Accounting today

USA 17th October 2023 TAX NAEA urges IRS to restart balance due notices The National Association of Enrolled Agents (NAEA) has called on the IRS to immediately send reminder notices to non-filers and individuals with balances due over $10,000. NAEA President Cynthia Leachmoore also requested continuous access to client account information for tax practitioners. The IRS suspended liens, levies, and automated letters and notices during the COVID-19 pandemic, but the NAEA argues that these measures should no longer be necessary. The association highlights the negative impact of suspended notices on taxpayer compliance and urges the IRS to resume normal compliance activity. Enrolled agents fear that the lack of consequences for non-filing or non-payment erodes the system of voluntary compliance. The NAEA has offered to partner with the IRS to improve taxpayer compliance and ensure a better customer experience. Accounting Today Illinois Gov. vows to veto financial transaction tax Illinois Gov. J.B. Pritzker has stated that he will veto any legislation proposing a financial transaction tax that could harm Chicago's exchanges and force them to leave the state. The city is facing a budget gap of over $500m, and Chicago Mayor Brandon Johnson has proposed various taxes, including a $1 or $2 levy per securities trading contracts. However, executives from the city's largest exchanges and trading firms have warned that they may consider other options if the tax puts them at a disadvantage. Mr. Johnson has proposed some $800m in taxes on corporations, airlines and the ultra rich during his campaign. So far the only significant measure that's moving forward is a proposal to raise taxes on the sale of properties above $1m to tackle the city's homelessness crisis. Chicagoans would have to vote to approve such a measure. Chicago Tribune California's tax deadlines extended again Taxpayers in California have been granted another extension for federal tax deadlines, with the new due date set for November 16th. The extension, announced Monday by the IRS, and by the Franchise Tax Board, comes as a result of the natural disasters that occurred last winter, which had already pushed the original spring due dates to October 16th. The relief provided by the IRS is based on FEMA disaster declarations for severe winter storms, flooding, landslides, and mudslides. Individuals and businesses in most counties in California, except for Lassen, Modoc, and Shasta counties, are eligible for the extended deadline. The IRS automatically provides filing and penalty relief to taxpayers with an IRS address of record in the disaster area. Those who do not have an IRS address of record but receive a penalty notice can have the penalty abated by calling the IRS. Taxpayers outside the disaster area but with records in the affected area can also contact the IRS for assistance. Additionally, taxpayers in federally declared disaster areas can claim uninsured or unreimbursed losses on their tax returns. Accounting Today CPA Practice Advisor Los Angeles Times FREE eBOOK Growing Your Accounting Firm Like a Pro Based on a study of high-growth firms that have achieved at least 20% compound annual growth for 3 years or more, Growing Your Firm Like a Pro reveals surprising truths about the accounting industry, including: The consistent practice that correlates to 11x growth Why narrowing your marketing can increase your profits How digital marketing can build strategic partnerships The key factors that raise value—up to $1,400 per hour Download eBook ECONOMY NY Fed's Empire State factory gauge slides in October The New York Federal Reserve's Empire State business-conditions index, a gauge of manufacturing activity in the state, edged down 6.5 points in October to negative 4.6. The index for new orders fell 9.3 points to negative 4.2, while unfilled orders fell 19.1 points to negative 13.9, and the shipments index dropped to 1.4. Any readings below zero indicate deteriorating conditions. Looking ahead, firms remained relatively optimistic about the six-month outlook, the regional Fed bank said. Market Watch Chicago Fed president: U.S. inflation downward movement 'not a blip' Chicago Federal Reserve Bank president Austan Goolsbee stated that the slowdown in U.S. inflation is a trend, not a momentary blip. Speaking to the Financial Times, he said it's "undeniable" that recent declines are more than "a one-month blip." He also said that a reversal in rental and other housing inflation after months of easing was a "negative surprise" meriting a "proper element of caution." U.S. News Financial Times PERSONAL FINANCE Younger workers aim for early retirement, survey finds Younger workers, particularly Gen Z, have ambitious retirement goals, according to a survey by Charles Schwab. While the average retirement age is being delayed by two years, Gen Z workers expect to retire at age 61, seven years earlier than baby boomers. However, 99% of Gen Z respondents face obstacles to saving for retirement, including inflation, expenses, unexpected costs, and supporting aging parents. Despite these challenges, 86% of Gen Z workers are willing to forgo a salary increase for better benefits, and 76% would trade a salary increase for a more flexible work arrangement. Gen Z workers also show a preference for professional financial advice and are comfortable using AI tools for financial planning. The survey was conducted by Logica Research and involved 1,000 401(k) plan participants aged 21-70, along with an additional 100 Gen Z workers aged 21-26. Fast Company ESG Accounting associations collaborate on public sector sustainability reporting The Association of Chartered Certified Accountants (ACCA), the International Federation of Accountants (IFAC), and the International Organization of Supreme Audit Institutions (INTOSAI) are collaborating on guidance for sustainability reporting and assurance in the public sector. The report emphasizes the need for governments and public sector bodies to measure, report, and be accountable for their sustainability efforts. The report also highlights the importance of sustainable development and the role of supreme audit institutions in auditing progress towards sustainability. Independent outside assurance is necessary to build trust in sustainability reporting. The collaboration draws on insights from global roundtables with public sector reporting and auditing experts. The report calls for high-quality, decision-useful disclosures prepared in accordance with internationally recognized standards. Supreme audit institutions play a central role in providing oversight on sustainability information generated by the public sector. Accounting Today INTERNATIONAL U.S. to miss deadline to avoid new digital services taxes, Yellen says Treasury Secretary Janet Yellen has stated that the U.S. will not be able to sign a treaty on global tax rules in time to prevent other countries from imposing new levies on American tech giants. The U.S. had won an extension on refraining from new Digital Services Taxes (DSTs) that affected companies like Google and Facebook. In exchange, the Biden administration promised to sign a treaty by the end of 2023. However, Yellen has revealed that there are still unresolved issues that need to be addressed before the treaty can be signed, pushing the process into 2024. The negotiations between the U.S. and European countries on tax rules for multinational firms have become contentious, with the introduction of DSTs and threats of trade tariffs. The OECD has presented the legal text for ratification, but a critical mass of countries, including the U.S., must first sign it. Yellen emphasized the importance of sharing the text with the American public, Congress, and the business community. Bloomberg Investigatory firms retreat from Hong Kong as China cracks down A number of investigatory firms, including Nardello and the Risk Advisory Group, are moving their employees out of Hong Kong as business dwindles and Chinese authorities crack down on corporate intelligence gathering. The departure of these firms signals wider concerns among foreign companies operating in Hong Kong, the Wall Street Journal reports. Chinese authorities have raided foreign-owned due-diligence firms and questioned staff of U.S. consulting firm Bain, raising doubts about the safety of commercial due-diligence and investigative work in mainland China and Hong Kong. The total number of foreign businesses with regional headquarters in Hong Kong is declining, and fundraising activities have slowed significantly. The departure of investigation firms highlights the changing political environment and expanded concepts of national security in China, and Hong Kong's status as a global business hub is being questioned. Wall Street Journal 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. 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