The Thursday Lowdown ⬇️

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

I scroll. so you don't have to.

💎 WTF of the Day

South Carolina’s $1.8B Fake Surplus

South Carolina thought they had a $1.8 billion budget surplus. Turns out, it was all a mistake. Officials accidentally counted the same money twice because of errors in how cash transfers between accounts were recorded. Basically, they added the same dollars to the balance sheet more than once.

This isn’t just a math error, it’s a huge deal for the state’s spending plans. Lawmakers were already planning how to use the “extra” money, but now it’s back to the drawing board. 

Source: Audacy

💎 What’s poppin in accounting

IRS Targets Corporate Splits

The IRS is tightening the rules on how companies can split into separate entities or reorganize without getting slammed with taxes. Right now, some businesses use corporate splits as a way to avoid taxes, and the IRS wants to stop that.

The new proposal? Companies will need to prove their split is for real business reasons (like spinning off a struggling division) and not just a tax dodge. If they can’t, they’ll lose the tax-free benefits that usually come with these moves.

These changes could make it harder (and more expensive) for big companies to restructure. It’s also likely to lead to more audits, which means accountants will need to step up and help clients navigate the stricter rules.

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 📊 Weekly Trend Chart

Planet Fitness Hits 20M Members 💪

Planet Fitness now has nearly 20 million members, making it one of the largest gym chains in the world. Its secret? A low-cost, no-frills model that appeals to casual gym goers who don’t want to spend a fortune.

Fun fact! Over 60% of Planet Fitness members don’t actually go to the gym regularly, which helps the company maintain low operating costs. With membership fees starting as low as $10/month, they’re crushing it in the budget fitness market.

As fitness trends evolve, Planet Fitness has found a sweet spot by catering to everyday folks, not hardcore athletes.

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