Weekly Update – October 14th, 2022
The sukkot dinner Sunday evening was really lovely, with special red wine from the Ukraine for toasting and blessings I have also joined in for the daily ritual of shaking the lulav and etrog. The first 2 and last 2 days are the most strict, so I waited until Wednesday for photos. It was really nice to understand the meaning behind the traditions.
Even as I am getting tired of picking, photographing, and discussing this year’s crop of figs, but I got nervous as it started getting cold and the number of ripening figs dropped. I googled “my figs are not ripening and it’s getting cold”. I read several articles about the benefits of pruning, then started clipping, 2 days latter I picked 33 ripe ones, 3 days latter I picked 24, good to know. This morning Raquel and I picked 47 to keep and tossed several split ones into the compost. Then I looked up how to freeze them…
Always beautiful at the beach at sunset, I took a much needed a break from taxes and walked down the block …
I’ll be working to finalize as many returns as possible these next few days; wish me luck please.
WEEKLY TAKE AWAY
When you have a deadline such as your tax return filing, dreading compiling the paperwork may be worse than hunkering down and just doing it. We are approaching the last few days of the 2021 individual tax return submission deadline, which also includes the last few days for e-filing 2019 tax returns within the statute of limitations. We are fielding emails and calls from those who were not able to send us those last few items before now. Many were waiting for documents from pass-through entities, have lingering covid pandemic issues or other family issues and were just not able to focus (no judgment here). What we hear is the stress level for those who are facing these deadlines and scrambling to comply. Dreading the deadline for the project may be the worst part, so don’t procrastinate, just roll up those sleeves and dive right in.
TAX ISSUES/TAX PLANNING
Your Time is UP
If you were unable to file your tax return by the April 18th deadlines, you should have filed your 2021 extension with any balance due and possibly the first estimate for 2022. We are coming up to the filing deadline of October 15th, which if not met may cause additional penalties and interest.
Running out of Time to Make Annual SEP/IRA Plan Contribution
The upcoming individual tax return filing deadline of October 15th is also a deadline for funding your company’s SEP/IRA for sole proprietorships. This is a great tax minimization planning technique, take the funds from the tax liability pocket and put them into the pension plan pocket where they can grow tax free until retirement or required distribution dates.
Advice from Our IT Firm
Our IT firm sent us this warning this week:
It is not just our networks under attack. Be ware of phone apps trying to get your credentials. Facebook warns of 400 malicious apps that tried to steal your account credentials.
How these apps disguised themselves:
Listed on Apple’s App Store and Google Play, the malicious apps impersonated a range of seemingly genuine programs.
How to avoid phony and malicious apps:
- Does the app require social media credentials to use it- be wary of a photo editor or fitness app that claims to require your Facebook credentials before you can use it.
- Is the app reputable? Make sure you read the negative reviews.
- Phony apps may not provide functionality until after you sign in.
Thank you Jim Dipelesi of JRD Technical Associates Inc
Former US Federal Reserve Chief Wins the Nobel Prize
Former US Federal Reserve chief Ben Bernanke, who led the central bank during the 2008 financial crisis, is one of three recipients of this year’s Nobel prize in economics.
Bank of England Strengthens Emergency Stimulus
The Bank of England will double the value of government bonds it can buy each day. The tactic was introduced after a recent mini budget announcement caused a meltdown in the bond market, sending pension funds into turmoil.
Online Spending is Expected to be Weak this Season
Stores have been slashing prices lately to get rid of excess inventory, and the early access to sales is likely to cut into the traditionally heavy Black Friday and Cyber Monday shopping season.
Inflation Reduction is the Priority of the Federal Reserve
Chicago Federal Reserve President Charles Evans said the central bank is committed to fighting inflation, even if that means massive job losses. The comments come three weeks before the Fed is expected to approve its fourth consecutive 0.75 percentage point interest rate increase.
Social Security COLA Increase Announced
Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 8.7 percent in 2023. The 8.7 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7 million SSI beneficiaries will begin on December 30, 2022. Read more here.
- 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 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 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.