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We see many news reports, blog posts and webinars discussing AI, Bots, and ChatGPT.  Most highlight the benefits of having AI assist in the repetitive data entry and review, while others point out the concerns staff members have about being replaced by evolving technology.  This week I attended a webinar hosted by my professional group and we were once again reminded that this type of technology is a tool that can enhance our client relationships and our ability to spend time providing support that is valuable to them.  I am glad to share this article from the Karbon Newsletter “6 Ways You Can Use ChatGPT  as an Accountant Now”, thank you Jessica Marcello for sharing such great information; you may find these tips work for your business as well.  Remember it’s a tool and just like using word when creating a document, the computer is not always right.

Due to the severe weather on the east coast last Sunday my flight home was cancelled, silver lining we checked for delays before leaving for the airport and got to spend more time visiting with my daughter and son-in-law, plus when we returned home the warmer weather and rain gave my garden a boost and I made my first batch of pesto last night…

We were so busy enjoying our time together that I only took pictures last Friday morning and included them in that post. I did impress them when I used google lens to confirm that the tree I pointed out on our hike was a walnut tree…

This morning I woke to thunder storms, so no surprise I was the only one out on the beach to shoot some photos of the construction and overcast skies…

The rain will continue through the weekend and on to next week, sounds like our gardens will be happy.   I hope you have saved up some indoor projects or have plans to get together with friends this weekend.

WEEKLY TAKE AWAY

Several times this week I heard requests for transparency and saw the frustration when there was little or none.  Many times our office receives requests for documents or information and we are not quite sure what prompted the request and/or how the information will be used.  For me it is always easier to send pertinent information when I know why someone needs it, that way it will be useful and we won’t need to go back and forth with email requests.  Our office loves the phrase “start with the end in mind” this is how we approach our projects. “Start with the end in mind” works well for negotiations of all types; if you really want the project to be successful or the deal to go through, all parties need to be happy with the end result, feel like they compromised and hashed out a fair deal. It’s important to communicate fully and be transparent with the information.

  TAX ISSUES/TAX PLANNING

IRS is in the News as They Report Success in Audits of High Income Taxpayers

The IRS is showcasing its new capability to aggressively audit high-income tax dodgers as it makes the case for sustained funding and tries to avert budget cuts.  Highlights from the IRS landing page on audits:

• The likelihood of your return being pulled for an audit significantly increases as your income increases.  “Taxpayers with incomes of $10 million and above had substantially higher audit rates than taxpayers in every other income category for each calendar year from 2010 through 2015. Those with incomes above $1 million also had higher exam rates than all other groups earning less.”
• “The typical audits for higher-income taxpayers involve at least three different tax years, often include related entities, and routinely take years to resolve. “
• “Audits of low- and moderate-income tax returns take less time to resolve. Each year, approximately 25 million lower-income taxpayers seek a refundable EITC which on their return involves a single issue that can be quickly resolved, sometimes within a month or so of filing the return.  The IRS averages approximately 300,000 EITC audits per year; error rates on those tax returns are approximately 50%, and the improper payment rate involving EITC claims is more than $17 billion each year.”

Proper planning and documentation are the key to submitting tax returns that are accurate and tax advantaged.  This Monday, July 17th I will be presenting on a webinar panel with :  Karen Tenenbaum, esq and Moshe Zupnick, esq. of Tenenbaum Law   “OMG My Client Owes $$$, What Can I do for Them”.  We will be discussing how to minimize our clients tax burden and how to help with the collections process. Feel free to click through to register, you can also click through to my blog post from May 19th for “take-aways” from a similar presentation.

IRS Warns of New Scam Involving Unclaimed Refunds

Thank you AccountingToday for this alert: “the Internal Revenue Service and its Security Summit partners are cautioning taxpayers and tax professionals to beware of a new scam in which fraudsters are sending out cardboard envelopes from a delivery service asking people to send photos and bank account information so they can receive an unclaimed tax refund.

The envelope has a letter bearing the IRS masthead and claiming that the notice is in relation to your unclaimed refund.

The letter includes contact information and a phone number that don’t belong to the IRS, but it asks for sensitive personal information from taxpayers — including detailed pictures of driver’s licenses — that can be used by identity thieves to try to get a tax refund and other sensitive financial information.”

Incorrect IRS Notices Have Begun Again

• The IRS said it sent bills to taxpayers with the wrong due date, erroneously telling some California residents that their payments were due in 21 days when, in fact, they have until later this year to pay up.   Notice CP14 alerting the taxpayer that a penalty is being assessed as the filing was late when in fact they have additional time until October 16, 2023, due to federal disaster relief.
• Notices that unpaid taxes and penalties are being assessed related to tax returns filed timely with payment.  There is an “easy” fix for this one: send a copy of proof of payment and filing submission.
• IRS notices have been generated related to 2021 tax returns, the notice is generated as matching of estimated payments is not accurate “some payments have not been correctly applied to joint taxpayer accounts“

IRS Reports That Refunds Are Timely

“The IRS issues more than 9 out of 10 refunds in less than 21 days. However, it’s possible your tax return may require additional review and take longer.

If your refund amount isn’t what you expected, it may be due to changes the IRS made to your tax return. These may include:

• Corrections to any Recovery Rebate Credit or Child Tax Credit amounts
• Payments on past-due tax or debts, offset from all or part of the refund amount

For more details, see Tax Season Refunds Frequently Asked Questions.

You can find the most up to date information about your refund on our Where’s My Refund? landing page and by using the links there.

You can use the tool to check the status of your return:

• 24 hours after e-filing a tax year 2022 return
• 3 or 4 days after e-filing a tax year 2021 or 2020 return
• 4 weeks or more after filing a paper return

Where’s My Refund? has a tracker that displays progress through 3 stages: (1) Return Received, (2) Refund Approved and (3) Refund Sent.

ECONOMY

US Department of Labor Awards $11.7m to Help Organizations Prepare Young People for the Workforce in Underserved Communities

The U.S. Department of Labor announced the award of $11.7 million in grants to three organizations to support programs that help youth and young adults in communities affected by violence and poverty to prepare for career success in the labor market.

 Resumption of Student Loan Payments Could Affect Retailers

Just as the American economy is struggling with high inflation and interest rates, the coming resumption of student loan payments poses yet another potential challenge. Deutsche Bank analysts who follow the retail industry estimate that the resumption of the loan payments could shrink consumer spending by $14 billion a month, or an average of $305 per borrower. The biggest blow, they say, will likely be absorbed by online commerce and mail-order companies and by restaurants and bars.

US Jobs Growth Weakest in More Than Two Years

US jobs growth slowed last month in a sign that the weight of higher interest rates may be starting to slow the world’s largest economy.

Fed’s June Meeting Minutes Show Most Policymakers See More Rate Hikes This Year

Almost all Federal Reserve Board members agreed at their last meeting that more interest rate hikes will be needed this year to fight inflation, even while taking a pause from their string of 10-straight increases.

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

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Contact us if you have any questions or want to discuss the next steps for your business.