May 2025 Recap: Compliance & Regulatory Insights in 10 Mins

May 2025 brought the heat—not just outside, but across the regulatory boards. From the IRS, SEC, FASB, and PCAOB, this month was a mix of hard pivots, overdue clarity, and bold moves that affect how we file, audit, and advise. The IRS gave overseas filers a June grace period, but also fired up its AI engine to chase down non-compliance. FASB issued two updates—one simplifying share-based incentives and another rethinking how we define “acquirer” in mergers. The PCAOB doubled down on estimates, and the SEC made headlines with a $100M crypto crackdown. Meanwhile, small business pros got tools, reminders, and a new wave of scam alerts. And let’s not forget the political rumblings—from SALT deduction wars to AICPA's fight for fairness. If you missed a headline (or five), don’t worry. We’ve trimmed the fat and packed the highlights into bite-sized recaps below. Grab your coffee—this month was dense, but we’ve got you covered.

May 2025 IRS Updates 

IRS Gives Americans Overseas Until June 16 to File 2024 Returns 

If you're living overseas and forgot about your tax return, the IRS didn’t forget about you. Expats, dual citizens, and deployed military get an automatic extension to file until June 16, 2025—but your payment was still due on April 15. Meanwhile, the IRS is slimming down its team and beefing up its AI muscle to flag non-compliance faster. Refund delays, smart audits, and steep interest penalties are all in play. Missed the June deadline? There's still a way out—but only if you act fast. Curious how AI's changing the tax game for expats? Read more... 

IRS releases fiscal year 2024 Data Book describing agency’s activities 

In its 30th annual Data Book, the IRS revealed a landmark year: over $5.1 trillion collected, 266 million returns processed, and major leaps in taxpayer service. FY 2024 saw 2 billion+ digital interactions and reduced call wait times—proof that the agency’s Digital First push is gaining steam. With $29 billion in audit findings and $16 billion collected via installment plans, enforcement and collections are on the rise. What’s behind the IRS’s biggest fiscal year yet? Hint: It’s more than numbers. Click here for the full data dive. 

IRS reminds taxpayers and small businesses to look out for scams 

Even after the April 15 deadline, scams don’t take a break—and neither should your vigilance. The IRS’s latest Dirty Dozen includes spear phishing, shady social media “advice,” and post-disaster frauds aimed at small businesses. From protecting your EIN to spotting fake IRS contacts, this year-round scam watch is critical. With disasters on the rise, scammers are doubling down. Business owners must stay sharp and train their teams. Think tax season is over? For scammers, it’s just the preseason. Know more...

Tax-Exempt Hospitals Under the Microscope—But Who’s Watching? 

The IRS is charged with monitoring nonprofit hospitals, ensuring they deliver community benefits in exchange for tax-exempt status. But with staffing cuts and shrinking budgets, its oversight muscle is weakening just as concerns about hospital billing practices and charitable care grow louder. Watchdogs are questioning whether these institutions are living up to their obligations—or simply cashing in on tax breaks. For tax professionals and policy watchers, the question isn’t just what hospitals are doing—it's whether the IRS can still keep up. Is the watchdog losing its bite? Read More...

Recent IRS Updates for Tax Professionals Supporting Small Businesses 

This National Small Business Week, the IRS isn’t just clapping—it’s showing up with fresh tools, webinars, and AI-backed upgrades for entrepreneurs and the tax pros who power them. From payroll tax traps to swipe fee showdowns and scam defenses, small businesses are getting a crash course in survival and scale. Plus, new IRS tech like Business and Tax Pro Accounts are making compliance way less painful. Running a business is tough—doing it without the right tools? Brutal. Ready to future-proof your hustle? Read more to know it all.  

May 2025 FASB Updates

FASB’s New Guidance on Share-Based Customer Incentives

Stock as a sales incentive just got a serious accounting glow-up. With ASU 2025-04, FASB clears the fog on how to treat share-based customer rewards, aligning them with ASC 718 and finally ditching the confusing ASC 606 crossover. For CFOs, controllers, and auditors, it means better forecasting, cleaner disclosures, and fewer last-minute scrambles. No more waiting on forfeitures or fudging performance conditions—this update brings structure to chaos. Think offering shares to close deals is bold? Wait ‘til you see how you’re supposed to book it. Dive into the full update here.

FASB Clarifies Accounting Acquirer Criteria in Mergers and Acquisitions

Forget everything you thought you knew about who’s in charge after a merger. FASB’s ASU 2025-03 rewrites the playbook—especially for deals involving VIEs. No more automatic “primary beneficiary wins.” Now, actual control drives who’s the accounting acquirer. Reverse mergers? On the table. SPACs? Covered. This shift means cleaner, more logical financials, but only if your deal is equity-driven and the VIE qualifies as a business. This update doesn’t just change the form—it flips the story. Curious if your merger might get a whole new narrator? Read more... 

FASB Proposes Simplified Accounting Framework for Debt Exchanges

Tired of crunching endless spreadsheets to figure out if a debt exchange is a tweak or a total reset? FASB’s proposed ASU may save your sanity. The April 2025 update simplifies how debt exchanges are treated—skip the 10% test if certain conditions are met and call it an extinguishment. Less confusion, fewer costs, and cleaner reporting. But heads-up: the rule isn’t final yet, and public comments close May 30. This one’s a game-changer for deal-makers and number-crunchers—ready to ditch that Excel nightmare? Read the full scoop here.

May 2025 PCAOB, AICPA and SEC Updates

PCAOB Issues Guidance on Challenges in Auditing Accounting Estimates

The PCAOB’s latest Audit Focus tackles one of the trickiest areas in auditing—accounting estimates. From impairments to credit loss allowances, estimates rely on judgment, complex methods, and—let’s be honest—a dose of guesswork. That’s why they’re audit hot zones. The PCAOB flags recurring gaps in how auditors test assumptions, especially at smaller firms. This guide offers targeted reminders, real-world examples, and best practices to tighten the process and reduce risk. Auditing estimates isn’t guesswork—it’s high-stakes precision. Want to see where most firms trip up? Check out the key takeaways here. 

AICPA Flags Unfair SALT Deduction Limits for Service Firms 

The House’s new tax reform is full of perks—QBI bump to 23%, 529 expansions, R&D expensing, and a SALT workaround revival… but wait, not for service firms. CPA shops, legal practices, and medical groups may lose key SALT deductions under the PTET fix, while manufacturers coast along. At the same time, CPA licensure is getting a modern makeover—no more rigid 150-hour rule. But can policy lift new CPAs while penalizing the firms that train them? Some wins sparkle, but the fine print bites—ready to see what’s buried in this bill? Check out the full breakdown. 

SEC Sues Unicoin and Executives Over $100M Crypto Offering Fraud 

Unicoin Inc. promised a goldmine—but the SEC says investors got fool’s gold. With flashy ads, phantom assets, and unregistered tokens, the crypto firm now faces a $100 million fraud suit. But while the watchdog barks, it’s also bleeding: mass staff exits are leaving the SEC exposed, just as fraud gets fancier. CFOs, beware—this crackdown isn’t just for crypto bros. If your non-GAAP numbers or segment disclosures get “creative,” you could be next. This isn’t just another headline. Curious how deep the cracks run? Get the full story here.

What May Taught Us About the Months Ahead

If May showed us anything, it’s that the regulatory world doesn’t wait for anyone to catch up. The IRS is doubling down on enforcement with fewer staff but smarter tech. FASB is clearing long-standing confusion in M&A and incentive accounting. The PCAOB isn’t just watching audits—it’s warning and guiding. And the SEC? Still on the offensive, this time with crypto fraud and sharper disclosure oversight. Service firms are being squeezed in new tax proposals, while small businesses juggle AI tools, swipe fees, and security threats. Heading into mid-year, staying informed isn’t optional—it’s your edge. Want to stop reacting and start leading? Stick with us. We’ll keep decoding the headlines before they hit your inbox.