CPA Practices NAICS 541211

Jan 6, 2026 - Tax Changes Signal Chaotic Year Ahead

• The 2026 mix of tax cuts, tariffs, and benefit reductions will shape a complex year for CPAs and tax preparers. An estimated $125 billion in tax cuts tied to 2025 returns will arrive during spring filing season, with another $80 billion flowing through 2026 via payroll withholding changes, increasing demand for tax planning and return preparation, according to Evercore. Benefits, however, are skewed toward higher-income households, while low-income filers see almost no relief due to minimal income-tax liability. Cuts to Medicaid, Supplemental Nutrition Assistance Program benefits, Affordable Care Act premium credits, and stepped up student loan collections will complicate household tax and financial situations, increasing advisory needs. Tariffs and benefit cuts are expected to reduce disposable income for most households outside the top 30% of earners, per Yale’s Budget Lab, raising questions around credits, deductions, withholdings, and retirement planning that CPAs and tax professionals will need to address in 2026.
• Accounting higher education faces a shortage of doctorally qualified faculty, with many current professors nearing retirement and PhD enrollments declining. Recent data from the American Institute of Certified Public Accountants (AICPA) shows that US accounting graduates - bachelor’s and master’s combined - fell 6.6% to about 55,152 in the 2023-2024 academic year, with master’s degrees down roughly 15% and bachelor’s down about 3% from the prior year. Many PhD graduates also pursue careers outside academia, exacerbating the gap. Contributing factors include the aging professoriate, limited mentoring capacity, and the appeal of higher-paying non-academic roles. To address the gap, industry experts propose a professional doctorate in accounting, designed to attract experienced professionals, expand the faculty pool, and support teaching, research, and service missions, offering a pragmatic alternative to the traditional research PhD.

• Starting with the 2025 tax year, the IRS is rolling out a new form called 1099‑DA, part of the Internal Revenue Service’s (IRS) effort to bring more clarity to the growing crypto space. A 1099-DA reports transactions involving digital assets like cryptocurrencies and NFTs. This form will be issued by custodial brokers - Coinbase, PayPal, Robinhood - to show the gross proceeds from trades, exchanges, redemptions, and NFT sales. Beginning in 2026, brokers will also “covered assets,” meaning assets acquired on or after January 1, 2026 and held on the same platform. Non-custodial platforms, such as decentralized exchanges or wallets that you fully control yourself, won’t be issuing 1099‑DAs, leaving it up to users to track and report their activity. A 1099‑DA gives you a snapshot of your transactions, but it doesn’t replace the need to keep careful records of your purchases, sales, and gains for accurate tax filing.
• Accounting firms are signaling a strong hiring outlook, according to a recent American Institute of Certified Public Accountants (AICPA) survey. In 2024, firms collectively brought on 11,985 new graduates, and of those that added staff, 75% expect to maintain or expand hiring in the coming year. Firms that have already increased headcount generally plan to replicate or grow recruitment this year. Starting salaries are also rising: new graduates with bachelor’s degrees now earn a median of $60,834, while those with master’s degrees average $67,750, underscoring competition for top talent. Firms are also adapting to evolving client demands by investing in technology and expanding advisory services. Smaller and mid-sized firms report steady growth in both revenue and profit, strengthening their capacity to hire. Overall, the survey highlights sustained demand across the profession, with most firms planning strategic hiring to support growth, expansion, and succession planning.