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DEI in accounting (and only in accounting)

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Diversity, equity and inclusion is in the headlines these days, and at the risk of opening an entire can of beans, when all I really want is just one bean (or, at most, a couple), I thought I’d take an opportunity to talk about what DEI means in the accounting space — and also what, specifically, it does not mean.

A couple of caveats: I am going to be talking about DEI only in accounting. Not in government, not in education, not in movies or TV, not in sports, not at the state level and definitely not at the federal level — just in accounting.

Also, if you have strong feelings about DEI in any other area, please do not share them with me. Similarly, if you have strong thoughts about DEI in accounting AND you believe that DEI in accounting involves depriving qualified candidates of jobs in accounting, please do not send me emails about that. Any time we run an article about DEI, I get plenty of emails making the same case.

And it’s because that case is wrong that I’m writing this. DEI in accounting is NOT about depriving qualified candidates of jobs, or hiring unqualified people because of their race or gender. Accounting is in the midst of a truly massive staffing shortage — no one is turning away qualified candidates, no matter their race or gender or anything else. Instead, DEI (in accounting) is about finding new pools of qualified job candidates, drawing them into the profession, and getting them to stay. All the DEI programs that I’ve ever looked at, and all the DEI leaders I’ve ever spoken to — and this is all just in accounting, by the way — are focused on two things.

First, they’re reaching out to groups that haven’t traditionally thought about accounting as a career path, and encouraging them to try it. That means they’re trying to get, say, Black and Latino high school and college students to pursue accounting degrees, with the goal then of hiring those who successfully complete their degrees and guiding them through successfully earning their CPA licenses.

Second, they’re working to make their firms more welcoming and comfortable places for qualified people from underrepresented groups to work in, so that those people stick around.

Are DEI programs keeping track of the numbers? Yes. (It’s accounting, after all.) Are they aiming to up the number of qualified members of underrepresented groups who join the profession? Also yes. Are they not hiring qualified white male job candidates? No. Believe me — if an accounting firm finds a qualified candidate of any race or gender, they’re hiring them. Most firms would hire a qualified wildebeest, if the wildebeest were available and could start before the end of tax season.

So there you have it: what DEI (in accounting) is about, and what it most definitely is not.

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Accounting

IRS recalls fired workers as April 15 tax crush looms

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After a court ordered the Internal Revenue Service to rehire some 7,000 probationary workers, the employees were put on administrative leave — kept on the federal payroll, but not back at work.

Now it’s tax season and the bosses at the IRS need those erstwhile employees at their desks.

A notice to probationary employees — fired in February and reinstated in March — directed workers at the U.S. tax collector to prepare to return to “full duty” by April 14 — one day before the country’s taxes are due, according to a copy viewed by Bloomberg News.

Between now and the agency’s most important date on the calendar, workers will be picking up new federal ID badges, powering up computers they turned in when the terminations hit in February and negotiating remote work arrangements in cities where the IRS doesn’t have office space. 

For employees who don’t want to come back, the notice provides an out: workers can send an email to decline to return and resign from the agency.

But management said workers don’t need to give up jobs they took in the weeks since the Department of Government Efficiency first initiated the firings — in what could be a sign of the IRS’ manpower needs as tax returns roll in.

“Please know that outside employment does not necessarily prevent you from returning to work,” the message read.

The IRS declined to comment.

These roughly 7,000 employees were fired in February as part of Elon Musk’s DOGE effort to slash the U.S. government’s workforce. But a federal judge in Maryland ruled last month that 18 agencies, including the Treasury Department which oversees the IRS, had to reinstate their fired probationary workers, as the courts continue to weigh the legality of the job cuts.

At the time, unions said that bringing workers back onto the federal payroll, even keeping them on leave, would reverse the economic hit of the layoffs and restore affected employees’ health benefits. 

Still, the Trump administration’s longterm goal of cutting the IRS workforce in half is expected to dramatically raise wait times for customer service functions, including helping individual filers with tax returns. It’s also likely to be good news for tax cheats, tax experts said, since it will cramp the agency’s ability to audit returns, including some of the wealthiest people in the country.

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Accounting

DOJ is urged not to dissolve its tax division in restructuring

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Former U.S. tax officials urged the Justice Department not to dismantle its tax division in an agency-wide reorganization, warning that such a move would hobble enforcement. 

More than 60 lawyers wrote Wednesday in response to a March 25 memo by Deputy Attorney General Todd Blanche that called for a broad reorganization of the department, including reassigning tax lawyers around the country while keeping a “core team of supervisory attorneys” in Washington. 

“Dismantling the tax division would do a grave disservice to tax administration by destroying consistent and competent application of our tax laws,” the lawyers wrote. Many of them served in top posts at the tax division and the Internal Revenue Service. 

The letter, also signed by leading tax practitioners, comes as senior officials in the Justice Department’s antitrust division are trying to shield key aspects of that work from the cutbacks. The cuts are part of President Donald Trump’s broader effort to downsize the federal government. 

A spokesperson for the Justice Department declined to comment on the letter. 

The tax division’s 350 or so lawyers work in 14 civil, criminal and appellate sections and support the IRS in collecting taxes and prosecuting fraud. They work closely with the 93 U.S. attorney’s offices across the country and approve all tax prosecutions.

But the division is smaller than several others at the Justice Department and hasn’t had a Senate-approved leader for more than a decade. The IRS had cut back on tax enforcement cases for years, and Trump vowed to reverse hiring increases backed by former president Joe Biden. 

Division lawyers pursue a wide range of cases, including multibillion-dollar disputes like one involving Caterpillar Inc., as well as prosecutions over tax preparers and tax shelters. They have pursued cases over COVID-19 payments, cryptocurrency scams and bankruptcy frauds. 

“The tax division is successful in carrying out this difficult and diverse mission because of principles it is designed around and fosters: technical competence, centralized leadership and collaboration,” the tax experts told Blanche in the letter. They “regularly litigate cases against the nation’s best-trained and best-funded private sector tax lawyers.” 

Many of those lawyers signed the letter, including former IRS commissioner Charles Rettig, former deputy attorney general Rod Rosenstein and Michael Desmond, a former IRS chief counsel.

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Accounting

Best Firms for Technology deadline extended

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Due to greater-than-expected interest, Accounting Today has moved the submission deadline for its 2024 Best Firms for Technology survey from today to END OF THE DAY Friday, April 11.

The Best Firms for Technology will be selected based on the policies and technologies they have in place, on their philosophies and strategies surrounding technology in their practice, and on their history in leveraging and implementing technology for their own and their clients’ benefit.

To participate, firms must complete the Best Firms for Tech submission form, located here. Submissions are due on END OF THE DAY FRIDAY, April 11, 2025 For more information, contact [email protected]

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