Join 250,000+
professionals today
Add Insights to your inbox - get the latest
professional news for free.
- Just 1 email every week
- 3-min easy reads
- Uninterrupted updates
Join 250,000+
professionals today
Add Insights to your inbox - get the latest
professional news for free.
Join our 250K+ subscribers
Join our 250K+ subscribers
Subscribe12 FEB 2025 / MONTHLY CAPSULE
A new year brings fresh regulatory changes that will shape industries, compliance standards, and financial practices. January set the stage with major policy updates, from tax reforms and audit oversight to evolving accounting standards and crypto regulations. These developments mark the beginning of what could be a transformative year for businesses and professionals navigating an increasingly complex regulatory environment. Staying ahead of these shifts is crucial for making informed decisions and maintaining compliance. This edition covers the most impactful updates and what they mean for the future. Let’s dive in.
Looks like the SEC just did a 180 on crypto rules! Remember SAB 121, the rule that made banks list clients' crypto as liabilities? It’s gone. Now, we have SAB 122, which ditches that requirement and instead tells firms to follow global accounting standards like FASB and IASB. Sounds like a win for banks, but what’s the catch? Let’s rewind. Back in 2022, the SEC introduced SAB 121 to boost transparency in case of bankruptcies. But it backfired, banks and investors hated it because it inflated liabilities and discouraged crypto adoption. Now, the SEC is easing up, but not entirely. Firms still have to disclose how they safeguard crypto assets, so don’t expect a free-for-all.
But here’s the juicy part, this shift aligns with global regulations and might hint at stricter rules ahead. With Paul Atkins replacing Gary Gensler as SEC Chair and Hester Peirce leading a new crypto task force, are we looking at a crypto-friendly era or just another regulatory plot twist? Click here to dive deeper into the details!
Is the SEC cracking down on crypto? Not this time. Under the Trump 2.0 administration, the agency is flipping the script, introducing a crypto task force that’s got the $3.7 trillion market buzzing. Announced by Acting Chairman Mark Uyeda, the initiative promises a fresh start for crypto regulations, and with Hester Peirce (a.k.a. "Crypto Mom") at the helm, it’s clear the SEC is ready to “do better.”
So, what’s cooking? For starters, the task force aims to clear up regulatory confusion, finally defining security, simplifying compliance, and focusing on big violations instead of nitpicking. No more blindfolded darts at crypto firms. Peirce, long critical of the SEC’s lawsuit-first approach, wants to bring in startups, academics, and investors to create practical rules. But let’s talk politics. With Gary Gensler out and Trump vowing to make the U.S. the "crypto capital", is this the dawn of a pro-crypto era? Bitcoin seems to think so, it jumped 2.4% past $106,000 after the announcement. Will this task force walk the talk, or is it just another political flex? Click here to find out the complete story.
The legal showdown between Coinbase and the SEC has taken an unexpected turn, with a federal court pausing the SEC’s case to allow Coinbase to appeal to the U.S. Court of Appeals for the Second Circuit. This rare move brings the crypto industry closer to clarity on whether digital assets should be classified as securities under the Howey Test. Coinbase argues that the tokens on its platform don’t qualify as investment contracts, challenging the SEC’s interpretation. With Judge Katherine Polk Failla acknowledging the “substantial grounds for differing opinions,” this appeal has the potential to reshape crypto regulation in the U.S.
Adding to the turbulence, the Department of Justice is preparing to auction $6.5 billion in Bitcoin seized from the Silk Road case, sparking concerns about market stability. Meanwhile, the crypto community anticipates a policy shift as President-elect Trump promises a more crypto-friendly administration. With clear regulations still elusive, the stakes have never been higher. Could this be the turning point for crypto’s future in the U.S., or will uncertainty continue to cloud the industry? Read Insights to learn more about the story.
The SEC just handed the PCAOB a broom and a badge, approving Rule 2107, a trailblazing move to kick out inactive firms from its registry. After a record-breaking 2024, where the PCAOB dished out $35 million in fines (including a record $27 million to KPMG Netherlands for exam cheating), it’s clear they mean business. So why now? Turns out, dozens of firms have been riding the PCAOB name without filing annual reports (Form 2) or paying fees for two+ years. The SEC agreed—enough is enough. Starting in 2025, firms must comply or risk deregistration by fall 2026. There’s a 60-day grace period but after that? Shape up or ship out.
By enforcing this, the PCAOB is cutting dead weight—only active, compliant firms stay, saving companies from sifting through ghost firms while making investor oversight crystal clear. Erica Williams, PCAOB Chair, summed it up: "You either step up or step out." So, what’s next? Could this lead to tighter audit oversight across the board? Click here for a detailed look at Rule 2107 and its implications for the industry.
For years, taxpayers caught in identity theft limbo faced nightmarish delays, some waiting nearly two years to get their cases resolved. But finally, the IRS is making moves to speed things up (about time, right?). The numbers say it all: ID theft case resolution times ballooned from 399 days in 2022 to a staggering 676 days in 2024. Thanks to outdated systems, staffing shortages, and a pandemic-fueled surge in fraud, victims were left waiting way too long for refunds and case resolutions. Now, the IRS has cut the average processing time down to 506 days, with priority cases hitting just 100 days. It’s progress but let’s be honest, still not fast enough.
As the 2025 tax season kicks off, the IRS is also boosting fraud detection, clearing backlogs, and urging taxpayers to stay alert for IRS scams. But the big question remains, is this just a band-aid fix, or is the IRS finally getting its act together? Want to know how to protect yourself from tax fraud? Click here to read more about the IRS’s new approach and practical tips to protect yourself.
The IRS is revamping its Alternative Dispute Resolution (ADR) programs, including Fast Track Settlement (FTS) and Post-Appeals Mediation (PAM), with new pilot programs aimed at faster and fairer tax dispute resolution. These updates tackle long-standing challenges, such as rigid rules and limited transparency, offering professionals and taxpayers much-needed flexibility. Key improvements include allowing partial case resolution, executive oversight for fairer approvals, and detailed explanations for denied requests. Additionally, SB/SE taxpayers now get a “Last Chance FTS” reminder before appeals, while PAM restrictions for those using FTS have been lifted, creating more opportunities to resolve disputes early.
For tax professionals, this means less time stuck in red tape and more time delivering results for clients. With a two-year pilot program inviting feedback, the IRS is making strides toward setting a new standard in dispute resolution. Will these changes set a new standard for dispute resolution, or are there still hurdles to overcome? Click here to explore how these pilots can transform your tax practice.
Tax season is around the corner, and the IRS is back with big moves—this time, tweaking Roth catch-up rules and putting basis-shifting partnerships under the microscope. First up, retirement planning gets a shake-up. Starting in 2026, high earners ($145K+ annually) can only make catch-up contributions as Roth (after-tax) deposits. This means pay now and enjoy tax-free withdrawals later. Meanwhile, those aged 60-63 get a boost in contribution limits. Employers? Time to update those payroll systems! A public hearing on April 7, 2025, will give stakeholders a chance to weigh in.
On the partnership side, the IRS is cracking down on basis-shifting strategies. Transactions reassigning $10 million or more on a tax basis without corresponding taxes now face stricter reporting rules and a six-year retroactive reporting window. Partnerships must disclose these transactions thoroughly or risk penalties. While Publicly Traded Partnerships are largely exempt, the focus remains on curbing abusive practices that compromise tax fairness. These updates are a wake-up call for professionals and partnerships to adapt strategies and embrace transparency. The question is: are you ready to navigate these changes and stay ahead? Click here for a deep dive into these breakthrough IRS updates.
The IRS is bringing big changes in 2025, reshaping ethics rules, clean energy incentives, and disaster relief programs. Circular 230 is getting a major overhaul, targeting contingency fees and pushing tax professionals to adopt stronger data security measures and modern appraisal standards. These changes aim to enhance professionalism and rebuild trust between taxpayers and practitioners.
On the green energy front, expanded tax credits under Sections 45Y and 48E are boosting renewable energy projects, with extra credits for low-income communities and affordable housing initiatives. Programs like the Clean Electricity Low-Income Communities Bonus Credit (48E(h)) could save households billions in electricity costs while driving sustainable investments. Meanwhile, disaster relief extensions are offering taxpayers in affected areas more time to file returns and stabilize operations. With deadlines stretching into late 2025, these extensions provide crucial breathing room.
For tax professionals, these updates present an opportunity to showcase expertise, from guiding clients through green energy credits to supporting those recovering from disasters. The IRS is setting the stage for a smarter, greener tax system, are you ready to adapt and lead? Click here to find out what it means for you.
The IRS is cracking down on digital assets, transforming what was once a regulatory gray area into a highly monitored space. Starting this tax season, Form 1040 disclosures are mandatory for all blockchain-based instruments, including cryptocurrencies, NFTs, and DeFi tokens. Every transaction—whether buying, selling, trading, or using crypto for payments—must be tracked and reported. Say goodbye to the universal method for calculating tax bases; starting January 1, 2025, taxpayers will need detailed records for each transaction, including acquisition dates and costs. The clock is ticking to get organized, especially with a safe harbor provision allowing taxpayers until December 31, 2024, to reallocate their tax bases.
Brokers are also under scrutiny, with stricter reporting requirements that mandate issuing Form 1099 for gross proceeds from digital asset transactions. Are you prepared to adapt, stay compliant, and make the most of the safe harbor period? Click here for a complete breakdown of the story and what they mean for your portfolio.
Journal entries may seem mundane, but they’re prime targets for fraudsters. The PCAOB has spotlighted this risk, emphasizing that last-minute adjustments, vague descriptions, and entries in rarely used accounts often hide material misstatements. From corporate scandals like WorldCom to Luckin Coffee, the consequences of fraudulent journal entries are clear. Auditors need to be vigilant, using PCAOB standards like AS 2401 and leveraging IT-driven tools to spot anomalies early. Why does this matter? Journal entries are more than just numbers, they tell a company’s financial story. Read insights to explore PCAOB's full guide to detecting fraud in journal entries.
FASB is rolling out 34 updates to GAAP, streamlining financial reporting and modernizing outdated standards. This Accounting Standards Update (ASU) aims to enhance clarity, consistency, and compliance. Key changes refine Earnings Per Share (EPS) calculations, eliminate double counting in beneficial interest reporting, and clarify receivables transfers. Not-for-profits must now adopt CECL standards, aligning them with for-profit entities. Additional tweaks to lease receivables, treasury stock accounting, and real estate investments further improve transparency. With FASB accepting comments until April 22, 2025, professionals have a chance to shape these updates. Will they simplify reporting or add new challenges? Click here to read the full insights.
February will bring key regulatory developments that could reshape compliance and oversight. The PCAOB is intensifying scrutiny on audit firms’ reliance on specialists, while the AICPA is set to revise independence rules in response to private equity’s expanding role. These shifts signal a tightening regulatory landscape, requiring professionals to stay proactive and adaptable. Stay tuned for next month’s roundup, where we’ll break down the most impactful changes and their implications. Stay ahead of the curve, subscribe now for updates, and stay informed.
Join Insights for your daily dose of the latest, uninterrupted updates, all delivered in under 5 minutes
