Compliance
The U.S. Attorney's Office for the Northern District of Illinois announced on Monday that Tina Feuerstein, the former chief financial officer of a Pennsylvania subsidiary of a Chicago-area entity, was convicted by a jury on eight counts of wire fraud for misappropriating over $1 million in company funds to purchase luxury items. During her five-year tenure, Feuerstein used company credit cards for personal expenses, including luxury furniture, designer clothing, and everyday costs. Sentencing is scheduled for August 26, with each count carrying a maximum penalty of 20 years in federal prison.
The U.S. Attorney's Office for the Eastern District of New York announced on Friday that fraud charges have been filed against the former CEO and former CFO of the defunct AI platform iLearningEngines, accusing them of fabricating "nearly all" customer relationships and revenue. The two allegedly inflated revenue through false contracts over several years, deceiving retail and institutional investors.
U.S. Customs and Border Protection (CBP) will launch a tariff refund application portal on Monday to process refunds related to recent court rulings, with total refunds expected to be approximately $166 billion. Financial executives need to play a key role in document quality, cross-departmental coordination, and refund accounting treatment.
The Internal Revenue Service (IRS) issued final regulations before the April 15 tax filing deadline, clarifying the scope of occupations to which the 'no tax on tips' provision under the One Big Beautiful Bill Act applies. The regulations list eight major industry categories, including food service, entertainment activities, hotel hospitality, domestic services, personal care, fitness instruction, and transportation delivery, and stipulate that tips must be voluntarily paid by customers, with service charges not counted as qualified tips. Employers are required to report qualified tips on forms such as the W-2, and the deduction cap for self-employed individuals is $25,000 per year for fiscal years 2025 through 2028.
The One Big Beautiful Bill has triggered fragmented responses across states, leaving corporate tax teams facing significant compliance burdens. Some states are rolling with federal tax law, some are choosing to decouple, and others are taking a middle path.
The U.S. Securities and Exchange Commission (SEC) announced that David Woodcock, a partner at Gibson Dunn & Crutcher and former SEC official, will return to the agency on May 4 to serve as Director of the Enforcement Division. Woodcock has criticized former Chair Gary Gensler's 'regulation by enforcement' approach, and his views align with current Chair Paul Atkins' enforcement reform direction.
Wisconsin Governor Tony Evers signed the CPA licensure reform bill (2025 Wisconsin Act 166) on Thursday, effective immediately. The new law provides an alternative certification path for applicants with only a bachelor's degree: passing the CPA exam and accumulating two years of relevant experience, without the need for additional 150 credit hours. This move aims to address the accounting talent shortage and align with other Midwestern states. Currently, about 34 states nationwide have implemented similar reforms.
In February, the U.S. Supreme Court ruled that indefinite tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA) of 1977 are invalid, bringing new compliance clarity to businesses but also raising CFO questions about the refund process and potential financial impacts. Kristin Bohl, Customs and International Trade Partner at PwC, noted that the refund process could take months or even years, and CFOs need to plan ahead for impacts on tax, accounting, supply chain, and other areas.
Microsoft published a new article stating that cybersecurity is evolving from an IT technical issue into a financial risk, requiring CFOs to engage more deeply in cyber risk management. The U.S. recorded 3,322 data breaches in 2025, a 79% year-over-year increase; JLR's sales dropped by 43% due to a cyberattack. IBM data shows the average cost of a U.S. data breach reached $10.22 million, a historic high.
Legal analysts note that despite the White House's push for legislation, the likelihood of Congress passing comprehensive AI regulation this year remains very low. Factors such as state law preemption and midterm elections complicate the outlook.