Each week I pull together accounting, tax, and AI news that matters to small business owners and individuals in Canada and the US, in plain English, with links to the original sources. Here is what happened in the week of October 19, 2026.
Canada
1. CRA tightens the rules for changing CCA and other permissive deductions
The CRA has issued Information Circular IC75-7R4, Taxpayer Requested Adjustments, replacing two circulars from 1984 (IC75-7R3 and IC84-1). It confirms that "permissive" deductions include capital cost allowance (CCA) and SR&ED deductions, while charitable donations, tax credits, and reserves are not treated as permissive. If you ask to revise a permissive deduction after the deadline to file a notice of objection has passed, the CRA will only consider it if the request is made within the normal or extended reassessment period and comes with an offsetting change to another permissive deduction, so that the tax assessed for that year, and for any other year past its objection deadline, stays the same. The practical point: decide how much CCA to claim when you file, and if you want to change it, act early.
Source: Tax Interpretations: CRA restricts taxpayer requests to revise permissive deductions (summary of IC75-7R4 under subsections 152(1.1) and 152(4) of the Income Tax Act)
2. Ottawa asks for input on modernizing the rules for registered charities
The Department of Finance and the CRA have opened consultations on updating the federal framework for Canada's more than 86,000 registered charities. Feedback is sought in four areas: the registration process, digital service delivery, audit and compliance activities, and the revocation and objections processes. Submissions are open until December 3, 2026. If you run or sit on the board of a charity, this is a chance to comment on issues such as online filing and the T3010 annual return.
Sources: Department of Finance Canada (October 8, 2026); Carters Professional Corporation
United States
3. US Social Security wage base rises to $192,300 for 2027
The Social Security Administration announced a 3.6% cost-of-living adjustment for benefits and an increase in the maximum earnings subject to Social Security tax, from $184,500 in 2026 to $192,300 in 2027. Employees and employers each pay 6.2% on wages up to the cap, so the maximum employee contribution rises to about $11,923. If you have US employees or US employment income, update your 2027 payroll budgets.
Source: CPA Practice Advisor
4. IRS issues automatic refunds for the adoption credit carryforward
The IRS has begun issuing refunds to more than 50,000 taxpayers after Treasury clarified that, for tax year 2025 only, adoption credit carryforwards from 2020 to 2024 can increase the refundable part of the credit, up to $5,000 per qualifying child. Most affected taxpayers do not need to file an amended return; the IRS will adjust accounts and send a notice, generally within 30 days. If you receive one, compare it with your 2025 return and keep it with your records.
Source: IRS, IR-2026-123
5. IRS Tax Professional Awareness Week starts October 19
The IRS is running Tax Professional Awareness Week this week, with an October 21 webinar on refundable credits, videos on Form 8867 (the paid preparer's due diligence checklist) and common Schedule C errors, and material on identity theft prevention, cybersecurity, and payment modernization. It is a signal of where the IRS is focusing for the 2027 filing season, and a good time for anyone with US filings to start gathering documents early.
Sources: IRS, IR-2026-124; CPA Practice Advisor
AI in Accounting and Finance
6. QuickBooks brings more AI automation to Canadian users
On October 14, Intuit rolled out Intuit Intelligence in Canada, adding AI features to QuickBooks Online and Intuit Accountant Suite. Users can ask in plain English for tasks such as creating invoices from documents and following up on overdue payments, and accountants get cross-client flags and onboarding playbooks. The features are in beta and availability depends on the product and plan. Intuit itself notes the AI can make mistakes, so every entry still needs a human review before you rely on the numbers.
Sources: Canadian Accountant; iPhone in Canada
7. Ramp puts AI spending on the same dashboard as company spending
Finance platform Ramp has made Glass, an AI workspace it built for its own staff, available to other companies. Each project shows a cost meter so managers can see what AI is costing and what it produces. Ramp's co-founder said the company spent $1.5 million on AI usage in one week in May, before it built the tool. For any business, the lesson is simple: AI subscriptions and usage fees are a real expense line, and they deserve the same budgeting and approval controls as any other cost.
Source: CPA Practice Advisor
What this means for you
- Claiming CCA this year? Decide your claim carefully when you file. Changing it later is now harder once the objection deadline has passed.
- Involved with a charity? Consider sending comments to the federal consultation before December 3, 2026.
- US payroll or US employment income? Budget for the higher 2027 Social Security wage base of $192,300.
- Received an IRS notice about the adoption credit? Check it against your 2025 return and keep it on file.
- Trying AI bookkeeping tools? Review AI-generated entries before relying on them, and track AI costs like any other expense.
Questions about how these changes affect you?
Milinchuk CPA helps small businesses, corporations, and individuals in Toronto and across Ontario with bookkeeping, corporate and personal tax, and advisory. I serve clients in English and Russian.
Disclaimer: This post is general information, not professional advice. Tax rules and proposals change, and your situation may differ. Please consult a qualified professional before acting on anything in this article.