Accounting Industry News: IRS Updates, FASB Standards & AI Trends

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## The Week in Accounting: September 18, 2026

As we move through the third quarter of 2026, the accounting landscape is shifting rapidly. From new IRS digital capabilities to the evolving role of artificial intelligence in firm operations, staying informed is critical for business owners and practitioners alike. Here is a breakdown of the most significant developments this week.

## IRS Launches New Digital Tax Compliance Report

In a move to streamline administrative burdens, the IRS has introduced a new digitally authenticated Tax Compliance Report, accessible via the IRS Individual Online Account. This tool allows taxpayers to generate a report that includes an IRS-issued digital certificate. This is a significant development for businesses and individuals who frequently need to provide proof of tax compliance for loans, government contracts, or employment verification. By using this authenticated report, you can reduce the risk of document tampering and provide third parties with verifiable, secure information.

## FASB Proposes Incremental GAAP Improvements

FASB continues its commitment to refining financial reporting standards. As of early September, the board has proposed a new batch of technical corrections to GAAP. These updates aim to clarify guidance on expected credit losses and modified share-based payment awards. Additionally, FASB staff has released proposed improvements to the 2027 SEC Reporting Taxonomy. Firms should review these proposals, as comments are due by October 30, 2026, to ensure their reporting systems remain compliant with upcoming technical standards.

## The AI Tipping Point: Efficiency vs. Risk

Artificial Intelligence is no longer a futuristic concept; it is a current operational reality. Recent research indicates that 81% of tax and audit professionals are now regularly using AI in their workflows. However, a clear divide is emerging between firms using AI as a simple personal productivity tool and those building systematic, in-house AI agents.

For firm leaders, the message is clear: 
* **Adopt or fall behind:** Firms that treat AI as a non-negotiable part of their infrastructure are seeing significant efficiency gains.
* **Manage the risks:** Rapid adoption brings new challenges in data security and quality control. 
* **Redesign workflows:** Rather than just automating tasks, consider how AI agents can act as "digital associates" that require training, guardrails, and human oversight.

## Peer Review Warning: ASC 842 Compliance

Despite the passage of time, the FASB Post-Implementation Review (PIR) of ASC 842 (Leases) highlights ongoing struggles for many firms. Peer review data shows that small CPA firms and their clients continue to face difficulties in accounting for operating leases on the balance sheet. If your firm or business has not fully integrated these processes, now is the time to audit your systems. The costs of non-compliance—both in terms of peer review consequences and financial reporting accuracy—are simply too high to ignore.

## Looking Ahead

As we head into the final months of 2026, keep an eye on upcoming AICPA bylaw amendments and further guidance on AI usage in professional practice. Whether you are a business owner managing your tax compliance or a practitioner refining your audit workflow, these updates serve as a reminder that agility and technical precision remain the cornerstones of our profession.

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