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Accountancy Slice
USA
29th April 2026
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THE HOT STORY

Bipartisan bill enhances IRS whistleblower rewards

The House has passed the IRS Whistleblower Program Improvement Act (H.R. 7959) with a 346-10 vote. Co-sponsored by Rep. Mike Kelly (R-PA) and Rep. Mike Thompson (D-CA), the bill introduces a more favorable review standard for whistleblower appeals, allowing new evidence and protecting anonymity. It also mandates timely award payments, imposing interest if the IRS delays recommendations beyond 12 months. Mr. Kelly emphasized: "The IRS Whistleblower Program leverages insider knowledge to identify noncompliance that would otherwise have gone undetected." Since 2007, the program has recovered over $7.37bn in unpaid taxes, proving essential in combating tax evasion. The bill now moves to the Senate for consideration.

FILEFORMS - KWONG v U.S.

The IRS May Owe Your Clients Refunds — Meet PenaltyBack by TaxNow

A landmark federal court ruling, Kwong v. United States, established that the IRS failed to properly suspend tax payment and filing deadlines during the COVID-19 disaster period (January 20, 2020 to July 10, 2023). As a result, failure-to-file and failure-to-pay penalties, along with underpayment interest assessed during that window, may have been improperly charged.

The IRS has already refunded $1.2 billion through limited programs, yet most eligible taxpayers have not filed claims. The deadline to file is July 10, 2026.

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PenaltyBack by TaxNow enables bulk eligibility scans or a white-labeled, self-service tool, identifying qualifying taxpayers, calculating refunds, and supporting Form 843 preparation and submission.  

Let’s see who qualifies

 

TAX

House approves bills to modernize IRS technology and services

The U.S. House of Representatives has approved two bipartisan bills designed to modernise IRS operations by improving efficiency, reducing errors, and enhancing the taxpayer experience, with the legislation now moving to the Senate. The BARCODE Efficiency Act would require paper tax returns prepared electronically to include scannable barcodes and direct the IRS to adopt optical character recognition technology, addressing a system that currently relies heavily on manual data entry. Lawmakers argued that this process is time-consuming, costly, and prone to errors that can delay refunds and trigger audits, particularly affecting taxpayers who still rely on paper filings. The second measure, the Taxpayer Experience Improvement Act, focuses on transparency and customer service by mandating a real-time online dashboard showing processing backlogs, wait times, and service metrics. It would also require the IRS to provide personalized digital updates on return and refund status, introduce callback technology to reduce long phone wait times, and publish call volume data to better inform taxpayers. Supporters said the bills build on recommendations from oversight bodies and aim to bring the IRS in line with modern digital standards, while reducing administrative burdens and improving access to information.

NYC Mayor Mamdani's budget delay sparks tax debate

New York City Mayor Zohran Mamdani is postponing the city's $127bn budget while advocating for a reduction in the pass-through entity tax (PTET) credit, which primarily benefits high earners. Mamdani said: "More than 95% of PTET credits go to those making more than $1m a year," as he emphasized the need for reform. He and City Council Speaker Julie Menin propose limiting the credit from 100% to 75%, potentially generating nearly $1bn to address the city's $5.4bn deficit. However, Gov. Kathy Hochul views this as a personal income tax increase and has pledged to support the city through other means, including funding for universal childcare. The PTET was designed to mitigate the impact of the 2017 federal tax law, and adjustments to it could affect taxpayer participation. Alysse McLoughlin from Jones Walker LLP noted: "If they take too much, there's no reason to make these elections."

INDUSTRY

Revamping the accounting talent pipeline

Cathy Moy, chief people officer at BDO USA, emphasizes the importance of maintaining a robust pipeline of new accountants despite ongoing concerns. She notes that while recent increases in accounting program enrollments are promising, the profession must continuously engage with potential candidates. "The more things change, the more they stay the same," she said, highlighting the cyclical nature of talent acquisition. BDO is actively involved in outreach efforts, such as collaborating with the Center for Audit Quality to inspire high school students about accounting careers. Moy believes that creating meaningful connections and providing support are essential for attracting and retaining talent in the accounting field. As firms adapt to changes in the workforce, she advocates for a focus on growth-minded individuals who are eager to learn and contribute.

FIRMS

KPMG shuts U.S. government audit practice after losing army contract

KPMG has announced it will exit its U.S. federal government audit business following the loss of a major Pentagon contract, previously worth up to $64m annually, and will redeploy more than 450 staff to other roles within the firm. The move comes as the Department of Defense restructures its audit approach amid ongoing difficulties in securing a clean audit opinion for its roughly $840bn budget. A new auditor is set to take over broader responsibilities as part of efforts to meet a 2028 deadline.

BDO USA names new CIO as Russ Ahlers plans retirement

BDO USA has announced that chief information officer Russ Ahlers will retire on September 1st after more than a decade in the role, with Jim Maza appointed as his successor following an external search. Mr. Ahlers, who has led the firm’s technology strategy since 2015, is credited with advancing digital transformation, cybersecurity, and data and artificial intelligence capabilities, while Mr. Maza brings over 20 years of experience in enterprise technology leadership as the firm continues to prioritize innovation and IT infrastructure to support growth.

Grant Thornton U.S. targets Australia deal in global expansion push

Grant Thornton U.S. has agreed to acquire its Australian sister firm, adding a business with $282m in revenue and nearly 200 partners as part of a broader private equity-backed strategy to consolidate its global network. The deal, which will create a combined firm with around 26,500 staff and $4.5bn in revenue if approved by partners, marks the latest move in a growing rivalry with Grant Thornton U.K. to scale international operations and compete more effectively for multinational clients.

ECONOMY

U.S. home price growth slows as affordability pressures persist

U.S. home price growth decelerated in February, with the S&P CoreLogic Case-Shiller National Home Price Index rising 0.7% year-on-year, down from 0.8% in January, as affordability constraints continue to weigh on demand. More than half of major metropolitan areas reported annual price declines, indicating the housing slowdown has broadened beyond previously affected regions, while national price growth has lagged inflation for nine consecutive months. Among cities, Chicago recorded the strongest annual increase at 5.04%, followed by New York and Cleveland, while Denver posted a 2.18% decline.

LEGAL

Trump seeks new import taxes after Supreme Court blocks tariffs

President Donald Trump is seeking to introduce new import taxes after the U.S. Supreme Court rejected a previous tariff measure, in an effort to preserve a core element of his trade policy agenda. The ruling effectively halted the administration’s earlier approach, forcing officials to reconsider how to apply levies on foreign goods without running afoul of legal constraints. In response, Trump and his advisers are examining alternative frameworks that could achieve similar economic and political objectives while complying with the court’s decision, including restructuring how the taxes are defined or justified under existing law. The push underscores the importance of tariffs and trade barriers within Trump’s broader economic strategy, particularly as tools to protect domestic industries and exert leverage in international trade relationships. However, any new measures are likely to face continued scrutiny, both legally and politically, as courts, lawmakers, and trade partners assess whether the revised approach addresses the issues identified in the Supreme Court’s ruling.

IRS urged to reinforce neutrality over Trump data leak lawsuit

As the IRS and President Donald Trump negotiate a settlement regarding a tax data leak, concerns arise over the perception of favoritism. Andrew Leahey, an assistant professor of law at Drexel Kline School of Law, emphasizes that "the greatest cost might not be measured in billions paid out to the Trump family, but in hundreds of billions of dollars uncollected from a public that no longer believes in the system." The IRS must ensure that any resolution aligns with outcomes available under the tax code for all taxpayers to maintain credibility. The agency risks creating a two-tier system if it treats Trump's claims differently from others affected by the same leak. Safeguards, such as DOJ recusal or appointing an independent arbiter, are essential to preserve public trust in the process.

AUDIT & REPORTING

Audit committees take cautious approach to AI adoption

Audit committee chairs are cautiously integrating artificial intelligence into their workflows, balancing its potential benefits with concerns around risk, governance, and financial reporting oversight. According to the PCAOB’s annual survey of more than 250 audit committee chairs, while AI is seen as a tool to enhance efficiency and audit quality, committees are increasingly relying on external auditors to understand its implications for financial controls and reporting. Discussions are focusing on auditors’ use of data analytics, proprietary platforms, and AI tools. Cybersecurity remains a major concern, with issues such as data breaches, ransomware, and phishing frequently reviewed at board level. The survey also highlights ongoing attention to audit quality, fraud risks, and the relationship between audit committees and external auditors, as companies navigate the evolving role of technology in governance.

OUTLOOK

Consumer confidence edges higher despite inflation concerns

U.S. consumer confidence has risen slightly in April, supported by strong tax refunds and improved views on jobs and income, although concerns about inflation and geopolitical tensions remain. The Conference Board’s consumer confidence index increased to 92.8 from 92.2 in March, driven by a rise in expectations for the economy, while views on current conditions dipped marginally. Optimism was boosted by perceptions of a stronger labor market and household income prospects, even as higher oil prices linked to Middle East tensions continued to weigh on sentiment. Inflation expectations eased slightly but remained elevated, with consumers still facing high living costs influenced by tariffs and global conflict. Confidence trends varied by demographic and political groups, with younger consumers more optimistic than older cohorts, while overall sentiment remains fragile despite continued consumer spending resilience.

TECHNOLOGY

Amazon unveils AI agents for hiring

Amazon has introduced new software called Connect Talent to help streamline firms' screening and hiring processes. The AI-driven tool conducts interviews and prepares notes without human involvement. Colleen Aubrey, Amazon Web Services' senior vice-president of applied AI solutions, observed that candidates will be aware of the AI screening process, which is still being refined for a more human-like interaction. "The experience continues to get better and better each iteration we go through . . . There's some art around ⁠making that voice interaction natural and human," Aubrey said. Amazon said its new homegrown artificial intelligence design philosophy called "humorphism" will help humanize AI and "adapts to how humans work, not the other way around."

Using AI for job cuts risks backlash, wealth boss says

Nicolai Tangen, chief executive of Norway's $2.2tn sovereign wealth fund, has called on companies to use artificial intelligence (AI) to "lift everybody up" and not just to cut jobs. The boss of the world's largest wealth fund, which invests Norway's oil and gas revenues and owns on average 1.5% of all listed stocks across about 7,200 companies globally, cautioned that layoffs risked precipitating a backlash. "I'm surprised by people who basically use [AI] only to take out costs," Nicolai Tangen said. "Instead, why don't you use it to ​become more productive and gain market share? You are going to make adoption faster and easier for yourself . . . and you are going to make it easier for society so we don't get this total backlash against something that is really, really positive."

INTERNATIONAL

Australia's new tax targets digital giants

Australia is set to impose a tax on digital giants Meta, Google, and TikTok, requiring them to pay a portion of their revenue to support journalism. Prime Minister Anthony Albanese emphasized the need to attach a monetary value to journalists' work, saying: “It shouldn't just be able to be taken by a large multinational corporation.” The proposed legislation, expected to be introduced by July 2, aims to create incentives for these platforms to negotiate deals with news organizations. If they fail to do so, they will face a 2.25% tax on their Australian revenue. The government anticipates the initiative could generate between A$200m-A$250m ($144m-$179m) annually, which will be distributed among news organizations based on their journalist employment.
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