Accounting
Tax collections lift Treasury’s cash pile by most since 2022
Tax collections are confirming Wall Street forecasts that the U.S. government will not exhaust its borrowing capacity until later this year.
The U.S. Treasury’s cash balance climbed again on Wednesday to reach a total of $639 billion — after soaring some $185 billion the day prior, the most in three years — amid inflows around the April 15 tax deadline.
“Individual income tax receipts remained stronger than we expected,” wrote Lou Crandall at Wrightson ICAP in a note to clients Thursday. That reinforces “our view that the X-date would be a late-third-quarter event even under the traditional playbook,” Crandall added, referring to the date at which the Treasury breaches the debt limit.
Much of the tax collection increase has been driven by a surge in individual, non-withheld taxes paid electronically, which are now trending well above last year’s levels.
“In total, non-withheld tax receipts have come in strong this year so far, despite some concerns over staffing cuts at the IRS, fraud, and delayed filings in disaster-affected areas,” wrote JPMorgan strategists led by Jay Barry in a note. Barry reiterates an X-date of Aug. 1, giving Congress some time to agree on new debt-ceiling legislation.
The final tally matters for a number of reasons. In the near-term, the amount of cash flowing out of the money markets to pay Uncle Sam can impact funding costs. Higher tax receipts means more liquidity is drained from the overall financial system, likely pushing up the cost of borrowing in the overnight repurchase market.
If more money is flowing out of bank reserves and money markets that carries implications for the Federal Reserve’s quantitative tightening program. The central bank eased the pace of runoffs to $5 billion per month this April. Fed Chair Jerome Powell reiterated this week that the
Here are the key metrics to watch in the funding markets in the weeks ahead.
Bank reserves
Fed officials and investors are keeping a keen eye on the amount of cash banks park at the central bank, gauging what level is enough to maintain liquidity and avert too much stress in the plumbing that underpins the financial markets. As reserves become more scarce, a level primary dealers estimate to be around $3 trillion, the U.S. central bank will likely have to halt its balance sheet unwind.
Bank reserves totaled $3.3 trillion in the week through April 16 from $3.5 trillion the prior week, Fed data show. That’s above the level they were when the central bank started unwinding its balance sheet almost three years ago.
Money-market fund assets
In the week including the April 15 tax deadline, money-market fund assets fell by some $125 billion to $6.88 trillion, according to ICI
Global market volatility spurred by the Trump administration’s tariffs has renewed focus on money-market funds, which are considered attractive investment vehicles during periods of uncertainty as they command higher yields and are perceived as a haven.
Treasury’s cash balance
Whether the U.S. government can meet its fiscal obligations and pay its debts ultimately comes down to whether it has the cash. That balance is affected by daily inflows and outflows.
The Treasury’s cash balance saw its largest one-day increase in three years on April 15, Treasury figures show. It further rose to some $639 billion the day after, according to
The Tennessee General Assembly passed legislation backed by the Tennessee Society of CPAs adding an extra pathway to a CPA license, as more states make efforts to alleviate the shortage of new accountants.
SB 1316/HB 1330, introduced by Senate Majority Leader Jack Johnson and House Majority Leader William Lamberth on behalf of the administration, was filed for introduction on Feb. 6. The legislation aligns with Tennessee Governor Bill Lee’s goal to streamline state boards and simplify licensing. Members of the Tennessee Society of CPAs
The legislation offers two pathways to licensure for prospective CPAs starting Jan. 1, 2026. Applicants can either:
- Ccomplete the traditional path of at least 150 semester hours of college education including a bachelor’s degree plus one year of accounting experience; or,
- Complete at least 120 semester hours of college education including a bachelor’s degree plus two years of accounting experience.
For both options, the coursework needs to include an accounting concentration as determined by Tennessee State Board of Accountancy rule.
In addition, the legislation includes CPA practice mobility provisions so CPAs can still practice across state lines. Current and future CPAs who don’t have a principal place of business in Tennessee will be able to practice in the state if they hold a valid CPA license in good standing from another state and if, at the time of licensure, they showed evidence of having passed the Uniform CPA Exam. They need to consent to the jurisdiction and disciplinary authority of the TSBOA, comply with the applicable statute and board rules of the state, and cease offering services in Tennessee if their license in the state of issuance is deemed to be no longer valid. These changes will take effect July 1, 2025.
(Read more: See
“This legislation is a key step in ensuring that the demand for skilled accounting professionals, specifically licensed CPAs, can be met now and in the future,” said TSCPA president and CEO Kara Fitzgerald in a statement Monday. “Tennessee was a leader in advocating for the 150-hour rule in the 1990s, and as the needs of the profession change, Tennessee will continue to lead in evolving our licensure model to make sure we meet those needs.”
The bill will now be sent to Gov. Lee and, once he signs it, will become effective on the dates stated above.
Other states besides Tennessee have been
Baker Tilly and Moss Adams have made their merger official, combining to form what promises to be the sixth largest CPA firm in the U.S.
Rumors of the
Baker Tilly, based in Chicago, ranked No. 11 on Accounting Today‘s 2025 list of the
Baker Tilly CEO Jeff Ferro will be CEO of the combined firm through his retirement, while Eric Miles, who is currently Moss Adams’ chairman and CEO, has been named CEO-elect. Miles will assume the role of CEO on January 1, 2026, with Ferro remaining a director on Baker Tilly’s board thereafter.
“Moss Adams is a great strategic fit with Baker Tilly,” Ferro said in a statement Monday. “We’ve long respected the firm, its people and its industry-focused approach. By bringing together our strengths, we are expanding our ability to serve middle-market businesses with greater expertise, resources and insights.”
“The resources, geographic reach and go-to-market strength of the combined firm magnifies opportunities for our people to grow, collaborate and innovate,” Miles stated. “We are proud to offer our clients these expanded resources to deliver even greater value and set a new standard for advisory services in the middle market.”
As part of the deal, private equity firm Hellman & Friedman, an existing investor in Baker Tilly, will make an additional strategic investment in the business, with existing shareholder Valeas Capital Partners also increasing its investment.
The deal is expected to close in early June of this year. Once the deal closes, Moss Adams and Baker Tilly’s audit business will combine as Baker Tilly US, LLP and the firms’ business advisory, tax and other services will combine under Baker Tilly Advisory Group, LP. Both entities will remain partnerships, with all principals holding equity alongside H&F and Valeas in BTAG.
“Since we invested in Baker Tilly, we have been focused on building a differentiated firm with the ambition to change the game in the middle-market accounting industry,” said H&F partner Blake Kleinman in a statement. “This landmark merger between Baker Tilly and Moss Adams is an important step in creating a firm that will be the destination of choice for the industry’s best talent and for firms considering their strategic options in a rapidly evolving sector.”
Former AICPA president and CEO Barry Melancon
Simpson Thacher & Bartlett LLP and Vedder Price PC served as legal advisors to Baker Tilly. Deutsche Bank Securities Inc. served as financial advisor and Dechert LLP as legal advisor to Moss Adams.
Baker Tilly is part of the Baker Tilly International network, based in London, which reported $5.6 billion in worldwide revenue in 2024. Baker Tilly has done several acquisitions since receiving
Last May, it merged in
Moss Adams does not do M&A deals as often, but last December, it entered the Salesforce.com consulting market by acquiring
International accounting and consulting firm KNAV Advisory added U.K.-based firm Aventus Partners, effective April 4.
The deal strengthens KNAV’s operations in the U.K. and continues its international expansion strategy. Last year, it integrated Natarajan & Swaminathan in Singapore and HLG Netherlands.
“This is a major milestone for KNAV’s UK operations,” KNAV CEO Nishta Sharma said in a statement. “It reinforces our commitment to a unified, integrated model that delivers exceptional value to global clients.”
KNAV reported $21.5 million in revenue in 2024 and has three offices, 12 partners and 202 employees. It was one of the
Aventus, with $5.3 million in revenue, provides audit and assurance, tax advisory, financial reporting and outsourced finance team services. The deal adds four partners and 27 employees to KNAV.
Both firms are members of Allinial Global, a global association of independent accounting and consulting firms.
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