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Regulatory Roundup: September 12-18

S.J. Steinhardt
Published Date:
Sep 18, 2023


AICPA Releases Statement on IRS Announcement Concerning ERC Mills
Sept. 13, 2023

Keynote speakers announced for ENGAGE CFO Strategy & Innovation Summit 2023
Sept. 13, 2023


Cost Estimate
H.R. 4278, Restore Department of Veterans Affairs Accountability Act of 2023
As ordered reported by the House Committee on Veterans Affairs on July 26, 2023

Cost Estimate
Estimated Direct Spending and Revenue Effects of H.R. 5378, the Lower Costs, More Transparency Act

As posted on the website of the Clerk of the House on September 13, 2023

Cost Estimate
S. 1199, STOP CSAM Act of 2023
As reported by the Senate Committee on the Judiciary on May 15, 2023

The U.S. Economic Outlook
Presentation by Richard DeKaser, CBO’s Director of Macroeconomic Analysis, to Economic and Financial Counselors from the European Union.

Communities at Risk of Flooding
CBO examines the variation in current and future flood risk across communities with different economic and demographic characteristics.

Cost Estimate
Legislation considered under suspension of the Rules of the House of Representatives during the week of September 18, 2023
The 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
S. 2273, Native American Child Protection Act
As ordered reported by the Senate Committee on Indian Affairs on July 19, 2023

Cost Estimate
S. 994, Strong Communities Act of 2023
As passed by the U.S. Senate on July 26, 2023

Cost Estimate
H.R. 890, Guidance Out Of Darkness Act of 2023
As ordered reported by the House Committee on Oversight and Accountability on July 12, 2023

Monthly Budget Review: August 2023

The federal budget deficit was $1.5 trillion in the first 11 months of fiscal year 2023, CBO estimates—$0.6 trillion more than the shortfall recorded during the same period last year.


Asistencia de Los Estados Unidos a México:
El Departamento de Estado Debería Tomar Medidas Para Evaluar El Progreso General

Publicly Released: To see the version of this page in English, see GAO-23-103795 . Desde 2008, los Estados Unidos ha brindado más de $3 mil millones en asistencia a México para abordar el crimen organizado transnacional y la violencia, aumentar el estado de derecho y reducir el narcotráfico. A pesar de la asistencia de los EE. UU., la situación de seguridad en México ha empeorado significativamente, con...

Experts Identified Safeguards to Help Selected HHS Agencies Protect Against Potential Political Interference
Publicly Released: Four Health and Human Services agencies had key roles in the federal COVID-19 response. Our prior reports noted shortcomings to that response, including possible political interference. Our panel of government, academic, and non-profit experts identified steps agencies can take to protect against such interference: Set agency policies to prohibit interference and allow transparency in addressing allegations Train agency staff on how to implement policies Use...

Financial Stability Oversight Council:
Assessing Effectiveness Could Enhance Response to Systemic Risks
Publicly Released: In 2010, the Dodd-Frank Act established the Financial Stability Oversight Council to help identify and respond to emerging threats to the U.S. financial system. Recent bank failures demonstrate the importance of responding to risks before they harm the system. The council issues an annual report with recommendations—which staff say could address most risks. But we've previously noted that the council's authority—in part, the nonbinding nature...

Science & Tech Spotlight:
Drone Swarm Technologies

Publicly Released: This Science & Tech Spotlight report explores drone swarm technologies, which use algorithms and local sensors to coordinate drones with minimal human intervention. Swarms could range from a few drones to possibly thousands. Advances in artificial intelligence and drone components have made swarms possible—even if they're limited to simpler missions like aerial light shows for now. As the technology improves, it could be used to...

White House Spending:
FY 2022 Certificated Expenditures of the President and Vice President Were for Authorized Purposes

Publicly Released: The President and Vice President of the United States are legally allowed to spend funds for certain specified purposes—e.g., official travel, residential maintenance, entertainment—and account for them solely with "official certificates." Spending that's authorized this way is known as certificated expenditures. We examined these certificated expenditures for fiscal year 2022 and determined that they were spent for the purposes authorized under the relevant law.

Violent Extremism:
Agencies' and Financial Institutions' Efforts to Link Financing to Domestic Threats

Publicly Released:
Linking the financial transactions of domestic violent extremists to suspicious or violent activity can be difficult for financial institutions and federal agencies. The transactions often don't raise red flags because these extremists frequently use their own funds and might not need large amounts to carry out attacks. In addition, the Financial Crimes Enforcement Network shares financial information related to ongoing terrorism investigations with law enforcement...

Unemployment Insurance:
Estimated Amount of Fraud During Pandemic Likely Between $100 Billion and $135 Billion

Publicly Released:
We estimate that fraud accounted for 11-15% of the total amount of unemployment insurance benefits paid during the pandemic. In that time frame, the Department of Labor provided funding to states to help prevent, detect, and investigate fraud and recover fraudulent payments. States reported finding about $55.8 billion in total overpayments—$5.3 billion of which were fraudulent. States reported recovering about $6.8 billion total, including $1.2...

DOD Software Licenses:
Better Guidance and Plans Needed to Ensure Restrictive Practices Are Mitigated

Publicly Released: Cloud computing offers on-demand access to shared IT resources like networks, servers, and databases. Federal agencies like DOD must move their data and software to the cloud when possible. But software licenses and restrictive vendor practices can limit or prevent such efforts. For example, some vendors charge extra fees to use their software with third-party cloud providers. DOD officials said that restrictive practices generally affected...

Chemical Weapons:
Status of Forensic Technologies and Challenges to Source Attribution

Publicly Released: Despite an international ban on their use, chemical weapons have been used over the past 10 years in assassinations and on civilian populations. When a chemical weapon is used, investigators may use forensic technologies to detect that it was used, identify the chemical, and help attribute it to a likely source. Challenges to such investigations include small or degraded samples. These can result if investigators...

Facial Recognition Services:
Federal Law Enforcement Agencies Should Take Actions to Implement Training, and Policies for Civil Liberties
Publicly Released: Seven law enforcement agencies in the Departments of Homeland Security and Justice reported using facial recognition services that quickly search through billions of photos of faces to help identify a suspect in a crime scene image. All 7 agencies initially used these services without requiring staff take facial recognition training. Two agencies require it as of April 2023. Also, some agencies don't have policies specific...

Homeland Security:
Office of Intelligence and Analysis Should Improve Privacy Oversight and Assessment of Its Effectiveness

Publicly Released: The DHS Office of Intelligence and Analysis collects and shares homeland security data with its partners in law enforcement, the intelligence community, and the private sector. While doing so, it's important to protect U.S. citizens and residents' rights and privacy. But the office hasn't done some required audits that would ensure that its personnel are following policies to protect these rights. For example, auditing the...

Intelligent Transportation Systems:
Benefits Related to Traffic Congestion and Safety Can Be Limited by Various Factors

Publicly Released: Traffic can be a major pain. But state and local agencies—large and small, all across the country—are using technology to try to ease congestion on freeways and arterial roads to get people where they are going faster and with fewer crashes. We looked at some "intelligent transportation systems" that can, for example, automatically time traffic lights to move more vehicles through limited lanes or improve...

VA Equal Employment Opportunity: Increased Attention Needed to Improve Program Effectiveness
Publicly Released: Federal law prohibits discrimination against federal employees on the basis of race, among other things. We reviewed the Department of Veterans Affairs' efforts to ensure equitable treatment of its employees. VA's workforce is diverse but there are disparities in pay and promotions for some racial, ethnic, and gender groups, and VA could better address discrimination. While VA tracks complaints of alleged racial discrimination, it hasn't...

DOD Financial Management:
Improving Systems Planning and Oversight Could Improve Auditability

Publicly Released: DOD is the largest federal agency, and the only one that has never achieved a "clean" audit opinion—which is when financial statements are presented fairly and are consistent with accounting principles. The challenge that DOD faces in modernizing its business and financial IT systems is a big hurdle to making its financial statements auditable. This Snapshot report covers ways to improve DOD's Strategy for addressing...

Cloud Computing:
DOD Needs to Improve Tracking of Data User Fees

Publicly Released: Cloud computing offers on-demand access to shared IT resources like networks, servers, and databases. Federal agencies can deliver better IT services for less money by using the cloud. In fiscal year 2022, the Department of Defense committed about $3 billion for cloud computing contracts. Cloud service providers charge user fees for transferring data from the cloud. DOD officials have negotiated some discounts for such fees...

U.S. Assistance to Mexico:
State Department Should Take Steps to Assess Overall Progress

Publicly Released: Para la versión de esta página en español, ver a GAO-23-106871 . The United States has provided Mexico over $3 billion in assistance since 2008 to address transnational organized crime and violence, enhance the rule of law, and reduce drug trafficking. Despite U.S. assistance, Mexico's security situation has worsened significantly, with the country's murder rate more than tripling. The State Department and the U.S. Agency...

Biometric Identity System:
DHS Needs to Address Significant Shortcomings in Program Management and Privacy

Publicly Released: Since 2016, the Department of Homeland Security has been working to replace its outdated biometric identity management system that matches fingerprints and facial features. DHS expects the new system to store hundreds of millions of identities. But the system is way behind schedule and costs more than estimated—even after readjusting the schedule and cost estimates twice. And these estimates are unreliable because DHS doesn't follow...

Fraudnet Activity Report for Fiscal Year 2022

Publicly Released: GAO's FraudNet analysts manage a hotline for the public to report suspected fraud, waste, abuse, and mismanagement in government operations. FraudNet analysts review every complaint submitted and refer those with merit to external agencies for potential investigation. Specifically, FraudNet analysts may refer complaints to federal inspectors general or directly to the relevant government agencies. In fiscal year 2022, FraudNet processed over 10,000 complaints, which was...


September 2023 ISSB Update now available
14 Sep 2023

Members of Transition Implementation Group on IFRS S1 and IFRS S2 announced
14 Sep 2023

September 2023 Accounting Standards Advisory Forum agenda and meeting papers now available
14 Sep 2023

Join the staff—Partnership Manager (ISSB Capacity Building Program)
14 Sep 2023

Join the staff—Project Officer, Office of the ISSB Chair
13 Sep 2023

Join the staff—Global Tax Manager
12 Sep 2023

IASB proposes annual improvements to IFRS Accounting Standards
12 Sep 2023


IRS requests feedback on preview of proposed changes to Form 6765, Credit for Increasing Research Activities
IR-2023-173, Sept. 15, 2023 — The Internal Revenue Service today released a preview of proposed changes to certain sections of Form 6765, Credit for Increasing Research Activities. The Credit for Increasing Research Activities is also known as the Research Credit.

IRS looks to hire 3,700 employees nationwide to help expand compliance for large corporations and complex partnerships; experienced accountants encouraged to apply for Revenue Agent positions
IR-2023-172, Sept. 15, 2023 — As part of larger transformation work underway to make improvements, the Internal Revenue Service announced the opening of more than 3,700 positions nationwide to help with expanded enforcement work focusing on complex partnerships and large corporations.

IRS requests comments on expanding tax certainty and issue resolution programs for business taxpayers
IR-2023-171, Sept. 15, 2023 — The Internal Revenue Service is requesting comments from taxpayers and advisors about improving and expanding tax certainty and issue resolution options for business taxpayers.

Red flags for Employee Retention Credit claims; IRS reminds businesses to watch out for warning signs of aggressive promotion that can mislead people into making improper ERC claims
IR-2023-170, Sept. 14, 2023 — The Internal Revenue Service continues to warn businesses to watch out for aggressive marketing by nefarious actors involving the Employee Retention Credit (ERC) and urged people to watch out for red flags that can signal trouble.

To protect taxpayers from scams, IRS orders immediate stop to new Employee Retention Credit processing amid surge of questionable claims; concerns from tax pros
IR-2023-169, Sept. 14, 2023 — Amid rising concerns about a flood of improper Employee Retention Credit claims, the Internal Revenue Service today announced an immediate moratorium through at least the end of the year on processing new claims for the pandemic-era relief program to protect honest small business owners from scams.

IRS: Georgia taxpayers impacted by Idalia qualify for tax relief; Oct. 16 deadline, other dates postponed to Feb. 15 IR-2023-168, Sept. 13, 2023 — The Internal Revenue Service today announced tax relief for individuals and businesses affected by Idalia in 28 of the state’s 159 counties in Georgia. These taxpayers now have until Feb. 15, 2024, to file various federal individual and business tax returns and make tax payments.

IRS clarifies rules for new corporate alternative minimum tax
IR-2023-167, Sept. 12, 2023 — The Department of Treasury and the Internal Revenue Service today issued Notice 2023-64 to provide additional interim guidance designed to help corporations determine whether the new corporate alternative minimum tax (CAMT) applies to them and how to compute the tax.


DFS Superintendent Adrienne A. Harris Announces Update On Two Year Transformational Initiative to Strengthen DFS' Nation-Leading Virtual Currency Oversight
Sept. 18, 2023


At September 19 Open Meeting, PCAOB to Consider Proposed Changes to Board Rule on Contributory Liability for Firm Violations
Sep. 14, 2023

PCAOB Sanctions K.R. Margetson Ltd. and Keith R. Margetson for Violating PCAOB Audit and Quality Control Standards
Sep. 12, 2023


SEC Charges Lyft with Failure to Disclose Board Member’s Financial Interest in Private Shareholder’s Pre-IPO Stock Transaction
Washington D.C., Sept. 18, 2023 — The Securities and Exchange Commission today charged Lyft Inc. for failing to disclose a company board director’s role in a shareholder’s sale of approximately $424 million worth of private shares of Lyft’s stock prior to the company’s initial public offering (IPO).

SEC Updates List of Firms Using Inaccurate Information to Solicit Investors
Washington D.C., Sept. 15, 2023 — The Securities and Exchange Commission today announced that it updated its list of unregistered entities that use misleading information to solicit primarily non-U.S. investors, adding 29 soliciting entities, three impersonators of genuine firms, and one bogus regulator.

SEC Charges Connecticut Advisory Firm GlennCap and its Owner with Cherry-Picking
Washington D.C., Sept. 14, 2023 — The Securities and Exchange Commission today announced settled fraud charges against GlennCap LLC, a Connecticut-based investment advisory firm, and its owner, Jonathan Vincent Glenn, for allocating profitable securities trades to favored accounts, including GlennCap’s own accounts and client accounts that paid GlennCap a higher percentage of positive returns in fees, while allocating a disproportionate amount of unprofitable trades to disfavored clients, a practice known as cherry-picking.

SEC Proposes Improvements to EDGAR Filer Access and Account Management
Washington D.C., Sept. 13, 2023 — The Securities and Exchange Commission today proposed rule and form amendments to improve filer access to and management of accounts on the SEC’s EDGAR system. The proposed amendments would require EDGAR filers to authorize identified individuals who would be responsible for managing filers’ EDGAR accounts. In addition, individuals acting on behalf of filers on EDGAR would need individual account credentials to access those EDGAR accounts and make filings. If the proposed amendments are later adopted, the SEC will make technical changes to EDGAR, including to make available to EDGAR filers certain Application Programming Interfaces (APIs) for machine-to-machine submissions on EDGAR and retrieval of related filing information.

SEC Charges Creator of Stoner Cats Web Series for Unregistered Offering of NFTs
Washington D.C., Sept. 13, 2023 — The Securities and Exchange Commission today charged Stoner Cats 2 LLC (SC2) with conducting an unregistered offering of crypto asset securities in the form of purported non-fungible tokens (NFTs) that raised approximately $8 million from investors to finance an animated web series called Stoner Cats.

SEC Small Business Advisory Committee to Discuss Funding for Early-Stage Companies and Alternative Funding for Small Businesses
Washington D.C., Sept. 13, 2023 — The Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee today released the agenda for its meeting on Tuesday, September 19. The meeting will include a discussion of ways to invest in early-stage companies, as well as alternative funding options for small businesses. Members of the public can watch the live meeting via webcast on

SEC Charges Virtu for False and Misleading Disclosures Relating to Information Barriers
Washington D.C., Sept. 12, 2023 — The Securities and Exchange Commission today filed charges against broker-dealer Virtu Americas LLC and its parent company, Virtu Financial Inc. (collectively, Virtu), for making materially false and misleading statements and omissions regarding information barriers to prevent the misuse of sensitive customer information.

SEC Charges Alternative Investment Platform YieldStreet for Misleading Investors
Washington D.C., Sept. 12, 2023 — The Securities and Exchange Commission today announced a settled action against New York-based YieldStreet Inc. and its registered investment adviser subsidiary, YieldStreet Management LLC (together, YieldStreet), for failing to disclose critical information to investors in a $14.5 million asset-backed securities offering.

SEC Charges National Office Partner at Marcum for Causing Widespread Quality Control Deficiencies
Washington D.C., Sept. 12, 2023 — The Securities and Exchange Commission today charged Alfonse Gregory Giugliano, CPA, the former National Assurance Services Leader at Marcum LLP, a public accounting firm, with failing to sufficiently address and remediate numerous deficiencies in Marcum’s quality control system. The SEC previously charged Marcum for these quality control deficiencies and other violations, many of which were in connection with Marcum’s audit work for hundreds of special purpose acquisition companies (SPACs).

SEC Sweep into Marketing Rule Violations Results in Charges Against Nine Investment Advisers
Washington D.C., Sept. 11, 2023 — The Securities and Exchange Commission today announced charges against nine registered investment advisers for advertising hypothetical performance to the general public on their websites without adopting and/or implementing policies and procedures required by the Marketing Rule. All nine firms have agreed to settle the SEC’s charges and to pay $850,000 in combined penalties.


Fiscal Year 2023 Statutory Audit of Compliance With Legal Guidelines Restricting the Use of Records of Tax Enforcement Results
September 14, 2023

Inflation Reduction Act: Assessment of the IRS’s Efforts to Deliver Expected Improvements for the 2023 Filing Season
September 11, 2023

Fiscal Year 2023 Review of Compliance With Legal Guidelines When Conducting Seizures of Taxpayers’ Property
September 11, 2023

Fiscal Year 2023 Mandatory Review of Compliance With the Freedom of Information Act
September 11, 2023

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