Compliance
FASB Income Tax Disclosure Rules Face First Annual Report Season Scrutiny: U.S. Chamber Urges SEC to Recommend Suspension or Withdrawal
The U.S. Chamber of Commerce recently wrote to the U.S. Securities and Exchange Commission (SEC), requesting that it recommend suspending or withdrawing the income tax disclosure rules (ASU 2023-09) issued by the Financial Accounting Standards Board (FASB) in 2023. The Chamber believes existing disclosures are sufficient, the new rules impose a heavy burden, and questions their political motivation. The rules took effect at the end of 2025, and companies will first fully apply them in their initial annual reports filed in early 2026.
U.S. Treasury Expects Corporate Tax Filing Costs to Rise 3.2%
The latest annual estimate released by the U.S. Treasury in the Federal Register shows that total corporate tax filing costs in the U.S. are expected to reach $131.8 billion in fiscal year 2026, an increase of 3.2% from fiscal year 2025. Compliance time is expected to decrease by 8.3% to 857 million hours, but out-of-pocket expenses are projected to rise by 10.6% to $79.2 billion. This estimate does not account for losses incurred by businesses due to suboptimal tax decisions. The data was developed by the IRS research division, and the public comment period ends on January 14, 2026.
New 1099 Filing Thresholds and Crypto Tax Forms Test Accounts Payable Departments: Survey Shows Lack of Preparedness
A survey released this month by tax software provider Avalara shows that nearly half of accounts payable executives lack confidence in the upcoming changes to filing thresholds for 1099-K, 1099-MISC, and 1099-NEC. Additionally, only about 55% of respondents indicated they are preparing for the new 1099-DA form. Respondents primarily attribute the uncertainty to unclear communication from the IRS.
FASB Issues New Interim and Quarterly Reporting Standard, Clarifying Disclosure Requirements
FASB issued a new accounting standards update (ASU 2025-11) on Monday, aimed at clarifying existing rules under interim reporting (Topic 270), without changing or reducing requirements. The new rules require entities to disclose significant events that have occurred since the last fiscal year reporting period, applicable to quarterly and reporting periods shorter than a full operating cycle or year. Effective for public companies after December 15, 2027, and for private and other entities after December 15, 2028.
FASB Issues New Standard on Government Grant Accounting, Filling GAAP Gap
FASB officially issued Accounting Standards Update 2025-10—Government Grants (Topic 832), providing authoritative GAAP guidance for business entities to account for government grants, filling a gap of more than 50 years. The new standard applies to all business entities (excluding not-for-profit organizations and employee benefit plans), requiring grants to be recognized when receipt is probable, with disclosures of related nature, policies, and terms. The standard draws on the framework of International Financial Reporting Standards (IAS 20) with targeted improvements.
Former Fabric CFO Found Guilty of Wire Fraud in $35 Million Crypto Scheme
The U.S. Attorney's Office for the Western District of Washington announced Thursday that Nevin Shetty, former Chief Financial Officer of retail software company Fabric, was found guilty of four counts of wire fraud for embezzling $35 million from the company into his own cryptocurrency platform. The case stems from a covert transfer in April 2022, with the funds nearly wiped out following the cryptocurrency market crash.
FASB Income Tax Disclosure Rule Resolves Funding Threat, Political Pressure Temporarily Subsides
The Financial Accounting Standards Board (FASB) successfully resolved political pressure arising from the income tax disclosure rule (Topic 740), as the spending bill signed by President Trump this week did not include provisions from earlier proposals that threatened FASB funding. FASB Chairman Richard Jones stated at a press conference that the standard has been issued and is in effect, and companies will adopt it in this year's financial reports. Although some Republican lawmakers attempted to block the rule, the FASB adhered to its standard-setting process, and experts believe the rule will continue to be implemented.
Washington State's New CPA Licensure Rules May Take Effect Next Month
The Washington State Board of Accountancy has adopted new rules allowing candidates to obtain a CPA license by substituting a bachelor's degree plus two years of work experience for the 150-credit requirement. The change is expected to take effect as early as next month (31 days after the rules are submitted), making Washington at least the 23rd state to relax this requirement.
Rivian agrees to pay $250 million to settle IPO securities fraud lawsuit
Rivian Automotive announced on Thursday that it has agreed to pay $250 million to settle a class action lawsuit. The lawsuit alleged that it made false statements regarding material facts related to vehicle pricing during its IPO in 2021. The payment will be made through a combination of directors' and officers' liability insurance ($67 million) and cash on hand ($183 million). The company denied the allegations, stating that the settlement is not an admission of fault and is aimed at concentrating resources on the launch of the R2 model in the first half of 2026.