Compliance
The latest research from the Kiel Institute indicates that US importers and consumers have borne 96% of the costs of tariffs imposed since April. Although the 2025 'Liberation Day' tariffs brought in about $200 billion in revenue, only 4% came from outside the US. This conclusion contradicts the Trump administration's claim that 'foreigners bear the tariffs.' Meanwhile, the Yale Budget Lab warns that if a 10% tariff is imposed on NATO members such as Denmark, the US consumer tariff rate would rise to 17.5%, the highest since 1932.
A report released by Expel points out that CFOs and CISOs have significant disagreements in cybersecurity investment decisions, primarily stemming from differences in metrics and decision-making logic. The report recommends that both parties educate each other and translate technical risks into financial language to promote strategic alignment.
KPMG tax experts say the OECD global minimum tax agreement will stabilize the tax situation of large U.S. multinationals, but will not reduce calculation complexity or compliance risks in the short term. Last week, 147 countries reached a 'parallel' agreement, providing a safe harbor exemption for large U.S. companies, but implementation details are still pending national legislation.
The annual report of the IRS advisory committee states that budget and staffing cuts could keep the tax gap near $700 billion in 2026, and warns taxpayers of an uncertain filing season.
New Jersey Governor Murphy signed legislation on Monday allowing CPA candidates to obtain licensure through an alternative path of "bachelor's degree plus two years of work experience plus passing the exam," replacing the previous single requirement of 150 credit hours or a master's degree. This move makes the state the 25th in the nation to adopt the reform, which has progressed significantly faster than the promotion of the 150-credit-hour requirement in the 1980s.
The U.S. Securities and Exchange Commission (SEC) on Friday asked a federal court to dismiss pending charges against former Rio Tinto Chief Financial Officer Guy R. Elliott, with both parties reaching a joint agreement, ending an eight-year lawsuit initiated in 2017 involving fraud allegations over coal asset valuations. Elliott's lawyers called it a "full vindication," while the SEC stated the decision was based on the specific circumstances of this case and does not represent a stance on other cases.
The U.S. Federal Trade Commission (FTC) announced on December 22 that it rescinded a Biden-era enforcement order against AI writing tool provider Rytr LLC, citing that the allegations did not meet the requirements of the FTC Act and that the order imposed an undue burden on AI innovation. This move echoes the White House's AI action plan released in July 2025.
The OECD and the US Treasury announced an agreement on Monday, with 147 countries agreeing to adopt a 'parallel system' that provides a safe harbor for American multinationals against the Pillar Two global minimum tax rules. US Treasury Secretary Bessent said the agreement recognizes US tax sovereignty and protects incentives such as research and development tax credits. The agreement also simplifies compliance burdens but has drawn criticism from anti-tax-avoidance organizations.
The U.S. Chamber of Commerce recently wrote to the U.S. Securities and Exchange Commission (SEC), requesting that it recommend suspending or withdrawing the income tax disclosure rules (ASU 2023-09) issued by the Financial Accounting Standards Board (FASB) in 2023. The Chamber believes existing disclosures are sufficient, the new rules impose a heavy burden, and questions their political motivation. The rules took effect at the end of 2025, and companies will first fully apply them in their initial annual reports filed in early 2026.
The latest annual estimate released by the U.S. Treasury in the Federal Register shows that total corporate tax filing costs in the U.S. are expected to reach $131.8 billion in fiscal year 2026, an increase of 3.2% from fiscal year 2025. Compliance time is expected to decrease by 8.3% to 857 million hours, but out-of-pocket expenses are projected to rise by 10.6% to $79.2 billion. This estimate does not account for losses incurred by businesses due to suboptimal tax decisions. The data was developed by the IRS research division, and the public comment period ends on January 14, 2026.