Weekly Digests

Mid-February and tax season is in full swing, but that doesn’t mean we accounting professionals can’t have fun.  This week we celebrated Valentines Day, “played hooky” during a morning snow storm and are looking forward to a three day weekend as we celebrate President’s Day on Monday February 19th by closing the office.  We can always share some beautiful local photo’s and in a few months we will visit in person.

It’s been great working remotley with my sister Monica in her home office in New Jersey, but I am glad to take advantage of being home in Rockaway on the weekends to catch the sunrise, even when it’s a bit stormy…

I am so used to getting up early these days, that I am out on the beach before the sun…

I see my daughter Emily is keeping to her early schedule on the weekends too…

My friend Bob is a show off, with his warm weather and beautiful view right from his pool deck in Sarasota Florida…

My daughter Jessie and my granddog Sampson catch sunset on the west coast most evenings…

We had perfect weather Tuesday  I love the way the trees look all covered in snow and ice and by late afternoon the weather warmed, the sun came out and the snow melted…

No matter what the weather is this weekend, I hope you have great plans and a great boss (like me) who gives everyone off for president’s day.  Enjoy!

WEEKLY TAKE AWAY

Who doesn’t love girl scout cookies, better yet who can stop short of eating an entire sleeve of thin mints?  I am working remotely this month, staying with my sister and working remotely with her from her home office in New Jersey. On Monday afternoon a case of assorted boxes of girl scout cookies was delivered to her house.  I borrowed several boxes and distributed them on Tuesday morning as thank you/appreciation gifts (I haven’t even eaten one yet). I was so glad to help people smile and to hear anecdotes about volunteer work with the scouts and how much the cookies were loved. A gift of something you love given in thanks will always be appreciated and understood as real thanks, even if it’s “just” a box of cookies.

TAX ISSUES/TAX PLANNING

The Clock is Ticking; Don’t Miss this Opportunity to Apply for IRS ERC-VD

This week I participated as a panelist for 2 of my accounting professional groups as we discussed this opportunity to apply to the Internal Revenue Service (IRS) for Voluntary Disclosure (VD) for incorrectly applied for and received employee retention credits (ERC). The terms are quite favorable as long as you are eligible and apply before the March 22^nd deadline.  Some key points:

• Return 80% of funds received (keep 20%)
• If the IRS paid you interest along with your employee retention tax credit check, you do not have to repay this interest
• No penalties are assessed or due if you full pay with the application (penalties and interest may apply if there is an installment agreement).
• You do not need to amend income tax returns (you can amend the amended tax return if you have already done so)
• Taxpayers who are unable to repay the funds in full may obtain payment plans
• Application period ends March 22, 2024

As of now, the IRS has informed us that the deadline will not be extended, so if you are concerned that you may not have been entitled to apply for and receive these funds this is your opportunity to reach out to your tax and legal advisors before the IRS identifies you.

Tax Planning is an Important Ingredient in Smart Business Practices

As we hold our year-end review meetings our discussions include tax planning considerations for 2024.  Choices and good planning can make all the difference so be proactive and ask our opinion:

• travel considerations can provide an opportunity for a mini vacay as long as specific rules are followed and supporting documentation maintained
• entity selection coupled with tax incentives (Federal/State/City) can result in a lower tax bill
• employee benefit packages can help retain your employees and encourage prospective employees to join your business or practice (and help reduce your current tax bill)
• timing can be everything; planning expenditures can reduce your taxes while improving processes

NYS Biennial Statement/Fee – Yes You Can File on Your Own

Have you received an official looking notice recently?  Take a good look and check the fine print for the payee.  The NYS Secretary of State’s Office ususally mails out reminders to update your company records and make your bi-annual payment of $9 per company.  One of our clients received an official looking letter/notice regarding the filing of this form with a charge of $150.  After careful review and a call to the NYS Secretary of State’s Division of Corporation’s office, we found that this was a “third party provider” company “offering to file the report” for a fee of $150.  Thanks, but no thanks.  Here’s what you need to do:

• Access the form via the NYS Website: DOS.NY.GOV
• Type in Biennial Statement in the search field or
• Use the link below:
• https://dos.ny.gov/biennial-statements-business-corporations-and-limited-liability-companies
• Once on this page you can navigate for filing and payment method instructions.

When in doubt contact our office before sending a check or responding to a notice.

ECONOMY

The US Economy is “Crushing It” Compared to Other Rich Countries

According to this article in Business Insider: “The US economy is expected to outpace Canada and Germany in 2024 despite inflation and interest rate hikes. Growth is fueled by consumer spending and business investments, while the Fed’s aggressive rate increases aim to control inflation.

• US recession calls are still on the table, but the economy is still outpacing other rich nations.
• US GDP grew at a surprise 3.3% rate in the fourth quarter, beating estimates for 2.0%.
• Outlooks for G7 nations show slower growth and higher inflation compared to the US.”

 Americans Under 40 as a Group Have Seen Their Wealth Surge Since 2019

The New York Federal Reserve reports that wealth inequality in the U.S. has intensified since the pandemic. It has been reported the in the years since the pandemic, while many Americans have enjoyed a wealth boost, thanks to a booming stock market and a rise in housing values but those under 40 have outperformed other demographics during the past five years. It should be noted that even with those gains, the under-40 crowd still holds a fraction of the nation’s overall wealth. The richest 1% now hold a record 32.3% of the nation’s wealth, while the bottom 50% have just 2.9%. This disparity has widened as asset prices, such as stocks and real estate, have surged.

The 20 Worst States for Saving

The article from Accounting Today lists the 20 worst states for saving money, highlighting regions where individuals may find it more challenging to put aside savings.  I  love NY but of course it’s on the list 🙁

Job Growth Twice as Strong as Expected in January

According to this article in Forbes, data released by the Labor Department: In January, the US job market saw a surge, doubling expectations with a significant increase in employment. This robust growth counters recession fears, signaling economic resilience.

Millennials are Running Up More Debt Than Ever Before

Americans — particularly Millennials and those with lower incomes — are becoming increasingly overextended financially: Credit card and auto loan delinquencies have not only surpassed pre-pandemic levels, they’re the highest they’ve been in more than a decade.

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 prior blog posts, videos and prior weekly newsletters
• Entrepreneur put together a listing of free tech resources for remote work
• The Consumer Financial Protection Bureau has warnings about COVID-related scams
• 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
• 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 here for you.

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

Get in touch

Contact us if you have tax concerns, tax minimization questions or want to discuss the next steps for your business success and financial goals.