Weekly Update – January 20th 2023
You know it’s a good sign when your childrens’ best friends come to visit even when your kids are grown and living in other states. I was so happy to be able to spend time with my “Brooklyn Daughter” Michelle and she humored me by getting up early Monday morning for a cold windy walk on the beach at sunrise…
I am so glad sunrise is still as late as 7:15 (the earliest it’s been in months); as we get closer to spring and crazy times during tax season these great sunrises will continue to be my early rise incentive…
This week my trip into Manhattan to meet with a new professional friend gave me the opportunity to take the NYC Ferry from Rockaway to the Wall Street Station and it was a beautiful morning on the water…
I have so many great memories of taking my children there for the great exhibits and water shows when they were young.
This view of Jamaica bay and the Rockaway peninsula taken from the air, by friends Bob and Ruthanne as they few into JFK that same day, sea & air…
I am looking forward to a weekend of great weather a a visit with Elizabeth who is flying in from Atlanta today, safe travels Elizabeth, see you soon. Hope you all have a great weekend too.
NEW YEAR’S RESOLUTIONS
It’s January 20th, do we even remember what our resolution was? I know the statistics success are not good so googled and found an article with recomendations on follow through, here are some tips:
- Mentally prepare for change
- Set a goal that motivates you
- Limit resolutions to a manageable amount
- Be specific
- Break up big goals into smaller goals
- Write down your goals
- Share your resolutions with others
- Automate where possible
- Reveiw your resolution regularly
- If you fall off track, get back on quick
These resonate with me as steps in the process we use in my accounting firm which help my staff and me successfully complete our projects: our 90 day action plan with weekly huddles where we hold ourselves accountable to each other and our commitments.
WEEKLY TAKE AWAY
I received a call from a professional colleague this week checking in to see if there was anything I needed from their office. She asked if I wanted her to send me some brochures or business cards. I have their number memorized as I am thrilled to have them as a referral source and resource, so no need to send me any paperwork. I then proceeded to tell her how I recently attended some professional dinners and galas and do not have my cards in my clutch. She gave me some great advice that I will use for the future… If you attend a networking event and forget your card, you can always say something like “I don’t give out cards because I want to reach out to you first, so please give me your business card and I will connect with you” (Then make sure you email them the next day so you are connected!)” Thank you Sharyn O’Mara
TAX ISSUES/TAX PLANNING
IRS Hotline “Manned” Again
We tax practitioners have been so fortunate in the past to have a dedicated contact line to the IRS where we can advocate for our clients; we may have been spoiled as we had been able to quickly get through to agents who were able to help us resolve issues. All this stopped as the IRS became overburdened with dealing with stimulus issues and we would be placed on hold for hours only to be told the agents were assisting others and to call back later.
Fast forward to this week, the IRS is now answering the Hotline after only a few rings. I was shocked when the representative picked up after the first ring. In fact my paperwork was not ready to send over and she actually had to wait for me as I was expecting to wait on hold for at least an hour. We laughed as she told me that the practitioner before me was upset when she picked up so quickly as he was in the middle of making breakfast, also expecting to be placed in que for an hour. You know it’s a good day when you can get your IRS representative to laugh with you!
2023 Filing News from the IRS
• January 23, 2023 set as official start to the 2023 tax filing season
• News Release IR-2023-05
• IRS Free File opened Friday, January 13
• Over 168 Million returns are expected to be filed
• Individual Income Tax returns deadline: Tuesday April 18, 2023
• Individual Income Tax returns with an extension are due Monday, October 16, 2023
• Electronic filers expected to receive refunds within 21 days
with direct deposit and no issues on the tax return.
• Exception: Taxpayers claiming the earned income tax
credit or additional child tax credit
• Where’s My Refund? on IRS.gov or on our website for IRS and States:
IRS Clarifies Qualified Appraisal Requirements for Cryptocurrency Donations
Currently and in the past, under IRS code 170, the IRS has required, a qualified appraisal for donations of goods such as fine art when the fair market value exceeded $5,000. Last week the Office of the IRS Chief Counsel released CCA 202302012 relating to charitable donations of cryptocurrency, which sets forth the requirement that: a qualified appraisal is required for donations of cryptocurrency for which a charitable deduction of more than $5,000 is claimed under section 170(a). Typically, a qualified appraisal is not required for donations of certain readily-valued property specifically set forth in the Tax Code and regulations, namely: cash, stock in trade, inventory, property primarily held for sale to customers in the ordinary course of business, publicly traded securities, intellectual property, and certain vehicles. However, the IRS does not currently define cryptocurrency as a publicly traded security. Therefore, no exception to the general qualified appraisal requirements of section 170(f)(11) is available.
How Will This Recession Be Different From 2008?
Economists predict a recession will arrive by the end of this year, but the downturn will likely play out much differently than it did in 2008.
Leaders Descend on Davos Discuss Economics
The World Economic Forum (WEF) returned to Davos this week, with record numbers of government officials and business leaders expected at the elite annual affair.
Eggs a Luxury Item?
Due to a combination of factors, including an avian bird flu epidemic, the price of eggs has more than doubled from last year. It seems crazy, but the price tag for our weekly grocery shopping trips has also more than doubled. My daughter Jessie moved from Atlanta where her egg lady color coded the organic eggs she sold; they were from her pet chickens. Now living just north of San Deigo one of her first tasks was to source eggs and organic veggies from a local farm and luckily they are less expensive than the local supermarket.
Prices Slashed for Several Tesla Models
Last week it was Tesla stock and used cars, this week the deal is avaliable for new cars as well. Elon Musk, looking to boost stock prices and sales of Teslas has cut prices on some of Tesla’s top models by up to 20% across the US and Europe, indicating that the EV firm is in defence mode after months of gradual price increases.
Wyoming Moves to Consider a Ban on Electric Vehicles
Wyoming’s legislature is considering a resolution to phase out new electric vehicle sales by 2035. The questionable move is understood to be more about sending a message to EV advocates than banning the vehicles altogether.
Bitcoin Rally is Suspected to be More than a Blip
Bitcoin is trading back above the $20k level this week, up more than 30% from its cycle low, and is positioned to emerge stronger following a year defined by extreme volatility.
Gold is Expected to Climb as the Year Progresses
With interest rate hikes expected to slow down and hopefully stop soon, economists are watching gold. It’s expected to rise towards record highs above $2000 an ounce this year, though the road there may be rocky.
- 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 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 any questions or want to discuss the next steps for your business.