Weekly Update – June 2nd 2022
As we do our weekly shopping we see prices steadily increasing. The USDA says grocery and supermarket food prices are already 8.6% higher now than a year ago and inflation remains at near 40-year highs. I am hoping to finally plant the seedlings I purchased mother’s day weekend, maybe add a few more of those I am cultivating from seeds and then enjoy my organic garden this summer. I keep thinking of the victory gardens planted by so many during the war years and how they signaled support for our troops and others fighting for the good of our planet. I am looking at my “victory garden” the same way and always get the most enjoyment from sharing the produce with friends…
Even though I have been procrastinating on planting the seedlings, I am glad for the herbs which come up on their own and need little tending. A few sprigs of rosemary and the avocado toast I made for breakfast was so inspirational…
That this shared photo inspired my daughter Jessie to make some too…
Last night as I read while sitting on my second floor porch listening to the rain and thunder, seeing the lightening flashes I was glad to be under sufficient shelter, but also thinking of my lawn and the herbs that were already blooming…
I checked in with a friend who had recently undergone knee surgery, and was happy to hear how well she was doing. As she shared specifics about the pre and post surgical care she was receiving I kept thinking “they have created and follow a great process”. In our office we continue to tweak and most importantly follow our processes and regret when we stray.
TAX ISSUES/TAX PLANNING
IRS Boosting Audit Rates of Wealthy Taxpayers
The Internal Revenue Service is taking steps to increase its audit rates of higher-income taxpayers after coming under sharp criticism in Congress over its lagging audit numbers.
In conjunction with the release last week of its annual Data Book for 2021, which contains a wealth of statistics on examination rates, the IRS response to the COVID-19 pandemic, the provision of advance Child Tax Credits and Economic Impact Payments, along with the usual information on the number of returns processed, revenue collected and tax refunds issued, the IRS released a separate statement providing an update on its latest audit numbers, pointing to how it is increasing its audits of higher-income taxpayers.
Tax Reporting on Crypto Currency Investments
The plunging value of many cryptocurrencies and nonfungible tokens has led to worries about the tax implications faced by crypto investors and companies.
Of particular concern are recent requirements from the 2021 infrastructure bill pertaining to crypto. The bipartisan infrastructure law passed by Congress last November requires crypto brokers to report their gains on a 1099 form, while businesses and exchanges that receive more than $10,000 in cash and equivalents will need to report their gains and losses. President Biden also signed an executive order in March calling on the Treasury Department and federal regulators to develop greater oversight of the digital assets market.
Look to 529 Plans as a Tax Minimization Plan
Even if your state does not offer a tax credit or reduction for contributions these plans allow your invested funds to grow tax free. This link to an article about the NYS 529 College Savings Plan gives some great insight and tips to help with the planning. Check in with your accounting professional about options your home state, spending limitations and potential tax benefits.
FOR OUR GRADUATES
Congratulations to our graduates, how exciting and scary this time is for you. As you celebrate with friends and family and field questions and advice about your plans for the future try to keep that smile on your face and remember:
- Highlight life experience on your resume and during your interview
- Check out the company website before you send out your cover letter and/or meet for an interview
- Focus on your short term and long term goals.
- Your major may not have prepared you for something specific, but researching potential careers via internet, your college or high school career office or brainstorming with friends and family may set you on the right path
- Be honest, it’s hard to be excited about a job or career where expectations are so unknown.
Good luck and remember to smile…
Rising Inflation Rates
President Joe Biden met with Federal Reserve Chair Jerome Powell at the Oval office on Tuesday to discuss the state of the American and global economies. They focused on the rising prices and plotted inflation-fighting strategy.
Holiday Deals or Sales May be a Thing of the Past
We tend to hold off on purchases of big ticket items waiting for “Black Friday”, “Memorial Day Sales” or other holiday sales. We saw this weekend that the ongoing crunch in the supply chain means typical Memorial Day weekend car sales simply weren’t available this year. This is also driving up the demand for used cars.
The Federal Reserve Raises Rates
Federal Reserve Governor Christopher Waller said he would support hikes that exceed the “neutral” level, currently pegged around 2.5% for the Fed’s benchmark borrowing rate.
Should Stock Market Rules Change
Investor advocates are calling for a change to stock market rules amid Elon Musk Twitter takeover. Musk’s 11-day delay in disclosing that he had purchased 9.1% of Twitter allowed the Tesla CEO to buy shares at a lower price — saving him roughly $140 million.
Gas Prices Continue to Climb
Gas prices continued to soar over the Memorial Day weekend as nearly 35 million Americans hit the road for the holiday.
- 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 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.