Weekly Digest – July 8th 2022
Thank you for the support of family and friends through my planning and post-op; I have not been lonely, hungry or run out of dark chocolate. How great to know that as I returned home from the hospital I would be met with such caring friends (luckily one is a Nurse Practitioner). Nice to have a fresh brewed cup of coffee delivered to my room with an ice pack for after morning PT exercise and social break. I guess the bionic man had the right idea, my new hip is integrating well as I continue to take time off and work with the physical therapist and occupational therapist. So far my walks are limited to the beach wall and back home, but after my follow-up orthopedist appointment next week I may be able to walk the boardwalk and share some beach shots.
Looking back into my cell phone archives, I found a shot from July 2020 at the 6 mile turnaround point, when I was still able to run barefoot on the beach
Enjoy your weekend.
This “injury”, the surgery and recovery has reminded me about managing expectations. If we can be flexible and patient all roads should lead to success whether in business or other aspects of our lives. Certainly setting client expectations, agreeing on responsibilities, desired outcomes and adhering to deliverables will make all the difference in the world with maintaining great relationships or improving those that need work.
For me as a patient my goal is to get back to my active way of life, right now I am using a walker with small slow steps, eventually I hope to be back to taking long walks, skiing, and maybe a short run or two on a weekly basis.
TAX ISSUES/TAX PLANNING
IRS Mileage Rate Increased as of July 1st 2022
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2022. The IRS normally updates the mileage rates once a year in the fall for the next calendar year. For travel from January 1 through June 30, 2022, taxpayers should use the rates set forth in Notice 2022-03PDF.
As of July 1st, 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022.
“The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” said IRS Commissioner Chuck Rettig. “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.”
While fuel costs are a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
The 14 cents per mile rate for charitable organizations remains unchanged as it is set by statute.
Midyear increases in the optional mileage rates are rare, the last time the IRS made such an increase was in 2011.
Your Website and On-Line Sales Outlet May Cause Unexpected Business Franchise and Personal Income Tax Consequences
Your website and on-line sales outlet may be your new “profit center” however caution should be maintained when accounting for these on-line sales. The Wayfair decision related to business filing requirement for sales tax; as we researched, reviewed and documented transactions with our clients we were reminded that state franchise tax rules vary by state and the same scrutiny should be adhered to when reporting income and profits to state where the company may have “economic nexus”.
For those of you with pass-through entity business structure you may have to report income to various states as well
Most States Are Holding Off on Accepting Tax Payments via Crypto-Currency
Colorado and Utah are implementing programs to enable businesses and individuals to pay their tax bills with virtual currencies such as Bitcoin, Ethereum and Dogecoin, targeting implementation within a few months.
Thirty-seven states considered bills affecting some aspect of cryptocurrency during the 2022 legislative session, according to Heather Morton, a policy analyst at the National Conference of State Legislatures. Within that group, she said Arizona, California, Hawaii, Illinois, Louisiana, New York and Oklahoma all considered bills that would authorize the authorities to accept crypto.
Betty Yee, California’s state controller, called a crypto-payment bill (S.B. 1275) currently before the California Legislature “fiscally irresponsible,” pointing to price volatility for cryptocurrencies and lack of a robust federal regulatory framework for digital assets.
IRS Plans to Mandate New Fingerprinting Process for New E-filer’s
We have been submitting tax returns for our clients via the IRS our authorized software companies using our IRS e-file “signature”. I vaguely remember the certification process and believe it may have been specific for licensed CPA’s and Enrolled agents as compared to the unlicensed “tax preparer” group. With the onset of so many fraudulent returns it seems the IRS may be using the e-file authorization process as a way to filter out tax preparers who assist taxpayers in the tax submission process.
- Step 1: Access IRS e-file Application
- Step 2: Submit Your Application
- Step 3: Pass a Suitability Check
We can only hope that this updated certification review will help make the system more secure.
FOR OUR GRADUATES
The future of student loan debt
With the pause on student loan repayments coming to an end on August 31, many are wondering if the federal government will announce a student loan forgiveness program.
FOREVER Stamps Will Increase to 60 Cents Each This Weekend
A forever stamp, used to mail a regular letter, no matter when is was purchased and how much you paid for it is “good forever”. When first issued, approximately 10 years ago they were 45 cents each. Now as of July 10th 2022 these stamps will cost 60 cents, up from 58 cents. Not a big jump but we placed an on-line order for our holiday stamps and the post office may get some extra cash flow right now.
Thousands of flights canceled over holiday weekend
Travelers showed up in record numbers at airports over the Fourth of July weekend, nearing pre-pandemic levels. Many were met with chaos as airlines canceled flights.
June Jobs Report Expected Today
The job report for June is expected on Friday and, as investors greet the third quarter with increased trepidation about a recession, many analysts fear it will affect the markets more than usual.
Recession Talk Ramps Up
Both Wall Street and Washington seem to think a recession is inevitable, as the Federal Reserve ramps up its battle against the highest inflation in four decades.
The Bitcoin Bear Market Explained
Bitcoin Magazine has compiled six charts of key data sets to explain the effects of the bear market on bitcoin miners and their operations.
Will Gas Rise to $8 Per Gallon?
Forbes Magazine explains how the price of fossil fuels will rise much higher while we wait on greener alternatives.
- 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.
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