KEY ACCOUNTING INDUSTRY INSIGHTS AND UPDATES – MARCH 2023

1.??AICPA proposes extensive tax changes to Congress:?

The American Institute of CPAs sent a lengthy to-do list to Capitol Hill with a wide-ranging set of tax proposals large and small. The 167-page compendium of tax legislative proposals, sent Tuesday by Jan Lewis, chair of the AICPA's Tax Executive Committee, include a large group of tax simplification and technical changes aimed at improving tax administration, making the Tax Code fairer and effectively promoting important policy objectives. Read More?

2.??Andersen Expands Presence in SoCal, Adds New Offices in Des Moines and Pittsburgh

The new Orange County professionals will join Andersen’s office in Costa Mesa, while the teams in Des Moines and Pittsburg will be a part of the Chicago Metro and New York Metro practices. Read More

3.??UK narrowly avoids recession after figures show growth flatlining

The UK has avoided entering a recession by the slimmest of margins as figures show its trade deficit with the EU hit record levels in the last three months of 2022.A decline in gross domestic product (GDP) of 0.5% in December was offset by increases in the two previous months to leave the economy’s performance in the fourth quarter at roughly the same level as the previous three months. Read More

4.??PwC to hire 30,000 employees in India

With a current workforce of over 50,000 people in the country, PwC in India expects to grow its talent pool to 80,000 over the next five years, the auditing and consultancy firm says in a statement. "To further this agenda, PwC India and PwC US have entered into a joint venture in India to accelerate growth, expand client relationships and enhance quality." Read More

5.??Accounting Top 100 Social Media Leader board

The Accounting Top 100 social media leader board scores and ranks users based on five separate metrics, each of which is weighted according to its perceived value. Today’s smart phones have become essential communication devices with at-our-fingertips applications that connect us to our social spheres, news, and technology. Read More

6.??IRS, Treasury offer guidance on corporate AMT for insurers

The Internal Revenue Service and the Treasury released a notice Friday containing interim guidance for insurance companies ahead of issuing upcoming proposed regulations on the corporate alternative minimum tax of 15% under the Inflation Reduction Act.?Read More

7.??AICPA makes 61 proposals to Congress for changes to the Internal Revenue Code

The AICPA has sent a list of 61 proposals for changes to the Internal Revenue Code to Congress, starting with a proposal that the definitions of terms be standardized so that words have the same meaning throughout the Code. Read More

8.??NASBA upholds 150-hour education requirement for CPA licensure

Across the board, stakeholders charged with promoting and protecting the accounting profession are searching for solutions to a talent acquisition issue that isn't unique to the profession. What is unique to the profession, however, is a licensing model that empowers CPAs to work in nearly every state — in person or virtually — without having to obtain additional credentials in other states. Read More

9.??Taxpayers can now submit information online in response to 9 IRS notices

Taxpayers and tax practitioners can now submit information online in response to nine notices rather than mailing the information, in a change that could potentially help over 500,000 filers annually, the IRS announced. "This means people can have their issues resolved much faster, including getting refunds to affected taxpayers faster," said IRS Acting Commissioner Doug O'Donnell.Read More

10.???ACCA global talent trends survey reveals accountancy talent crunch

The world of work has gone through the biggest transformation for over a generation and a new era has begun: 44% expect to move roles in next 12 months, inflation is fuelling wage demands, concerns over burnout are growing, and the adoption of hybrid working has some way to go. Read More

11.??IRS clarifies fed tax treatment of certain 2022 state tax payments

IRS says state general welfare and relief payments made to millions of taxpayers in 21 states are not subject to federal income tax. Late Friday, February 10, the Internal Revenue Service clarified confusion on whether general welfare and disaster relief payments made by 21 states in 2022 – many related to pandemic and inflation relief – are subject to federal income tax. With this additional guidance, tax pros and 75 million taxpayers can file their returns with clarity. Read More

12.??KPMG Layoffs: Around 700 Employees To Lose Jobs; First Big Four Firm To Announce Cuts

KPMG reportedly became the first Big Four firm to announce layoffs as part of cross-cutting measure and the company said 2 per cent of workforce will be affected by the job cuts. Over 700 employees at KPMG are likely to lose their jobs, according to a report by Financial Times. Read More

13.??China urges state firms to drop Big Four auditors, Bloomberg reports

While offshore subsidiaries can use the global auditors, their parent firms were urged to hire local Chinese or Hong Kong accountants when contracts come up for renewal, one of the people told Bloomberg. The Ministry of Finance did not immediately respond to Reuters' requests for comment. PricewaterhouseCoopers (PwC) declined to comment and the other leading audit firms did not immediately respond. Read More

14.??IRS, Treasury offer guidance on corporate AMT for insurers

The Internal Revenue Service and the Treasury released a notice Friday containing interim guidance for insurance companies ahead of issuing upcoming proposed regulations on the corporate alternative minimum tax of 15% under the Inflation Reduction Act. Read More

15.??2023 tax season is going more smoothly than anticipated: IRS

As of February 10, the IRS had processed just over 26.6 million tax returns, compared to 23.4 million over the same period in 2022, an increase of 13.6%. The number of returns e-filed has increased with over 94% of the 28.8 million returns received as of February 10 being filed electronically.

16.??Best practices for tax pros filing tax returns in 2023 and advice from IRS taxpayer experience chief.

Almost a month into the 2023 tax return filing season, it’s time for an update from the IRS Chief Taxpayer Experience Officer Kenneth Corbin and 2023 best practices for tax pros and taxpayers. IRS taxpayer experience chief provides good news on tax season tax pro and taxpayer service??

17.??Top 50 Firms Berdon and Citrin Cooperman say they are Uniting

Citrin acquired the nonattest business of Berdon; Berdon will continue to provide attestation services to clients. New York-based Citrin Cooperman said on Wednesday it has acquired fellow New York firm Berdon, in a deal that should place the combined firm among the 20 largest in the U.S. with annual revenues of more than $600 million. Read More

18.??PwC Appoints New Market Senior Partner in Milton Keynes

PwC has appointed Mark Foster as the new Market Senior Partner for Milton Keynes. An audit partner, Mark has been with the firm since 2006 and worked in the Milton Keynes office for the past decade. Mark will oversee the strategy and direction for PwC in Milton Keynes and the wider region. Read More

19.??Deloitte Global selects new CEO

Deloitte Touche Tohmatsu Limited (Deloitte Global) today announced that Punit Renjen, currently Deloitte U.S. member firm Chairman of the Board, has been selected as Deloitte Global’s new chief executive officer.?Renjen will assume the new role on 1 June 2015, the start of Deloitte Global’s new fiscal year. Read More

20.??Corporate tax departments turn to outsource

The majority of chief tax officers at multibillion-dollar companies plan to outsource more work to outside providers over the next few years, according to a new survey from KPMG. The Big Four firm surveyed 300 chief tax officers at large public and private U.S. companies with revenue of $2 billion or more and found 83% plan to use outsourcing, co-sourcing or managed services models in the next three years. Read More