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Friday Footnotes: Indirect Rona Impacts; KPMG LOL; Hey, How Ya Holding Up? | 4.24.20

The indirect impacts of COVID-19 on CPA firms [Journal of Accountancy] In this megapost from the JofA, CPAs in all areas of practice across the profession are offered some “what-ifs” related to COVID-19 they may not have considered. Recommended reading for firm leaders.

IRS proposes rules for unrelated business income for tax-exempt groups [Accounting Today] The Internal Revenue Service and the Treasury Department issued proposed regulations Thursday to offer guidance for tax-exempt organizations who are subject to the unrelated business income tax provisions of the Tax Cuts and Jobs Act about how to calculate their unrelated business taxable income if they have more than one unrelated trade or business.

A top PwC exec shares how companies can maintain the well-being of workers in a remote setting, and what the future has in store for the virtual workforce [Business Insider] Sooooo … who has been getting regular check-ins from leadership lately? From the article: As social distancing becomes the new normal, leaders should regularly check in on how isolated employees are feeling. That’s according to Michael Fenlon, chief people officer at professional services firm PwC, which has 55,000 employees in the US alone. He told Business Insider that providing workers a safe space to discuss how they’re feeling can offer insight into their well-being. “We need to be listening, and be very connected to understand what our people need and how we can best support them,” he said.

Deloitte Outlines Global Commitments to COVID-19 Response and Relief Efforts [CSRwire] OK maybe isolation is making me delirious but I have to admit “activating the power of its global footprint” is a damn good phrase. Anyway, Deloitte is throwing some money at the Rona problem and would like you to know about it.

Analysis: EY now faces questions of trust [Compliance Week] In the case of Amjad Rihan versus EY Global and others, a question of trust has arisen. The judge has accused EY of lending its brand to a misleading assurance report about its client. Indeed, within the judgment there is reference to an internal EY email that states, “there is an undercurrent of them looking to use EY’s brand for their advantage … .”

KPMG chair sends first email to staff after Covid-19 diagnosis [Financial News] In his first email to the accounting giant’s 16,000 staff, Bill Michael warned that the UK’s economy would not be able to survive many more months of the government’s lockdown. […] He also warned that the economic damage triggered by the pandemic could over take the human toll. “We run the risk that the economic disaster will transcend the human one,” he said. According to Michael, KPMG is “well-placed” to advise the government on this “difficult judgement.”

The Tax-Break Bonanza Inside the Economic Rescue Package [NY Times] As part of the economic rescue package that became law last month, the federal government is giving away $174 billion in temporary tax breaks overwhelmingly to rich individuals and large companies, according to interviews and government estimates. Some of the breaks apply to taxes have long been in the cross hairs of corporate lobbyists. They undo limitations that were imposed to rein in the giveaways embedded in a $1.5 trillion tax-cut package enacted in 2017. None specifically target businesses or individuals harmed by the coronavirus.

RSM appoints new chief following shareholder coup [FT] RSM has appointed a new chief executive after a torrid annual meeting that ran late into the night as its shareholders disagreed about who should take over. Rob Donaldson, head of corporate finance and a partner of 20 years, was named as the new head of the UK’s seventh-largest accounting firm shortly before midnight on Monday. He was one of 10 candidates put forward to take on the role, after a shareholder coup that sought to oust RSM’s board and block the board’s appointment of Jill Jones, its acting chief operating officer, as the new chief executive.