Footnotes
Footnotes is a compilation of narratives from the accounting sector, meticulously curated by real individuals and published every Friday at 5 PM Eastern. While you’re here, subscribe to our newsletter to receive the week’s most significant stories in your inbox every Tuesday and Friday.
Comments are disabled on “Friday Footnotes” and the “Monday Morning Accounting News Brief” by default. Should you wish to express your thoughts regarding the stories referenced here, you are welcome to contact the editor via email, text us at 202-505-8885, or engage with us on Twitter @going_concern. Until next time.
Big 4
EY Mandates US Tax Staff to Work From Office Three Days Per Week [Bloomberg]
EY has instructed its US tax personnel to physically attend the office for an average of three days weekly, signaling a stricter enforcement of the firm’s hybrid working policy.
Effective July 1, staff within the accounting and consulting giant’s US tax division must be present on-site or at client locations for a minimum of 12 days each month, as per sources acquainted with the policy shift.
AI
Accounting Firms Increasingly Adopt AI Solutions [Virginia Business]
“Security is vitally important, yet precision appears to be the most formidable challenge,” observes Gary Wallace, a managing partner at Keiter.
He notes that while Microsoft Excel revolutionized accounting practices since the 1980s, it did not inherently simplify the accountant’s role.
“Our focus regarding AI is to discern how we can effectively leverage these tools to enhance our team’s productivity while simultaneously aiding our clients in making more informed decisions,” he asserts.
KPMG Sees Potential for ’10x Consultant’ as Tax Specialists Develop Proprietary Tools [Business Insider]
In the first quarter of the year, KPMG completed a pilot program lasting six weeks, engaging approximately 30 tax professionals collaborating closely with engineers to create functional software prototypes.
Notably, many of the participants, including associates and managers, lacked extensive technical expertise, according to Brad Brown, KPMG’s chief digital officer for tax.
“By the conclusion of the pilot, they were indeed capable of vibe coding solutions,” he remarked. “You could visibly witness the transformation in their service delivery methods.”
Three-Quarters of Global Leaders Plan to Prioritize AI Investment Amid Economic Uncertainty, Survey Reveals [KPMG]
Findings elucidate a steadfast enthusiasm for AI globally, albeit with concerns regarding the scalability necessary to translate expenditures into substantive value.
Leaders intend to allocate an average of US$186 million towards AI initiatives over the forthcoming year, with 74 percent asserting that AI will continue to be a primary investment focus, even in a recessionary climate
While 64 percent of organizations acknowledge AI is yielding tangible outcomes, they grapple with increasing obstacles — from quantifying value to swiftly adapting governance frameworks, managing data privacy, and mitigating workforce resistance
Consequently, many organizations remain ensconced in the experimentation phase, with a minority (11 percent) successfully harnessing AI across functions.
Discrepancies in HR and Finance Collaboration Revealed by Deloitte Research [HR Executive]
Deloitte’s CFO Guide to Tech Trends 2026 elucidates a work environment where agentic AI and human agents operate collaboratively in finance roles.
This report argues that pivotal human competencies—critical thinking, curiosity, and ethical considerations—must be weighed against technological advancements.
Similarly, Deloitte’s Global Human Capital Trends report suggests that a mere 14% of leaders feel proficient at fostering productive human-AI interactions.
Tax
Tax Filing Relief Extended to DHS Personnel: A Guide for Practitioners [Current Federal Tax Developments]
On April 1, 2026, the U.S. Department of the Treasury announced: “Treasury and IRS Announce Tax Filing Relief to DHS Personnel.”
This guidance, issued in conjunction with the IRS, formalizes administrative relief for a specific demographic of taxpayers currently affected by a lapse in federal appropriations.
For CPAs and EAs representing federal employees, comprehending the nuances of this relief is imperative for effective tax planning and compliance during the ongoing filing season.
Lawsuit Seeks to Halt Chicago’s Newly Implemented Social Media Tax: Key Insights [WTTW]
NetChoice, a trade association advocating for the tech industry, initiated a lawsuit in Cook County on March 13 to obstruct the Social Media Amusement Tax incorporated within Chicago’s 2026 budget.
Designed by Mayor Brandon Johnson, this measure imposes a fee of 50 cents per month for each active user beyond the initial 100,000 users.
Official statements from NetChoice argue that this tax infringes upon “free speech rights, discriminates against digital publications, violates federal law, and adversely impacts Chicago residents and businesses.”
Georgia Legislature Approves Income Tax Reduction and Standard Deduction Increases, Including Tips [WABE]
The Georgia legislature enacted a bill on Thursday reducing the personal income tax rate to 3.99% for the 2028 tax year while also augmenting standard deductions applicable to tips. This legislation has been forwarded to Governor Brian Kemp for ratification.
Miami-Dade Tax Collector’s Clerk Allegedly Renewed Licenses Illegally [NBC 6]
Local authorities reported that Waldersee Oge engaged in receiving payments to covertly renew individuals’ licenses.
An arrest report indicated astonishment from his supervisor upon noticing him entering documents into the state database in the absence of any clients—an act deemed illegal in Florida.
Allegedly, Oge utilized his position to access state records and rectify suspended licenses, issuing temporary permits without clients being present.
Audit
Halifax County Town Faces Potential State Oversight Over Unsubmitted Audits [CBS17]
A small town in Halifax County risks losing financial autonomy after failing to submit its audits for the preceding five years, as per statements from the North Carolina Department of State Treasurer.
Utah State Auditor Uncovers Nearly Half a Billion Dollars in Misallocated Medicaid Funds [Utah Policy]
“It is profoundly alarming that over half of the funds designated for Medicaid patients in skilled nursing facilities did not reach those intended,” remarked State Auditor Tina M. Cannon.
“These figures represent more than just statistics; they relate to the imperative of ensuring Medicaid funding effectively provides direct care and enhances the lives of patients within nursing settings.”
Wipfli Extends Partnership with the Philadelphia Eagles [Wipfli]
With the renewed agreement, Wipfli will persist as the independent auditor for the Philadelphia Eagles, facilitating objective insights that underpin transparency, accountability, and enduring organizational robustness.
O Canada
CPA Canada Welcomes New Board Aligned with Individual CPA Governance Model [CPA Canada]
These appointments align with CPA Canada’s shift toward a contemporary governance framework—effective April 1—enhancing accountability towards members and reaffirming CPA Canada’s mission as a national body dedicated to the advancement of the profession.
KPMG Faces Allegations of Audit Irregularities in Private Credit Default [Bloomberg]
Canada’s premier securities regulator has alleged that KPMG LLP, the auditor for four funds tied to the failing private lender Bridging Finance Inc., inadequately assessed the loans held by the funds, thereby harming investors.
The Ontario Securities Commission asserted in a regulatory filing that KPMG misrepresented the integrity of its audit work for the fiscal years 2019 and 2020, and failed to consistently validate the gathered audit evidence.
Notably, when KPMG discovered the overvaluation of certain loans, it incorrectly assumed these findings were atypical, according to the regulator.
Source link: Goingconcern.com.
