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Tax season 2023 officially ended on Monday the 16th, so we will be able to relax a little before working through some of those returns that did not make the deadline cut off.  I did take a break over last weekend to take a walk on the beach…

Reports are in, the stiped bass are running.   This fish is not camera shy, even though the fishermen are, but as it was over the size limit; they threw it back…

Lucky for me, they caught one that they kept and several cleaned filets were delivered to my door.  I made a delicious dinner last night with “free swim” striped bass and organic herbs and tomatoes from my garden (thank you Wayne and Jon) …

I am still loving my roof top mini power plant.  Yesterday was a beautiful sunny day; we produced 44 KWH

Now that tax season is over, I get to take a guilt-free mid-day break as well …

I am hoping for some great weather this weekend so I can work on my garden, trim my blackberry bush and pick some figs.  I hope you have some great plans too.

Weekly Take Away

Tax season 2023 is finally over, or is it ever?  Just yesterday I held an exit appointment for one of my individual tax clients and noted some missed tax savings, missed opportunities from options and elections NOT Explored or taken on her pass-through entity tax return as prepared by another accounting firm.   Being proactive with tax planning like anything else makes sense and it’s never too early or late to do so and it’s fun.  Compare it to sketching out the layout for your kitchen remodel and then reimagining it several different ways, that may not be fun, but the results are well worth the time and effort , need incentive spending that extra $20,000 on an amazing trip to Paris with a shopping spree might be all the incentive you need to get you thinking…

TAX ISSUES/TAX PLANNING

IRS Relief From 10/16/2023 Filing Deadline: IR-2023-188, Oct. 13, 2023

Last Friday the IRS granted a major extension for returns due 10/16 and other filings. It primarily affects those actually in Israel. In some cases US preparers with clients in Israel may qualify for relief for those clients. The NYS Society of CPA’s wrote a letter to the AICPA that may have contributed to the IRS action. What NY and other states will do with this is not yet known.

This notice postpones various tax filing and payment deadlines that occurred or will occur during the period from Oct. 7, 2023, through Oct. 7, 2024 (postponement period). As a result, affected individuals and businesses will have until Oct. 7, 2024, to file returns and pay any taxes that were originally due during this period. Among other things, this includes:

• Individuals who had a valid extension to file their 2022 return due to run out on Oct. 16, 2023. The IRS noted, however, that because tax payments related to these 2022 returns were due on April 18, 2023, those payments are not eligible for this relief. So, these individuals filing on extension have more time to file, but not to pay.
• Calendar-year corporations whose 2022 extensions run out on Oct. 16, 2023. Similarly, these corporations have more time to file, but not to pay.
• 2023 individual and business returns and payments normally due on March 15 and April 15, 2024. So, these individuals and businesses have both more time to file and more time to pay.
• Quarterly estimated income tax payments normally due on Jan. 16, April 15, June 17 and Sept. 16, 2024.
• Quarterly payroll and excise tax returns normally due on Oct. 31, 2023, and Jan. 31, April 30 and July 31, 2024.
• Calendar-year tax-exempt organizations whose extensions run out on Nov. 15, 2023.
• Retirement plan contributions and rollovers.

Please click thrugh to my full blog post.

Tax Planning

October is a great time to review your year-to-date financial statments with your accounting professional, then consider options for tax minimization for 2023 that still reamin and start looking at what changes you can institute for 2024.

Tax Forecasts = Tax Measurements

Forecasts are merely a projection of what you expect to happen

Tax Planning = Tax Savings Strategies

Tax Plans represent a set of ideas with set tax minimization outcomes and actionable items which result in significant tax savings.

Right now our office is working on several tax plans that utilize:
• capital gains planning
• entity selection
• income shifting
• tax deferrals
• charitable giving strategies
• accountable plans

Check out my tax planning blog post from September 19 2019 and general “Tax Minimization” landing page.

ECONOMY

September Inflation Report

This article from the New York Times reports: “Consumer prices rose 3.7 percent in the year through September. There were some optimistic details in the report, but the path to fully wrangling inflation remains long and bumpy.”

National Federation of Independent Business Reports on US Small Business Sentiment

U.S. small business sentiment declined slightly again in September on continued concern over inflation and persistent labor shortages, a survey published by the National Federation of Independent Business (NFIB) reported.   “September’s report was similar in tone to the one for August, which saw the first dip in optimism since April with businesses noting a tight labor market and inflation as top concerns.  “Owners remain pessimistic about future business conditions, which has contributed to the low optimism they have regarding the economy,” said Bill Dunkelberg, the NFIB’s chief economist. “Sales growth among small businesses has slowed and the bottom line is being squeezed, leaving owners few options beyond raising selling prices for financial relief.”

United Auto Workers’ Strike: Cost to US Economy Now Estimated at Over $7.7 Billion

The United Auto Workers union’s strike against Detroit’s Big Three automakers is now in its fourth week.  Per Jonathan Lopez, blogger:  “Anderson Economic Group (AEG) estimates that the total cost of the ongoing United Auto Workers (UAW) strike against the Big Three Detroit automakers (GM, Ford, and Stellantis) has topped $7.7 billion, with no clear end currently in sight. The Michigan-based economic consultancy group estimated last week that the UAW strike had cost the U.S. economy $5.5 billion, marking an estimated $2.2 billion increase to the hit on the U.S. economy in one week. AEG says that the strike is now having a significant impact on suppliers.”

Social Security Benefits Will Rise 3.2% in 2024, While Top Tax Jumps 5.2%

Social Security benefits will increase 3.2% in 2024 for the nation’s 71 million recipients, due to the cost-of-living adjustment (COLA). The SSA also said that the maximum amount of earnings subject to Social Security tax (also known as the wage base) will rise to $168,600, up 5.2% from the $160,200 base in 2022.

Fed’s ‘Golden Path’ to Lower Inflation May Have Some Potholes

The “golden path” some Federal Reserve officials see leading to lower inflation without high unemployment may, like the pot of gold at the end of a rainbow, prove hard to find as they navigate a world of fast-adjusting markets and a new Middle East war.

Consumer Prices Rose Hotter-Than-Expected in September

The Federal Reserve’s aggressive campaign against inflation faced a speedbump Thursday after Labor Department data revealed consumer prices rose more in September than anticipated.

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
  • 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 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.