AICPA News is a monthly roundup of recent announcements from the American Institute of CPAs and the Chartered Institute of Management Accountants.
AICPA Urges IRS to Issue Guidance to Regulation Affecting Tax-Exempt Organizations
In a letter submitted to the Internal Revenue Service (IRS), the American Institute of CPAs (AICPA) requested Treasury and IRS provide guidance addressing Section 4960, which was amended last year by the OBBBA (One Big Beautiful Bill Act). Section 4960 imposes an excise tax on applicable tax-exempt organizations (ATEO) equal to 21 percent of the remuneration in excess of $1 million paid to “covered employees” of the ATEO.
The AICPA’s letter offers the following recommendations on the following matters emerging from the OBBBA revisions to section 4960:
Provide transition relief for fiscal year applicable tax-exempt organizations
Applying transition relief would prevent the tax from being applied retroactively to remuneration paid prior to the enactment of OBBBA changes.
Provide transition relief for applicable tax-exempt organizations and related entities utilizing the current regulatory exceptions to the definition of “covered employee”
Without updated government guidance, some organizations may feel forced to make major changes like restructuring their workforce, scaling back operations, or even shutting down entirely.
Provide transition relief for de minimis employment prior to enactment of the One Big Beautiful Bill Act
People who briefly worked or worked part‑time for certain ATEOs, such as interns, as far back as 2017 could be permanently classified as covered employees, triggering indefinite tracking obligations and excise tax for related organizations years later, without any ability to anticipate these consequences. Absent a de minimis exception, both these individuals and the ATEO and related entities could face outcomes that are wholly disproportionate to the nature and duration of the individuals’ service.
Transition relief for employees of related entities providing services as traditional unpaid volunteers of an applicable tax-exempt organization
Without this transition, it could create an overwhelming burden on ATEOs, who would then have to track every volunteer that provided services to the ATEO, potentially retroactive to January 1, 2017, to ensure that neither the ATEO nor a related entity had failed to identify a covered employee.
AICPA Updates Standards Involving Audit Confirmations
The Auditing Standards Board, a key standard-setting body of the American Institute of CPAs (AICPA), recently approved a standards update that would modernize how CPAs obtain audit evidence through external confirmation procedures.
The new Statement on Auditing Standards: External Confirmations, introduces a new requirement for the auditor to use external confirmation procedures for cash and cash equivalents held by third parties unless certain conditions exist and provides updates to reflect the increasingly widespread use of intermediaries in external confirmation procedures. Additionally, the revisions require certain new conditions be met when using negative confirmations.
One key change is that the new standard provides guidance regarding directly accessing information maintained by a knowledgeable external source as a means of satisfying requirements related to external confirmation procedures.
The new SAS, expected to be available shortly on aicpa-cima.com, will be effective for firms on Dec. 15, 2028, although early adoption is possible.
AICPA Submits Suggestions for the 2026-2027 Priority Guidance Plan
The American Institute of CPAs (AICPA) recently submitted comments to the Internal Revenue Service (IRS) containing 193 recommendations regarding the 2026-2027 Priority Guidance Plan. As the IRS plans to prioritize providing additional guidance as stated in the IRS Strategic Operating Plan, the AICPA encourages the IRS to issue guidance on recommended areas.
The AICPA’s recommendations span the organization’s ten technical panels covering the following areas: Corporations and Shareholders; Employee Benefits; Exempt Organizations; Individual and Self-Employed; International; IRS Advocacy & Relations; Partnership; S Corporation; Tax Methods and Periods; Tax Practice Responsibilities and Trust, Estate and Gift Tax.
The AICPA urged the following as part of the process:
- Use the simplest approach to accomplish a policy goal;
- Provide safe harbor alternatives;
- Offer clear and consistent definitions;
- Use horizontal drafting (a rule placed in one Internal Revenue Code section should apply in all other Code sections) to the greatest extent possible;
- Build on existing business and industry-standard record-keeping practices;
- Provide a balance between simple general rules and more complex detailed rules; and
- Match a rule’s complexity to the sophistication of the targeted taxpayers.
AICPA Honors Tommye Barie with the Gold Medal of Distinction
The American Institute of CPAs (AICPA) recently announced that Tommye Barie, CPA, is the 116th recipient of the AICPA Gold Medal Award of Distinction.
The Gold Medal is the highest honor granted by the AICPA. Since 1944, it has been bestowed upon CPAs whose influence on the accounting profession has been especially notable. Carla McCall, Past Chair, AICPA and Past Co-Chair, the Association of International Certified Professional Accountants, presented Barie with the award at the spring meeting of the AICPA governing Council.
During her time as Chair of the Board of the American Institute of CPAs, Barie was part of the leadership team that initiated the joint venture with the Chartered Institute of Management Accountants, resulting in the creation of the Association of International Certified Professional Accountants. She currently supports innovation and technology within the CPA ecosystem as a board member of CPA.com. She also previously served as Chair of the Florida Institute of CPAs and was a board member of the International Federation of Accountants.
A recognized thought leader in culture, strategy and innovation, Barie served as an Audit and Assurance Partner at Mauldin & Jenkins, one of the 100 largest full‑service accounting and consulting firms in the U.S. During her tenure, she launched the firm’s Client Advisory Services practice and served on both the Audit and Assurance Committee and the Forward and Strategic Thinking Committee. In her current role as Executive Vice President of Leadership Development at the Succession Institute, she mentors and coaches CPA firms and future leaders across the profession.
Barie has earned widespread acclaim for her impact within the profession. She has been named one of Accounting Today’s 100 Most Influential People in the profession, received the Michigan Association of CPAs’ Outstanding Visionary Award, and has also been honored multiple times as one of CPA Practice Advisor’s 25 Most Powerful Women in Accounting.
New AICPA Chair Begins Term Emphasizing Trust, Purposeful Innovation, and the Next Generation of Talent
Jan Lewis, CPA, CGMA, Tax Partner with BMSS Advisors, is the new chair of the American Institute of CPAs (AICPA). She also will serve as chair of the Association of International Certified Professional Accountants, which combines the strengths of the AICPA and The Chartered Institute of Management Accountants (CIMA).
Throughout her tenure, Lewis will concentrate on shaping the future of the profession and working closely with members to align vision, strategy, and direction for success.
Reinforcing trust and delivering value in a complex world: Lewis will underscore the profession’s role in bringing clarity, reliability, and sound judgment to increasingly complex decisions, reinforcing the CPA as a trusted advisor grounded in ethics, quality, and public interest.
Advancing innovation with purpose and responsibility: Lewis will champion the thoughtful adoption of emerging technologies, including AI, to enhance efficiency and insight while ensuring innovation strengthens the profession’s core strengths: judgment, skepticism, and accountability.
Supporting the future accounting work force:
A passionate advocate for mentorship and talent development, Lewis will focus on attracting, developing, and supporting future CPAs and CGMA designation holders, expanding access, advancing lifelong learning, and strengthening connection across the profession.
Lewis served for the past year as the AICPA’s vice chair and has held several other volunteer posts, including serving on the AICPA Board of Directors, Tax Practice and Procedures Committee, Tax Executive Committee, Life Insurance and Disability Plans Committee, and as a member and elected state representative of Council. She is former president of the Mississippi Society of CPAs.
Lewis was selected as one of Forbes Top 200 CPAs in America in 2024. She has been interviewed by Fox Business News, NPR, Forbes, The Wall Street Journal, Bloomberg, Bankrate, and the Detroit Free Press for her insight on various policy and practice matters affecting taxpayers.
Lewis earned her Bachelor of Science in Accounting from Mississippi State University (MSU). She is a member and past chair of the Adkerson School of Accountancy Advisory Board at MSU. She was also previously selected as the MSU College of Business’s Alumni Fellow, as well as MSU Beta Alpha Psi Alumnus of the Year.
AICPA Asks Treasury and IRS for Further Guidance on Proposed Trump Account Regulations
The American Institute of CPAs (AICPA) requested the Department of Treasury and the Internal Revenue Service (IRS) provide guidance on proposed regulations for Trump Accounts. The AICPA’s comment letter identified several areas where additional guidance will be needed in future proposed regulations addressing contributions, distributions and investment-related rules.
The AICPA’s letter focuses on responding to the specific requests for comment included in the proposed regulations, citing recommendations and requesting guidance on the following matters related to the election to open a Trump account:
- The AICPA recommends that Treasury and the IRS issue final regulations clarifying the definition of “available” in the context of determining whether an individual is authorized to open a Trump account. The term “available” is unclear when determining whether a lower-priority list individual would become eligible to make an election.
- The AICPA recommends that Treasury and the IRS issue final regulations clarifying that the default responsible party be the legal guardian, or fiduciary (if different) of the eligible child. The proposed regulations provide that the default responsible party for a Trump account is the authorized individual that elects to establish the account. However, the regulations acknowledge an alternative where the legal guardian would be the default responsible party.
AICPA and NASBA Recognize Top CPA Exam Performers with 2025 Elijah Watt Sells Award
The American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) congratulate this year’s winners of the Elijah Watt Sells Award. This award is granted to CPA candidates who obtain a cumulative average score above 95.50 across four sections of the Uniform CPA Examination, pass all four sections on their first attempt, and completed testing in 2025.
An extraordinary group of six candidates met the rigorous criteria to receive the Elijah Watt Sells Award this year, underscoring their dedication to excellence within the profession. In 2025, more than 87,000 individuals sat for the CPA Exam.
The Uniform CPA Exam is owned by the AICPA and administered in Prometric test centers by NASBA on behalf of the 55 U.S. Boards of Accountancy.
The Elijah Watt Sells Award program was established by the AICPA in 1923 to recognize outstanding performance on the CPA Exam and to honor Elijah Watt Sells, one of the country’s first CPAs. A founding member of the firm now known as Deloitte, Sells played a significant role in advancing the accounting profession, particularly in education and professional standards.
The individuals listed below are the 2025 Sells Award winners, in alphabetical order, followed by their Board of Accountancy affiliation, education and present employer:
- William Baker (Kansas), a graduate of The University of Kansas with a Bachelor of Science in Accounting and Business Analytics, is employed with Wendling Noe Nelson & Johnson LLC in Topeka, Kan.
- Lauren Dever (North Carolina), a graduate of Dickinson College with a Bachelor of Arts in International Business and Management and a Master of Accounting from UNC Kenan-Flagler Business School, is employed with HealthEdge in Boston.
- Stephanie Guei (Texas), a graduate of the University of Houston with a Bachelor of Science in Kinesiology and a Master of Science in Accountancy, is employed with Weaver and Tidwell, LLP in Houston.
- Allison Hinaman (Texas), a graduate of the University of Florida with a Bachelor of Science in Accounting and a Master of Accounting, is employed with the Financial Accounting Standards Board in Norwalk, Conn.
- Sophie Kapler (Michigan), a graduate of Oakland University with a Bachelor of Science in Accounting, is employed with Ally in Detroit.
- Xin Jie Yu (California), a graduate of Washington University in St. Louis with a Bachelor of Science in Business Administration in accounting, is employed with KPMG in Santa Clara, Calif.
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