AICPA Town Hall: Technology Landscape Update & Year-End Tax and Financial Planning

Episode Date: November 6, 2025
Hosts & Guests: Erik Asgeirsson (AICPA), Mark Koziel (AICPA), Mark Peterson (AICPA), Pascal Finette (Radicle), Melanie Lauridsen (AICPA), Dan Snyder (AICPA), Mark Gallegos (Port Brown)

Episode Overview

This episode of the AICPA Town Hall provides a comprehensive update on the accounting profession's current landscape. It covers technology advancements (particularly AI), the latest in government and regulatory affairs, and best practices for year-end tax and financial planning. Executive leads and subject matter experts join to discuss vital trends, challenges, legislative updates, and actionable opportunities for firms and practitioners as 2025 draws to a close.

State of the Profession & Economic Update

Timestamps: [00:11] – [05:48]

Key Points

• Mark Koziel shares his observations from extensive travel and discussions with firms nationwide.
• Despite headlines about layoffs, staffing realignment is modest—less than 1.5% of employment—and largely routine as firms prepare for busy season.
• Turnover rates have stabilized, and the profession remains robust with new opportunities emerging, especially regarding technical tax changes and artificial intelligence.

Notable Quotes

• Mark Koziel [01:34]:
  “All of those layoffs…have been blips… The turnover rate has stabilized. There has been less turnover over the last couple years.”
• Koziel on HR1 and AI [03:58]:
  "HR1…is going to be this opportunity for the upcoming year. It’s going to be busy, I’m sorry to say… Being able to utilize Blue J, coming up with summary documents, sending them out to our clients—we get smarter in this upcoming year around how we interact with our clients and create opportunities based on having this information in an AI environment at our fingertips."

Washington DC Update: Elections, Shutdown, and Policy Implications

Timestamps: [06:10] – [18:41]

Elections & Impact

• Mark Peterson discusses recent off-cycle state elections (notably in New Jersey and Virginia), emphasizing the policy impact on the ongoing government shutdown and legislative priorities.
• Democrats' stronger-than-expected wins embolden their position in shutdown negotiations, especially regarding ACA premium tax credits.

Redistricting

• California Prop 50 and Texas court cases are reshaping congressional districts, signaling a redistricting "arms race" ahead of midterms.

Shutdown Status

• Negotiations continue for a short-term extension; core sticking points are funding and ACA subsidies.
• Essential federal employees face missed paydays; issues like airline disruptions and nutrition supplements are in play.
• "Nuclear option" possibility in the Senate—lowering the 60-vote threshold—which could have long-term consequences.

Notable Quotes

• Mark Peterson [06:10]:
  "Politics drives policy, particularly at a point in time when the government shut down."
• Peterson on shutdown [10:58]:
  "None of these discussions have been about a long-term solution…it’s kicking the can to December 19th…potentially in the middle of another tax season."
• Koziel [17:53]:
  "These tariffs are almost like a tax and…implementing tax is a congressional responsibility, not White House responsibility."

Technology Spotlight: AI, Agentic Systems, & Professional Transformation

Timestamps: [18:41] – [38:21]

The Rise of AI and Generative Tools

• Pascal Finette presents insights on the explosive rise of generative AI (ChatGPT reaching 800 million users in under three years) and implications for the accounting profession.
• AI is accelerating productivity and redefining professional roles from "doing" to "orchestrating and controlling."

Agentic AI Explained

• Definition: Systems with goal-directed behavior that can autonomously perform tasks, such as transaction classification or even closing the books.
• The trajectory: From basic chatbots and recommendation systems to proactive and (eventually) fully autonomous workflows.
• Current state: General-purpose AI models excel at short-term tasks but are not yet reliable for long-duration, high-complexity accounting operations without human oversight.
• Profession-specific solutions (e.g., Blue J) outperform generic AI tools.

Practical Guidance

• Experiment with tools but buy rather than build unless you are a very large firm.
• Use generative AI for creative tasks; avoid using general-purpose LLMs (e.g., ChatGPT) for sensitive financial data.
• Vibe coding is an emerging area—leveraging AI to build small apps for specific workflows.

Notable Quotes

• Pascal Finette [25:56]:
  "Bluejay is a really beautiful example of what generative AI is actually good at, which is, you have massive amounts of data…find the needle in the haystack, but not just the needle…make correlations between a whole bunch of needles."
• Finette on agentic AI [32:40]:
  "The job becomes less a doing rather than a orchestrating and controlling perspective…what does this actually mean about the skills we need?"
• Finette on buy vs build [35:43]:
  "Do not build your own solution. Please don’t, unless you’re a very large firm…For anything creative, [general models] are fine. [But] don’t use them on your financial data quite yet."

Technical Updates: IRS Operations, Deadlines, and Guidance

Timestamps: [38:41] – [43:10]

IRS Updates

• IRS gradually bringing employees back during the shutdown, but all filing and payment deadlines remain.
• Refunds are issued only if returns are filed electronically, error-free, and direct deposit is used.
• Limited IRS phone support; members report best results early in the morning.
• Technical update: Notice 2025-62 offers penalty relief for employers and payers related to reporting on tips and overtime.
• PTIN renewal reminders ($18.75 fee), suspension of IRS Direct File, Engage365 community launch for AICPA members.

Notable Quotes

• Melanie Lauridsen [39:05]:
  “All taxpayers are still required to meet their filing and payment deadlines. That has not changed. Refunds are not going to be issued unless they were electronically filed…the IRS is not responding to correspondence and unfortunately, automated notices are still going on.”

Year-End Tax & Financial Planning: HR1, Secure Act 2.0, and Practical Strategies

Timestamps: [43:10] – [54:23]

HR1: Key Provisions and Planning Points

Mark Gallegos covers critical HR1 changes impacting year-end planning for individuals, businesses, and international clients.

Individual Tax

• Tax Bracket Management: Use up lower brackets; plan now to optimize.
• SALT Deduction: New $40,000 cap—critical for planning.
• Charitable Deductions: Donor-advised funds, bunching, QCDs, appreciated stock gifts.
• New Deductions: Tip and overtime pay, car loan interest, enhanced senior deduction.

Business Planning

• Accelerated CapEx, 100% bonus depreciation (post Jan 19, 2025), Section 179 enhancements.
• Review entity structure; optimize for tax opportunities.
• Leveraging pass-through entity tax elections (PTED).
• Section 174 expensing now available retroactively—a significant win.

International Tax

• GILTI renamed as Net CFC Tested Income.
• FDII renamed as Foreign Derived Deduction Eligible Income.
• Compliance is key due to increased penalties.

Secure Act 2.0 Highlights (by Dan Snyder)

• Roth-only Catch-up Contributions: Effective operationally for 2026—plans must be ready.
• Super Catch-Up: Age 60-63, effective 2025 ($10,000 or 150% of age 50 catch-up).
• Long-term Part-time Eligibility: Now 2 years (not 3)—assessment starts for 2023/2024.
• Inherited IRAs: Clarification on RMDs based on date relative to “required beginning date,” not first RMD taken.

Notable Quotes

• Mark Gallegos [43:57]:
  "Instead of racing towards expirations or sunsets, we're entering a new era, right? One with fresh deductions, new limits, and a few curve balls we need to watch."
• Dan Snyder [48:51]:
  "Operationally, they have to put it into place. The actual plan document doesn't get updated until later, so come back to that."

Open Forum & Professional Resources

Timestamps: [54:23] – [59:13]

• AI is the “great equalizer”—small firms can now access the same tools as the largest practices.
• Technical committees are setting rules and boundaries for AI usage in the profession, ensuring robust guidance for AICPA members.
• Upcoming resources and events: National Tax Conference (Nov 17–18), Digital CPA event with former OpenAI leader Zach Kass, and the ongoing Engage365 member platform.

Notable Quotes

• Mark Koziel [57:32]:
  "Let’s own the AI space as a profession. We're ready for it."

Key Takeaways & Recommendations

• Embrace AI but do so judiciously—buy, don’t build, and use profession-tailored solutions for sensitive work.
• Stay vigilant on government and regulatory changes; the shutdown and tax law evolution require constant attention.
• Proactive year-end planning with HR1 and Secure Act 2.0 is essential—significant new tax savings and pitfalls for clients.
• Engage with AICPA resources and communities for up-to-date guidance and peer discussion.

Memorable Moments

• [19:47] Pascal jokes about changing his name to Mark, given the prevalence of Marks on the episode.
• [57:32] The AICPA name’s newfound meaning as “AI CPA.”

"AI is here, it is here to stay, and it will fundamentally change a lot of the things we're doing in our business."
— Pascal Finette [27:22]

For more resources and to join future live Town Halls, visit cpa.com/townhall