March 2025 Recap: Compliance & Regulatory Insights in 10 Mins

March brought major shifts across the regulatory map, some expected, others out of left field. The SEC hit pause on climate rules, the IRS shrank in size and service, and PCAOB fired off fresh audit crackdowns. Meanwhile, new tax guidance, FinCEN relief, and GAAP trends rounded out a packed month. Whether you're filing, auditing, or advising, these updates could shape how you work and what your clients expect. Let’s break down what happened and why it matters, fast.

SEC Updates

SEC Pulls Back from Climate Disclosure Rule

In a surprise twist, the SEC has hit pause on its climate disclosure rule, first rolled out in March 2024. The rule would’ve required public companies to report on environmental risks, greenhouse gas emissions, and climate-related financial exposure, but now it’s on hold indefinitely. After mounting legal challenges, the SEC is stepping back, leaving companies and investors in a bit of limbo. That doesn’t mean it’s over though, states and global bodies might still press for disclosures. The big question now is what role the SEC will play moving forward. Will states take the lead or will voluntary reporting take over? Click here to explore what this means.

Ripple CEO Reveals That SEC Ends Landmark Crypto Case

Ripple Labs just snagged a big win as the SEC dropped its appeal in the long-running XRP case. It’s a revolutionary moment for crypto regulation, hinting at a friendlier climate for digital assets in the U.S. The fight began back in 2020 when Ripple was accused of selling XRP as unregistered securities. But a 2023 ruling said XRP trading on public exchanges doesn’t count as a security. With the SEC backing off, the cloud over XRP has lifted, and its market value is jumping. This could shape how crypto gets regulated going forward. Will other crypto players make a move now? Click here for expert takes and more on what comes next.

Is the SEC pulling back on accounting and auditing enforcement?

The SEC is shaking things up, opting for fewer but way more aggressive enforcement actions, according to the latest Cornerstone Research report. Accounting and auditing cases fell 46% in FY 2024, but penalties soared to $770 million, the biggest since 2021. This shift follows the Jarkesy ruling, which slowed the SEC’s ability to handle cases in-house. While U.S. firms saw a 56% drop in enforcement, global companies better watch out, cross-border crackdowns are heating up. The agency is now laser-focused on high-impact cases with major penalties, hinting at a major pivot in its playbook. Staying complaint isn’t a nice-to-have any more, it’s a must as the SEC sharpens its high-stakes strategy. Think this shift in SEC tactics could shake up your compliance game? Click here to explore the whole story.

How the SEC’s Confidential Filing Expansion Impacts Your Business

The SEC just made it easier to play your cards close to the chest, expanding its confidential filing process so more companies can keep IPOs and follow-on offerings under wraps until time goes on. This move gives businesses a chance to polish up their registration docs away from market noise or prying competitors. Now, IPOs, follow-on offerings, and SPAC deals can all stay private, giving companies extra breathing room to plan the perfect debut or raise capital on their terms. Do you think this new flexibility could help your company go public or raise funds more smoothly? Click here to see how it could shape your next big move.

IRS Updates

What a Shrinking IRS Really Means for Professionals

The IRS is downsizing, and tax professionals are feeling the squeeze. With layoffs, hiring freezes, and a shrinking team, the agency’s hitting a breaking point that could reshape tax enforcement. Key departments, like those auditing big earners and corporations, are being hit hard. That might sound like a break for small businesses and wealthy filers, but experts say it could mean tougher crackdowns down the road. With fewer hands on deck, expect delays in paper returns and frozen refunds, turning tax season into a mess for pros and their clients alike. I wonder how the IRS staff cuts could impact your tax season or audit exposure. Click here for smart strategies to stay ahead of the chaos.

What You Need to Know About IRS Tax Relief in West Virginia

The IRS just rolled out a big break for taxpayers in West Virginia, giving them until November 3, 2025, to file and pay taxes after severe storms hit. The extension applies to everything from individual returns and business filings to estimated payments. For tax pros, it’s a golden chance to help clients bounce back by tapping into casualty loss deductions, penalty-free retirement withdrawals, and other disaster relief perks. Best part? Most don’t need to file extra paperwork; the IRS is keeping it simple for those affected. Wondering how to help your clients make the most of this relief? Click here for a full rundown of what’s covered and how you can guide them through it.

IRS Tax Updates 2025 You Can't-Miss

Tax season 2025 is here, and the IRS has rolled out key updates that every tax pro, CPA, and advisor should have on their radar. Big wins include expanded digital access to tax docs for faster, cleaner filings, plus beefed-up fraud prevention, yep, the Dirty Dozen tax scams are back. Key deadlines are coming fast too, like the March 3rd date for farmers and fishers, and special extensions for disaster areas. With IRS modernization in full swing, it’s all about working smarter—but staying sharp on fraud risks and filing cutoffs is still a must to protect your clients and your practice. How are you putting the IRS's new digital tools to work this season? Do you have a fraud protection plan in place? Click here for a closer look at what’s new in 2025.

IRS Gives New Guidance for Scam Victims to Deduct Theft Losses

The IRS has released new guidance (Memo 202511015) outlining when victims of financial scams may qualify for theft loss deductions. Until now, deductions were largely limited to federally declared disaster losses under the Tax Cuts and Jobs Act. This new memo, however, clarifies that a “profit motive”, such as protecting future income or assets can support a deduction claim, even for smaller individual losses. This update is especially relevant for retirees who’ve unknowingly moved retirement funds into scam accounts, triggering large tax liabilities via Form 1099-R. For CPAs and solo practitioners, this offers a clearer path to help modest-income clients claim relief.

The memo also highlights the value of naming a “trusted contact” on brokerage accounts to prevent fraudulent transfers. Could your clients benefit from this overlooked deduction opportunity? Click to explore How this IRS guidance changes the game for scam victims.

IRS Direct File: Low Usage Despite High Interest

The IRS’s new Direct File system, meant to give taxpayers a simple, streamlined way to file directly with the agency, has launched with high expectations but limited usage. While interest is strong, actual adoption remains low due to lingering concerns about security, ease of use, and general comfort with long-established filing methods. For now, tax professionals should view Direct File as a system in its early stages. It holds long-term potential to reshape how taxpayers handle basic returns, especially for those with straightforward filing needs. But its limited real-world traction means that, for most clients, traditional filing tools and tax prep services continue to offer greater reliability and peace of mind. Click here to explore what early reactions reveal, and how this tool might affect your future workflow.

FinCEN Eases BOI Reporting for U.S. Businesses

Big news from FinCEN: U.S. businesses just got a major break. The agency rolled out an interim final rule that exempts domestic companies from Beneficial Ownership Information (BOI) reporting under the Corporate Transparency Act. It’s a huge sigh of relief for millions of small businesses tangled in red tape since late 2024. Now, only foreign entities registered to do business in the U.S. need to file BOI reports. While this clears the path for U.S. companies, some critics worry it could weaken the fight against financial crimes. For tax professionals and business owners, it’s time to take note and prep for what comes next as the details continue to unfold. Click here to unfold the whole news.

PCAOB Updates

Recent PCAOB Sanctions on Audit Firms for Audit Failures

This March, the PCAOB made it clear, that no one gets a pass on sloppy auditing, whether you’re PwC or a solo CPA. In the U.S., two headline-grabbing enforcement actions highlighted fundamental breakdowns in audit practices. James Pai CPA PLLC and its sole partner skipped critical steps like risk assessments and engagement quality reviews, leading to a $40,000 fine, a three-year practice ban, and required education before any return. Meanwhile, CPA Jaslyn Sellers fabricated procedures in her audit reports on NetSol Technologies, even violating the five-year partner rotation rule. Her penalty? A $15,000 fine and a two-year ban, reduced from $75K due to financial hardship.

Across both cases, the PCAOB called out a lack of skepticism and a disregard for audit basics. The takeaway? The bar’s been raised, and enforcement is real. Could your audit processes stand up to this level of scrutiny? Click here for a deeper dive into the rulings.

PCAOB Tightens the Screws on Form AP

The PCAOB is doubling down on Form AP enforcement, reminding audit firms that accuracy is non-negotiable. Form AP disclosures, covering engagement partners, contributing firms, and audit details, are critical for transparency. Yet errors persist, from misreported audit hours to botched CIK numbers and mishandled secondment arrangements. To help firms get it right, the PCAOB’s latest guidance stresses internal reviews, structured data templates, and targeted training. For investment company audits, the rules clarify when one filing suffices and when separate reports are required.

While some push back on the PCAOB’s aggressive stance, the stakes are clear: proper filings build investor trust and protect firm reputations. With enforcement ramping up, treating Form AP as an afterthought could mean real consequences. Is your audit process built for this level of scrutiny? Click here to explore how firms can sharpen their filings and stay ahead of compliance expectations.

AICPA Updates

How the AICPA’s New Independence Rules Impact PE in Accounting Firms

Private equity (PE) money is flowing into accounting firms like never before—but it’s raising some sticky ethical questions, especially around independence. To get ahead of the curve, the AICPA’s Professional Ethics Executive Committee (PEEC) is rolling out fresh guidance to help firms stay compliant while navigating PE deals. The goal? Let firms grow with outside funding without losing sight of integrity and transparency. Their new proposal includes a three-step check on independence for firms with PE ownership and suggests two ways to strike a balance between financial backing and ethical standards. With the comment deadline nearing, one big question looms: will this tighten the rules or leave room for loopholes? Do these new rules hit the sweet spot between growth and independence? Click here to dive in and share your take.

GASB Updates

GASB Just Dropped New Numbers on GAAP in Government Finance

A new GASB study shows local governments are leaning into GAAP, even when they don’t have to. All 50 states and a big chunk of counties and cities with public debt are using GAAP, drawn in by better market terms, a little peer pressure, and some quiet nudging from states. But this shift isn’t just about ticking compliance boxes—it’s about signaling trust. Adopting GAAP helps boost transparency, builds investor confidence, and can even score better borrowing rates. Is GAAP becoming the go-to for earning credibility in public finance? Click here to unpack what GASB’s findings mean for the future of government accounting.

What March Taught Us About What’s Next

If March taught us anything, it’s that regulators are rewriting the playbook in real-time. The SEC’s shifting stance on crypto, climate, and confidentiality signals a broader recalibration. The IRS, facing internal strain, is both modernizing and scrambling. PCAOB? It’s laying down the law on audit quality, and the AICPA is balancing capital growth with ethical guardrails. As we move into Q2, keep your radar tuned. These regulatory ripples could swell into full-blown waves, changing how we file, report, audit, and even structure our firms. And if you want to lead those conversations instead of reacting to them? Stick with us for the next recap and subscribe to the MYCPE ONE Insights newsletter for real-time updates that matter.