Weekly Digest – October 7, 2022
All this rain brought me another 100+ fig week and I am so glad that I can trade my figs for my friend’s heirloom tomatoes…
We are doing some work on my house (yes finally finishing our kitchen); the other day one of the carpenters explained that my figs and fig tree saved his hand: he relayed that he was out in our backyard, smashed his finger with a tool, looked up into the branches of my fig tree and saw a burst fig (I guess we missed harvesting a few). He told me he rubbed the fig all over his finger and hand and it seemed to feel better. Not a miracle, I googled and found that figs have medicinal powers both eaten and applied topically.
This Sunday starts the holiday of Sukkot a celebration of the harvest; we are invited for Sunday evening in a friend’s succoth. I will bring freshly harvested figs (of course) kale creaser salad and malabar spinach curry, all picked from my garden. I will share photos next week.
Wishing those who celebrate Sukkot a happy holiday; those who don’t, a great weekend.
WEEKLY TAKE AWAY
We hear “delegate, delegate, delegate” and that certainly make sense. We see that delegating certain project steps may work really well, but not without oversight, patience, and proper training. We are always tweeking our processes to provide more clarity about tax laws and deadlines but no matter what, crunch times and bottlenecks occur. With another major tax deadline around the corner: October 17th, we will continue to share responsibilities and look for efficiencies as we “delegate, delegate, delegate” with oversight, patience, and proper training.
TAX ISSUES/TAX PLANNING
IRS Relief Programs for Several States
The IRS has made a number of changes aimed at providing tax relief to those in several states who have suffered due to drought, Coronavirus, and Hurricane Ian. Links to several specific programs can be found here.
Hurricane Ian Victims Relief via IR-2022-168
Yesterday the IRS issued IR-2022-168: Hurricane Ian victims throughout Florida now have until Feb. 15, 2023, to file various federal individual and business tax returns and make tax payments related to deadlines beginning September 23, 2022.
The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). This means that individuals and households that reside or have a business anywhere in the state of Florida qualify for tax relief. The current list of eligible localities is always available on the disaster
relief page on IRS.gov.
The Automatic 6-Month Extension Deadline is Approaching
If you were unable to file your tax return by the April 18th deadlines, you should have filed your 2021 extension with any balance due and possibly the first estimate for 2022. We are coming up to the filing deadline of October 15th, which if not met may cause additional penalties and interest.
Still Time to Make Annual SEP/IRA Plan Contribution
The upcoming individual tax return filing deadline of October 15th is also a deadline for funding your company’s SEP/IRA for sole proprietorships. This is a great tax minimization planning technique, take the funds from the tax liability pocket and put them into the pension plan pocket where they can grow tax free until retirement or required distribution dates.
NYS is Issuing Checks for Empire State Child Credits and Earned Income Credits
This month, the New York State Department of Taxation and Finance will begin mailing checks to approximately 1.8 million New Yorkers who received the 2021 Empire State Child Credit, the Earned Income Credit (or Noncustodial Parent Earned Income Credit), or both. If you qualify for one or both payments, you don’t need to do anything; The Department of Taxation and Finance will automatically calculate the total payment and mail them a check.
IRS Extends Portability Elections for Estates
The IRS has just released Rev. Proc. 2022-32 extending the timeframe for filing a late portability election for federal estate tax purposes. This is extremely important to those who did not timely file a federal estate tax return (Form 706) when the first spouse died. Previously, the IRS only allowed a late portability filing (in certain circumstances) within two years of death—this change extends the filing period to five years from date of death. Prior to this recent change, if Form 706 was not filed the executor would have to request special dispensation from the IRS: a private letter ruling request, which was costly and not guaranteed.
Wall Street Begins October a Bit Stronger
In what many are hoping is a new trend for October, the Dow Jones, Nasdaq, and the S&P 500 were all up for the first trading day of the month. Experts are split on whether this trend is sustainable, but traders are finally feeling some optimism.
Financial Security Watchdog Pushes for Tighter Oversight of Cryptocurrencies
The Treasury Department’s Financial Stability Oversight Council released a new report on digital assets Monday, saying cryptocurrencies could threaten the safety of the U.S. economy.
“Golden handcuffs” May Be Effecting the Housing Market
Those hoping for the housing market to crater in hopes of finding a way in may have to wait. With many homeowners locked in to rates they would no longer be able to get today, they’re putting off selling indefinitely.
Gas Shortages May Lead to Electricity Disruptions in Europe this Winter
Energy regulator Ofgem said this week that Europe and the UK are at significant risk of gas shortages this winter due to Russia’s war with Ukraine. It’s not clear if this could result in electricity blackouts or energy rationing.
- IRS resources for stimulus payments:
- IRS information about 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 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.
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