The IRS announced a new administrative process allowing taxpayers whose Employee Retention Credit claims have been disallowed to request additional time before losing their rights to a refund or judicial review. The process is designed to address the volume of disputed ERC claims still working through the system. (Source: CPA Practice Advisor, April 27, 2026)

Impact · Firms that filed ERC claims on behalf of clients — particularly those that relied on aggressive interpretations — now have an extended runway to build their case or pursue appeals. This also means ERC-related engagements are not winding down; they are entering a new, potentially prolonged dispute phase. Practitioners should expect continued resource allocation to ERC matters and potential professional liability exposure for claims that were improperly filed.

Action · Review your client roster for any outstanding disallowed ERC claims immediately. Ensure affected clients are aware of the new extension process and file for additional time before existing deadlines lapse. Document your original filing rationale thoroughly to support any dispute or protect against malpractice claims.

On April 23, the Treasury Department confirmed the IRS is planning revisions to Form 990 specifically designed to detect misconduct at tax-exempt organizations and improve accountability. The revisions aim to crack down on fraud within the nonprofit sector. (Source: CPA Practice Advisor, April 27, 2026)

Impact · This is a direct signal that IRS enforcement scrutiny of the tax-exempt sector is increasing. CPAs who prepare Form 990s or audit nonprofit organizations should expect new disclosure requirements, potentially around governance, executive compensation, related-party transactions, or financial controls. Engagement letters, fee structures, and staff training for nonprofit clients will all need updating once the revised forms are released.

Action · Begin communicating proactively with nonprofit clients about the coming Form 990 changes. Conduct a preliminary review of your tax-exempt clients' governance practices, conflict-of-interest policies, and internal controls now — before the new requirements land — so you can identify vulnerabilities early and position your firm as a compliance partner rather than a reactive filer.

A CPA Practice Advisor analysis argues that AI has moved past the experimental stage and is now embedded in how organizations search, advertise, operate, educate, and deliver professional services. The article frames AI adoption not as an opportunity but as a going-concern risk — using audit terminology deliberately to signal urgency to the profession. (Source: CPA Practice Advisor, April 27, 2026)

Impact · The reframing of AI from a technology trend to a going-concern risk is significant because it uses language the profession understands and takes seriously. Firms that have not integrated AI into workflows for tax preparation, audit procedures, advisory services, or client communication face competitive obsolescence. This is no longer about early-adopter advantage; it is about baseline viability.

Action · Conduct an internal assessment of your firm's AI adoption across all service lines this quarter. Identify at least two processes — such as document review, workpaper preparation, or client correspondence — where AI tools could be piloted within 90 days. If your firm lacks internal expertise, budget for external AI readiness consulting before year-end planning begins.

Supporters of a proposed California billionaire tax announced on April 26 that they have collected nearly twice the number of signatures required to qualify the measure for the November ballot. The proposal would impose additional taxes on the state's wealthiest residents. (Source: CPA Practice Advisor, April 27, 2026)

Impact · If this measure qualifies and passes, it will create a new layer of state tax planning complexity for ultra-high-net-worth clients in California. Combined with the Massachusetts income tax cut debate, state-level tax policy divergence is accelerating. Wealth management and tax advisory practices serving clients in multiple states will need to model scenarios and potentially advise on residency and entity structuring strategies.

Action · For firms with California-based HNW clients, begin preliminary scenario modeling on the potential billionaire tax impact. Flag this development in upcoming client meetings and quarterly reviews. Monitor the ballot qualification process over the next 60 days and prepare advisory communications for affected clients once the measure is officially certified.

Cynthia Marie Marabella pleaded guilty on April 24 to embezzling over $26 million from her Nevada-based employer. The case also involved the kidnapping of the company owner and threats against his family. (Source: CPA Practice Advisor, April 27, 2026)

Impact · A $26 million single-actor embezzlement is a stark reminder of what happens when internal controls fail at the controller level. For CPA firms performing audits or advisory engagements, this case is a powerful example for client conversations about segregation of duties, management override risks, and the limitations of trust-based financial oversight — particularly in mid-market and privately held companies.

Action · Use this case as a concrete example in your next client advisory or audit committee presentation to reinforce the importance of anti-fraud controls. Review your current audit clients' segregation of duties at the controller and CFO level, and ensure your risk assessments adequately address management override scenarios.