⬇️ The Friday Lowdown ⬇️

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

I scroll. so you don’t have to.

💎 WTF of the Day

"Little" Accounting Error Stopped Gopuff in Its Tracks

Gopuff, the ultra fast delivery startup, just got shut down in Philly. Why? Because they didn’t handle their taxes right.

A billion dollar company halted over what they’re calling an “accounting discrepancy.” Philly didn’t find it funny and hit them with a stop work order, freezing their operations.

Gopuff says it’s a minor paperwork mistake, but the city’s not having it.

Source: Technical.ly

💎 What’s poppin in accounting

IRS Gets Serious About Pass-Throughs

The IRS is turning up the heat on pass-through businesses like partnerships and S-corporations. These businesses don’t pay corporate tax themselves, instead, the income "passes through" to the individual owners and is taxed at their personal rates. These setups have become a favorite for high income earners to dodge taxes.

To fix that, the IRS just created a new unit within their Large Business and International Division, targeting these complex pass-through entities. They’re hiring 3,700 new agents to focus on auditing. Oh, and they’re using AI to help spot tax cheats even faster.

So if you’re part of a pass-through entity, it might be time to make sure your books are squeaky clean.

Source: Asbury Law Firm

💎 Did you know?

How the First Income Tax Was Born Out of Desperation

the first income tax was introduced in 1799 by Britain’s Prime Minister William Pitt, But it wasn’t because he suddenly felt like taxing people for fun, it was because Britain was broke. They were neck deep in the Napoleonic Wars, and fighting Napoleon wasn't cheap. So, Pitt came up with a desperate solution: make people pay up a portion of their earnings to fund the war.

It was supposed to be temporary. But like all "temporary" taxes, the idea stuck. It set the stage for the modern income tax system that governments all over the world use today.

 📊 Weekly Trend Chart

The fastest-growing part of Tesla’s business isn’t selling cars

When most people think Tesla, they think electric cars. But the company’s real breakout business right now? Energy generation and storage. Over the last few quarters, Tesla Energy has been pulling in record profits with products like solar panels and the Powerwall.

Musk has made it clear that his vision for Tesla goes way beyond vehicles, he’s aiming to build a full-scale clean energy company.

If the trend keeps up, it could become an even bigger part of Tesla’s overall business in the near future.

Sources: Electrek

#😂

This feeling can momentarily make one feel like the CEO 🤣

you think of today's edition? Hit 'reply' to this email and lemme hear it!