IRS happenings; minimal talk of de minimis; new blog on the block; and other highlights from our favorite tax bloggers.

Lotus operandi

Welcome to the dance

Opportunities and complications

• Taxpayer Advocate Service (https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/): Proposed voluntary withholding agreements in the Taxpayer Assistance and Service Act could change the game for independent contractors. 
• Tax Notes (https://www.taxnotes.com/procedurally-taxing): In United States v. Schaedler-Moore,  a tenant who became an owner of a property contested the foreclosure action brought by the IRS. How the reason for contesting makes sense given the tenant’s financial outlay even if her legal arguments fail.
• Meyers Brothers Kalicka (https://www.mbkcpa.com/insights): Remind them that transfers of business interests or other assets to family members opens a three-year window where the IRS can challenge the values for gift tax purposes but that the statute of limitations doesn’t kick in until one “adequately” discloses the transfers to the IRS.
• Virginia – U.S. Tax Talk (https://us-tax.org/about-this-us-tax-blog/): Stock options have become a key part of the expat executive’s compensation package, especially when working for foreign employers. How these opportunities come with complex U.S. tax implications.
• Canopy (https://www.getcanopy.com/blog): Professional proposals are key to winning new clients and long-term relationships. What are the benefits of proposal software for accountants?
• TaxProCenter (https://accountants.intuit.com/taxprocenter/): When you’re a tech-savvy tax pro, everything starts to look like it can be automated. Can and should it be?

Lens is more

New to us

• Wiss & Company (https://wiss.com/insights/read/): This accounting and advisory firm, around for more than five decades, has a blog with great categories, including tax and AI — and lately, a robust selection on tariffs. Welcome!

The federal government’s financial condition worsened by $4.7 trillion in the past year, according to a new report released to coincide with Tax Day.

The annual Financial State of the Union report from Truth in Accounting, a nonprofit government finance watchdog, pointed out that according to the most recent audited Financial Report of the U.S. Government, the U.S.’s true debt has climbed to $158.6 trillion, burdening each federal taxpayer with $974,000. Much of this debt can be traced to obligations the government has committed to, such as $67.1 trillion in Social Security and $51.6 trillion in Medicare, but hasn’t properly accounted for on its balance sheet.

“Our country’s financial condition continues to spiral out of control, and taxpayers are left holding the bag,” said TIA CEO Sheila Weinberg in a statement Tuesday. “On a day when Americans are asked to be transparent and accurate with their finances, their government fails to do the same.”

Despite the enormous size of its commitments to Social Security and Medicare, the U.S. Treasury Department only reported $241 billion of them on the official balance sheet because, according to government documents, recipients aren’t legally entitled to benefits beyond the current month, allowing future payments to be reduced or eliminated by law.

The report’s release comes amid efforts by the Elon Musk-led Department of Government Efficiency to slash the size of the federal government, virtually eliminating entire agencies while threatening cutbacks in Social Security, Medicare and Medicaid offices and personnel to aid seniors.

The report warned that due to inaccurate and nontransparent budgeting practices, Congress and the American people lack the information needed to make informed decisions about taxes, spending, and long-term policy. Weinberg is advocating for full accrual budgeting and accounting, which would include the true cost and projected growth of government programs. “This kind of transparency would be the first step in regaining control of our nation’s finances,” she said.

The Financial State of the Union report gives the federal government an ‘F’ grade for its fiscal health and asks Congress to adopt honest accounting standards to provide long-term financial sustainability. Truth in Accounting is also encouraging citizens to sign a petition asking Congress to mandate that the Federal Accounting Standards Advisory Board adopt the best practices of full accrual accounting in reporting Social Security and Medicare.

Rep. Young Kim, R-California, and Haley Haley Stevens, D-Michigan, reintroduced bipartisan legislation to recognize accounting as a STEM field like other science, technology, engineering and mathematics-related subjects and enable K-12 STEM funding to be used for accounting awareness and education. 

The legislation, known as Accounting STEM Pursuit Act of 2025 (H.R. 2911), has been backed by the American Institute of CPAs, which has long advocated for recognizing accounting as a STEM subject and supported similar legislation in 2021 and 2023.

“STEM educational opportunities are vital to our economy and national security, helping students get good paying jobs and boosting our nation’s competitiveness,” Kim said in a statement Tuesday. “Accounting is a STEM field important to all U.S. industries, and building a CPA pipeline is more important than ever in our dynamic, 21st century economy. I’m proud to lead this bipartisan bill to uplift students with the skills they need to contribute to our workforce and support our future economy.”

Proponents hope the bill will pass this time and encourage more young people to pursue accounting careers.

 ”Quality, accessible STEM education is the path to a good paying job and all students should have access to it,” Stevens stated. “That’s why I am introducing the Accounting STEM Pursuit Act of 2025, which will introduce students to opportunities in the accounting profession early on to strengthen the future of this vital industry and ensure that accounting, a field increasingly intertwined with technology, is accessible to all students.” 

The AICPA noted that over time, technology has evolved and many professions, including accounting, have evolved with it. Digital technology tools are automating and improving many old accounting tasks, opening up avenues for more creative work such as data analysis, advising on business decisions and hunting down fraud. STEM recognition for accounting at the K-12 level, in tandem with the potential for existing STEM K-12 federal funding to be used for accounting awareness and education, would affirm that the accounting profession is qualified to assess the technological world businesses are in today and expose a larger cross-section of students to potential careers in accounting, while growing the profession’s pipeline.

“For years, STEM curriculum has been a driving force in our education system, providing students with the education needed to develop critical skills that will allow them to compete in a global economy. Accounting has always embodied the values of STEM education, and we believe now is the time to recognize accounting as a STEM curriculum,” said Susan Coffey, CEO of public accounting at the AICPA, in a statement. “STEM recognition for accounting will help expose students from all backgrounds to the profession, strengthen the accounting pipeline and provide increased opportunities for students in various communities. We thank Representatives Kim and Stevens for their leadership and dedication on this issue and urge members of Congress to support this legislation.”