Trusted Professional

Regulatory Roundup - June 29 to July 2

AICPA

Press Release

AICPA Proposes New Form AAR-EZ to Simplify and Improve the AAR Process

AICPA submitted recommendations to the IRS to simplify and improve the administrative adjustment request process, providing a simplified framework referred to as a Form AAR-EZ.

July 8, 2021

Press Release

AICPA Signals Strong Support for Tax Preparer Regulation Legislation

AICPA strongly supports the regulation of paid tax return preparers outlined in the Taxpayer Protection & Preparer Proficiency Act introduced last week with bipartisan and external stakeholder support

June 30, 2021

CBO

Report

An Update to the Budget and Economic Outlook: 2021 to 2031

July 1, 2021

If current laws generally remain unchanged, the federal budget deficit will total $3.0 trillion and federal debt will reach 103 percent of GDP in fiscal year 2021, CBO estimates, and real GDP will grow by 7.4 percent in calendar year 2021.

Cost Estimate

H.R. 3110, PUMP for Nursing Mothers Act

July 1, 2021

As ordered reported by the House Committee on Education and Labor on May 26, 2021

Presentation

Approaches for Adjusting Military Cash Pay

June 30, 2021

Presentation by Adebayo Adedeji and Heidi Golding, analysts in CBO's National Security Division, at the Annual Conference of the Western Economic Association International.

Cost Estimate

H.R. 2928, Cyber Sense Act of 2021

June 30, 2021

As ordered reported by the House Committee on Energy and Commerce on June 10, 2021

Cost Estimate

S. 1095, Colonel John M. McHugh Tuition Fairness for Survivors Act of 2021

June 30, 2021

As passed by the Senate on June 24, 2021

Presentation

Vietnam Veterans’ Income in Retirement

June 30, 2021

Presentation by Heidi Golding and Elizabeth Bass, analysts in CBO's National Security Division, at the Annual Conference of the Western Economic Association International.

Blog Post

CBO Is One of the Best Places to Work in the Federal Government

June 29, 2021

CBO was recognized by the Partnership for Public Service as one of the best places to work in the federal government. CBO ranked first among 29 agencies in the small-agency category.

Cost Estimate

H.R. 2795, DHS Blue Campaign Enhancement Act

June 29, 2021

As ordered reported by the House Committee on Homeland Security on May 18, 2021

Presentation

The Capacity of the Navy’s Shipyards to Maintain Its Submarines

June 29, 2021

Presentation by R. Derek Trunkey and Eric J. Labs, analysts in CBO's National Security Division, at the Annual Conference of the Western Economic Association International

Cost Estimate
CBO’s Estimate of the Statutory Pay-As-You-Go Effects of H.R. 3385, the Honoring Our Promises through Expedition for Afghan SIVs Act of 2021

As posted on the website of the Clerk of the House of Representatives on June 25, 202

Cost Estimate
H.R. 2167, GI Bill National Emergency Extended Deadline Act
As passed by the House of Representatives on May 18, 2021

Cost Estimate
H.R. 2225, National Science Foundation for the Future Act
As ordered reported by the House Committee on Science, Space, and Technology on June 15, 2021

Cost Estimate
H.R. 2931, Enhancing Grid Security through Public-Private Partnerships Act
As ordered reported by the House Committee on Energy and Commerce on June 10, 2021

Cost Estimate
Legislation considered under suspension of the Rules of the House of Representatives during the week of June 28, 2021The Majority Leader of the House of Representatives announces bills that will be considered under suspension of the rules in that chamber. CBO estimates the effects of those bills on direct spending and revenues.

Cost Estimate
Summary of Estimated Budgetary Effects of Rules Committee Prints 117-8 and 117-9, H.R. 3684, the INVEST in America Act, Including Manager’s Amendment (DeFazio 161, Version 1)
As posted on the website of the House Committee on Rules on June 18, 2021.

GAO

Priority Open Recommendations
Department of Transportation

GAO-21-591PR
Published: Jun 25, 2021. 
Publicly Released: Jul 01, 2021.
What GAO Found In April 2020, GAO identified 16 priority recommendations for the U.S. Department of Transportation (DOT

Veterans Affairs
Systems Modernization, Cybersecurity, and IT Management Issues Need to Be Addressed
GAO-21-105304 ​
Published: Jul 01, 2021.
Publicly Released: Jul 01, 2021.
What GAO Found The Department of Veterans Affairs (VA) has faced long-standing challenges in its efforts to deploy information technology (IT) initiatives in two critical areas needing modernization: the department's aging health information system, known as the Veterans Health Information Systems and... 

Artificial Intelligence
An Accountability Framework for Federal Agencies and Other Entities
GAO-21-519SP
Published: Jun 30, 2021.
Publicly Released: Jun 30, 2021.
What GAO Found To help managers ensure accountability and responsible use of artificial intelligence (AI) in government programs and processes, GAO developed an AI accountability framework.

Priority Open Recommendations
Department of Energy.
GAO-21-597PR
Published: Jun 23, 2021.
Publicly Released: Jun 30, 2021. 
What GAO Found In April 2020, GAO identified 20 priority recommendations for the Department of Energy (DOE).

Capitol Preservation Fund
Audit of FY 2018, 2019, and 2020 Transactions
GAO-21-565R
Published: Jun 30, 2021.
Publicly Released: Jun 30, 2021. 
What GAO Found GAO found that the policies and procedures for the United States Capitol Preservation Commission's operations and oversight and the Library of Congress's operations and reporting were sufficiently documented, adequately designed, and consistent with applicable federal internal control...

Small Business Innovation Research
Agencies Need to Fully Implement Requirements for Managing Fraud, Waste, and Abuse
GAO-21-413
Published: Jun 30, 2021.
Publicly Released: Jun 30, 2021.
What GAO Found The 11 agencies participating in the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs largely implemented the Small Business Administration's (SBA) 10 minimum requirements for preventing fraud, waste, and abuse in the programs.

U.S. Territories

Public Debt Outlook – 2021 Update.
GAO-21-508 
Published: Jun 30, 2021.
Publicly Released: Jun 30, 2021. 
What GAO Found Commonwealth of Puerto Rico (Puerto Rico): Puerto Rico remains in default. It has finalized three debt restructuring agreements or settlements to date, pursuant to three distinct legal approaches, and it is using one of these approaches to restructure additional debt. 

Immigration Detention

ICE Efforts to Address COVID-19 in Detention Facilities.
GAO-21-414
Published: Jun 30, 2021.
Publicly Released: Jun 30, 2021.
What GAO Found To guide immigration detention facilities' response to Coronavirus Disease 2019 (COVID-19), U.S. Immigration and Customs Enforcement (ICE) developed the COVID-19 Pandemic Response Requirements. 

COVID-19
Implementation and Oversight of Preparedness Strategies at Veterans Affairs Medical Centers.
GAO-21-514
Published: Jun 30, 2021.
Publicly Released: Jun 30, 2021. 
What GAO Found Beginning in January 2020, the Veterans Health Administration (VHA) took actions to help the Department of Veterans Affairs medical centers (VAMC) prepare for COVID-19. 

Senate Preservation Fund
Audit of FY 2018, 2019, and 2020 Transactions.
GAO-21-566R
Published: Jun 30, 2021.
Publicly Released: Jun 30, 2021. 
What GAO Found GAO found that the policies and procedures for the Senate Commission on Art's operations and oversight and the Library of Congress's operations and reporting were sufficiently documented, adequately designed, and consistent with applicable federal internal control standards to reasonably...

Facial Recognition Technology

Federal Law Enforcement Agencies Should Better Assess Privacy and Other Risks.
GAO-21-518.
Published: Jun 03, 2021.
Publicly Released: Jun 29, 2021.
What GAO Found GAO surveyed 42 federal agencies that employ law enforcement officers about their use of facial recognition technology. 

Amateur Athlete Safety

Certification Related to the Independence of the U.S. Center for SafeSport for Fiscal Year 2020   
GAO-21-586R
Published: Jun 29, 2021.
Publicly Released: Jun 29, 2021. 
What GAO Found The U.S. Center for SafeSport (the Center) is an independent nonprofit organization that plays a key role in ensuring the safety of amateur athletes. The Center has jurisdiction over the U.S.

Servicemember Rights
Stakeholders Reported Servicemembers Have Limited Understanding about Waivers of Their Consumer Rights and Protections.
GAO-21-550R
Published: Jun 29, 2021.
Publicly Released: Jun 29, 2021.
What GAO Found Most of the 15 stakeholders GAO interviewed reported that servicemembers have limited understanding about waivers of their consumer rights and protections under the Servicemembers Civil Relief Act, as amended (SCRA).

Priority Open Recommendations
Department of the Interior.
GAO-21-535PR.
Published: Jun 22, 2021.
Publicly Released: Jun 29, 2021.
What GAO Found In April 2020, GAO identified 10 priority recommendations for the Department of the Interior. 

IASB
Forthcoming webinar on the Third Agenda Consultation June 2021 IFRS for SMEs Update available June 2021 monthly news summary now available Meet the new IASB Chair—Andreas Barckow Watch second webinar on Exposure Draft Disclosure Requirements in IFRS Standards—A Pilot Approach June 2021 IASB podcast now available Is there a path to global sustainability standards? Join the IFRS Foundation—Customer Services Representative Webinar to be held on Exposure Draft Management Commentary IRS

IRS wraps up its 2021 "Dirty Dozen" scams list with warning about promoted abusive arrangements

IR-2021-144, July 1, 2021 — The Internal Revenue Service today concludes the “Dirty Dozen” list of tax scams with a warning to taxpayers to watch out for schemes peddled by tax promoters, including syndicated conservation easements, abusive micro-captive insurance arrangements and other abusive arrangements.

IRS: Families receiving monthly Child Tax Credit payments can now update their direct deposit information

IR-2021-143, June 30, 2021 — The Internal Revenue Service today upgraded a key online tool to enable families to quickly and easily update their bank account information so they can receive their monthly Child Tax Credit payment.

IRS extends tax relief for employer leave-based donation programs that aid victims of the COVID-19 pandemic 

IR-2021-142, June 30, 2021 — The Internal Revenue Service today extended the tax relief provided in Notice 2020-46 for calendar year 2021 for employers whose employees forgo sick, vacation or personal leave because of the COVID-19 pandemic.

IRS "Dirty Dozen" list warns people to watch out for tax-related scams involving fake charities, ghost preparers and other schemes 

IR-2021-141, June 30, 2021 — The Internal Revenue Service today continued its “Dirty Dozen” tax scams with a warning for people to watch out for predators using tax-related schemes ranging from fake charities to scams targeting seniors and immigrants.

Draft Instructions for the Schedules K-2 and K-3 released to enhance reporting of international tax matters by pass-through entities

IR-2021-140, June 30, 2021 — The Treasury and the IRS released today early draft instructions for the Schedules K-2 and K-3 for Forms 1065, 1120-S, and 8865 for tax year 2021 (filing season 2022). 

National Taxpayer Advocate assesses tax filing season and identifies areas for IRS improvement in mid-year report to Congress

IR-2021-139, June 30, 2021 — National Taxpayer Advocate Erin M. Collins today released her statutorily mandated mid-year report to Congress.

Treasury, IRS extend safe harbor for renewable energy projects

IR-2021-138, June 29, 2021 — The Department of the Treasury and the Internal Revenue Service today issued guidance for taxpayers developing renewable energy projects to address delays related to the COVID-19 pandemic. 

IRS urges caution with email, social media and phones as part of "Dirty Dozen" series

IR-2021-137, June 29, 2021 — The Internal Revenue Service today continues its “Dirty Dozen” scam series with a warning to taxpayers to watch out for unexpected schemes in the form of emails, text or social media messages and phone calls.

IRS, Treasury release state-by-state data on third round of Economic Impact Payments

IR-2021-136, June 29, 2021 — The Internal Revenue Service and the Treasury Department released information today detailing how many people in each state received the third round of Economic Impact Payments through early June.

IRS announces "Dirty Dozen" tax scams for 2021

IR-2021-135, June 28, 2021 — The Internal Revenue Service today began its “Dirty Dozen” list for 2021 with a warning for taxpayers, tax professionals and financial institutions to be on the lookout for these 12 nefarious schemes and scams.

SEC

SEC Charges Hedge Fund Trader in Lucrative Front-Running Scheme
2021-118, July 2, 2021 — The Securities and Exchange Commission today announced fraud charges against Sean Wygovsky, a trader at a major Canada-based asset management firm, in connection with a long-running and lucrative front-running scheme that Wygovsky perpetrated in the accounts of his close family members, netting more than $3.6 million in illicit gains.

SEC Charges San Francisco Bay Area Finance Employee and Friend With Insider Trading
2021-117., June 30, 2021 —The Securities and Exchange Commission today announced settled insider trading charges against Bay Area finance employee Mounir N. Gad and his friend Nathan E. Guido.

SEC Engages with Students for Their Perspectives on Emerging Issues
2021-116, June 30, 2021 —Yesterday, Chair Gary Gensler and Investor Advocate Rick Fleming hosted a roundtable discussion with the students and faculty of the University of Texas at Arlington's Department of Finance and Real Estate. Students presented on diversity and disclosure in investment management and Crypto-ETFs. This was the latest in a series of University Roundtables hosted by the Office of the Investor Advocate to gain the perspectives of young investors and future investors regarding emerging issues in the financial markets.

SEC Charges Self-Proclaimed Real Estate “Dealmaker” With Multiple Offering Frauds and Misappropriation of Investor Funds
2021-115, June 29, 2021 — The Securities and Exchange Commission today announced charges against Matthew J. Skinner of Santa Clarita, California, and five entities he owns and controls – Empire West Equity Inc., Bayside Equity LP, Longacre Estates LP, Freedom Equity Fund LLC, and Simple Growth LLC – for conducting four unregistered and fraudulent real estate investment offerings between 2015 and 2020, through which he raised more than $9 million from over 100 investors.

SEC Appoints New Jersey Attorney General Gurbir S. Grewal as Director of Enforcement
2021-114, June 29, 2021 —The Securities and Exchange Commission today announced that Gurbir S. Grewal has been appointed Director of the Division of Enforcement, effective July 26, 2021. Grewal currently serves as Attorney General for the State of New Jersey, a role he has held since January 2018, when he was confirmed by the New Jersey State Senate after being nominated by Governor Phil Murphy.

SEC Charges Electronic Trading Platform for Operating As An Unregistered Broker-Dealer
2021-113., June 29, 2021 — The Securities and Exchange Commission today announced that Neovest Inc., a provider of an order and execution management system (OEMS) that facilitates electronic trading, has agreed to pay a $2.75 million penalty for its failure to register as a broker-dealer in violation of the federal securities laws.  This is the SEC’s first case charging an OEMS provider for operating as an unregistered broker-dealer.