Blog

Sending best wishes and our thanks to our veterans and their families this Veterans day 2024.  We salute you and appreciate your courage and service to our country.

We are still working on our website update and now have a topic search tool (find it along the top bar and in each tab as well↘️⬇️↙️).  I tested it looking for information on Beneficial Ownership Information (BOI) Reporting, and it brought up several blog posts so it works 👍🏼👍🏼. The filing deadline for most businesses that are subject to the filing is still January 1^st 2025.  I’ve been speaking about BOI as a member of a panel with 2 of my friends as well as posting here and alerting our clients.  Our firm is working with a third-party software provider to assist and help monitor the process/submission status.

We’ve had a week of great weather ☀️🌇🌅 👣and with our clocks ⏰🕰️re-set for daylight savings time sun rise is now around 6:30 rather than 7:30. For me that’s been a huge benefit as I have been able to walk “earlier” and further before I start work (my alarm does still wake me at 6 AM though).  I am glad to share some of this week’s sunrise photos…

I am wishing everyone a great 3-day weekend and for those of you who are off or working just a half day today, enjoy.

Weekly Take Away

Much of my time in the office is spent on the phone or in video chart meetings; it’s hard to judge how someone’s day is going.  Sometimes just being kind in your interaction (even with a stranger) can make all the difference in the outcome, and even “make someone’s day”.  Kindness and consideration of others can go a long way especially in these times when it seems so many people have been on edge for various reasons and are struggling.

TAX ISSUES/TAX PLANNING

Beneficial Ownership Information (BOI) Reporting Requirements Under Corporate Transparency Act (CTA) enacted in 2021: Due Date is …Almost Here

This time for real, except as for recently granted extensions for those business affected by Hurricane Helene, Debby, Beryl, Francine and Milton as per FinCEN Notices 2024-NTC7 through 024-NTC11 dated October 29th 2024.  Those businesses will have an extra six months to submit beneficial ownership information (BOI) reports, including updates or corrections to previous reports.

We have been discussing this filing requirement with our clients for months now, the required reporting for most businesses is January 1st 2025, here are the details:

Reporting Companies

• The rule identifies two types of reporting companies: domestic and foreign. A domestic reporting company is a corporation, limited liability company (LLC), or any entity created by the filing of a document with a secretary of state or any similar office under the law of a state or Indian tribe. A foreign reporting company is a corporation, LLC, or other entity formed under the law of a foreign country that is registered to do business in any state or tribal jurisdiction by the filing of a document with a secretary of state or any similar office. Under the rule, and in keeping with the CTA, twenty-three types of entities are exempt from the definition of “reporting company.”
• FinCEN expects that these definitions mean that reporting companies will include (subject to the applicability of specific exemptions) limited liability partnerships, limited liability limited partnerships, business trusts, and most limited partnerships, in addition to corporations and LLCs, because such entities are generally created by a filing with a secretary of state or similar office.
• Other types of legal entities, including certain trusts, are excluded from the definitions to the extent that they are not created by the filing of a document with a secretary of state or similar office. FinCEN recognizes that in many states the creation of most trusts typically does not involve the filing of such a formation document.

Beneficial Owners

• Under the rule, a beneficial owner includes any individual who, directly or indirectly, either (1) exercises substantial control over a reporting company, or (2) owns or controls at least 25 percent of the ownership interests of a reporting company. The rule defines the terms “substantial control” and “ownership interest.” In keeping with the CTA, the rule exempts five types of individuals from the definition of “beneficial owner.”
• In defining the contours of who has substantial control, the rule sets forth a range of activities that could constitute substantial control of a reporting company. This list captures anyone who is able to make important decisions on behalf of the entity. FinCEN’s approach is designed to close loopholes that allow corporate structuring that obscures owners or decision-makers. This is crucial to unmasking anonymous shell companies.
• The rule provides standards and mechanisms for determining whether an individual owns or controls 25 percent of the ownership interests of a reporting company. Among other things, these standards and mechanisms address how a reporting company should handle a situation in which ownership interests are held in trust.
• These definitions have been drafted to account for the various ownership or control structures reporting companies may adopt. However, for reporting companies that have simple organizational structures it should be a straightforward process to identify and report their beneficial owners. FinCEN expects the majority of reporting companies will have simple ownership structures.

Many of you will be able to analyze your situation and prepare and submit on your own (BOI Report Submission Link).  Our office has engaged a third-party provider to assist us in submitting reports for those clients we will assist as they determine if their entity is required to report and who the beneficial owners of those entities are.  Where did  the time go?

ECONOMY

The Magnificent Seven Monitor

As reported in this recent article from Reuters.com:  “Track the U.S. technology stocks that dominate the market. They’re Wall Street’s big guns. Stocks with so much swagger that they earned a nickname conjured from Hollywood’s golden age.”

DHL eCommerce Publishes US-Focused e-Commerce Shopper Report

As reported in this recent article from ParcelAndPostalTechnologyInternational.com:  “Ahead of this year’s peak season, DHL eCommerce has released the latest installment of its Online Shopper Trends Report with a special report that reveals insights from the US market. According to Lee Spratt, CEO of DHL eCommerce Solutions, Americas, “Understanding the preferences and shopping behaviors of American online shoppers is crucial for online merchants looking to maximize their success during the holiday peak season.  “This report provides how and what Americans buy online, their delivery and returns preferences, and where they’re buying from,” he added.

Key trends seven critical factors for online merchants to consider this peak season and beyond:

• Frequent online shoppers: 61% of American shoppers buy online at least once a week, with 84% browsing for their next purchase at least once a week. 63% of Americans buy online clothing and footwear, followed by 33% for consumer electronics and 30% for health supplements. This demonstrates a vibrant and active online shopping community eager for new deals and products, particularly in online apparel.
• Importance of delivery options: 94% of US shoppers say delivery options influence where they shop online. Offering a variety of delivery choices, including home delivery, parcel lockers and parcel shops, is crucial. Additionally, 45% of consumers abandon their baskets if their preferred delivery option is not available.
• Subscription services: 43% of Americans have an online shopping subscription, with pet food subscriptions being particularly popular (44% compared to 25% globally). Retailers should consider introducing or enhancing subscription services to cater to this growing trend.
• Social media influence: 61% of shoppers use social media for shopping inspiration, and of these, 26% have made a purchase directly on a social platform. Engaging customers through social media is essential for driving traffic and sales.
• Marketplaces dominate: 99% of US shoppers buy from marketplaces, with Amazon (92%), eBay (47%) and Walmart (68%) being the most popular. Ensuring a strong presence on these platforms can significantly boost visibility and sales.
• Cross-border shopping: 37% of Americans buy from online retailers in other countries, with 70% doing so at least once a month. Offering simple, free returns can increase confidence in cross-border shopping. Of the 49% of Americans who buy from abroad, most shop from China (64%), the UK (29%), France (23%), Canada (15%) and Germany (13%).
• Sustainability: While 58% of shoppers say sustainability is important, they are not necessarily willing to pay more for sustainable delivery options. Retailers should focus on offering sustainable choices without additional costs to attract environmentally conscious consumers.”

US Employers Added Just 12,000 Jobs Last Month as Hurricanes and Strikes Sharply Reduce Payrolls

As reported in this recent article from APNews.com:  America’s employers added just 12,000 jobs in October, a total that economists say was held down by the effects of strikes and hurricanes that left many workers temporarily off payrolls. The report provided a somewhat blurry view of the job market at the end of a presidential race that has pivoted heavily on voters’ feelings about the economy.   Last month’s hiring gain was down significantly from the 223,000 jobs that were added in September. But economists have estimated that Hurricanes Helene and Milton, combined with strikes at Boeing and elsewhere, had the effect of pushing down net job growth by tens of thousands of jobs in October.  [Last]Friday’s report from the Labor Department also showed that the unemployment rate remained at 4.1% last month. The low jobless rate suggests that the labor market is still fundamentally healthy, if not as robust as it was early this year. Combined with an inflation rate that has tumbled from its 2022 peak to near pre-pandemic levels, the overall economy appears to be on solid footing on the eve of Election Day.”

Key Inflation Rate Hits 2.1% in September, as Expected, Closing in on Federal Reserve’s Target

As reported in this recent article from NBCNews.com:  “Inflation increased slightly in September and moved closer to the Federal Reserve’s target, according to a Commerce Department report [Last] Thursday.   Inflation increased slightly in September and moved closer to the Federal Reserve’s target, according to a Commerce Department report [Last ]Thursday.  The personal consumption expenditures price index showed a seasonally adjusted 0.2% increase for the month, with the 12-month inflation rate at 2.1%, both in line with Dow Jones estimates. The Fed uses the PCE reading as its primary inflation gauge, though policymakers also follow a variety of other indicators.  Fed officials target inflation at a 2% annual rate, a level it has not achieved since February 2021. The September headline rate was down 0.2 percentage point from August.  Though the headline number showed the central bank nearing its goal, the inflation rate was at 2.7% excluding  food and energy, after the so-called core measure increased 0.3% on a monthly basis. The annual rate was 0.1 percentage point higher than forecast but the same as in August.  The move in inflation was tilted toward services prices, which increased 0.3%, while goods prices decreased 0.1%, the fourth outright deflation figure in the past five months for the category. Housing prices eased off their pace, rising 0.3%. Energy goods and services fell 2%.  The report comes with markets betting heavily that the Fed will cut its benchmark short-term borrowing rate when it meets next week. In September, the central bank slashed the rate by a half percentage point, a move virtually unprecedented during an economic expansion.  Policymakers have expressed confidence that inflation is heading back to target while at the same time showing concern over the state of the labor market despite most indicators showing that hiring is continuing and layoffs are low.

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
  • A list of frequently asked questions on the advance Child Tax Credit Payments
• IRS links for disaster relief
• SBA link for Disaster assistance
• FinCEN link for BOI reporting
• 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

Get in touch

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