itemized Deductions by Income [Accounting Today]
A new analysis from Accounting Today compares the financial advantages of standard versus itemized deductions across different income levels. The report highlights how changes in tax laws and inflation adjustments have altered the decision-making process for taxpayers. For lower-income households, the standard deduction is often the better choice, while higher-income earners may benefit more from itemizing deductions such as charitable contributions and mortgage interest.
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Corporate AMT Regulations Issued by Treasury and IRS [Journal of Accountancy]
The IRS and Treasury released proposed regulations for the Corporate Alternative Minimum Tax (AMT), which affect corporations with $1 billion or more in profits. The regulations are part of ongoing efforts to ensure that profitable corporations pay a fair share of taxes. The Corporate AMT is designed to capture revenue from companies that utilize tax deductions and credits to significantly lower their effective tax rate.
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The IRS announced extended deadlines for Louisiana residents and businesses affected by Tropical Storm Francine. Taxpayers in disaster-affected areas now have until February 3, 2025, to file various individual and business tax returns and make payments. The relief applies to deadlines for returns due between now and early 2025, offering much-needed respite for those impacted by the storm's aftermath.
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Treasury, IRS Issue Proposed Regulations on Tribal General Welfare Benefits [IRS]
The Treasury and IRS issued proposed regulations aimed at clarifying tax exemptions on general welfare benefits provided by tribal governments. The new regulations address benefits related to healthcare, education, housing, and cultural programs, ensuring that these benefits remain exempt from federal income tax in most cases. These updates are a significant step in protecting the economic security and cultural heritage of tribal communities.
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PwC to Give Out Pink Slips to 1,800 Employees Next Month [CPA Practice Advisor]
PwC has announced that it will cut 1,800 jobs in October 2024, citing changing client demands and increased focus on automation and efficiency as key reasons for the layoffs. The company plans to focus more on advisory services and digital transformation initiatives as part of its strategic shift. This move is expected to impact a broad range of roles, including support staff and consultants.
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The Georgia Society of CPAs partnered with Feeding Georgia to launch their annual Accounting Food Fight, raising the equivalent of nearly 1.4 million meals for food banks throughout the state. This community-driven effort highlights the profession’s commitment to making a difference beyond accounting, with firms and individual CPAs stepping up to combat hunger across Georgia.
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