Accountancy Slice
Become informed in minutes...
Accountancy Slice
USA
23rd June 2026
Together with

THE HOT STORY

TIGTA finds accuracy and oversight issues in IRS chatbot and live chat services

A new report from TIGTA has raised concerns about the reliability of the IRS’ chatbot and live chat services, warning that inaccurate or incomplete responses could lead taxpayers to file incorrect tax returns. The review found that many live assistors handled multiple chats simultaneously, potentially increasing the risk of errors and improper disclosure of taxpayer information, while automated chatbots frequently failed to recognize common questions or provide sufficient answers. TIGTA also questioned the reliability of the IRS’s performance data, citing reporting anomalies, and found that the agency has not adequately evaluated the effectiveness of its chat programs despite expanding them in recent years. The watchdog issued nine recommendations to improve oversight, data accuracy, and performance measurement, all of which the IRS agreed to implement or has already begun addressing.

NEW WEBINAR

A Better Way to Run a High-Volume Tax Practice

High-volume tax practices are under more pressure than ever. More returns, more complexity, and higher expectations.

Many firms are rethinking their workflow and moving to cloud-based solutions that make it easier to scale without adding overhead.

Join us for one of our upcoming webinars to see how firms are:
  • Automating data flow from QuickBooks into returns
  • Reducing manual steps and review bottlenecks
  • Collaborating more effectively across teams
  • Generating tax planning insights directly from return data
Save your spot

 

TAX

Congressional report finds childcare tax breaks largely underused by families and employers

A new congressional report finds that existing tax incentives designed to help families and employers manage childcare costs are significantly underutilized, despite concerns that inadequate childcare access could cost the U.S. economy hundreds of billions of dollars over the next decade. The report highlights low participation in the Child and Dependent Care Tax Credit, which is claimed by only about 12% of taxpayers with children, as well as limited use of dependent care assistance programs that allow employees to pay for childcare with pretax income. It also notes that fewer than 1% of corporate tax returns have claimed the federal employer childcare tax credit, which can offset the costs of providing childcare benefits. The report argues that greater awareness and use of these incentives could generate substantial savings for both businesses and working families, while improving employee retention, productivity, and access to childcare.

Sanders proposes AI stock tax to create public wealth fund

Sen. Bernie Sanders (I-VT) has unveiled legislation that would impose a one-time tax on large artificial intelligence (AI) companies with more than $200m in annual revenue, requiring the tax to be paid in company stock and used to create a federal sovereign wealth fund. Under the proposal, the government would hold significant ownership stakes in major AI firms, with investment returns funding annual dividends for taxpayers as well as priorities such as education, health care, and housing. Mr. Sanders argues the plan would allow the public to share in the economic benefits of AI and provide oversight of technologies that could contribute to job losses or other societal harms. While the bill faces long odds in a Republican-controlled Congress, the broader concept of using AI-generated wealth to benefit the public has attracted interest from policymakers, AI executives, and industry leaders concerned about the technology’s economic impact.

Wealth tax showdown in California

The Billionaire Tax Now Coalition is proposing a compromise to California Gov. Gavin Newsom, suggesting a 2% wealth tax instead of the original 5%. In an open letter, the coalition said: "Two years gives California time for the next governor to work with stakeholders and the legislature toward a longer-term and more comprehensive solution to the health care crisis manufactured by Trump." However, Newsom's office rejected the offer, emphasizing that the measure would harm essential services. The governor's opposition is supported by various groups, including Planned Parenthood and major teachers' unions, as well as billionaires including Peter Thiel and Sergey Brin.

FIRMS

EY names David Zaozirny as Houston office managing partner

EY has appointed David Zaozirny as office managing partner of its Houston office, effective July 1st, succeeding Esi Akinosho, who has led the office since 2021 and will continue serving as a global client service partner for major energy companies. Mr. Zaozirny, an assurance partner with more than 30 years of experience, joined EY’s Houston office in 2005 and currently leads the firm’s U.S. financial accounting and advisory services energy sector practice. He will oversee an office of nearly 2,000 employees and brings extensive experience advising clients in the energy, manufacturing, construction, technology, and mining sectors on accounting, regulatory, and transaction matters.

Aprio expands advisory and tax practices with four new partner appointments

Aprio has continued its growth strategy with the addition of four new partners to strengthen its advisory and tax capabilities in key sectors, including international tax, technology, construction, and aerospace and defense. The new hires include Dave Little, an international tax specialist focused on cross-border transactions and multinational tax planning; David Greenamyre, a tax partner advising high-growth and public companies on complex corporate tax matters; Jeff Ryder, an advisory partner supporting aerospace, defense, and government clients with strategy, transformation, and AI-related initiatives; and Rick Paden, a tax partner specializing in construction businesses and closely held companies.

ECONOMY

Amazon Prime Day set to test strength of U.S. consumer spending

Amazon’s Prime Day sales event is expected to provide a key indicator of U.S. consumer health, with shoppers increasingly focused on discounted essentials rather than discretionary purchases as inflation and higher fuel costs pressure household budgets. The four-day event, running from June 23rd-26th, has been brought forward from its traditional July slot and is expected to generate $21.6bn of merchandise sales, up 5% on 2025, according to Bank of America. Adobe Analytics forecasts spending during Prime Day will exceed the combined total of Black Friday and Cyber Monday 2025. The event is also intensifying competition across the retail sector, with Walmart and Target launching overlapping promotional campaigns. Amazon is expected to capture more than 60% of sales generated during the promotional period, although analysts note retailers are largely competing for the same value-conscious consumers rather than driving significant increases in overall spending.

LEGAL

Former IRS officials challenge Trump tax audit immunity deal as unconstitutional

A group of former IRS and Justice Department officials has asked US District Judge Kathleen Williams to scrutinize a settlement agreement that grants President Donald Trump, his family, and his businesses immunity from federal tax audits and other tax-related investigations tied to past filings. The group argues that the arrangement, which was part of a broader settlement of Mr. Trump’s lawsuit against the IRS over leaked tax information, violates the Constitution’s prohibition on presidents receiving financial benefits beyond their official compensation. The filing contends that the immunity could save Mr. Trump’s businesses more than $100m in potential tax liabilities and represents preferential treatment not available to other taxpayers. The challenge comes as a federal judge considers whether to reopen the case to examine allegations that the lawsuit and settlement were improperly structured, while the Justice Department continues to defend the legality of the agreement despite abandoning a separate proposed $1.8bn fund that was also included in the original settlement.

SMALL BUSINESS

State-mandated retirement plans create new compliance challenges for small businesses

A growing number of states and cities are requiring employers to provide retirement savings options for workers, with 19 states expected to have mandates in place by the end of 2026. The programs, typically state-run auto-IRAs, are designed to address retirement savings shortfalls but are creating new compliance obligations for small businesses, some of which must participate even if they have only one employee. Failure to comply can result in significant penalties, particularly in states such as California, New York, and New Jersey. Nick Pasquarosa, chief executive of Bookkeeper360, argues that private retirement plans, including 401(k)s, SEP IRAs, and SIMPLE IRAs, may offer greater long-term benefits through higher contribution limits, employer matching opportunities, and federal tax credits available under the SECURE 2.0 Act. He contends that businesses should view the mandates not only as a compliance requirement but also as an opportunity to strengthen employee benefits and improve talent recruitment and retention.

MERGERS & ACQUISITIONS

AI-fueled megadeals put global M&A market on track for $4tn year

Global mergers and acquisitions activity is on pace to reach $4tn in deal value in 2026, marking the strongest year since 2021, according to PwC. The surge has been driven largely by a growing number of megadeals tied to artificial intelligence (AI), with transactions valued above $5bn accounting for nearly half of total global deal value so far this year. PwC said AI is reshaping the M&A landscape by redirecting capital and accelerating consolidation among companies seeking to strengthen their competitive positions. Notable transactions include SpaceX’s proposed $60bn acquisition of AI startup Cursor and Salesforce’s $3.6bn purchase of customer service platform Fin. While large deals continue to gain momentum, PwC noted that mid-market transactions remain constrained by geopolitical uncertainty, valuation disagreements, inflation, higher interest rates, and a backlog of private equity exits.

CYBERATTACKS

AI-powered threats may succeed ‘within months’, Five Eyes warns

Powerful AI models that are capable of devastating cyber attacks on governments and companies may succeed within months, according to the leaders of intelligence agencies from the Five Eyes nations – Australia, Canada, New Zealand, the U.S. and the U.K. A rare joint warning by the alliance said that while AI “would help us improve cyber defense over time, it also accelerates the speed, scale, and sophistication of cyber threats . . . Frontier AI models are anticipated to exceed current industry expectations, fundamentally transforming both offensive and defensive cyber capabilities. The timeline is not years, it is months.” The Five Eyes agencies added: “In this environment, cyber resilience is integral to advancing business continuity, market confidence, and long-term value . . . Cyber risk can no longer be treated as a purely technical issue. This is a core business risk and leadership responsibility.”

INTERNATIONAL

KPMG Australia’s chair and senior partners to depart in wake of audit scandal

KPMG Australia has announced the departures of chair Martin Sheppard and audit partners Paul Rogers and Eileen Hoggett as the firm responds to escalating allegations that confidential client information was improperly used to help secure audit contracts. The resignations follow the earlier exits of the firm's chief executive and audit chief, and come amid multiple investigations into claims that sensitive information from clients including Lendlease and Optus was shared inappropriately. KPMG said it will overhaul its governance structure, appoint an independent chair, add independent board members, and review sanctions for staff misconduct as it seeks to rebuild trust.

China targets U.S. defense and rare earth companies in retaliatory trade move

China has imposed trade restrictions on dozens of U.S. companies, including rare earth producers MP Materials and USA Rare Earth, in response to Washington’s decision to expand its list of Chinese companies allegedly linked to the military. China’s Commerce Ministry added 10 U.S. defense companies to its export control list, preventing them from receiving Chinese products with potential military applications. The restrictions also extend to businesses operating in sectors including drones, robotics and aerospace. The inclusion of MP Materials and USA Rare Earth is particularly significant given the strategic importance of rare earth minerals in defense systems, advanced electronics and renewable energy technologies. Both companies are investing heavily to expand domestic U.S. production and reduce reliance on Chinese supply chains.
Industry Slice

Accountancy Slice delivers the latest, most relevant and useful intelligence to accountants, practice owners, auditors, CFOs and accounting influencers, each weekday morning.

Content is selected to an exacting brief from hundreds of influential media sources and summarised by experienced journalists into an easy-to-read digest email. Accountancy Slice enhances the performance and decision-making capabilities of individuals and teams by delivering the relevant news, innovations and knowledge in a cost-effective way.

If you are interested in sponsorship opportunities within Accountancy Slice, please get in touch via email sales team

Follow us on FacebookFollow us on XFollow us on Linkedin

This e-mail has been sent to [[EMAIL_TO]]

Click here to unsubscribe