Key Accounting Industry and Insights Updates - September 2022

1. EY helping clients cope with recession fears amid rising inflation.
With the economy posting two consecutive quarters of declining gross domestic product numbers, recession worries have deepened, and firms are counseling their clients about how to cope with surging inflation, labor shortages and tight supply chains. Read more

2. CRI Expands by Merging in S. Florida Accounting Firm.
Carr, Riggs & Ingram, LLC (CRI) continues to expand in the state of Florida, increasing its locations to serve clients through the merger of Alonso & Garcia, P.A. Top 25 nationally ranked CPA and advisory firm, Carr, Riggs & Ingram, LLC (CRI) continues to expand in the state of Florida, increasing its locations to serve clients through the merger of Alonso & Garcia, P.A.. Read more

3. CHIPS and Science Act with semiconductor tax credit passes Congress.
The U.S. House of Representatives on Thursday passed a bill now known as the CHIPS and Science Act, by a margin of 243–187. The bill now goes to President Joe Biden, who has indicated he will sign it into law. The House vote came a day after the Senate passed its substitute amendment to the House bill, titled the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act of 2022 (Senate Amendment 5135 to H.R. 4346). In agreeing to the Senate amendment, the House, like the Senate, voted along bipartisan lines, but not without some partisan contention. Read more

4. PCAOB, SEC chairs look to strengthen oversight of auditing practices
Days before the 20th anniversary of the Sarbanes-Oxley Act (SOX), PCAOB Chair Erica Y. Williams and SEC Chair Gary Gensler discussed its impact and its future in separate virtual events. The PCAOB, which revealed its short- and midterm projects earlier this year, used the occasion of the SOX anniversary to identify three key areas for moving its investor-protection mission forward. Read more

5. Accounting Firm Saved Clients More Than $1 Million in Taxes from 2019-2021
According to SideHustle.com, 45% of Americans (70 million people) report having a side hustle. Among millennials, that number rises to 50%, while 70% of Gen Zs reported looking for a side hustle. HBB Accounting, a provider of tax planning and preparation services to individuals and small businesses, says it has saved 116 clients $1,005,564 in federal tax for tax years 2019-2021. The announcement was made by Ryan Moriarty, Ph.D., of HBB Accounting. Read more

6. New CalCPA chairs plan to focus on diversity, education in accounting
The California Society of CPAs named Tayiika Dennis, a principal at Top 100 Firm CliftonLarsonAllen in Los Angeles, as the new chair of the CalCPA board of directors, during the society's annual members' business meeting, while Adam Blitz, founder of Streamline CPA Accountancy Corp. in Fresno, was appointed chair of the CalCPA Education Foundation at a recent CalCPA Council meeting. Read more

7. KPMG to Celebrate 125th Anniversary with Nationwide Community Impact Day
KPMG LLP, the U.S. audit, tax and advisory firm, is celebrating its 125th anniversary on Aug. 2. In recognition of this milestone, the firm’s partners and professionals will participate in Community Impact Day, which includes community volunteer activities across the country and special events planned in key markets. Read more 

8. IRS adding more filters trying to catch business tax fraud

The IRS is continuing to hone its filters to catch business identity theft and tax fraud, using 84 selection filters last year to identify business tax returns claiming refunds for potential fraud but not always succeeding, according to a new report. Read more

9. IAASB issues new FAQs for reporting going concern matters
The International Auditing and Assurance Standards Board (IAASB) has issued a nonauthoritative publication to address some common questions related to reporting going concern matters in the auditor's report. Specifically, the publication focuses on the use of and interrelationship of the Material Uncertainty Related to Going Concern (MURGC) and Key Audit Matters (KAM) sections, and the Emphasis of Matter (EOM) paragraphs in an auditor's report prepared in accordance with the International Standards on Auditing (ISAs). Read more 

10. Bills extend statute of limitation for prosecuting PPP, EIDL fraud
President Joe Biden signed two bills on Friday that give the federal government more time to catch and prosecute fraud related to two of the most popular COVID-19 small business relief programs — the Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loans (EIDL). Read more 

11. Owner of New York Accounting Business Charged in PPP Fraud Scheme
If convicted of the bank fraud charge, Eric O’Neil of Bethel, CT, faces a maximum penalty of 30 years in prison. The Justice Department charged a Connecticut man on Aug. 9 with fraudulently obtaining and misusing funds from a Paycheck Protection Program (PPP) loan he received for his accounting business in 2021. Read more
12. Avalara to be Acquired by Vista Equity Partners for $8.4 Billion
Avalara Inc., a leading provider of tax compliance automation for businesses of all sizes, today announced it has entered into a definitive agreement to be acquired by Vista Equity Partners, a leading global investment firm focused exclusively on enterprise software, data, and technology-enabled businesses, in partnership with institutional co-investors. Read more

13. ACCA recommends universality for sustainability reporting standards
In April, the European Financial Reporting Advisory Group released the European Sustainability Reporting Standards that outline climate reporting requirements for EU companies. However, ACCA voiced its concerns about the number of disclosures required in the draft and re-expressed its support for the International Sustainability Standards Board. The group argued that some companies would struggle to follow the guidelines and that the proposed ESRS would not guarantee high-quality reporting. Read more

14. New York enhances SALT cap workaround for pass-throughs
New York State is expanding a tax break that allows smaller companies to circumvent the $10,000 limit on state and local tax deductions from the 2017 Tax Cuts and Jobs Act, similar to a workaround also being permitted in some other high-tax states. Read more

15. SEC approves PCAOB standards for multi-firm audits
The SEC has approved the PCAOB's updated standards for public company audits involving multiple firms, clearing the way for the new rules to take effect for financial statement audits for fiscal years ending on or after Dec. 15, 2024. Read more

16. AICPA Endorses Bipartisan Letter Urging Action on IRS Tax Return Backlog

Throughout the COVID-19 pandemic, the American Institute of CPAs (AICPA) continuously urged actions by the Internal Revenue Service (IRS) to address taxpayer service challenges worsened by the pandemic. As it stands, the backlog of unprocessed mail, returns and adjustments at the IRS has reached a critical stage that is adversely impacting taxpayers and tax practitioners. Read more

17. Layoffs Are Being Planned at Half of U.S. Companies, PwC Survey Shows

52% of organizations have implemented hiring freezes, according to PwC Pulse Survey released last week. If your organization isn’t letting people go, the one next door probably is.That’s a key finding from a survey released Thursday by consultant PwC, which last month polled more than 700 US executives and board members across a range of industries. Read more 

18. PwC raises U.K. partner pay to £1M for first time

PricewaterhouseCoopers partners in the U.K. were paid an average of £1 million ($1.2 million) for the first time thanks to a rebound in consulting activity and the sale of part of the business. The professional services company said on Thursday that its revenue in the U.K. and Middle East grew 12% to £5 billion in the year through June. This was helped by a 33% jump in revenue from consulting, which overtook audit to become the group's biggest business area. Read more

19. Supreme Court to hear case involving taxation of U.S. expats

The U.S. Supreme Court has lately polarized Americans with controversial verdicts on abortion, guns, climate change and more. Another case on its docket, by contrast, will get intense scrutiny mainly from millions of Americans living abroad. Read more 

20. IRS Sending Extra Refunds to 1.6 Million Americans in 2022

Many Americans may receive an extra refund this fall from the Internal Revenue Service. Those who were assessed a late penalty on their 2019 or 2020 tax returns will receive an automatic refund if they have paid those fees, or a credit if they filed and haven’t yet paid, the agency said. In total, about $1.2 billion will be refunded or credited. Read more 

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