Weekly Update – September 2nd, 2022
Fun fact: Beginning in 1882 Labor Day has been celebrated on the first Monday in September as a way to honor the women and men who campaigned tirelessly for workers’ rights and give most workers a three-day weekend off from work. In the true sprit I am getting ready for Labor Day Weekend 2022, with plans for planting my fall garden, continuing my hip rehab with barefoot walks on the beach, barbeques with our staycation guests and other friends. It’s been so great to spend so much time my daughters and their friends and Sampson.
He waits so patiently for me to take him for play time on the beach each morning…
Even at 6:30AM he’s hard to resist and he is really enjoying the runs on the beach…
Last night I was picking basil for some pesto when I noticed this 4 foot cucuzza squash, yes it snuck up on me as only one plant took and I didn’t think it could self pollinate.
It’s pretty cool when even your plants can surprise you! I usually grow these for my good friend Joe who passed away this summer. I let the plant continue to grow even though I did not expect any squash, it was just good to see it growing so healthy and to remember Joe and the good times we all had. I plan to make his signature dish and toast his memory this weekend. I will supply the comments that I know he would have made and smile…
Weekly Take Away
It is tax season again as we count the days to the 2021 filing deadlines for corporate, partnership, personal and trust tax returns (the first one is September 15th). My kids and their friends and Sampson arrived last week for their staycation and some will stay or rotate in and out for the next few week as well. Appropriately I re-read last week’s take-away “No Regrets” and took it to heart. I have been starting my workdays after a morning walk and time gabbing around the breakfast table. Then stopping early to make dinner and just hang out. You can never get the time back, no question about taking the time when you have the opportunity, work can wait!
TAX ISSUES/TAX PLANNING
Deadline for your Third Estimate Tax Payments: September 15th
Self-employed individuals, retirees, investors, businesses, corporations and others who make estimated tax payments should be reminded that the payment for the third quarter of 2022 is due Thursday, September 15. The 2022 Form 1040-ES, Estimated Tax for Individuals, can help you estimate your quarterly tax payments.
The Automatic 6-Month Extension Deadline is Approaching
If you were unable to file your tax return by the March 15th or 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 deadlines which if are not met may cause additional penalties and interest.
Still Time to Make Annual Deferred Compensation Plan Contributions
The upcoming filing deadlines are also deadlines for funding company pension plans: September 15th for corporations, October 15th 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.
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!
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.
NYS Has Again Sent Reminder Emails About the Extended Election for PTET
You may have received this reminder in your in box. This is a great opportunity if your the numbers make sense. Check out my blog post from July 29th for more detail…
NYC has Moved the Eligibility for PTET
New News: The governor has signed legislation allowing eligible entities to opt in to the New York City pass-through entity tax (NYC PTET) for 2022. Any entity that wants to opt in must first opt in to the New York State PTET by September 15, 2022. An online application to opt in and additional guidance will be available soon.
NYS is Sending Out Bonuses to Our Health Professionals & Their Staff
I wrote about this in my August 26th blog post. We have reached out to NYS for clarification regarding proper reporting when the provider is an individual who is employed by the medical practice. As with other government initiatives (this one was part of the recent NYS budget) deadlines are critical for compliance but it is not until we put it into practice that the glitches arise. We have been assured that the agency is working on sorting these out and that we will have proper guidance by the next filing deadline. We have been told that penalties will not be imposed. I recommend being proactive; document your efforts and concerns, just in case.
Labor Day Sales to Watch for this Weekend
With the cost of living up, any spending that must be done should wait for a sale if you can help it. CNN has rounded up some of the best Labor Day sales for 2022, which can be found here.
Potential Help for Students Who Are Not Included the Loan Forgiveness Package
The Education Department is exploring strategies to do something to help the nearly 5 million people whose student loan debt forgiveness was “overlooked”. Former students who borrowed under the FFEL program are excluded from the loan forgiveness program, as those loans were privately owned.
Supplemental Security Benefits Fall Short
Many are calling for updates to the Supplemental Security Income benefit, which has been the same for decades. Even though there are two payments in September due to a calendar quirk, there will be nothing in October, which means many recipients will fall short on their expenses.
Joint Venture Between Honda and LG to Bring New EV Battery Plant to the US
Honda and LG Chem announced they will build a $4.4 billion electric vehicle battery factory in the US. It’s the latest move to increase the country’s domestic production of electric vehicle batteries to comply with new tax credit rules which begin in 2023.
Pet Supply Sector Anticipated to Grow
Morgan Stanley estimates that a 4% increase in pet ownership has led to an 11% gain in per-pet spending, meaning pet-related stocks are prime for growth.
September is National Preparedness Month
With hurricane season approaching, the IRS is urging everyone to either develop or revise their emergency preparedness plan. Details can be found here.
- 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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