Rapid-Fire Accounting News: Batgirl Cancellation, IRS Funding, & New CPA Exam Exposure Draft

Rapid-Fire Accounting News for Busy CPA Candidates

1. Batgirl Cancellation: Sunk Costs, Tax Writeoff Implications, and Brand Protection

FEE: “Why cancel a movie that you’ve already spent $90 million on? After spending so much, why not try to make back that money? Without realizing it, many who argued the movie should be released did so by invoking one of the most common economic fallacies.”

2. Only $3 Billion of the $80 Billion allocated to the IRS in the Inflation Reduction Act will go to Taxpayer Services

The Tax Advisor: “The act directs the largest portion, $46 billion, of its total of approximately $80 billion in new funding to tax enforcement. Another $25 billion is earmarked for IRS operations and $5 billion for business systems modernization. Taxpayer services gets only $3 billion.”

3. AICPA Solicits Feedback on new CPA Exam Exposure Draft Through September 30

NASBA: “The American Institute of CPAs (AICPA) is soliciting feedback on the Exposure Draft of the new design of the Uniform CPA Examination® (CPA Exam). Developed through research and input from the profession, the Exposure Draft informs the content and scope of the CPA Exam expected to launch in January 2024. Stakeholders are asked to provide feedback through September 30, 2022.”

4. Deeper dive into the Inflation Reduction Act’s Tax Provisions

Journal of Accountancy: “The budget reconciliation bill, P.L. 117-169, known as the Inflation Reduction Act, was signed into law on Aug. 16. It includes numerous tax provisions, including new corporate taxes. It also contains numerous clean-energy-related tax incentives, and money for IRS enforcement and other initiatives.”