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Let’s call it Lucky Friday the 13^th as we accounting professionals get an extra day to meet our major deadline this Monday and it’s a beautiful day out as well!  Monday September 16th is one of our hardest deadlines to meet as extended S-Corporations and Partnerships are due along with business and individual estimated tax payments for 2024 tax returns.  I am so grateful to be able to walk on the beach most mornings as a reminder of what is really important.

This week the beach did not disappoint my guests nor myself and I am happy to share some of my best shots for a week of sunshine…

My September blog would not be complete without a fig report; my green figs are finally starting to ripen and we still have heirloom tomatoes…

I am hoping that most of you have great plans for the weekend and that my staff and I can take some breaks and still meet our Monday deadline!

Weekly Take Away

It seems every year our office works to and through this major deadline and I worry about meeting all of the filing requirements.  I am often tempted to skip my beach walk or workout.  It’s a given that we will work a few late nights and weekends.  When I have been tempted to skip my walk, workout or lunch, I repeat over and over “do what’s good for you”.  Although I am nervous about this deadline, I am confident that by Monday our office will complete the work and without sacrificing our critical personal time.

TAX ISSUES/TAX PLANNING

Failure to File Penalty May be the Right Tactic

This Monday is the deadline for extended Partnership and S-Corporations, and while it’s tempting to procrastinate, then rush through the process, it’s crucial to resist that urge. At our firm, we provide “open lists” and “checklists” to help you gather missing information and supporting documents for your tax deductions.  📃📃 You groan when the reminder emails come through and you think to yourself “I’ll do it later”. However, waiting until the last minute often leads to costly errors and missed opportunities AKA deductions.

While some accounting firms may accommodate rushed returns by charging a premium, we believe that the risk of errors far outweighs the cost of filing an accurate tax return slightly late.  Remember that penalties for late returns, which are based on a monthly fee per partner or shareholder (in the case of S-Corporations), are not deductible. Additionally, state and local penalties may also be assessed.

Deadline for your Third Estimate Tax Payments:  Monday, September 16th

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 2024 is due Monday, September 16. The 2024 Form 1040-ES, Estimated Tax for Individuals, can help you estimate your quarterly tax payments.

Time is Running Out to Make Annual Deferred Compensation Plan Contributions

The upcoming filing deadlines are also deadlines for funding company pension plans:  September 16th 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.

ECONOMY

Reality Check: What’s Up with the Economy?

Check out this recent article from CBSNEWS.com, here’s an excerpt:  “Most of the economic numbers are actually looking pretty good. Our unemployment rates are near a 50-year low, interest rates have been dropping, and the Federal Reserve says it will drop the prime interest rate even more this month. Wages, disposable income, and personal wealth are all up! So, if all these economic indicators are so good, why do so many Americans feel as though the economy is bad?”

Beige Book

The August 2024 Beige Book has been published by the Federal Reserve, giving an overview of economic conditions around the country.

US Economy Adds 142,000 Jobs; Unemployment Ticks Down Slightly

As per this recent article from NBCNEWS.com:  “Signs point to continued weakening in the labor market, but the unemployment rate is still lingering around historically low levels.”

America is Pumping So Much Oil that Gas Could Be Below $3 by Thanksgiving

As per this recent article from EDITION.com: “The oil market is in another tailspin. Producer group OPEC+ is scrambling to stop the bleeding. And gas prices are falling fast, with more to come. All of this is music to the ears of drivers.”

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 tax concerns, tax minimization questions or want to discuss the next steps for your business success and financial goals.