Weekly Update – March 31st, 2023

A week of sunrises and a shout out about my pod cast interview with Marielle Segarra and her team who produce Life Kit for NPR.  I love how they were able to take some very complicated issues and create a segment that was so concise and understandable.  Here’s the link to the segment

and now for a week of sunrises, with a sunset and a sunrise omelet substitute tucked in…

Red Sky, storm brewing Saturday morning at sunrise
Red Sky, storm brewing Saturday morning at sunrise
Just past sunrise Saturday morning
Just past sunrise Saturday morning

I was out on long island early Sunday morning, so here’s a photo of the healthy “sunrise omelet” I cooked and had with my coffee after I returned home delicious (spinach, mushrooms, tomatoes, peppers)…

healthy sunrise omelet
healthy sunrise omelet
Sunrise on Rockaway Beach Monday morning
Sunrise on Rockaway Beach Monday morning
Sunset on the beach Tuesday evening
Sunset on the beach Tuesday evening
Sunrise on Rockaway Beach Wednesday morning
Sunrise on Rockaway Beach Wednesday morning
Thursday morning, time for a walk on the beach
Thursday morning, time for a walk on the beach
This morning's sunrise
This morning’s sunrise

Ok now, who’s planning to visit me for a walk on the beach and some photo ops?  I am hoping you have great plans for the weekend and the upcoming holidays (I am “dreaming” about my friend Lois’ matzo ball soup).

WEEKLY TAKE AWAY

IT professionals consistently recommend three critical things for small businesses and those of you who store personal data on your computers: data back-up systems, battery back-up, secure firewalls.  Our office systems were set up and continue to be maintained and monitored by our amazing and responsive IT firm JRD Technical Associates and yes I am grateful.  Yesterday morning the power went out as I was just finalizing a tax return review and update.  There I was in the pitch dark but my computer was still on as was my server.   First I thought, oh great a vacation day at the height of tax season then I saved my work and shut down my computer.  Our server battery back-up is so powerful that it never shut down.  The power came on about an hour later, and I took advantage to take a walk on the beach and relax a bit. As an aside our IT firm tests our data back-up system, and I am happy to say it worked perfectly back in October 2012 when our office was destroyed by hurricane Sandy!.

Hurricane Sandy

I am hoping you have a great IT team supporting you too.

TAX ISSUES/TAX PLANNING

IRS Warns Against Shady Tax Preparers in the Annual ‘Dirty Dozen’ Campaign

The IRS warns taxpayers to be cautious of unscrupulous tax return preparers and provides tips to identify trustworthy professionals. The Dirty Dozen campaign lists 12 common scams and schemes that put taxpayers and the tax professional community at risk of losing money, personal information, and data.

There’s Still Time to Contribute to Your 2022 IRA

Reminder if you are planning to make a contribution to your 2022 traditional or ROTH IRA, you still have until April 18th as well.  Please be sure to indicate the tax year as 2022 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.

Consider Making a Back Door ROTH IRA Contribution

For those of you who are not eligible to make a direct contribution to a traditional or ROTH IRA, consider slipping through the back door.  There may be no tax consequences, as long as your traditional IRA contribution is non-deductible and you have no other funds in the IRA account.  Always consult your tax professional and make sure to follow through with the full plan: contribute, wait a bit, roll.   Remember if the traditional IRA account was funded with tax-deductible contributions the amount rolled will be subject to tax.

 FBAR Filing Deadline April 15th

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.

ECONOMY/BANKING

 “US Banking System is Sound and Resilient”

Vice chair of the Federal Reserve Michael Barr said on CNBC this week that we have no need to worry about our banking system in the wake of Silicon Valley Bank’s collapse.

First Citizens Bank to Buy $72 Billion of Silicon Valley Bank Assets

First Citizens Bank will acquire $72 billion in assets from the recently collapsed Silicon Valley Bank, resulting in a 47% rise in First Citizens Bank shares. The deal includes 17 former Silicon Valley Bank branches, which opened their doors as First Citizens Bank branches on Monday.  Smart move with government assistance and deep discount.

Warnings from Economists About the Link Between Commercial Property and Small Banks

Commercial real estate is highly connected to small and mid-tier banks in the US, with smaller banks making up 70% of outstanding loans to the sector, according to Capital Economics. A pullback in lending could cause downward pressure on capital values.

The Best Interest Rates are Being Offered by Online Banks

The Federal Reserve’s decision to increase its key interest rate for the ninth time since March last year has brought welcome news for savers seeking higher yields on their money, with returns on savings accounts and CDs at their best in 15 years. The big banks are offering the lowest interest rates overall.

Crypto Prices Drop as CFTC Sues Binance for Violating Trading Rules

On Monday, the biggest crypto exchange in the world, Binance, was sued by the CFTC for violating trading rules, leading to a 3% drop in bitcoin and ether prices to $27,001.05 and $1,708.73 respectively.

GENERAL RESOURCES

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