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 |  Bizink  |  American Rescue Plan Act,  ARPA,  covid-19,  IRA Contribution,  IRS form 6419: Advance Child Tax Credit,  Tax Season 2022

Weekly Update – April 14th 2022

For once I am glad that tomorrow is NOT the filing deadline.  We accounting professionals usually look forward to closing the office and going on vacation on April 16th.  This year the deadline is actually April 18th and this little bit of extra time means that families can get together for the Easter/Passover holiday and include their favorite accountant without guilt.

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This lovely vase of flowers sits in my office reminding me that it really is spring and I am glad that in a few days I will be able to go to the beach mid-day.

This shot was taken at around 6PM at the end of a long day in the office!

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Wishing everyone who is celebrating a happy Easter and Passover, looking forward to those 4 questions and 4 glasses of wine…

TAX ISSUES

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.

There’s Still Time to Contribute to Your IRA

Reminder if you are planning to make a contribution to your 2021 traditional or ROTH IRA, you still have until April 18th as well.  Please be sure to indicate the tax year as 2021 when submitting the documents and payment to your broker or banker.  As always we recommend that you check with your accountant before submitting your paperwork to see if you are eligible and what the tax benefits would be.

Deadline for Estimated Federal Tax Payments: April 18

Self-employed individuals, retirees, investors, businesses, corporations and others who make estimated tax payments should be reminded that the payment for the first quarter of 2022 is due Monday, April 18. The 2022 Form 1040-ES, Estimated Tax for Individuals, can help you estimate your first quarterly tax payment.

Reminder: The Automatic 6-Month Extension to File is NOT an Extension of Time to Pay

If you’re unable to file your tax return by the April 18 deadline, the IRS has an  online option to get more time to complete your return for you DYI’s to request an automatic six-month extension through their IRS Free File.

Remember this is an extension of time to file, not an extension of time to pay!  As they say the proof is in the pudding; the real challenge is calculating your balance due and finding the funds to make the required payment.

April FBAR Deadline

The IRS reminds US citizens, resident aliens, and any domestic legal entity that the deadline to file their annual Report of Foreign Bank and Financial Accounts (FBAR) is April 15. Lucky for us tax professionals this filing requirement is also able to be extended. Learn more about filing deadlines on the Financial Crimes Enforcement Network’s (FinCEN) website.

Requesting an Identity Protection Pin from the IRS

All taxpayers, especially those who are victims of identity theft, should take an important step to protect themselves from tax fraud. By requesting Identity Protection PINs from the Get an IP PIN tool on IRS.gov, you can prevent identity thieves from claiming tax refunds in your names.

IRS Debunks Myths About Tax Refunds

A number of new and common myths circulate on social media every tax season. The IRS released key information to dispel these myths and to help people with the April 18 tax-filing deadline. Some of these myths include:

  1. Calling the IRS or visiting an IRS office speeds up a refund.
  2. Taxpayers need to wait for their 2020 return to be processed before filing their 2021 return, or that all refunds are delayed due to the number of 2020 returns the IRS still needs to process.
  3. Taxpayers can get a refund date by ordering a tax transcript
  4. Where’s My Refund? must be wrong because there’s no deposit date yet
  5. Where’s My Refund? must be wrong because a refund amount is less than expected
  6. Calling a tax professional will provide a better refund date
  7. Getting a refund this year means there’s no need to adjust tax withholding for 2022

Find out the truth behind these myths! Want to check on your refund the easiest way? Use Where’s My Refund?, an online tool available on IRS.gov or the IRS2Go mobile app.

ECONOMY

IBM Study: Financial Fraud a Big Problem in the US

The 2022 IBM Global Financial Fraud Impact Report found that US citizens have been victimized more regularly than all other countries surveyed in the report. It also found that the average American consumer loses about $265 per year in fraudulent financial charges made by unauthorized third parties. While modern technologies aim to prevent fraud, always be vigilant about your financial activities online, as fraudsters still manage to find a way to get their victims.

Consumer Prices Rose 8.5% in March

Headline CPI in March rose by 8.5% from a year ago, representing the fastest annual gain since December 1981 and one-tenth of a percentage point above the Dow Jones estimate of 8.4%. The increase in food, energy, and shelter costs contributed to the gain. However, there were signs that core inflation appeared to be ebbing, as it rose just 0.3% for the month, less than the 0.5% estimate.

NFIB: Small Business Confidence Fell in March

Small business confidence fell in March, with 31% of owners reporting that inflation was their single most important problem the largest since 1981, according to a survey by the National Federation of Independent Business. Small Business Optimism Index dropped 2.4 points to 93.2 last month, the third straight month of readings below the 48-year average of 98.

Government Has Just 1% of EV Chargers It Needs

The government owns about 1,100 EV charging stations, and it may need more than 100,000 to support widespread EV use in the next decade, according to testimony from the Government Accountability Office (GAO). GAO has identified charging infrastructure costs and installation as a key challenge to acquiring EVs for federal fleets. Last month, the government unveiled a plan to award nearly $5 billion over the next five years to build thousands of EV charging stations.

GENERAL RESOURCES

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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