AICPA Town Hall – January 22, 2026

Episode Title: Digital asset reporting and technical updates ahead of busy season
Host(s): Erik Asgeirsson, Lisa Simpson, Mark Peterson
Featured Guests: Jeff Seibert (CEO, Digits), Melanie Lauritson (AICPA IRS Liaison), April Walker (AICPA), Nick Farr (Forvis Mazars)
Main Theme:
This episode delivers a comprehensive update for accounting professionals on three major fronts:

1. U.S. and global policy developments affecting accounting (Davos, Washington, D.C.)
2. Emerging AI technologies and their impact on the profession
3. IRS updates and the significant new digital asset income tax reporting requirements ahead of busy season

Washington, D.C. and Davos Policy Update

Presenter: Mark Peterson
Timestamps: 02:03–13:56

Key Points:

• Geopolitics’ Expanding Influence:

  • “At every level of the profession, I have never seen geopolitics have a bigger impact” – Mark Peterson (02:08)
  • Global events (e.g., new U.S. tariff debates in Davos, EU/US trade tensions, immigration) increasingly drive tax, regulatory, and economic shifts affecting accounting.

• Midterm Election Dynamics:

  • Issues of affordability (housing, credit card rate caps, energy) are central to both parties' agendas.
  • Congressional retirements and resignations are particularly disruptive given razor-thin House majorities: “Someone leaving early... can have a huge impact” (03:40).

• Tariff and Trade Uncertainty:

  • Examples: Retaliatory tariffs impacting EU/US trade, service sector threats, NAFTA/CAN/MEX renegotiations expected over the summer.

• Government Funding and Shutdown Prospects:

  • Mark predicts no shutdown: “No, we’re not. That’s my prediction.” (07:44)
  • Expect some appropriations bills to be completed, with outstanding funding via continuing resolutions.

• Digital Asset Legislation:

  • Ongoing debate around the Genius Act and Clarity Act, establishing market structure for stablecoin regulation via CFTC and SEC.
  • Legislation pulled amidst debate on crypto yields and ethics concerns.

• Federal Fiscal Responsibility:

  • Renewed calls for bipartisan review and transparency of government financial statements before encountering fiscal cliffs.

• Student Loan Cap Issues:

  • Accountants, engineers, architects re-classified as “non-professionals” for student loan cap purposes—a major advocacy area for the AICPA. Comment period pending:
    “We are obviously a profession, regardless of how the Department of Education has outlined this” (12:43).

Notable Moment

“If there’s ever a time not to just be chasing every headline, it’s right now.” – Erik Asgeirsson (04:58)

AI in Accounting: Models, Implications, and Predictions

Speakers: Erik Asgeirsson, Jeff Seibert
Timestamps: 14:07–31:35

AI Models and Their Use Cases:

Jeff Seibert explains a taxonomy of five AI model categories for accountants:

1. Generative AI (LLMs, e.g., ChatGPT):

   • Generates text for drafting reports, client emails, and research summaries.
   • “These models are fundamentally just generating text based on what they believe is the most likely completion.” – Jeff Seibert (16:55)

2. Predictive Models:

   • For transaction classification/bookkeeping; avoids hallucinations unlike generative models.
   • “Predictive models cannot hallucinate... In accounting, that’s very important.” (18:29)

3. Document Extraction Models:

   • Modern alternatives to OCR, contextually understand layout of invoices, receipts etc.

4. Agent-based/Agentic AI:

   • AI “agents” that orchestrate multi-step, tool-using workflows:
     “This is the cutting edge of the field... Agent orchestration is the hot topic in Silicon Valley right now.” (21:09)

5. ‘Not Actually AI’:

   • Flagging when tasks are just math/statistics and not genuine AI-driven.

Impact for Accountants:

• Automates tedium, freeing up time for high-value advisory work.
• Clients expect firms to deploy these solutions:
  “How can we use this technology to automate the tedium so you have time to actually bring true value to the clients.” (23:07)

Near-Future Predictions:

• Software Engineering:
  • “By year end, 95% of software engineering will be automated.” (25:01)
  • Agents (AI models) now generate and refactor code in enterprise environments.
• Month-End Close:
  • End-to-end AI automation of the monthly close is on the horizon, with 95% automation predicted by year-end.
• IRS Modernization:
  • AI can help modernize legacy IRS codebases (COBOL/FORTRAN).

Notable Quote

“2026 is the year this is real for firms and I expect large scale adoption across the profession.” – Jeff Seibert (31:28)

IRS Updates: Funding, Technology, and Filing Season

Presenter: Melanie Lauritson
Timestamps: 32:17–44:17

Key Points:

• IRS Service and Restructuring:
  • IRS commits to higher taxpayer service using a technology-driven approach.
  • CEO Frank Basagnano restructures leadership for faster problem resolution.
• Funding Update:
  • 2026 IRS budget down 9%, but taxpayer services get a 9% increase. Major cuts to technology and enforcement (up to 23% cut).
  • Ongoing threat of $12 billion clawback from operations support funding.
• Electronic Payments:
  • Pending official guidance. For now, paper checks allowed. The IRS will alert taxpayers if refund direct deposit info is missing; after six weeks, a paper refund check will be issued.
• 100% Bonus Depreciation:
  • Interim IRS guidance closely mirrors prior TCJA provisions.
• Definition of Limited Partner:
  • Fifth Circuit Court overrules Tax Court; state law definition controls for SE tax exception.
• Penalty Relief for Inherited IRAs:
  • No penalty relief for missed RMDs in 2026 and forward.
• Direct Pay Update:
  • Increased from two to five payments per day.
• Reminders:
  • Use the AICPA disaster relief resource center during winter storms.

Notable Quote

“This is the first time the IRS has reached out to us asking for direct feedback from our members.” – Melanie Lauritson (35:24)

Digital Asset Income Tax Reporting: The New 1099-DA

Speakers: Lisa Simpson, April Walker, Nick Farr
Timestamps: 44:39–56:08

What’s Changing?

• Introduction of 1099-DA for 2025:
  • U.S. custodial brokers must issue standardized 1099-DA forms for digital asset (crypto, NFTs, stablecoins) transactions.
  • This is the first standardized federal reporting for these asset classes.

What Will Be Reported?

• Only custodial brokers must issue these forms.
• Self-hosted wallet and some specific IRS-defined transaction types will not be reported (see Notice 2024-57).
• Cost basis not required for 2025 1099-DAs, leading to gaps and “dreaded missing cost basis” scenarios.
• Early deadlines for 1099-DA forms: generally February 17 for 2026 (due to the weekend), but temporary relief allows brokers up to an extra year for first-time compliance.

Practical Implications for Practitioners:

• Practitioners cannot simply rely on 1099-DA forms for complete digital asset reporting—must ask additional client questions, especially about pre-2025 transactions or non-custodial activity.
• Substantiating cost basis remains critical for clients; if not provided, IRS assumes zero basis.
• Leverage third-party software (after due diligence) to help clients aggregate digital asset activity.
• Clients may come forward with prior-year digital asset activity—amended returns and cost basis reconstruction might be necessary.

Notable Quotes:

• April Walker: “Reporting obligations haven’t changed...can’t just put 1099-DA on the tax return, call it a day and move on.” (51:20)
• Nick Farr: “If there is no record to rely on, the IRS in the worst case will assume zero cost basis.” (53:27)

Resources:

• AICPA Digital Asset Tax Framework Practice Aid (partially available to public)
• Additional AICPA resources linked in show notes.

Open Forum and Audience Q&A

Timestamps: 56:08–58:45

• Substantial audience anxiety about keeping up with AI developments. Emphasis on firm evaluation frameworks for AI solution selection.
• Ongoing concern about IRS modernization, especially for trusts and estates and expanded electronic payment options.
• Paper checks remain allowed for IRS payments until further notice.

Closing Resources and Reminders

• Explore AICPA benchmarking reports, tax research tools.
• Upcoming episodes (e.g., firm growth with Jeff Weiner; burnout prevention toolkit).
• “Don’t forget to mix in some busy season fun!” – Lisa Simpson (59:28)

Memorable Quotes & Moments

• AI & Professional Value:
  “It’s not about automating the profession out of high-value work... It’s automating them out of the mundane, but allowing them to move up the value chain.” – Erik Asgeirsson (22:29)
• Policy Perspective:
  “I have never seen geopolitics have a bigger impact or potential impact across the profession.” – Mark Peterson (02:08)
• Digital Asset Reporting Warning:
  “Can’t just put 1099-DA on the tax return, call it a day and move on.” – April Walker (51:20)

TL;DR

• AI is transforming accounting—2026 brings “real” automation, especially in month-end close and software processes.
• IRS is adapting, with real gains in taxpayer services but still substantial funding, technology, and policy uncertainty.
• New digital asset reporting (1099-DA) starts in 2025 but has major limitations; practitioners must continue asking clients about all digital asset activity.
• Robust AICPA resources and guidance are available to help navigate these changes.

For actionable resources and continued updates, stay connected via CPA.com/townhall.