The Wednesday Lowdown ⬇️

If you're new around here, every day or so I share the 4-5 best accounting insights I saw in the past 24 hours.

I scroll. so you don't have to.

P.S. We made merch! It’s fun. It looks cool. Your accountant friends will want one. And it helps keep this newsletter free. Grab yours → CPA MERCH

🤯 WTF of the Day

Accountant Gets 32 Months for Stealing $2.3M in COVID Relief

Another pandemic fraud case, this time involving an accountant.

Yasir Hamed, a 60 year old accountant from Woodbridge, was sentenced to 32 months in federal prison for stealing more than $2.3 million from the Paycheck Protection Program. Prosecutors say he filed fake loan applications with inflated payroll numbers and tax forms that were never sent to the IRS. He kept over $1 million for himself and even used the money for a house down payment.

PPP cases are still very much alive. Prosecutors are going after preparers, not just borrowers. Bad documentation, fake payroll, or “helping a client out” can turn into real prison time years later.

Source: justice.gov

🍿 What’s poppin in accounting

The IRS Has No Idea How to Tax Prediction Markets Yet

People can now bet on things like elections, sports, or the weather using apps like Kalshi and Polymarket. The problem is the IRS has not said how these bets should be taxed.

If the IRS calls this gambling, you might owe tax even if you do not actually make money because losses are limited. The apps say they are financial products, which would mean different tax rules. Same bet, same outcome, different taxes.

For now, taxpayers and CPAs are guessing and just following whatever tax form they receive. Everyone is waiting for the IRS to finally explain the rules.

🕵️‍♂️ The Audit

Are you an outlier or the industry standard? Vote in our new weekly pulse check, and we’ll share the results next issue.

Last poll results:

The 58% are betting on Hospitality. You want your clients to feel a connection beyond the spreadsheet. You are building a brand around "service."

The 42% are betting on Utility. You believe that saving a client money is the ultimate form of kindness. You are building a brand around "competence."

Know which game you are playing. If you are the "Relationship" firm, the gift matters. If you are the "Results" firm, the refund matters. Just make sure you deliver on your promise.

New Poll ⬇️

 📊 Weekly Trend Chart

AI Didn’t Sneak In. It Took Over.

If 2023 was AI’s debut and 2024 was its breakout, 2025 is when it took over. It is driving stock markets, shaping politics, sneaking into every app you use, and deciding what you see online. Whether you asked for it or not, AI is now part of daily life.

The clearest proof is usage. ChatGPT is closing in on 900 million weekly users, less than three years after launch. That is faster than Facebook, Gmail, or TikTok ever grew. Google’s Gemini is already at around 650 million monthly users.

Bottom line AI is no longer emerging. It has already won distribution.

#😂 Meme of the Day

😂