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I am just back from a much-needed vacation and elbow deep in work once more.  In our office we hold weekly huddles where we discuss ongoing tax planning projects, tax resolution work, and those ever-present upcoming deadlines. Just yesterday we worked up our 90 Day action plan which focused on completing all in-house business, trust and personal tax returns so we can file for refunds for our clients AND clear our desks for a more relaxed summer.  During our huddles we discuss taking on new clients and disengaging from others. I am happy to say that we are working with some great business owners in various industries who we enjoy speaking with and assisting.  We also feel very much appreciated especially when we can call on relationships with other professionals and IRS and state tax liaisons to help advocate for our clients and gain successful outcomes. Thank you for putting your trust and confidence in us we love being part of your support team.

Several days this week I headed out to meetings before I could catch the sun, even today it was hiding, but it is still nice to start the day with a walk on the beach…

Looking forward to gardening season…

If my herbs are sprouting does this mean I have to cook…

I am hoping you have some great plans for the weekend, even with our local prediction for a bit of clouds and rain.

WEEKLY TAKE AWAY

I’m looking for the silver linings and finding them every day.  It’s so easy to “get bummed out” when something bad or unexpected happens.  As I was skiing last week my ski tip caught an edge and as I fell, I felt and heard a pop in my left knee.  Yes, my knee was unstable and I had to be taken down from the slopes in a toboggin. Silver lining:  they treated me in the clinic at the base, gave me a brace AND it was only a minor strain which will heal on its’ own: a 6-week injury (2 down and 4 to go) and I don’t need surgery! I still had a great vacation in a beautiful area and had a great time with my family.  Today’s silver lining was that even though the beach access on my block has been treacherous for months, the access just one block either east or west is safe with handicap ramps and hurricane fencing.  I have even been finding silver linings when handing IRS issues for my clients:  a big THANK YOU goes out to the IRS Taxpayer Advocate Services Group, who have been so helpful with expediting those lingering taxpayer issues issues!

TAX ISSUES/TAX PLANNING

Tax Season is Over, It’s Tax Planning Season

As we enter the second quarter of 2024 let’s look to evaluate business and personal goals and take the opportunity to strategize:

• Proactive tax planning can help minimize current and future tax liability
• Analize, discuss and understand choices before you:
  • lease or buy work vehicles
  • commit to health insurance plans
  • sign up for a conference
  • make plans for you summer vacations
  • sell or buy business real estate
  • consider financing options including re-finance of existing business and/or personal debt
  • sign up for retirement plans or benefits

Remember Silver Linings🩶🌈🌥️🌤️, let’s not say “I wish I had…”

IRS Offers Resources for Entrepeneurs for National Small Business Week 2024

Nation Small Business Week 2024 runs from April 28^th through May 4^th. The IRS has published several articles for small business owners, employers and self-employed individuals.  I am happy to review the topics and share the link to their list and publications:

• Small Business Best Practices
• What to Know when Starting a Business
• Beware of Scams
• Resources for Tax Pros Who Support Small Business
• Expect the Unexpected
• Resources for Small Business

This link will lead you to a page with the following:

• choosing a business structure
• understanding business taxes
• choosing a “tax year”
• be a responsible recordkeeper

I would like to add:  in general, seek out a knowledgeable professional to consult with, one who has the necessary expertise for your needs, one who has resources and contacts to supplement their expertise (we call them strategic partners) and who has the capacity within their firm to help you and your business succeed and reach you goals.

ECONOMY

The Economy Grew 1.6% During the First Quarter of 2024

According to this article in USA Today:  “The U.S. economy slowed more than expected early this year as weaker business stockpiling and exports offset solid consumer spending and a flurry of housing construction.

The nation’s gross domestic product, the value of all goods and services produced in the U.S., expanded at a seasonally adjusted annual rate of 1.6% in the January-to-March period, the Commerce Department said Thursday. That’s down from robust growth of 4.1% in the second half of last year and the lowest reading since spring 2022. It’s also below the 2.5% gain projected by economists in a Bloomberg survey.

But the pullback was caused chiefly by businesses that replenished their inventories more slowly and feeble export growth – two volatile categories that don’t reflect the economy’s fundamental health. Final sales to private domestic purchasers – which excludes those elements as well as government spending – grew a robust 6.1%.

That “illustrates there is still a lot of positive underlying momentum,” Paul Ashworth, an economist with Capital Economics, wrote in a note to clients.”

Overdraft/NSF Revenue in 2023 is Down More than 50% Versus Pre-Pandemic Levels

According to this article from The Consumer Finance Protection Bureau who have been “monitoring trends in overdraft/non-sufficient funds (NSF) fee revenue and practices:

• Banks reported annual overdraft/NSF revenue has dropped by $6.1 billion since before the pandemic
• In 2023, overdraft/NSF fees were approximately $1.8 billion lower than in 2022, a 24% decrease.
• Banks appear to have stopped significantly reducing overdraft fees, as their major policy changes have taken effect and further policy changes have slowed.
• Financial institutions are generally not increasing other checking account fees to compensate for reduced overdraft/NSF revenue.”

Confounding US Economic, Inflation Data Cloud Federal Reserve’s Rate Path

According to this article in Reuters: “The Federal Reserve’s latest financial stability report was good news for anyone worried that a record run of interest rate hikes might overstress the banking system or trigger a recession with companies and households pushed into default through a broad credit crackdown.

International Monetary Fund’s Georgieva Says There’s ‘Plenty to Worry About’ Despite Recovery for Many Economies

According to this article in APNews,com:  “The head of the International Monetary Fund said Thursday that the world economy has proven surprisingly resilient in the face of higher interest rates and the shock of war in Ukraine and Gaza, but “there is plenty to worry about,’’ including stubborn inflation and rising levels of government debt.

“ Inflation is down but not gone,’’ Kristalina Georgieva told reporters at the spring meeting of the IMF and its sister organization, the World Bank. In the United States, she said, “the flipside’’ of unexpectedly strong economic growth is that it ”taking longer than expected’’ to bring inflation down.

Georgieva also warned that government debts are growing around the world. Last year, they ticked up to 93% of global economic output — up from 84% in 2019 before the response to the COVID-19 pandemic pushed governments to spend more to provide healthcare and economic assistance. She urged countries to more efficiently collect taxes and spend public money. “In a world where the crises keep coming, countries must urgently build fiscal resilience to be prepared for the next shock,’’ she said.”

GENERAL RESOURCES

• News about the Child Tax Credit
• 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