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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.

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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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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 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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Tasos Katopodis/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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