Feb 25 – 10 Mins Business & Finance Recap

Tax season is here, and businesses are facing yet another compliance curveball. FinCEN has paused enforcement of the March 21, 2025, BOI reporting deadline, leaving companies in regulatory limbo as new rules take shape. With legal battles, shifting deadlines, and a potential congressional extension, the future of beneficial ownership reporting remains uncertain. In this February 2025 Business & Finance Recap, we’ll cover the latest accounting, finance, business, and technology updates, keeping you informed on key industry changes. Will new regulations ease the burden or create more headaches? Let’s dive in.

Feb 25 Business Updates

PCAOB Fines PwC $2.75M For Quality Control Lapses

The PCAOB has fined PwC Israel $2.75 million for widespread training exam misconduct spanning 2017-2022. Hundreds of employees at Kesselman & Kesselman CPAs (PwC Israel) were caught sharing answers on mandatory internal training exams covering auditing standards, ethics, and independence rules. Despite having a general code of conduct, the firm lacked an explicit policy banning answer-sharing—allowing the misconduct to go unchecked until a whistleblower exposed it in 2022.

This enforcement action is part of a broader crackdown on Big Four firms, with PwC, KPMG, Deloitte, and EY facing similar penalties. While PwC Israel has not admitted guilt, it has pledged to revamp quality controls and report back within 150 days. With PCAOB fines at record highs, this case raises questions about Big Four accountability and the future of regulatory enforcement. Will oversight remain strict, or will policies shift? Click here for deeper insights.

Is the $5.65B Deal a Win for Sun Communities or Blackstone?

Sun Communities just made a big strategic move, selling Safe Harbor Marinas—the largest marina network in the U.S.—to Blackstone Infrastructure for a staggering $5.65 billion. The Michigan-based REIT is shifting gears, focusing on manufactured housing and RV parks, where profit margins are higher and financial stability is stronger. Rising weather-related costs and occupancy challenges in the marina sector made this sale a timely decision, not a distress move. The deal strengthens Sun’s balance sheet, reducing debt and sharpening its focus on its core business.

Meanwhile, Blackstone sees big potential in luxury marinas, betting on coastal migration, leisure demand, and limited competition in the industry. The firm now controls 138 marinas across the U.S. and Puerto Rico, securing a dominant foothold in high-end boating real estate. Is this a brilliant strategic shift or a missed opportunity? Read more to see how this deal could reshape both companies' futures.

FinCEN Pauses BOI Reporting Deadline

The March 21, 2025, BOI reporting deadline has been suspended, with FinCEN announcing no penalties or enforcement actions until a new interim final rule is issued. This move follows ongoing legal battles over the Corporate Transparency Act (CTA), which mandates businesses to report their ownership structures to combat money laundering and financial crimes.

With court rulings shifting deadlines multiple times, businesses remain in regulatory limbo. FinCEN will also solicit public feedback on potential revisions to BOI reporting requirements. Meanwhile, Congress is considering legislation (HR 736) to extend the deadline to January 1, 2026, but the Senate has yet to vote. With steep fines and criminal penalties at stake, what’s next for small businesses and compliance? Click here to read more.

Feb 25 Economy Updates

Will Trump’s Tariffs Backfire and Trigger a Global Trade Crisis?

On February 1, 2025, President Donald Trump imposed 25% tariffs on Mexico and Canada and 10% on Chinese imports, aiming to curb illegal immigration and trade imbalances. However, economists warn these tariffs act as a hidden tax on American consumers, raising prices on cars, clothing, and essential goods.

Canada and Mexico hit back swiftly, planning retaliatory tariffs targeting U.S. agriculture, manufacturing, and autos—including a potential 100% tariff on Tesla vehicles. Meanwhile, China is pursuing a legal challenge at the WTO, slapping new tariffs on U.S. coal and crude oil, and restricting rare earth mineral exports vital to U.S. tech. With a February 4 meeting set between leaders, the outcome could either ease tensions or escalate into a full-blown trade war. How will these tariffs reshape the economy, businesses, and global trade? Read more to dive into the full impact.

Can Trump and Musk Shut Down USAID Without Congress?

In a stunning shake-up, Elon Musk and President Trump are pushing to dismantle USAID, halting $43 billion in foreign aid and freezing Treasury payments to contractors. Musk, leading the Department of Government Efficiency (DOGE), has called USAID “beyond repair”, arguing that taxpayer dollars are funding inefficiency and fraud. The move has left aid organizations, defense contractors, and global allies in limbo, sparking heated debates in Washington.

Skeptics warn that cutting USAID weakens U.S. global influence, allowing China and Russia to step in where American aid once flowed. Meanwhile, contractors face financial instability, with stalled payments threatening layoffs and market uncertainty. Some lawmakers argue that Trump lacks the legal authority to unilaterally shut down USAID, setting the stage for a fierce political and legal battle. Is this a bold efficiency reform or a diplomatic disaster in the making? Click here to explore the global and economic fallout of this unprecedented move.

Feb 25 Accounting & Taxes Updates

Top 10 Income Tax Credits and Deductions Every Professional Must Know for 2025

With tax season in full swing, the IRS has rolled out major updates to tax credits and deductions for 2025, impacting CPAs, tax professionals, and taxpayers alike. Key changes include an increase in the Earned Income Tax Credit (EITC) to $8,046 for families with three or more children, adjustments to the Child Tax Credit (CTC) and American Opportunity Tax Credit (AOTC), and a higher adoption credit of $17,280 per child. Additionally, standard deductions have increased to $30,000 for married couples filing jointly and $15,000 for single filers.

With certain tax provisions set to expire, uncertainty looms over QBI deductions, lower individual tax rates, and the SALT cap. Meanwhile, Trump has floated a proposal to eliminate taxes on Social Security benefits, sparking debate over its long-term impact. With inflation adjustments, credit phase-outs, and expiring tax provisions, 2025 could be one of the most complex tax seasons yet. Read more to stay ahead of these crucial changes.

DWS hires EY as Auditor While Suing them over Wirecard Scandal

In a controversial move, DWS Group has appointed EY as its auditor despite ongoing lawsuits over Wirecard’s €1.9 billion fraud. EY, which failed to detect massive financial irregularities, remains under regulatory scrutiny and is banned from newly listed audit clients in Germany until 2026.

DWS argues that EY’s experience and limited auditor options justified the decision. To mitigate conflicts, subsidiaries involved in lawsuits will be audited separately, likely by Mazars. However, the move raises red flags about transparency, investor trust, and governance oversight. Critics warn of reputational risks and potential legal complications, especially if lawsuits against EY escalate. With regulators watching closely and shareholder concerns mounting, is this a bold strategic move or a high-risk miscalculation? Click here to unfold the whole news.

Which States Procrastinate the Most on Taxes in 2025?

With the April 15 tax deadline looming, a study by IPX1031 found that one in four taxpayers feel unprepared to file in 2025. Using Google search trends, the study ranked states by tax procrastination. For the third year in a row, Wyoming leads as the worst procrastinator, followed by Alaska and Vermont. On the other hand, Wisconsin ranks as the most proactive state, with Ohio and Pennsylvania close behind. Delaying tax filing could mean last-minute stress or missed refunds, especially with new IRS tax changes in effect. Is your state a procrastinator or ahead of the game? Click here to find out where it ranks.

IRS Faces Hiring Freezes, New Regulations, and Mounting Uncertainty in 2025

As tax season intensifies, the IRS is navigating hiring freezes, regulatory changes, and new filing rules. President Trump’s executive orders halted IRS hiring, withdrew from a global tax deal, and introduced buyouts for federal workers, though many must stay through May 15 to handle tax season. Meanwhile, new legislation aims to streamline electronic filings and improve taxpayer transparency. DeFi firms secured a two-year reprieve from tax reporting, while identity theft victims see shorter resolution times. With Elon Musk’s Department of Government Efficiency pushing for IRS reforms, tax professionals and businesses face uncertain changes ahead. Click here to explore how these IRS shifts will impact tax season 2025.

Feb 25 Technology Updates

Is Thomson Reuters’ $150M Fund About to Transform Tax and Accounting Tech?

Thomson Reuters is doubling down on AI-driven tax, accounting, and compliance technology with a new $150 million venture fund, aiming to reshape the industry through automation. This follows their 2021 $100M fund, which backed AI-powered startups like Materia, later acquired by TR to enhance its software capabilities. This time, TR is laser-focused on early-stage tech firms pioneering real-time compliance tracking, automated tax prep, and financial intelligence tools. With global tax laws evolving rapidly and competition from fintech disruptors, TR sees AI-powered solutions as essential for efficiency and accuracy in the modern financial landscape.

However, challenges remain regulatory scrutiny, slow adoption by tax professionals, and startup survival rates could impact success. But if TR plays this right, it could define the future of tax automation—and firms that fail to adapt might find themselves left behind. Click here to see how this could transform the industry.

How Musk’s $97.4B OpenAI Bid Alters the AI Industry

Elon Musk, alongside a group of investors, has made an unsolicited $97.4 billion bid to acquire OpenAI, the very AI powerhouse he co-founded. His goal? Wrestle back control from Microsoft, shift OpenAI back to its open-source roots, and dominate the AI race. But CEO Sam Altman isn’t buying it, countering with a sarcastic offer to buy Twitter for $9.74 billion instead.

Musk’s bid faces legal and structural hurdles, as OpenAI’s nonprofit board ultimately holds the power to approve or reject the deal. Meanwhile, employees could face a culture clash, with Musk’s leadership style potentially reshaping OpenAI’s workforce. If successful, this could merge OpenAI with Musk’s xAI, turbocharging Tesla’s automation, and SpaceX’s AI systems, and reshaping the AI industry. But will regulators, investors, and OpenAI’s board allow it? Click here to see how this high-stakes AI battle could redefine the future.

Feb 25 Finance Updates

Wood Group Battles to Stay Afloat as Deloitte Flags Material Weaknesses

Wood Group has taken a major financial hit, with Q4 2024 underperformance, a Deloitte-led probe uncovering material weaknesses, and CFO Arvind Balan resigning over false credentials. The result? A staggering 31% stock drop in a single day, marking another low point for the embattled engineering firm. The company is now projecting a negative free cash flow of up to $200 million in 2025, a reversal from earlier positive projections. To stay afloat, Wood is ramping up cost-cutting, eliminating bonuses, exploring asset sales, and seeking debt refinancing amid $1.1 billion in net debt.

With investor confidence shattered, shares have plunged over 90% in the last five years. Can cost reductions, governance reforms, and a pivot to profitable markets save Wood Group, or is this the beginning of the end? Click here to explore the company’s battle for survival.

Can Stacks Use $10M to Make Accounting Fully Automated?

Closing the books has long been a slow, manual, and error-prone process, but Stacks, an AI-driven accounting startup, is changing that with $10 million in new funding. Founded in 2024 by former Uber and Plaid exec Albert Malikov, Stacks automates journal entries, reconciles accounts, and speeds up financial closing—reducing manual reconciliations by 97% and audit cycles by 33% for companies like Volt, Cleo, and Genesis.

Unlike traditional ERP systems, Stacks integrates seamlessly with Excel, Slack, and other finance tools, making it operational in under two weeks. As AI reshapes finance, investors are betting big, with venture capitalists pouring billions into AI-powered fintech solutions. With automation streamlining finance operations, Stacks is leading the charge in making financial close as easy as clicking a button. Will this AI shift redefine accounting forever? Click here to read the full update.

What’s Next in Finance Taxes and Business

As we step into March 2025, the financial and business landscape continues to shift, with regulatory updates, tax season hurdles, and evolving market trends shaping the road ahead. With FinCEN’s BOI reporting delay, ongoing IRS changes, and AI-driven innovations in finance, businesses must stay agile and informed. Looking forward, to expecting more regulatory clarifications, tax policy shifts, and technological advancements to redefine operations across industries. Will new legislation ease compliance burdens, or will further delays create uncertainty?  Stay ahead of the curve—subscribe now for the latest in business, finance, and tax insights delivered straight to your inbox!