Accounting

A bumpy start: Tax season kicks off amid growing uncertainty

Published

2 years ago

February 11, 2025

Business Finance News

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Accountants are in the midst of a series of changes, ranging from the future of the Internal Revenue Service to the kick-off of tax season.

President Donald Trump’s hiring freeze for federal government workers, changes at the top at the Internal Revenue Service, a proposed ban on contingency fees from the IRS, massive uncertainty around the Corporate Transparency Act, and a number of other recent developments have introduced a lot of volatility that has professionals wondering where to start.

Catch up on the most pressing issues in the field to stay ahead of the regulatory curve.

President Donald Trump signs executive orders in the Oval Office of the White House

Trump freezes IRS hiring, nixes global tax deal

Article by Michael Cohn

President Donald Trump signed a series of executive orders on Jan. 20 after his inauguration, including one that enacted a hiring freeze for federal government workers, particularly at the Internal Revenue Service. He also backed out of a global tax deal that had enjoyed support from the Biden administration.

“I will also issue a temporary hiring freeze to ensure that we are hiring only competent people who are faithful to the American public. And we will pause the hiring of any new IRS agents,” said Trump during a rally and parade at the Capital One Arena. “We will also require that federal workers must return to the office in person.”

Trump then began to refer to claims about thousands of armed IRS agents being hired during the Biden administration, although this claim has been disputed by the IRS and its employee union. “We are going to take the 88,000 people that they hired to go after you with guns — by the way, they are allowed to use guns and harass you like they were, and so many other people,” he said.

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IRS proposes banning contingency fees

Article by Roger Russell

The Treasury Department and the Internal Revenue Service have proposed amendments to Circular 230, which governs practice before the IRS. The amendments are the most extensive since 2014 and cover significant developments that have affected practice since that time.

The proposed regulations would remove or update the parts of Circular 230 that related to registered tax return preparers and tax return preparation, as well as contingent fees to reflect changes in the law since the prior amendments to Circular 230 in 2011 and 2014. The regs would also revise or eliminate other provisions that are out of date.

The proposed regulations would incorporate provisions that better align Circular 230 with the current practice environment, such as requiring practitioners to maintain technological competency as part of their practice before the IRS.

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Visitors walk in front of the U.S. Supreme Court building in Washington, D.C.

Supreme Court lifts injunction on Corporate Transparency Act

Article by Michael Cohn

The Supreme Court granted a stay against an injunction on the Corporate Transparency Act and its beneficial ownership information reporting requirement that had been imposed by a federal appeals court, but CTA enforcement nevertheless remains on hold because of a separate nationwide injunction.

The lower courts will continue to hear arguments over the law, which requires companies to file reports on their true owners to the Treasury Department’s Financial Crimes Enforcement Network as a way to deter illicit activity such as money laundering, tax fraud, drug trafficking and the financing of terrorism by shell companies. New businesses were required to start filing the beneficial ownership information reports with FinCEN last year, and existing ones had to file the BOI reports starting Jan. 1 of this year.

But a series of court decisions in recent weeks in federal district courts and appeals courts in Texas have alternately paused, reinstated and again paused the requirement, prompting the Justice Department to file an emergency request with the Supreme Court to lift the injunction.

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FTC mandates changes at H&R Block

Article by Jeff Stimpson

The Federal Trade Commission finalized an order requiring H&R Block to make a number of changes for the 2025 filing season, as well as longer-term changes.

The settlement also requires H&R Block to pay $7 million toward compensating consumers harmed by the company’s unlawful practices.

In a complaint announced last February, the FTC charged that the tax prep giant unfairly required consumers seeking to downgrade to a cheaper H&R Block product to contact customer service, unfairly deleted users’ previously entered data and made deceptive claims about “free” filing.

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Grant Thornton LLP building in Dublin, Ireland

Grant Thornton CEO steps down

Article by Chris Gaetano

Top 10 Firm Grant Thornton announced that its CEO, Seth Siegel, is stepping down from his position after 30 years with the firm, though he will still remain involved as a senior advisor.

“I have called Grant Thornton home for almost three decades and am proud to have been part of this amazing team and organization, which has solidified its standing as the destination of choice for clients and talent alike,” said Siegel in the firm’s official statement. He felt that, with Grant Thornton positioned for what he said was strong continued growth, it was the right time to step down.

In a LinkedIn post, Siegel said the move will allow him to pursue other ambitions, focus on his health and spend more time with his family.

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IRS starts tax season with hiring freeze and rescinded job offers

Article by Michael Cohn

The Internal Revenue Service kicked off tax season on Jan. 27 facing a hiring freeze imposed by President Donald Trump in an executive order on Inauguration Day and lingering uncertainty over how to make up for over $20 billion in budget cuts.

The IRS has been rescinding job offers and posted on its website that hiring offers with a start date on or before Feb. 8, 2025, will be allowed to proceed. But offers with a start date after Feb. 8, 2025, or an unconfirmed start date, will be revoked.

Last month, Trump formally nominated Billy Long, a former Republican congressman from Missouri, as IRS commissioner. Trump announced his intention last month to nominate Long, even though then-commissioner Danny Werfel’s term wasn’t set to end until Nov. 12, 2027.

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Supreme Court takes on CTA, BOI

Article by Roger Russell

In the continuing saga of the fate of the Corporate Transparency Act, the New Civil Liberties Alliance filed an amicus curiae brief with the Supreme Court on Jan. 13, 2025, in Garland v. Texas Top Cop Shop.

The brief urges the court to reject the government’s request to stay a preliminary injunction against the enforcement of the CTA and its beneficial ownership information reporting mandate.

The CTA mandates that organizations that have filed for incorporation under state law submit detailed reports to the Treasury’s Financial Crimes Enforcement Network, or FinCEN, with civil and criminal penalties available to the government to punish those who fail to comply, either by omitting information or even accidentally submitting false information.

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Werfel resigns as IRS commissioner

Article by Michael Cohn

IRS Commissioner Danny Werfel said on Jan. 17 that he planned to resign on Monday, Jan. 20, coinciding with Inauguration Day.

President Donald Trump had announced plans in December 2024 to nominate former Rep. Billy Long, a Republican from Missouri, as the next IRS commissioner, even though Werfel’s term would not end until November 2027.

“While I had always intended to complete my full term as commissioner, the president-elect has announced his plan to nominate a new IRS commissioner,” Werfel said in an email to all IRS employees. “I have been touched by those who have reached out to me to share how they were hopeful that I could remain in seat and continue the important work underway. But as civil servants, we have a job to do, and that job is to now ensure a new commissioner is set up for success.”

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Erin Collins, national taxpayer advocate at the Taxpayer Advocate Service, wears a protective mask during a House Oversight and Government Reform Subcommittee on Government Operations hearing in Washington, D.C., U.S., on Wednesday, Oct. 7, 2020. The hearing is investigating Internal Revenue Service (IRS) operations during the coronavirus pandemic. Photographer: Tasos Katopodis/Getty Images/Bloomberg

Taxpayer Advocate spotlights IRS delays in ERC claims

Article by Michael Cohn

National Taxpayer Advocate Erin Collins released her annual report to Congress on Jan. 8, highlighting improvements in taxpayer service by the Internal Revenue Service, but pointed to persistent delays in processing Employee Retention Credit claims and helping victims of identity theft.

“For the first time since I became the National Taxpayer Advocate in 2020, I can begin this report with good news: The taxpayer experience has noticeably improved,” Collins wrote. “In 2024, taxpayers and practitioners experienced better service, generally received timely refunds, and faced shorter wait times to reach customer service representatives … . After receiving multiyear funding, the IRS has [also] made major strides toward improving its taxpayer services and information technology (IT) systems.”

However, the IRS faces a budget cut of over $20 billion after Congress passed a continuing resolution to avoid a government shutdown last month, repeating language from an earlier continuing resolution that cut the IRS’s budget by a similar amount in 2023.

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Tax season kicks off with non-tax issues center stage

Article by Roger Russell

While much has happened during the past few years, and significant change lies immediately ahead, there is little that is new in the upcoming tax season. However, beneficial ownership reporting and tariffs — which are not part of the typical issues that preparers deal with — are potential topics of concern.

For now, this filing season appears to be business as usual for most accounting professionals, according to Misty Erickson, tax content program manager at the National Association of Tax Professionals.

“That said, there are a few things to keep in mind,” she added. “With the ever-changing landscape with BOI reporting, business owners that have not already filed, and need to, may be dealing with a tax deadline and a BOI deadline at the same time. While we wait for a new deadline to be announced, this is something to keep in mind and be prepared to advise clients on next steps.”

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Accounting

AI-Driven Automation and Continuous Accounting Frameworks

Published

1 week ago

August 15, 2026

Business Finance News

The accounting profession is undergoing a fundamental structural transition as enterprise finance departments shift from periodic month-end closes toward automated continuous accounting models. By integrating specialized machine learning algorithms directly into enterprise resource planning (ERP) platforms, chief accounting officers are transforming financial reporting from a retrospective exercise into a real-time operational asset.

The Shift from Periodic Close to Continuous Financial Reporting
Traditional accounting workflows heavily relied on manual data reconciliation, spreadsheet calculations, and multi-week closing cycles at the end of each fiscal period. In contrast, continuous accounting frameworks utilize automated software agents to process, validate, and post transactional data in real time as business activities occur.

Automated bank reconciliation tools cross-reference incoming bank feeds, invoice records, and purchase orders automatically. By resolving transactional variances instantly throughout the month, corporate accounting teams eliminate the traditional workload spikes associated with quarterly and annual closes.

Machine Learning in Audit Trails and Anomaly Detection
Advanced natural language processing (NLP) and machine learning tools are redefining internal audit and financial control environments. Automated systems analyze 100% of general ledger entries, identifying anomalous transactions, duplicate payments, and unauthorized journal entries in real time.

Rather than relying on random statistical sampling, corporate internal auditors can focus their attention on high-risk flags automatically surfaced by algorithmic monitoring platforms. This continuous risk assessment strengthens internal controls over financial reporting (ICFR) and significantly reduces fraud risk.

Evolving Roles for Accounting Professionals
As routine data entry and manual reconciliation tasks become fully automated, the skill set required for accounting professionals is shifting toward data analysis, system design, and strategic business advisory.
– Systems Governance: Accountants are increasingly responsible for monitoring algorithmic accuracy and managing data integration pipelines.
– Business Partnership: Finance professionals leverage real-time financial dashboards to advise operational leaders on margin management and working capital allocation.
– Regulatory Compliance Management: Accounting teams utilize automated platforms to ensure compliance with dynamic tax codes and international accounting standards.

Core Implementation Recommendations
1. Deploy Automated Reconciliation Tools: Integrate continuous transaction processing modules into existing enterprise ERP architectures.
2. Establish Algorithmic Governance Controls: Implement strict internal testing protocols to ensure automated accounting rules comply with GAAP/IFRS standards.
3. Reskill Accounting Teams: Invest in training finance staff on data analytics, workflow automation, and predictive financial modeling.

Accounting

Global ESG Reporting Standards and Double Materiality Compliance

Published

2 weeks ago

August 9, 2026

Business Finance News

Corporate accounting departments face expanding reporting expectations as international sustainability disclosure standards achieve regulatory enforcement across major global jurisdictions. Chief Accounting Officers (CAOs) and corporate controllers are establishing rigorous internal accounting controls to treat Environmental, Social, and Governance (ESG) metrics with the same data precision, auditability, and governance as traditional financial statements.

Regulatory Harmonization Under Global Sustainability Frameworks
The implementation of standardized sustainability reporting frameworks—notably rules established by international sustainability accounting boards—has created unified expectations for public and large private enterprises. Corporations must report standardized metrics covering greenhouse gas emissions (Scope 1, 2, and material Scope 3), energy utilization, workforce demographics, and supply chain governance.

In Europe and other participating international jurisdictions, double materiality principles are mandatory. Under double materiality, organizations must report both how external sustainability risks impact corporate financial performance, and how internal corporate operations affect surrounding environmental and social structures.

Integrating Sustainability Metrics into Core ERP Systems
To provide auditable non-financial data, enterprise organizations are integrating specialized carbon accounting and ESG management platforms directly into core ERP systems. Automated data collectors capture energy utility invoices, logistics fuel consumption metrics, and vendor compliance records in real time.

Establishing automated, traceable data pipelines ensures that non-financial reporting is supported by clear audit trails. This structured approach allows external financial auditors to provide reasonable assurance on sustainability disclosures during annual corporate reporting cycles.

Financial Impacts and Capital Market Disclosure
Accurate ESG reporting directly influences corporate cost of capital and institutional credit ratings. Commercial lenders and institutional asset managers systematically incorporate sustainability metrics into risk pricing models. Companies that demonstrate transparent, verifiable progress in operational energy efficiency and climate risk mitigation benefit from expanded access to green bond markets and lower debt pricing.

Action Steps for Accounting Leadership
1. Implement Double Materiality Frameworks: Conduct comprehensive assessments to identify material financial and operational sustainability metrics.
2. Build Auditable Non-Financial Data Pipelines: Automate ESG data collection within core accounting software to ensure data integrity.
3. Align Sustainability with Annual Financial Filings: Prepare non-financial disclosures concurrently with financial statements to satisfy regulatory audit expectations.

Accounting

Modernizing Internal Controls: Machine Learning and Continuous Monitoring in Auditing

Published

3 weeks ago

August 5, 2026

Business Finance News

Internal audit departments and corporate risk managers are modernizing internal control frameworks by shifting from periodic sampling techniques to continuous monitoring and machine learning analytics. As operational data volumes increase across enterprise organizations, automated control testing ensures financial integrity, prevents corporate fraud, and streamlines annual audit engagements.

The Limitation of Periodic Audit Sampling
Historically, internal and external auditors evaluated internal controls by reviewing random samples of financial transactions—often analyzing less than five percent of total ledger entries. In complex enterprise environments, periodic sampling methods carry inherent risks of overlooking localized financial misstatements, unauthorized disbursements, or operational control breakdowns.

In 2026, progressive internal audit functions are utilizing automated continuous monitoring platforms that evaluate one hundred percent of financial transactions in real time. Continuous control auditing systems continuously monitor general ledger entries, procurement approvals, and expense reimbursements across all operating subsidiaries.

AI-Powered Fraud Detection and Anomaly Identification
Machine learning models trained on historical corporate financial data excel at identifying subtle transactional anomalies that indicate potential fraud or operational error. Automated systems instantly flag duplicate invoice payments, unapproved vendor creation, unusual journal entry timing, and unauthorized override of authority thresholds.

When an anomaly is detected, the automated auditing platform generates an instant risk alert, allowing internal audit teams to investigate root causes immediately. Early detection prevents minor operational errors from escalating into material weaknesses in financial reporting.

Streamlining External Audit Preparation
Continuous internal control monitoring delivers significant benefits during annual external financial audits. External audit firms can review continuous audit logs and automated control testing documentation, reducing the time required for manual field testing.

This integrated approach lowers overall audit compliance fees, reduces administrative burdens on corporate accounting staff, and provides senior management and audit committees with real-time visibility into the organization’s overall risk profile.

Core Implementation Guidelines
1. Transition to 100% Data Testing: Replace legacy sampling methods with automated continuous audit monitoring systems.
2. Deploy Anomaly Detection Algorithms: Implement machine learning models to identify unauthorized transactions and operational control overrides.
3. Align Internal and External Audit Workflows: Coordinate continuous control testing protocols with external auditors to optimize annual compliance cycles.