SEC Revives Consideration for Semi-Annual Reporting
The Securities and Exchange Commission (SEC) announced it will prioritize a proposal to eliminate quarterly earnings reporting for public companies, following a renewed call this week from President Donald Trump.
Reuters is reporting that an SEC spokesperson confirmed that “At President Trump’s request, Chairman Atkins and the SEC is prioritizing this proposal to further eliminate unnecessary regulatory burdens on companies.”
The SEC announcement came hours after President Trump posted on social media advocating for a shift from quarterly to semi-annual reporting, because it would reduce costs and allow executives to “focus on properly running their companies.”
Historically, the SEC has adjusted its requirements for how public companies report earnings. The SEC began requiring semi-annual disclosures in 1955 before switching to quarterly reports in 1970.
President Trump first floated the idea of returning to the semi-annual reporting during his first term, prompting a formal SEC public comment period in 2018. The proposal was shelved by former SEC Chair Gary Gensler.
While SEC rulemaking typically spans months or years, observers note that Atkins’ leadership could accelerate the timeline. If the administration’s second effort to return to semi-annual reporting is successful, it would align the disclosure practices of US-listed companies with those in the U.K. and several countries in the EU.
Didn’t Get the Memo?
California Advances Climate Risk Disclosure
As the SEC under Chairman Paul Atkins steps away from a climate risk rulemaking agenda pursued by former Chair Gary Gensler, California is doubling down.
The California Air Resources Board (CARB) recently released a draft checklist to guide companies in complying with Senate Bill 261 (SB 261), a climate-related financial risk disclosure law set to take effect next year.
SB 261, officially called The Greenhouse Gases: Climate-related Financial Risk Act requires both public and private U.S. and foreign-based companies doing business in California with annual revenues over $500 million to publicly disclose their exposure to climate-related financial risks, along with the strategies those companies have adopted to mitigate and adapt to those risks.
The checklist provided by the CARB outlines five key disclosure areas: governance, strategy, risk management, metrics and targets, and the reporting framework.
California Governor Gavin Newsom signed SB 261 at the same time he signed SB 253, the Climate Corporate Data Accountability Act, in October 2023. SB 253 covers companies doing business in California with revenues of over $1 billion, and requires them to annually report Scope 1, 2, and Scope 3 greenhouse gas emissions, regardless of where in the world those emissions may have been generated.
Together, these two new laws represent one of the most ambitious state-level ESG disclosure requirements in the U.S. First reporting deadlines begin in 2026.
Both laws are facing legal challenges. The U.S. Chamber of Commerce, joined by several business groups, filed lawsuits against SB 253 and SB 261, claiming the laws overstep California’s authority by regulating emissions and financial risks beyond state borders.
Though a federal judge recently denied motions to block implementation, a full trial is scheduled for October 2026, months after the first filing requirements.
California’s climate disclosure initiative stands in stark contrast to the SEC’s current posture. Under Atkins, the SEC has moved away from imposing stringent ESG reporting requirements, shifting back to investor-focused financial materiality.
To review the California Climate Disclosure Checklist:
The Internal Revenue Service has just released new guidance detailing how businesses can take advantage of the full expensing of research and development (R&D) costs under the One Big Beautiful Bill Act (OBBBA), recently signed into law by President Trump on July 4.
The law reverses a key provision of the 2017 Tax Cuts and Jobs Act, which had required companies to amortize R&D expenses over five years.
Under OBBBA, companies may now deduct qualified research or experimental expenditures in full during the year they are incurred.
Revenue Procedure 2025-28 (see link) outlines how corporations, partnerships, individuals, and exempt organizations can make elections, change accounting methods, or file amended and superseding returns to comply with the updated rules.
The change is expected to provide significant relief to innovation-driven businesses, allowing for greater flexibility in tax planning and investment in research.
The US Treasury has released a preliminary list of 68 occupation categories eligible for tip-related tax deductions under the recently signed OBBBA tax bill.
The full list includes a colorful mix of jobs across food service, entertainment, hospitality, home services, personal care, recreation, transportation, and more.
Starting in 2025, workers in listed occupations can deduct up to $12,500 (single filers) and up to $25,000 (married filing jointly) in qualified tips from their federal modified adjusted gross income. However, since it is not a payroll tax exemption, they will still have to pay Social Security and Medicare taxes on all tips.
The federal deduction begins to phase out for individuals when modified adjusted gross income exceeds $150,000 (single filers) or $300,000 (joint filers). So, if you’re a high-earning tattoo artist or a luxury tour guide, your big tax break might be more of a tax nibble.
The tax break provision is only effective from 2025 through 2028, when it is scheduled to expire.
To help taxpayers navigate their non-taxable tips, the IRS just issued a DRAFT of its Schedule 1-A (Form 1040) labeled “Additional Deductions”.
IRS Cracks Down on Social Media-Fueled Tax Credit Scams
The IRS said it flagged a surge in fraudulent refund claims tied to credits such as the Fuel Tax Credit and the Sick and Family Leave Credit—benefits typically reserved for specific groups such as self-employed individuals or businesses. Many of the claims were fueled by viral posts on social media sites falsely suggesting that all taxpayers were eligible, often encouraging amended returns with minimal documentation.
Since 2022, the IRS has assessed over $162 million in penalties through civil fines of up to $5,000 per inaccurate or frivolous return under IRS Code Section 6702.
The agency urges taxpayers to be cautious and verify claims with reputable sources.
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