Accounting Weekly Brief: June 17–23, 2025
This week in accounting, we saw significant developments across tax policy, financial reporting, and new tools designed to streamline operations. From CBO projections on tax bill impacts to updated IRS guidance and insights into financial institution performance, there’s plenty to keep up with. These changes highlight the dynamic nature of the accounting profession and the ongoing need for vigilance and adaptation.
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CBO Projects Significant Deficit Increase from Proposed Tax Bill
The Congressional Budget Office (CBO) and Joint Committee on Taxation released a dynamic analysis of President Trump’s proposed tax cuts package this week. Their report estimates the bill would increase federal deficits by $2.8 trillion over the next decade, a figure that includes projected debt service costs. This analysis, which considers how economic changes might affect revenues and spending, offers a fuller picture compared to earlier static estimates. The fact that the dynamic score, which typically aims to show how tax cuts can spur growth, is higher than the static one, challenges the common argument that tax cuts pay for themselves through economic expansion. This particular finding provides strong arguments for those critical of the bill and points to significant fiscal challenges that could lead to future tax adjustments or spending reductions, directly affecting accounting practices and client strategies.
Published: June 17, 2025
Trump tax bill would widen deficits by $2.8T over the next decade, CBO says | AP News -
California & San Francisco Propose New Asset Management Sourcing Rules
California and San Francisco have put forward new rules for sourcing asset management receipts, which would be based on the ultimate investor’s location. This change could significantly impact tax obligations for asset managers operating in or with connections to these areas. Professionals in the field will need to understand these proposed changes to ensure compliance and adapt their tax planning strategies accordingly.
Published: June 23, 2025
Rev. Proc. 2025-23: Latest IRS Guidance on Accounting Methods | BDO -
Treasury and IRS Issue New Guidance on Corporate Alternative Minimum Tax (CAMT)
The Treasury Department and the IRS have released new interim guidance (Notice 2025-27) concerning the Corporate Alternative Minimum Tax (CAMT). This guidance revises the safe harbor for determining “applicable corporation” status and offers relief from certain tax additions for underpayment of estimated CAMT liability for the 2025 tax year. They also plan to issue further interim guidance and new proposed CAMT regulations, indicating ongoing adjustments to this complex tax. The sequence of “interim guidance” followed by additional interim guidance and then new proposed regulations suggests that the initial CAMT framework, stemming from the Inflation Reduction Act, might not have been fully developed or presented substantial practical challenges for corporations. This iterative process indicates a struggle to effectively define and implement CAMT, creating considerable uncertainty for large corporations. Accounting professionals must continuously re-evaluate strategies and models, as the rules are being written and revised in real-time.
Published: June 23, 2025
Americas Tax Roundup | 23 June 2025 -
US Financial Institutions Show Mixed Q1 2025 Performance
New reports from the FDIC and NCUA this week offered a look into the financial health of US banks and credit unions for Q1 2025. FDIC-insured institutions saw a rise in net income driven by noninterest income, though net interest margins slightly declined. Credit unions also reported net income growth and increased loan balances. While unrealized losses on securities decreased for banks, noncurrent loans saw a small uptick, suggesting a mixed but generally stable picture. The increase in net income for FDIC-insured institutions, primarily driven by noninterest income, while net interest margins saw a slight decline, suggests a strategic adaptation within the banking sector. This indicates a move away from relying solely on traditional lending profitability towards diversified revenue streams. This trend could be a significant indicator for the future stability and evolving business models of financial services. For accountants, this means a greater emphasis on analyzing and reporting non-traditional revenue streams and closely monitoring credit quality indicators like noncurrent loans.
Published: June 18, 2025
June 2025 Financial Reporting, Governance, and Risk Management | Crowe LLP -
AICPA Weighs in on Senate’s Proposed Tax Bill Changes
The American Institute of CPAs (AICPA) has publicly supported the Senate’s efforts to refine and improve the House version of the proposed tax bill. This comes as the Senate Finance Committee unveiled its own version, which includes significant changes like deeper Medicaid cuts to offset costs and enhanced tax breaks for seniors. The AICPA’s engagement underscores the profession’s role in shaping tax policy and advocating for a more effective and stable tax system. The AICPA’s public support for the Senate’s efforts to improve the House tax bill goes beyond mere observation; it signifies the accounting profession’s active involvement in legislative advocacy. This engagement is crucial for ensuring that complex tax reforms are practical, minimize unforeseen consequences, and accurately reflect the operational realities faced by businesses and individuals. It demonstrates that accountants are not just interpreters of tax law but active participants in shaping it, advocating for policies that benefit both practitioners and the broader economy.
Published: June 18, 2025
Professionals on the Move - June 2025 - CPA Practice Advisor
Tools & Tips
- QuickBooks Online Inventory Add-on:
For those using Simple Start and Essentials, there’s now an Inventory add-on available for $40/month. This gives clients more robust inventory management, sales, and purchase order features without upgrading to a higher-tier subscription. It is a useful way to consolidate operations in one platform. The Inventory add-on for lower-tier plans points to a market demand for more granular functionality without forcing users into expensive, feature-bloated upgrades, a move towards modularity in software solutions.
https://www.firmofthefuture.com/product-update/june-2025-mpu/
Fun Fact
Did you know that a team of just nine CPAs is responsible for hand-counting all the ballots for the Academy Awards? This meticulous process takes upwards of 1,900 hours each year to ensure accuracy and secrecy before the big night. It is a reminder that even in the glitzy world of Hollywood, precision accounting is key! The fact that the Academy Awards, a global event where accuracy and confidentiality are paramount, entrusts its ballot counting to CPAs highlights the public and various industries’ trust in their precision, impartiality, and ethical standards. This serves as a testament to the profession’s reliability and the importance of its core competencies in diverse, high-stakes environments, making accounting relatable and underscoring its pervasive, often unseen, influence.
And You Didn't Think Accounting Was Interesting... - Wealth Builders CPA's
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