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The U.S. Treasury released over 600 pages of proposed regulations for the 15% corporate alternative minimum tax (CAMT) last month, providing long-awaited clarity for businesses, but the compliance burden may exceed expectations. Ernst & Young tax partner Tim Powell noted that while the regulations simplify certain processes, they also add complexity to the treatment of partnership investments. This article summarizes three key points: the permanent safe harbor, the confirmation requirements for partnership contributions, and the tiered flow-through of partnership operating information.

The latest NABE survey shows that only 54% of firms are still passing on cost increases to consumers, down from 67% in July, marking the lowest level since January 2022. Meanwhile, economists' concerns about a recession have eased, but election uncertainty continues to weigh on corporate expectations.

In September, a Philadelphia Court of Common Pleas increased the verdict against ExxonMobil for benzene exposure causing cancer to $816 million, becoming the latest case in the trend of corporate environmental responsibility litigation. The case stemmed from a gas station mechanic's cancer claim, with the jury finding that ExxonMobil failed to adequately warn of benzene risks. The court denied appeals and added delay damages, emphasizing corporate accountability for neglecting public health. This verdict, alongside green lawsuits against Lululemon and Tyson Foods, shows growing public accountability for corporate environmental impact.

The latest University of Michigan survey shows that U.S. consumer confidence rose to a six-month high this month, exceeding market expectations. The report notes that lower borrowing costs and stabilized inflation expectations are the main supporting factors, while the approaching election is significantly affecting the economic outlook of voters across different parties.

The latest EY survey found that most chief financial officers and other finance executives expect companies in their industry to fall short of sustainability goals, and only 47% of respondents believe their own companies can achieve targets like net zero emissions on schedule. Institutional investors are relatively more optimistic, with 53% saying companies are progressing as planned. The survey covered 2,000 finance executives and 815 institutional investors.

The American Institute of CPAs (AICPA) sent a letter on October 21 to Treasury Secretary Janet Yellen and IRS Commissioner Daniel Werfel, requesting new tax guidance regarding the upcoming rescheduling of cannabis from Schedule I to Schedule III. The AICPA noted that cannabis businesses currently face a conflict between federal illegality and state legality, and that rescheduling will affect the deduction rules under Section 280E. It recommends that the IRS clarify key issues such as the applicability of deductions for the full year and consistency across states.

The SEC disclosed settlements with four companies on Tuesday, accusing them of downplaying the impact of cyberattacks in the 2020 SolarWinds hack and making misleading disclosures. The companies involved—Unisys, Avaya Holdings, Check Point Software Technologies, and Mimecast—all agreed to pay civil penalties.

The Financial Accounting Standards Board (FASB) agreed at its October 16 meeting to advance a standard update aimed at simplifying credit loss accounting for private companies and not-for-profit organizations, proposing a 'practical expedient' to exempt forward-looking economic forecasting requirements and setting a 45-day comment period. Some board members supported studying the extension of relief to public companies.

The Conference Board reported on Monday that the U.S. leading economic index fell month-over-month in September, with weak manufacturing demand, reduced building permits, and declining consumer confidence offsetting some growth signals. Despite retail sales exceeding expectations and upward revisions to GDP growth estimates, the organization expects only modest economic expansion from late 2024 to early 2025. Federal Reserve officials emphasized that policy will depend on data, and market expectations for the magnitude of a November rate cut have dropped from 50 basis points to 25 basis points.

A survey released Monday by consulting firm RSM shows that while most mid-sized companies have made progress in ESG regulatory preparation, many are waiting to see the outcome of the U.S. election before deciding their next steps.