Weekly Update – September 9th, 2022
A recent New York Times business section article “Peloton Regrets? You’re Not Alone”, featured various household items in a garage sale, so of course I had to read it. As many of you know, my exercise equipment gets plenty of use; being able to cross train has kept me “mostly” injury free for years. I hope the exercise equipment that others bought as an alternative to their usual gym workouts served them well during the pandemic and can now go to a good home. This was the case with the Concept II rower I purchased at a garage sale (not sure how many years ago) for $100. The data card showed that several family members had tried it out for a total of 3,600 meters; the erg was basically brand new and definitely went to a good and loving home. I was not sure what a typical workout distance is, so I googled it, mine is approximately 10,000 meters.
My garden is definitely enjoying the recent rain, the fall squash plants and my fig tree are flourishing. Garden to table cucuzza squash stew with pesto made from our basil and served over pasta; we had leftovers for several days of lunch…
We know it’s fall when I spot our first fig, they are not as large as last year, but it looks like there are hundreds just ready to ripen…
I am looking forward to the weekend for a bit of a break, as the first of our extended tax season 2022 deadlines arrives this Thursday. I hope you all have plans to enjoy your weekend too.
Weekly Take Away
Our office has been crazy busy for the past few weeks as we work towards several September 15th deadlines, but we try to stay true to one of our office motto: “don’t rush it out, because when we do there’s always an error or problem”. We have been repeating this statement to each other during our weekly huddles and as we work on projects with these looming deadlines. Those second or third reviews the next day when we are fresh help us avoid mistakes. We will meet the deadlines and thanks to our portal and digital transmissions we have until midnight to submit!
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.
Time is Running Out 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.
Reminder: Certain 2019 & 2020 Late IRS Filers May Have Penalty Relief
As we reported 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.
The IRS Continues to be Slow Processing Various
We have found that several clients have not received their ERC checks even though the IRS has confirmed receipt of the related amended tax returns. These clients even received letters alerting them about the forthcoming payment and interest earned. We knew the IRS had been overwhelmed with an increased workload due to their involvement with stimulus payments and staff shortages. Our experiences have been highlighted in an audit report, released Tuesday by the Treasury Inspector General for Tax Administration, which followed up on a previous audit from July 2021, found some of the same problems have lingered into this year with tax credits like the Employee Retention Credit and the Paid Sick Leave and Family Leave Credit.
Reminder Extended Election for 2022 NYS PTET
You may have received a reminder in your in box. The extended deadline is September 15th, 2022. 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
Not so 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.
The NYC PTET works in a similar fashion to the New York State PTET, except that the NYC PTET computes the voluntary entity level tax using New York City resident income tax rates, and it allows owners of the entity to take a refundable credit against the New York City resident income tax liability on their New York personal income tax returns.
Mortgage Rates Rise Again
Things still aren’t looking good for those in the market to buy a home. Mortgage rates jumped again last week, up to 5.66%. Higher borrowing costs have thrown a wrench in the plans of many would-be homebuyers.
Bank of America Offering Zero Down Mortgages
In an attempt to erode inequality in the housing market, Bank of America is offering zero down payment mortgages with no closing costs for first-time homebuyers in certain Black and Hispanic neighborhoods in what they’re calling the Community Affordable Loan Solution.
Passage of the CHIPS and Science Act Leads to New Projects
Last Thursday, Micron announced that it’s investing $15 billion to build a new semiconductor plant in Idaho. This comes just weeks after Congress passed $52 billion in new money to boost domestic chip manufacturing. Again another example of tax laws influencing behavior.
Omicron-Specific Booster Recommended by CDC
Last week, the CDC recommended that everyone get an Omicron-specific COVID-19 booster shot as we head into fall. The FDA has approved both the Pfizer-BioNTech booster for everyone over 12, and the Moderna booster for everyone over 18.
Soon you Can Edit Your Tweets – for a Fee
Twitter teased the long-requested feature last week. Starting later this month, users who subscribe to the premium Twitter Blue service for $5/month will gain the ability to edit a tweet after it’s been posted.
- 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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Contact us if you have any questions or want to discuss the next steps for your business.