Weekly Update – September 16th, 2022
My daughter Jessie and her dog Sampson have been the perfect house guests but they head back to Atlanta tomorrow night. It was great that Jessie could vacation here and then work remotely. Sampson has been spending time in the office with Raquel and me as we worked towards our September 15th deadline. So this morning I know he will be happy to resume our daily beach walks, I think he understands tax season deadlines. I love the quiet time of day and he likes playing with the other dogs and running into the water. Do you think he will miss us, maybe a teeny bit?
Tax deadlines are not fun for dogs either, but they are good company…
And it’s fig season again, we seem to be off to a slow start, but as long as the weather holds up there are still over a hundred on my tree ready to start ripening…
I am looking forward to a more relaxed day and weekend and hope to get plenty of beach time in. Enjoy your weekend.
WEEKLY TAKE AWAY
Our office just completed various major deadlines yesterday, September 15th and I did cut back a bit on my daily workouts for the last few days as the long days make it harder to keep up. Starting today with my new hip working so well I plan to get back to more intense spin and rowing workouts in addition to my walks on the beach. For me it is so important to “take care of me” first thing in the morning as it sets the tone for the whole day. Many people tell me they prefer taking an afternoon break or heading to the gym straight from the office. Whatever works for you enjoy! P.S. for me a relaxed day starts with an intense workout or walk on the beach, then home for coffee and the paper.
TAX ISSUES/TAX PLANNING
IRS Provided Broad-Based Penalty Relief for Certain 2019 & 2020 Tax Returns Deadline is September 30th
Last week the IRS issued IR-2022-155, Notice 2022-36 which provides broad-based penalty relief for certain 2019 and 2020 returns due to the pandemic; $1.2 billion in penalties being refunded to 1.6 million taxpayers. This is automatic but limited in scope and qualify for this relief, any eligible income tax return must be filed on or before Sept. 30, 2022. You can visit IRS.gov/penalty relief for details.
Still 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.
The Automatic 6-Month Extension Deadline is Approaching
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.
Consider Using Your Income Tax Refund to Buy Paper US Savings Bonds
In our office we say “any day we learn something new is a good day”, so I was really glad to learn about this option for IRS refunds from one of my clients. We looked up the rules together and I accessed the Treasury Direct website to learn the details and then completed that client’s tax return using the appropriate forms. These bonds are currently paying a good rate of interest that is tax free so a win win. So consider this option before you hit send!
“Quiet Firing” is the Supposed Antidote to Quiet Quitting
Quiet quitting has taken social media by storm lately, but now the term “quiet firing” has entered the conversation. However, it seems that this is not a new concept. A recent LinkedIn News poll showed that 80% of respondents reported experiencing or observing quiet firing in their workplace.
Ford a Tesla Competitor?
When talking taxes we a reminded that many tax laws are crafted to influence behavior. The recent Inflation Reduction Act of 2022, had many environmental friendly incentives that seem to be working already. Ford wants to be a leader in the electric vehicle space, and announced plans to offer its BlueCruise hands-free highway driving system with entry level models in 2023. The announcement caused Ford shares to jump 2% on Monday.
Used Car Prices are Becoming More Reasonable
In the height of the pandemic, used cars suffered some of the highest rates of inflation, and getting your hands on one was tricky. In August, prices were lower than they’ve been since last September.
Money in Canada and Other Countries May Change…
With the death of Queen Elizabeth II on September 8, Commonwealth nations around the world began to wonder what will happen to the existing coins that bear the queen’s likeness. Canada, a former British colony, has featured Queen Elizabeth’s image on the backs of coins and on plastic-based C$20 ($15.28) bank notes that were first introduced in 2011. Those bills will remain in circulation, and the central bank said it’s up to Prime Minister Justin Trudeau’s government to decide if new notes will feature the image of her successor, King Charles III.
- IRS resources for stimulus payments:
- IRS information about 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 all in this together!
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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