Weekly Digests

Not quite sunrise, but a beautiful sunny 70 degree morning

Delicious, healthy dinner of baked wild Alaskan cod, oven roasted Brussel sprouts and Greek salad, I can’t remember the last time I cooked a full meal.

Hopefully my team and I will feel refreshed after our 2 weeks of planned alternating time off as we gear up for May and finalizing those extended tax returns and projects that have been put on hold.

I am hoping the rest of you are able to enjoy friends and family for the holidays, I was invited to a friend’s Passover Seder, it was great to feel normal and connect in person again.

TAX ISSUES

Taxpayers Who Missed the Filing Deadline Should File Now

The IRS encourages taxpayers who missed the tax filing deadline on April 18 to file as soon as possible. While taxpayers due a refund receive no penalty for filing late, those who owe and missed the deadline without requesting an extension should file quickly to limit penalties and interest. Families who don’t owe taxes can still file their 2021 tax return and claim the Child Tax Credit for the 2021 tax year at any point until April 15, 2025.

Some taxpayers automatically qualify for extra time to file and pay taxes without penalties and interests, including:

• Members of the military who served or are currently serving in a combat zone
• Support personnel in combat zones or a contingency operation in support of the Armed Forces
• Taxpayers outside the United States
• Some disaster victims

The IRS is Still Working Through Their Backlog of Tax Returns and Correspondence

We know that the IRS has been plagued by a shortage of employees at a time when their responsibilities has increased.  We know that the service is working  through the backlog of tax return submissions many of which include incorrect applications for refunds based upon stimulus funding.

Many taxpayers are frustrated that timely submitted tax returns are still not processed.   It’s hard to be patient, but the good news is that the “date stamp” on prior year’s efiled tax returns allow the IRS to accurately calculate and include interest on refunds.

IRS Announces Funding for Low Income Taxpayer Clinic Grant

The IRS announced that more than $12.1 million in matching grants were awarded to 131 organizations across the country for development, expansion or continuation of qualified Low-Income Taxpayer Clinics (LITCs) for the 2022 grant year. The grant year runs from January 1 to December 31, 2022.

Monthly Child Tax Credit Payments

If you have questions about the advance Child Tax Credits for 2021, the two best sources are the instructions for Schedule 8812, which is used to calculate and report the credit on your 2021 tax return, and the IRS FAQs. Before filing your tax return, check your IRS Online Account to be sure you report the correct amount of any advance Child Tax Credit payments received during 2021. This will help ensure that refunds are paid promptly within 21 days. As a reminder, couples who filed Married Filing Joint will each receive a letter reporting half of the payments received. When filing 2021 tax returns, married couples will need to combine both amounts when they file their joint return.

ECONOMY

Fannie Mae Economists: Economy Facing ‘Modest’ Recession Next Year

The economic outlook is dimming and a downturn could be on the horizon, as the Federal Reserve moves to ease the hottest inflation in four decades, according to Fannie Mae economists.

The economists said in a new economic and housing forecast that the economy faces a “modest recession” in 2023 due to the Fed’s aggressive monetary policy tightening, the fallout from the Russian war in Ukraine, and the worst inflation in a generation.

Housing Starts Unexpectedly Rise in March

Homebuilding unexpectedly increased in March, but starts for single-family housing declined due to rising mortgage rates. Housing starts increased 0.3% to a seasonally adjusted annual rate of 1.793 million units last month, while permits for future homebuilding increased 0.4% to a rate of 1.873 million units. However, single-family housing starts, which account for the biggest share of homebuilding, dropped 1.7% to a rate of 1.200 million units.

Hotels Face $21 Billion Business Travel Decline in 2022

Business travel revenue for the hotel industry is expected to decline by about $20.7 billion from pre-pandemic levels this year, after an estimated $108 billion decline over 2020 and 2021, according to a report from American Hotel & Lodging Association and Kalibri Labs. The report forecasts that hotel business travel revenue will remain 23% down from 2019 by the end of this year. On the other hand, leisure travel is expected to rebound to pre-pandemic levels in the coming months.

GENERAL RESOURCES

• IRS resources for stimulus payments:
  • Use the Get My Payment tool to check on EIP payment status
  • Eligibility and general information about Economic Impact Payments
  • A list of frequently asked questions for stimulus payments
• IRS information about the Advance Child Tax Credit Payments
  • Portal to update information
  • A list of frequently asked questions on the advance Child Tax Credit Payments
• The best source for up-to-date and accurate health information is the Center for Disease Control (CDC)
• Our Covid-19 Resource Center with relevant blog posts, videos and prior weekly newsletters
• Payroll, HR and benefits company Gusto has put together An Employer’s Guide to Navigating the Coronavirus
• Accounting Today has a special page for articles on COVID-19
• Intuit QuickBooks has a dedicated page to help small businesses
• Entrepreneur put together a listing of free tech resources for remote work
• The Consumer Financial Protection Bureau has warnings about COVID-related scams
• Fast Company has a listing of the best productivity apps for 2020
• The New York Times has an online newsletter on K-12 and higher education
• The Wall Street Journal has a collection of articles on education
• The Louvre has digitized 482,000 artworks from its collection
• PC Magazine explains how to carry your vaccination card on your phone
• How to create a strong password

We sincerely hope that you and your family are well and remain well. If you have any questions or concerns, don’t hesitate to reach out to us. We are all in this together!

If you need help with your accounting, want to create a tax minimization plan, want to discuss your business growth plan or your finances, are concerned about retirement goals or need to be held accountable for your 90 day action plan, contact us for a complimentary discovery session or an appointment to just get started.