Weekly Update– November 25, 2022
Thanksgiving, a time of reflection, we/I have so much to be thankful for, not just at this time of year, but throughout the year. I wonder why we focus on our disappointments. Two weeks ago the Powerball was 1.6 billion dollars, our office bought tickets as a group in all our locations: Florida, Georgia, New York, New Jersey. We didn’t win, but it was fine as we played for fun, with no expectations. As we were in our weekly huddle I just thought about how grateful I am that I am no longer in pain and can visit my family in person and just enjoy being with them and seeing them happy and healthy. So we can wish for more, but enjoy what we have all year through
I am so glad to be able to share this week’s photo of the beach before I left for Michigan winter and from friends celebrating with their families where it’s still fall…
Rockaway Beach, NY
Michigan “winter”, at sunrise with the Sandhill Cranes who live in the preserve across the lake singing to us
I am not a great traveler, but thanks to my friend Joel’s photo from the terrace of his parents home in France, I’m ready to visit too, great foliage
On long Island, it’s still fall, thank you Maria for the beautiful shot from your backyard
My blog post today would not be complete without a photo of the beautiful thanksgiving meal with delicious sides. While “googling” how to make a turkey in the oven (I have always cooked mine on the grill) we found this funny (some R language) video by the chief Tante Marie cooking a turkey in the oven.
I think the best part may have been the prep; we worked together as a team – the hosts and guests, running around, helping each other, finishing each other’s thoughts, voting on temperature settings and of course knowing my husband David was on hand to sharpen the knives and clean up the messes we made.
Whishing you all happinss and health this holiday season and all year long.
WEEKLY TAKE AWAY
This is either a special thanksgiving or regular hosting takeaway. No matter what you have purchased, ordered, or planed for your menu, it all goes out the window when your guests walk in with a bottle of wine and/or champagne, anarray of homemade desserts, their special stuffing, an unexpected main and/or side dish. Serve it up, announce it, praise it etc. It’s the thought that counts and the care that your friends and family took when choosing how to support and help you.
TAX ISSUES/TAX PLANNING
Last week I attended what for me is the most critical annual conference. Here is a list of some key federal tax related take-aways:
- IRS still has a huge backlog of tax returns to process. They also continue to generate notices with incorrect details. In order to address this problem they are looking towards setting up a scanning mechanism to move paper documents through the system.
- The IRS is setting up text and voice bots and text chats to answer basic questions. This is now offered on IRS.GOV
- The IRS has established Taxpayer Assestance Centers (TAC) you can stop in to obtain forms without an appointment, but if you need assistance you must make an appointment and bring official ID and all relevent supporting documentation.
- Reasonable compensation is a hot audit topic. If an IRS audit determines that compensation of officers, family member employees or owner employees is not consistant with their role in the company they can reclassify these payments as a distribution which can bust the S Corp election. Even without a looming audit it is critical to properly document a family member’s role in the business for consistancy with market values. We are purchasing a salary analytics software product to help support our clients when setting salaries.
- I’ve included this tip in proir blogs: as we approach year end, now is the time to meet with your advisor to see if loss harvesting is right for you.
Here is a list of some key New York State tax related take-aways:
- The NYS mandatory automatic employee IRA law is in effect, but so far there are no regulations or penalties in place for non-compliance
- A multi state tax commission has been formed to address various tax Nexus issues
- The NYS homeowner tax rebate credit (HTRC) is a one-year program providing direct property tax relief to apporximately 2.5 milling eligable homeowners in 2022.
- Effective December 1, 2022, retail sales of diapers intended for human use are exempt from state and local sales and use taxes. This includes, but is not limited to, disposable, reusable, adult, and children’s diapers.
FOR OUR STUDENTS WHO STILL HAVE OUTSTANDING LOANS
A number of lawsuits have been filed against the student loan forgiveness program, leaving borrowers in limbo while they wait for them to move through the courts.
- The Biden administration announced that it will extend the payment pause on federal student loans while its forgiveness plan remains blocked in the courts.
- Federal student loan bills were scheduled to resume in January.
- The administration’s move comes in response to a federal appeals court ruling last week that imposed a nationwide injunction on the debt relief plan.
When I access the federal student aid page on line this is the message:
Courts have issued orders blocking our student debt relief program. As a result, at this time, we are not accepting applications. We are seeking to overturn those orders.
If you’ve already applied, we’ll hold your application. Subscribe and check back here for updates. We will post information as soon as further updates are available.
Goldman Sachs Says the Bear Market Will Last Well Into 2023
Goldman Sachs strategists anticipate that the recent stock market rally will soon come to an end, saying that the conditions for an equity trough have not yet been reached.
Tech Layoffs Aren’t a Sign of Things to Come for All Industries
Analysts at Morgan Stanley say they are doubtful that the mass layoffs in the tech sector this month are a harbinger of change for the wider labor market.
Money Tips for Millennials to Make Themselves Rrecession-Proof
Insider rounded up four things millennials with full-time jobs should do during these tough economic times. Learn what they are here.
Security Summit to Protect Against Identity Theft
The IRS and state tax agencies announced a special week to focus on empowering taxpayers to protect sensitive financial information against identity thieves as the holidays and the 2023 tax season get closer. Details can be found here.
- 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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