Pevita Pearce
The American Institute of CPAs (AICPA) has been actively engaged in several significant initiatives, advocating for the accounting profession and its stakeholders on critical issues ranging from student loan regulations to attestation standards and tax policy. Recent announcements reveal a proactive stance on shaping the future of accounting education, professional practice, and international tax compliance.
AICPA Opposes Department of Education’s Proposed Exclusion of Accounting from Professional Degree Designation
A central concern for the AICPA is the U.S. Department of Education’s proposed regulation that would exclude accounting programs from a professional degree designation for graduate student loan limits. This exclusion, outlined in draft rules published in the Federal Register on January 30, could have significant implications for aspiring accounting professionals seeking higher education financing.
The Department of Education’s notice stated, "The Department notes that the term ‘professional student’ as used in this Notice of Proposed Rulemaking (NPRM) is intended solely to distinguish those programs that we propose would be eligible for higher loan limits, as required by the OBBB. The designation, or lack thereof, of a program as ‘professional’ does not reflect a value judgment by the Department regarding whether a borrower graduating from the program is considered a ‘professional.’ This NPRM only interprets the phrase ‘professional student’ as used in the context of the loan limits established by the OBBB."
In response, AICPA President and CEO, Mark Koziel, CPA, CGMA, issued a firm statement expressing opposition. "Accounting is a critical part of our nation’s economic infrastructure and is a profession that has contributed significantly to our economic growth," Koziel stated. "We appreciate the Department of Education’s recognition of the broad definition and various aspects of the word ‘professional.’ As the rulemaking process moves forward, the AICPA will continue to review the proposal, and we look forward to providing our suggestions and insights."
The AICPA’s stance is rooted in the understanding that accounting education, particularly at the graduate level, requires substantial investment and prepares individuals for complex roles vital to the economy. Excluding these programs from a designation that could allow for higher student loan limits could create financial barriers for students pursuing careers in this essential field. The 30-day comment period following the publication of the draft rules provided an opportunity for the AICPA and other stakeholders to formally submit their feedback. The organization has indicated its intention to submit comprehensive comments, advocating for the inclusion of accounting programs in the professional degree designation to ensure equitable access to higher education for future accountants. This move by the Department of Education comes amidst broader efforts to reform student loan programs, driven by legislation like the "One Big Beautiful Bill Act" (H.R. 1), which necessitates a review and potential adjustment of existing regulations.
Auditing Standards Board Prepares to Seek Public Comment on Attestation Standard Updates
The AICPA’s Auditing Standards Board (ASB) is poised to solicit public feedback on proposed revisions to attestation standards. These updates are crucial for addressing the evolving landscape of assurance services, particularly in emerging areas such as sustainability reporting, digital assets, cybersecurity, and governance.
The exposure draft of these proposed changes is anticipated to be released online on February 26, initiating a comment period of at least 120 days. The ASB’s initiative reflects a growing demand for assurance services beyond traditional financial statement audits. Practitioners are increasingly being called upon to provide opinions and assurances on a wider array of information, driven by investor expectations, regulatory developments, and the increasing complexity of business operations.
The proposed updates are expected to encompass two primary sections, though specific details were not fully elaborated in the initial announcement. However, the focus on sustainability information signals a direct response to the significant global growth in environmental, social, and governance (ESG) reporting. As companies worldwide increase their disclosure of ESG data, the need for reliable and verifiable assurance on this information becomes paramount. The AICPA’s proactive approach aims to equip CPAs with the necessary standards to meet this demand effectively.
The adoption of these updated standards is projected for the following year, contingent upon the review and incorporation of public comments and further deliberation by the ASB. The ASB’s commitment to a robust public comment process underscores its dedication to developing standards that are both relevant and effective in the current professional environment. Once published, the exposure draft will be available on the AICPA’s resource page dedicated to standards proposals, inviting broad participation from practitioners, academics, and other interested parties. This forward-looking approach ensures that attestation standards keep pace with the dynamic nature of the profession and the evolving needs of the marketplace.
AICPA Endorses "Accounting STEM Pursuit Act" to Elevate Accounting Education
In a significant move to bolster the pipeline of future accounting professionals, the AICPA has thrown its support behind the "Accounting STEM Pursuit Act" (S. 3784), introduced in the U.S. Senate by Senators Susan Collins (R-ME) and Jacky Rosen (D-NV). This bipartisan legislation aims to formally recognize accounting as a Science, Technology, Engineering, and Mathematics (STEM) discipline, thereby enhancing access to accounting programs for students and providing educators with greater flexibility in curriculum development.
The bill’s introduction marks a pivotal moment in the AICPA’s long-standing advocacy for the STEM designation for accounting. The organization has consistently argued that accounting’s inherent analytical rigor, problem-solving methodologies, and increasing reliance on technology align perfectly with the core principles of STEM fields. The legislation proposes to amend the "Every Student Succeeds Act" (ESSA), a cornerstone of federal education policy, to permit K-12 grant funding to be allocated to accounting education programs. This would enable educators to introduce foundational accounting concepts to students at an earlier age, fostering an understanding of the profession’s relevance in today’s technology-driven economy.
A companion bill, H.R. 2911, was introduced in the House of Representatives last spring by Representatives Young Kim (R-CA) and Haley Stevens (D-MI), indicating broad congressional support for this initiative. The "Accounting STEM Pursuit Act" specifically targets the Student Support and Academic Enrichment Grant program, a crucial funding stream for states seeking to expand educational opportunities in public schools. By including accounting education within the allowable uses of these grants, the legislation empowers schools to develop robust accounting curricula, potentially sparking greater student interest in accounting careers.
The AICPA’s advocacy for this designation is grounded in evidence of the profession’s technological integration. A recent survey conducted by The Harris Poll on behalf of the AICPA revealed that a significant majority of Americans—74%—believe accounting courses should be designated as STEM education programs. This widespread public perception, coupled with the AICPA’s strategic efforts, underscores the growing recognition of accounting as a dynamic and intellectually stimulating field that demands a strong foundation in scientific and mathematical principles. Recognizing accounting as STEM is expected to attract a more diverse pool of talent and prepare students for the technologically advanced roles that define modern accounting practice.
AICPA Recommends Streamlining "Determine and Document" Requirement for International Tax
The AICPA has submitted recommendations to the Department of the Treasury and the Internal Revenue Service (IRS) aimed at simplifying the "determine and document" requirement associated with taxes charged to controlled foreign corporations (CFCs). These recommendations were detailed in a letter concerning Notice 2025-75, which addresses the transition rule for applying Section 951(a)(2)(B) of the Internal Revenue Code. This transition rule modifies the application of the aforementioned section for certain taxable years of foreign corporations beginning before January 1, 2026, as part of the broader international tax provisions enacted under H.R. 1.
The AICPA’s letter proposes significant modifications to the documentation requirements, suggesting either their complete elimination or substantial reduction. Alternatively, the organization advocates for the adoption of a "per se" rule or a safe harbor provision. Such measures would aim to alleviate the administrative burden on taxpayers, particularly for smaller or less complex international structures, while still ensuring compliance with the intent of the tax law.
The notice’s current "determine and document" requirement, as interpreted by the AICPA, could impose an overly onerous compliance obligation. The institute recommends that the IRS:
- Eliminate the "determine and document" requirement entirely. This would provide the most significant simplification.
- Implement a safe harbor. This could involve a de minimis threshold below which the requirement would not apply, or a simplified method for determining the relevant tax amounts.
- Adopt a "per se" rule. This would establish a clear, objective standard for determining the tax inclusion amount, removing the need for extensive factual analysis and documentation in many cases.
The AICPA’s engagement on this matter highlights the complexities of international tax compliance for U.S. businesses. By advocating for simplification, the institute seeks to ensure that the tax system is both effective in its objectives and practical to administer, particularly in light of the significant changes introduced by recent tax legislation. The ultimate goal is to provide clarity and reduce compliance costs for businesses operating globally, fostering a more predictable and manageable tax environment.
Andrea Millar Honored with AICPA’s Personal Financial Planning Distinguished Service Award
The AICPA has recognized Andrea Millar, CPA/PFS, with its prestigious 2025 Personal Financial Planning (PFP) Distinguished Service Award. The award ceremony took place last month at the AICPA’s PFP Symposium, celebrating Millar’s exceptional contributions to the advancement of personal financial planning. This accolade honors AICPA members who exemplify the highest standards of the profession, demonstrate outstanding service to the public, and significantly enhance the quality of personal financial planning services.
Millar, the founder of Andrea Millar Life Planning in Raleigh, North Carolina, has had a profound impact on the PFP landscape. Her nearly 15-year tenure as director of the AICPA’s PFP Division was instrumental in cultivating a cadre of dedicated practitioners who have become leaders in the field. Under her leadership, the AICPA’s PFP conference grew significantly, PFP Standards were established, and a strong case was made for the inclusion of PFP content on the CPA exam. Her efforts have been critical in elevating the profile and rigor of personal financial planning as a core competency for CPAs. The award serves as a testament to her enduring commitment and substantial achievements in shaping the future of financial planning for individuals and families.
AICPA and CIMA Announce Global Top Ranking for U.S. Candidate on CGMA Management Case Study Exam
The Association of International Certified Professional Accountants (AICPA & CIMA) proudly announced that Caitlin Domina, a Financial Analyst at Liberty Bank in Middletown, Connecticut, achieved Joint First Place in the World on the CGMA Management Case Study Exam for the November 2025 testing window. Domina shares this distinguished honor with two other candidates from the United Kingdom, all achieving top marks.
This remarkable achievement highlights the caliber of talent emerging from the U.S. within the global accounting profession. The CGMA Management Case Study Exam is a rigorous assessment designed to evaluate candidates’ ability to apply their knowledge in realistic business scenarios. In the November 2025 exam window alone, 2,519 students sat for the exam. Across all four testing cycles in 2025, the AICPA & CIMA administered 9,138 Management Case Study exams, with Domina’s performance ranking among the highest scores recorded throughout the entire year.
Domina’s success is further amplified by her participation in the AICPA & CIMA’s U.S. Registered Apprenticeship Program. This national initiative is dedicated to expanding access to accounting and finance careers through competency-based apprenticeships, providing participants with practical, real-world skills and paid learning opportunities. The program’s emphasis on dedicated mentoring ensures that apprentices gain meaningful and applicable experience. Domina’s accomplishment serves as a powerful endorsement of the program’s effectiveness in nurturing top-tier talent and preparing individuals for success in the demanding field of management accounting.
AICPA Seeks Clarity on Itemized Deductions and "Trump Accounts"
The AICPA has formally requested guidance from the Department of the Treasury and the IRS regarding the reporting of income taxes under the newly enacted H.R. 1 (One Big Beautiful Bill Act). The institute’s request, communicated via a formal letter, specifically addresses Section 70111, which modifies the Section 68 limitation on itemized deductions (LID), and also provides commentary on Notice 2025-68, outlining the IRS’s planned regulations for Section 530A "Trump accounts," including guidance on gift tax reporting.
The AICPA is seeking clarification on several key areas, demonstrating a commitment to ensuring accurate and compliant tax administration for individuals, estates, and trusts.
Regarding Section 68 LID, the AICPA has requested guidance on:
- The specific methodologies for calculating the limitation: Clarity is needed on how taxpayers should determine the applicable thresholds and the precise methods for calculating the disallowed portion of itemized deductions.
- The definition of "medical expenses" under the modified limitations: Understanding how the revised rules impact the classification and deductibility of medical expenses is crucial for taxpayers.
- The treatment of state and local taxes (SALT) under the new rules: Given the potential impact of SALT limitations, specific guidance on how these are affected by the LID is essential.
- The interaction of the LID with other limitations on deductions: Taxpayers need to understand how the Section 68 limitation interacts with other potential caps or restrictions on various deductions.
Concerning Notice 2025-28, Section 530A Trump accounts, the AICPA’s requests include:
- Clarification on the definition of "Trump accounts": A precise definition and scope of what constitutes a "Trump account" under this new provision are needed for proper identification and reporting.
- Guidance on the eligibility requirements for establishing such accounts: Taxpayers require clear criteria to determine if they qualify for these accounts.
- Specific instructions on how to report income and deductions associated with Trump accounts: Detailed reporting requirements are necessary to ensure compliance.
- Information on the tax treatment of distributions from Trump accounts: Understanding the tax implications of withdrawing funds from these accounts is vital.
- Guidance on gift tax reporting related to contributions to or distributions from Trump accounts: The interaction with gift tax rules requires explicit clarification.
- Details on the transition rules for existing accounts or assets that may qualify: Clarity on how existing financial arrangements will be treated under the new regulations is important for continuity.
The AICPA’s proactive engagement with the Treasury and IRS underscores its role in facilitating effective tax policy implementation and ensuring taxpayers have the necessary information to comply with complex tax laws. The institute’s recommendations aim to promote fairness, predictability, and administrative efficiency within the tax system.
AICPA Urges Department of Education to Retain Accounting in Professional Degree Definition
In its formal response to the Department of Education’s Notice of Proposed Rulemaking (NPRM) titled "Reimagining and Improving Student Education," the AICPA has strongly urged the department to include "accounting" within the definition of professional degrees or to retain existing language that allows for a broader interpretation. The AICPA acknowledges the department’s efforts to clarify the definition of "professional" but advocates for its explicit inclusion in the final rule to ensure clarity within the Code of Federal Regulations.
The AICPA’s response letter emphasizes the critical role of accounting programs in preparing students for demanding and essential professions. The organization argues that "accounting" should either be explicitly listed as a professional degree or the current language, which states that "professional degrees may include but are not limited to," should be retained. This approach would ensure that accounting graduates are not inadvertently disadvantaged in accessing graduate student loan limits.
This position is not unique to the AICPA; many state CPA societies have also submitted comments to the Department of Education, amplifying the profession’s collective voice. The Department of Education is currently reviewing all submitted comments. The final regulations are mandated to be implemented by July 1, 2026, as stipulated by the "One Big Beautiful Bill Act." The AICPA’s advocacy in this matter reflects a commitment to ensuring that aspiring accountants have equitable access to the educational resources necessary to enter and succeed in a profession that is fundamental to the nation’s economic stability and growth.
