Compliance
The latest KPMG survey reveals that about 40% of U.S. companies plan to increase supply chain agility investment over the next year to cope with persistent trade and tariff policy uncertainty. Nearly half of companies are actively modeling and deploying tariff mitigation strategies, and 41% have deployed artificial intelligence to optimize trade compliance.
The Trump administration released a cybersecurity strategy on Friday, pledging to combat malicious cyber actors, protect critical infrastructure, leverage AI, and reduce corporate regulation, but without providing specific implementation details.
Nevin Shetty, former CFO of retail software company Fabric, was sentenced to two years in prison on Thursday for secretly transferring $35 million in company funds to cryptocurrency investments in April 2022. The sentence is lower than the nine years sought by prosecutors, but Shetty must fully repay the funds and is prohibited from serving as a corporate officer or director without permission from the probation office.
More than 20 U.S. states have jointly filed a lawsuit with the Court of International Trade, seeking to block the 10% global additional tariff imposed by President Trump under Section 122 of the Trade Act of 1974, and requesting a refund of tariffs already paid.
Senior Judge Richard Eaton of the U.S. Court of International Trade issued an order requiring Customs and Border Protection to liquidate or reliquidate unliquidated and non-final entries without regard to tariffs imposed under the International Emergency Economic Powers Act. This action is seen as the most significant progress in the refund process since the Supreme Court ruled the tariffs invalid.
West Virginia has become the latest state to establish alternative pathways for CPA licensure. Governor Patrick Morrisey signed legislation on Monday, allowing candidates to obtain licenses without completing 150 college credit hours, which typically requires five years of higher education. The new rules take effect on May 24, offering three pathways that combine different educational backgrounds, work experience, and exam requirements. This move aims to alleviate the talent shortage in the accounting industry and respond to competitive pressures from reforms in neighboring states such as Ohio.
The U.S. Securities and Exchange Commission (SEC) has dropped negligent fraud charges against Vidul Prakash, former Chief Financial Officer of View Inc. The case stemmed from a lawsuit filed in 2023, alleging that Prakash failed to adequately disclose a $28 million warranty liability. The court approved the joint motion to dismiss the case on Friday, and Prakash's attorneys stated that their client has been vindicated.
A recent U.S. Government Accountability Office (GAO) report indicates that most paid tax preparation service personnel are not subject to uniform education or professional testing standards, and their error rates are significantly higher than those of self-filers or certified professionals, leading to billions of dollars in improper tax credits annually and exposing taxpayers to audit and penalty risks. The report recommends that Congress authorize the IRS to establish uniform professional standards.
Tax professionals note that U.S. businesses should closely monitor subsequent tax guidance from federal agencies related to the 'One Big Beautiful Bill Act.' The act retains the 21% corporate income tax rate originally set to expire in 2026 and significantly adjusts cost recovery rules. However, the Treasury Department and the IRS still need to provide further explanations on definitions of key terms, with related details expected to be issued in the coming months.