AICPA Town Hall (September 11, 2025)

Episode Theme:
This episode provides a comprehensive update on Washington, D.C. legislative activity, emerging trends impacting the accounting profession, and essential risk management as firms transition from one tax season to the next. The hosts, prominent leaders from AICPA & CIMA, deliver news and insights about government funding, the latest regulatory developments, firm questions around HR1, digital assets, the future of the accounting field (AICPA Rise 2040 initiative), and practical guidance for tax professionals and firms.

1. Washington, D.C. Outlook: Government Funding, Legislative Priorities

With Rachel Dressen (DC Studio)

• Government Funding Deadline Approaching ([02:06]):
  • Congress is back from recess and faces a tight deadline—only six or seven legislative days before the government funding expires on September 30.
  • House and Senate have passed three of the twelve necessary bills, but they are not identical.
  • A Continuing Resolution (CR) is likely, keeping current funding levels with a small package of new funding for Military Construction and Veterans Affairs, Agriculture, and Legislative Branch bills ([02:32]).
  • Bipartisan cooperation is necessary, especially in the Senate, where Republicans will need Democratic support ([03:40]).
  • Political wrangling about including provisions such as Obamacare’s premium tax credit, possible rollbacks of Trump-era items, and whether either party will benefit from a shutdown.

"Usually these things fall apart multiple times before they come together at the end. But there is a real possibility that there could be a shutdown come, you know, 12:01am on October 1st." — Rachel Dressen ([05:56])

• Impact on the IRS ([06:57]):

  • In the event of a shutdown, agencies designate "essential" employees.
  • IRS workers managing October 15 deadlines could be retained as essential and required to work without pay.

• GENIUS Act and Digital Assets Regulation ([08:04]):

  • Treasury released comment period for the new digital asset (stablecoin) regulation framework; deadline October 17.
  • AICPA will comment, advocating for clarification on reporting, internal controls, and referencing the House-passed Clarity Act ([08:45]).

"We will include, you know, supporting similar language to the GENIUS act as what is in the House pass Clarity Act." — Rachel Dressen ([09:00])

• IRS Chief Counsel Nomination ([10:12]):

  • Donald Korb’s Senate hearing highlighted his lengthy experience and bipartisan support.
  • He emphasized focus on tax policy guidance, fair enforcement, and handling contentious issues like IRS data sharing and ERC payments.

• Tariffs Litigation & International Standards Developments ([13:08]):

  • Appeals court ruled the president can’t impose tariffs under the International Emergency Economic Powers Act; Supreme Court to hear the case in November.
  • SEC Commissioner Atkins questioned whether the U.S. should accept IFRS principles alongside GAAP.

2. Technical Tax and Regulatory Updates

With Lisa Simpson

• Section 174/HR1 Guidance for Small Businesses ([15:08]):
  • IRSh issued long-awaited guidance for small businesses (≤$31M revenue) on research & experimentation (R&E) expenditures under HR1.
  • Key points:
    • Immediate deduction or capitalizing/amortizing R&E allowed for domestic expenditures for 2024 tax years.
    • Rev. Proc. 2025-28 offers transitional rules, retroactive application, methods change, and guidance for previously filed returns ([15:40]).
    • Complex election deadlines and caveats; all three years (2022–24) must be amended if election is made ([20:35]).
    • Larger businesses can only expense after 2024 ([21:50]).

"I know that was complicated. As I've said, that's our buzzword for today: complicated." — Lisa Simpson ([22:13])

• Electronic Payments Transition ([23:38]):

  • Treasury moving away from paper checks, pushing for electronic payment adoption.
  • EFTPS system closing to new enrollments after October 17, 2025 ([23:55]).

• No-Tax-on-Tips Clause (HR1) ([24:49]):

  • Deduction for tips is limited to certain occupations—not accountants. New W-2 draft for 2026 will enable adequate reporting.

• Expiring Energy Tax Credits ([26:31]):

  • Energy tax credits for EVs expire at the end of September; practitioners alerted.

• IRS Workforce and Notices ([27:40]):

  • IRS workforce increases to support HR1 implementation.
  • Ongoing issues with erroneous IRS notices, especially intent to levy; practitioners advised to file Form 9423 within 30 days of such notices ([29:40]).

"The most important is to submit a Form 9423 within 30 days... and that will show that you intend to appeal that collections intent to levy, file that certified and keep that documentation as IRS continues to work through it." — Lisa Simpson ([29:40])

• IRS Lockbox Changes & National Tax Conference ([31:04]):
  • Updates on lockbox addresses; resource links provided.
  • National Tax Conference will dive deeper into these technical issues.

3. Profession Trends: AICPA Rise 2040 & The Future of Accounting

With Mark Koziel (AICPA CEO)

• The RISE 2040 Initiative ([32:18]):
  • Comprehensive strategic plan, building on past visioning projects (Vision Project, CPA Horizons 2025).
  • Three “hard trends” impacting the profession: regulatory, technology, demographics.
  • 90 facilitators and 900+ participants already engaged, with more state society forums scheduled ([33:31]).
  • Preliminary findings:
    • AI is a transformation catalyst.
    • “Anticipatory mindset” is essential: distinguishing “hard trends” (permanent) from “soft trends” (evolving).
    • Critical focus on trust, ethics in the digital age, and workforce/talent transformation ([35:01]).

“Trust and ethics. In a digital age we are the trusted profession... as we move into this AI digital age and a sense of distrust around information, it's going to be our job even more importantly to really present some level of trust to the business marketplace and to our clients.” — Mark Koziel ([36:11])

• Firm-Level Trends & Industry Polling ([38:18]):
  • Ongoing market analysis about hiring, consulting demand, and the accounting talent pipeline.
  • Poll results: ~40% of attendees not hiring; remainder split on hiring challenges compared to last year.

4. Technology Summit & State of AI in Accounting

With Erik Asgeirsson (CPA.com CEO) and Mark Koziel

• Executive Roundtable: Tech Community Dialogue ([40:45]):
  • Leaders report major improvements in cloud, AI, and automation for all major accounting services.
  • New entrants and billions invested in automation for bookkeeping, tax prep, audit, and CFO advisory.

“The state of these solutions have never been better... leveraging cloud computing, leveraging AI development resources, they are really building solutions and that are already able to be implemented in firms.” — Erik Asgeirsson ([41:18])

• AI Adoption and Practice Impact ([42:37]):
  • AI adoption is more advanced in firms than business & industry, but audience encouraged to “stay curious” and press vendors for AI roadmaps.
  • Importance of not falling behind despite the overwhelming number of new solutions ([45:19]).

“You don't have to be the expert in how to build your own chatbot... just stay on the lookout because it’s going to be fascinating and revolutionary in the way the accounting profession gets things done.” — Lisa Simpson ([45:19])

5. Risk Management Strategies: Moving from Tax Season to the Next

With Sarah (AON) and Nicole (CNA)

• Client Management & Documentation Best Practices ([47:16]):

  • Proactively contact deadline clients, specify what’s needed, and document all requests.
  • If clients owe you money but have signed e-file authorization, you must file within three days—cannot hold up returns for payment ([48:00]).
  • Importance of records: “Be clear, be direct, be concise, get it in writing, and maintain that documentation.” — Sarah ([47:16])

• Optimizing Client Lists / Client Continuance ([49:44]):

  • Annual review of each client for payment, cooperation, business model, and staff-treatment issues.
  • Consider retainer fees for problem clients or, if necessary, formal disengagement.

• Outsourcing/Offshoring Risk Guidelines ([51:55]):

  • Diligence on third-party vendors, strong client consent, and accountability in reviewing their work.
  • You remain responsible for outsourced deliverables.

• AI Use and Disclosure:

  • Practitioners urged to review resources on whether to disclose gen AI use to clients; further guidance to come ([52:45]).

6. Audience Q&A and Resources Recap

• Engagement Letters, Guidance Tools, Erroneous Notice Resources ([55:37]):

  • Technology tools and practice aids available for small practitioners implementing new standards (SQMS1), and sample engagement letters released in November ([55:37], [57:14]).
  • All resource links promised in the post-session newsletter.

• Hiring Poll Results & Profession Outlook ([54:14]):

  • ~40% not hiring, 20% more challenged, 25% unchanged, 10% less challenging than last year. Indicates diversity of market conditions.

“It does prove out though, is that there is no one answer out there.” — Mark Koziel ([54:16])

7. Memorable Quotes & Moments

• “Complicated. As I've said, that's our buzzword for today: complicated.” — Lisa Simpson ([22:13])
• “Trust and ethics. In a digital age we are the trusted profession...” — Mark Koziel ([36:11])
• “Usually these things fall apart multiple times before they come together at the end.” — Rachel Dressen ([05:56])
• “You don't have to be the expert in how to build your own chatbot... just stay on the lookout...” — Lisa Simpson ([45:19])

8. Upcoming Events & Ways to Engage

• MAP Survey Results Out & Sept. 25 Town Hall Preview ([58:11])
• AI and Accounting Adoption Webinar ([59:35])
• Digital CPA Conference, Future Town Halls, Volunteer Opportunities ([58:44], [59:35])

For Practitioners: Key Takeaways

• Critical DC developments may impact tax season and regulatory requirements.
• Latest HR1 small business tax guidance is complex, but don't panic—resources and filing options exist.
• Digital asset regulation and IRS operational changes advancing quickly.
• AI and automation are reshaping both practice and firm management—engage with vendors, stay informed.
• Risk management should focus on proactive client interaction, documentation, outsourcing controls, and annual client reviews.
• The profession's future depends on adapting to hard trends, trust-building, and strengthening the pipeline.

For more, access the AICPA resource center and stay tuned for further Town Hall episodes.