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AICPA has enhanced its Digital Assets Practice Aid by adding a chapter focused on auditing cryptocurrency lending and borrowing transactions. This chapter provides auditors with examples of procedures to identify and address potential misstatements in financial reporting. It outlines two typical scenarios, detailing audit strategies from both the lender's and borrower's perspectives. Di Krupica, senior manager of digital assets at AICPA, said: "Auditing crypto lending and borrowing transactions can be complicated, and until now auditors have operated with a minimal amount of clear guidance." The new resource aims to facilitate effective auditing and enhance transparency for investors and the public.

 

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House Republicans have moved forward with legislation to reduce funding for the IRS and federal buildings, raising concerns among Democrats about a potential government shutdown on October 1st. The House Appropriations Committee approved the Financial Services and General Government funding bill for fiscal 2026, which totals $23.3bn, reflecting a $2.9bn decrease from current funding levels. Notably, the IRS would experience significant cuts, receiving $9.5bn, which is a reduction of approximately $2.8bn from its current budget.

 

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The IRS reported an average wait time of three minutes for taxpayer assistance during the 2024 filing season, but TIGTA has found that this claim is misleading. According to a report released on August 14th, the IRS' reported Level of Service (LOS) only reflects calls to 33 accounts management lines, which handled about two-thirds of all calls. The average wait times for other lines were significantly longer, averaging 17 to 19 minutes. TIGTA emphasized that the IRS should provide a more transparent view of taxpayer experiences, stating, “We maintain that whether a taxpayer can reach an assistor is part of the taxpayer experience.” Kenneth Corbin, chief of the IRS' Taxpayer Services Division, acknowledged the challenges but asserted their commitment to improving service quality.

 

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The recent changes to the child tax credit (CTC) may appear beneficial, but they leave 19m children without adequate support. According to Columbia University's Center on Poverty and Social Policy, 28% of children will not qualify for the full federal credit due to low family income. While the maximum credit has increased from $2,000 to $2,200, many families must earn at least $41,500 to receive the full benefit, which is above the federal poverty level of $32,150 for a family of four. The impact is particularly severe on Black, Latino, and American Indian children, as well as those in single-parent households. In contrast, state-level initiatives, like Minnesota's $1,750 per-child credit, have shown success in reducing child poverty. Andrew Leahey, an assistant professor at Drexel Kline School of Law, emphasizes that states have the tools to combat child poverty effectively, urging legislators to act rather than wait for federal solutions.

 

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U.S. economic activity saw “little or no change” across most of the country in recent weeks, according to a new Federal Reserve report. The central bank's Beige Book compilation of anecdotes from businesses across the Fed's 12 member districts gathered through to August 25th, stated: “Most of the twelve Federal Reserve districts reported little or no change in economic activity since the prior Beige Book period. Across districts, contacts reported flat to declining consumer spending because, for many households, wages were failing to keep up with rising prices." Eleven of the 12 districts saw little or no net change in overall employment levels, while half reported a decline in immigrant workers.

 

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U.S. job openings fell in July to the lowest in 10 months, the Labor Department reported on Wednesday, slipping to 7.18m from a downwardly-revised 7.36m in June. Economists were expecting that openings would shrink slightly from June and land at 7.37m for July, according to FactSet consensus estimates. The pullback in openings was driven by health care, retail trade and leisure and hospitality, while vacancies in healthcare, which has been a major driver of job growth this year, dropped to the lowest level since 2021. The number of vacancies per unemployed worker, a ratio Fed officials watch closely as a proxy of the balance between labor demand and supply, held at 1 to 1, hovering at the lowest level since 2021. The quits rate was unchanged at 2%. “This is a turning point for the labor market,” said Heather Long, chief economist at Navy Federal Credit Union. “It’s yet another crack...another data point underscoring how this job market is frozen and it’s difficult for anyone to get a job right now."

 

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New orders for U.S.-manufactured goods fell 1.3% in July, pulled down by a 32.7% drop in commercial aircraft bookings, according to the Labor Department.  Economists polled by Reuters had forecast a 1.4% decline. On an annual basis, orders advanced 3.5%. Durable goods orders dropped 2.8% after plummeting by 9.4% in June, while non-durable goods rose by 0.3%. Shipments of manufactured goods jumped 0.9%, while inventories were up 0.3%. 

 

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President Trump's nominee for the IRS's chief counsel, Donald Korb, is set to present his case to the Senate Finance Committee on September 10th. Korb, who previously served in the same role during George W. Bush's presidency and is currently a counsel at Sullivan and Cromwell LLP, is expected to navigate a challenging confirmation process. With the GOP holding a majority in the Senate, Korb's chances of securing the position appear favorable. As panel chairman Mike Crapo (R-Idaho) stated, "Korb's experience will be crucial for the IRS."

 

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Tech entrepreneur Andrew “Flip” Filipowski is contesting the IRS and the U.S. Tax Court's rejection of his $1.5m offer in compromise regarding a $127m tax debt from 1999. He argues that the IRS dismissed his offer due to "numerous factual misunderstandings and a flawed interpretation of the law and rules." Filipowski claims the Tax Court's conclusions were "unsupported by the record," and he is seeking to have the decision reversed in the U.S. Court of Appeals for the Eleventh Circuit.

 

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No environmental proposals have passed shareholder votes during this year’s proxy season, for the first time in six years, according to a Conference Board/Esgauge report. Such filings fell by 26%, and average support fell to 10%, while climate-related proposals accounted for 50% of all filings, down from 65% in 2024. Governance proposals rose slightly from 259 in 2024 to 261 in 2025, the highest volume of any category. They also continued to receive the strongest average support at 38%. Proposals to expand shareholder rights, such as allowing to call special meetings or eliminating supermajority voting, were among the most supported. Proposals on high-visibility topics including DEI saw some of the biggest drops: for example, pay equity proposals declined from 20 last year to three in 2025. Additionally, human capital management proposals, which address DEI and other workforce topics, decreased by 35% year-over-year. The heightened politicization of ESG issues and widespread regulatory uncertainty are making some investors more cautious," said Ariane Marchis-Mouren, Senior Governance Researcher at The Conference Board and author of the report. "Rather than backing proposals that seem overly prescriptive or ideological, investors are focusing more on company-specific risks and direct engagement."

 

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WTS Digital's new AI product, plAIground, aims to transform tax processes by freeing up over 1,500 hours monthly through automation. Michel Braun, a partner at WTS Digital, emphasized the platform's adaptability, stating: "The system bends to the user’s needs, not the other way around." This flexibility allows both small firms and large multinationals to customize workflows according to their specific requirements. The platform is continuously updated with insights from leading publishers and professional bodies, ensuring it remains relevant. As WTS Digital expands its reach, Braun believes that plAIground will become integral to daily workflows in tax departments, enabling professionals to focus on client relationships and innovative solutions.

 

International Tax Review

The French Socialist Party, led by Olivier Faure, is advocating for increased taxes on the wealthy and a rejection of austerity measures as they prepare for a potential shift in power following Prime Minister Francois Bayrou's confidence vote. Faure stated, "It is time to break with the austerity and unfair fiscal policy of the Macronists," emphasizing a need for a fairer fiscal approach. The Socialists have proposed a counter-budget aiming to reduce the deficit by €21.7bn ($25.4bn), which includes €14bn in cuts and €26.9bn in tax hikes, primarily targeting personal wealth exceeding €100m. With France's debt at 113.9% of GDP, the Socialists are positioning themselves as a viable alternative to the current government's policies.

 

US News and World Report

Holiday spending by U.S. consumers is set for its steepest drop since the pandemic, according to a PwC survey, with shoppers pulling back amid economic uncertainty. A poll of around 4,000 consumers between June and July found that shoppers on average plan to spend about $1,552 per person, down 5.3% from last year. The last comparable decline was in 2020, when average spend fell 7.6% to $1,187. The sharpest decline was seen among Generation Z, whose members said they plan to spend 23% less on average than a year ago, a major swing from last year when they said they expected to spend 37% more. Millennials, Gen X and Baby Boomers said they’ll shell out about the same or more than last year.

 

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