Podcast Summary: AICPA Town Hall – "Federal Shutdown State of Play and AICPA Council Highlights"

Date: October 23, 2025
Host: AICPA & CIMA
Featured Speakers: Mark Koziel (CEO, AICPA), Mark Peterson (DC Update), Melanie Laurenson (VP of Tax Advocacy), Jan Lewis (Firm Practitioner), Stephanie Otero (VP, Small Firm Advocate), Lisa Simpson

Episode Overview

This episode delivers an in-depth update on the current federal government shutdown and its implications for the accounting profession, as well as key highlights from the recent AICPA Council meeting. Topics range from state licensing and workforce development to practical IRS guidance and small firm advocacy. As developments in DC unfold rapidly, AICPA leaders and experts provide timely insights and actionable recommendations for practitioners.

Key Discussion Points & Insights

1. AICPA Council Overview and Strategic Initiatives

(02:00–16:00)

• Council's Role:

  • The Council serves as the representative and governing body for the AICPA, involving a diverse array of members from different firm types, sectors, and geographic regions.
  • Council meetings serve as a feedback loop for issues affecting the accounting profession.
  • Recent sessions included updates on economic outlook, workforce challenges, and “Rise 2040” – the long-term visioning initiative.

• Economic & Member Polls:

  • Regular surveys from the CFO community and members indicate top concerns: inflation, hiring challenges, and changes in tax/tariff policy.
  • Quote: “Those town halls are the most valuable thing AICPA does… it’s rewarding to get that feedback and thinking about how important it is to folks inside the profession.” (Mark Koziel, 05:00)

• Advocacy & Communication:

  • Highlighted the impact and essential role of town halls as both an advocacy tool and a member feedback platform.

2. Legislative Priorities and State Licensing Issues

(06:27–16:44)

• ARPAL and Deregulation Threats:

  • The Alliance for Responsible Professional Licensing (ARPAL) is fighting anti-regulation efforts threatening CPA and other professional licensure.
  • States like Florida and Nevada have seen major deregulation legislative pushes.
  • “If you don’t speak up, if you don’t show up, they can ignore you. And I think that’s where we as a profession need to focus on.” (Council speaker, 12:06)
  • Asked members to proactively engage with state societies before threats arise.

• SEC Engagement:

  • Ongoing dialogue with the SEC on audit regulation and capital markets access.
  • “The SEC wants to understand…what firms are up against with [the] inspection process… They want to see more businesses going public.” (Mark Koziel, 12:46)

• Workforce ‘Readiness Divide’:

  • Young professionals rate themselves as more prepared than their managers do, indicating generational expectations gap.
  • Academic change and skills focus are needed; supporting skill development is a top profession priority.

3. Federal Shutdown: State of Play

(17:19–26:48)

• Current DC Landscape:

  • Ongoing government shutdown due to Congressional gridlock over funding, ACA subsidies, and policy riders.
  • Both parties are posturing for leverage; little progress in breaking the impasse.
  • “There is no winner to a shutdown. But the politics is you want the other side to take the blame… it’s a high-stakes gamble.” (Mark Peterson, 17:59)
  • Discussions on ‘nuclear option’ to bypass the 60-vote Senate rule are ongoing but considered unlikely.

• Agency Impacts:

  • Most agencies, including IRS and HUD, operating at minimal capacity with large numbers furloughed.
  • Compliance data, deadlines, and economic statistics are all disrupted.
  • “The longer this goes, the more challenging it will get.” (Mark Peterson, 25:40)

• Resource Centers:

  • AICPA is updating resource hubs and government audit quality center pages with state-by-state guidance and compliance deadline information.

4. IRS Operations During Shutdown

(28:32–40:32)

• IRS Contingency & Furloughs:

  • 46% of IRS workforce furloughed, mainly from compliance and enforcement.
  • Unique shutdown features: “about 1,400 IRS employees received a 60-day notice” of layoff. (Melanie Laurenson, 29:59)

• Guidance Gaps and Practitioner Frustration:

  • Critical need for guidance on new “no tax on tips” and “no tax on overtime” provisions (part of HR1).
  • Receiving guidance “drip, drip, drip,” with much practitioner anxiety over how to comply.
  • “We’ve got small businesses trying to figure out how to report certain things… very much do we need tax on overtime, and we need more on the tips.” (Jan Lewis, 32:09)

• Practical IRS Services Update:

  • Practitioner Priority Service line is functioning with a “skeleton crew.”
  • E-filing and refund processes for clean electronic returns are ongoing, but all paper and exception items delayed or at risk.
  • IRS backlogs could reach “three times the backlog of COVID—expecting about 600 million backlog letters.” (Melanie Laurenson, 34:31)

• AICPA Recommendations to IRS:

  • Suspend compliance actions and erroneous notices during shutdown.
  • Keep online systems open as “the lifeline for practitioners.”
  • Streamlined penalty relief and reasonable cause waivers requested.

• Notable Quotes:

  • "The notices keep coming… and then are those exams going to be pushed down the road into tax season?" (Jan Lewis, 36:02)
  • “We really want to hear from you, we want to hear your pain points so we can continue to share that with the IRS.” (Melanie Laurenson, 38:38)

5. Small Firm Advocacy Spotlight: Introducing Stephanie Otero

(42:03–51:12)

• New VP, Small Firm Advocate:

  • Stephanie Otero brings two decades of experience, including running her own small firm, leading a nonprofit, and working at the AICPA.
  • Her focus: Enhance support, networking, and resource development for small firms.
  • “If there's a poster child for what not to do when running your small firm, I would be that poster child. I made all the mistakes… that experience excites me for being VP Small Firm Advocate.” (Stephanie Otero, 44:00)

• Connecting with Small Firms:

  • Will leverage PCPS groups, state society roundtables, and direct outreach.
  • "You matter. You are not on the sidelines... You are the heart of our community." (Stephanie Otero, 48:07)
  • Upcoming pilot: Engage365 online community for small practitioners.

• Defining “Small Firm”:

  • Generally, 30 or fewer professionals, but “it depends on your market, staff size, and revenue.”
  • “Sole practitioners have different challenges than a firm with 30… It is a feeling, and how you want to be.” (Mark Koziel, 56:18)

6. Open Forum & Member Questions

(51:12–59:12)

• IRS Service Experiences:

  • Reports from practitioners vary widely, from quick IRS phone responses to long hold times and unresolved cases.
  • “It is truly a smorgasbord of experience out there and there is going to be inconsistency.” (Mark Peterson, 52:32)
  • Emphasized need for feedback to refine AICPA’s advocacy.

• Small Firm Community Growth:

  • Town Hall Community now reaches 32,000 professionals, with over 15,000 active engagements per episode.

Notable Quotes & Memorable Moments

On profession advocacy:

“Those town halls are the most valuable thing AICPA does… it’s rewarding to get that feedback.”
— Mark Koziel (05:00)

On state licensing threats:

“If you don’t speak up, if you don’t show up, they can ignore you. And I think that’s where we as a profession need to focus.”
— Mark Koziel quoting Engage conference speaker (12:06)

On the shutdown:

“There is no winner to a shutdown. But the politics is you want the other side to take the blame… it’s a high-stakes gamble.”
— Mark Peterson (17:59)

On the IRS situation:

“Three times the backlog of COVID — expecting about 600 million backlog letters.”
— Melanie Laurenson (34:31)

On representing small firms:

“You matter. You are not on the sidelines of this profession. You are actually the heart of our community.”
— Stephanie Otero (48:07)

Timestamps for Key Segments

• AICPA Council and Strategic Updates — 01:13–16:44
• Shutdown State of Play & Legislative Gridlock — 17:19–24:12
• Agency and IRS Impact — 24:12–40:32
• Small Firm Advocacy & Introduction of Stephanie Otero — 42:03–51:12
• Open Forum and Member Q&A — 51:12–59:12

Resources & Next Steps

• AICPA Resource Centers: Regularly updated shutdown and tariff impact pages
• Small Firm Roundtables: Join upcoming state society or Engage365 small firm community events
• Contact Stephanie Otero: Open door/inbox policy; connect via LinkedIn or email
• On-Demand Content: Access past town halls and more resources at cpa.com/townhall

This episode is essential listening for practitioners needing accurate information on federal developments affecting the profession, practical IRS guidance, and updates on small firm initiatives in a time of uncertainty and accelerated change.

Listen for:

• Actionable guidance on IRS operations
• Advocacy strategies for state-level regulation threats
• Updates and resources specifically for small firm practitioners

(All times in MM:SS format for ease of navigation.)