{"id":13675,"date":"2022-09-09T10:15:42","date_gmt":"2022-09-09T14:15:42","guid":{"rendered":""},"modified":"2022-09-09T08:46:19","modified_gmt":"2022-09-09T12:46:19","slug":"weekly-update-september-9th-2022","status":"publish","type":"post","link":"https:\/\/aparnesscpa.com\/weekly-update-september-9th-2022\/","title":{"rendered":"Weekly Update \u2013 September 9th, 2022"},"content":{"rendered":"

A recent\u00a0New York Times business section article\u00a0\u201cPeloton Regrets? You\u2019re Not Alone\u201d<\/em><\/a>, featured various household items in a garage sale, so of course I had to read it.\u00a0 As many of you know, my exercise equipment gets plenty of use; being able to cross train has kept me \u201cmostly\u201d injury free for years.\u00a0 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.\u00a0 This was the case with the Concept II rower I purchased at a garage sale (not sure how many years ago) for $100.\u00a0 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.\u00a0 I was not sure what a typical workout distance is, so I googled it<\/a>, mine is approximately 10,000 meters.<\/p>\n

My garden is definitely enjoying the recent rain, the fall squash plants and my fig tree are flourishing.\u00a0\u00a0Garden to table cucuzza squash stew with pesto made from our basil and served over pasta; we had leftovers for several days of lunch\u2026<\/p>\n

\"Img
Cucuzza squash stew<\/figcaption><\/figure>\n

We know it\u2019s 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\u2026<\/p>\n

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green fig<\/a><\/figcaption><\/figure>\n

I am looking forward to the weekend for a bit of a break, as the first of\u00a0 our extended tax season 2022 deadlines arrives this Thursday.\u00a0 I hope you all have plans to enjoy your weekend too.<\/p>\n

Weekly Take Away<\/h3>\n

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: \u201cdon\u2019t rush it out, because when we do there\u2019s always an error or problem\u201d.\u00a0 We have been repeating this statement to each other during our weekly huddles and as we work on projects with these looming deadlines.\u00a0 Those second or third reviews the next day when we are fresh help us avoid mistakes.\u00a0 We will meet the deadlines and thanks to our portal and digital transmissions we have until midnight to submit!<\/p>\n

TAX ISSUES\/TAX PLANNING<\/h3>\n

Deadline for your Third Estimate Tax Payments:\u00a0 September 15th<\/h4>\n

Self-employed individuals, retirees, investors, businesses, corporations and others who make estimated tax payments should be reminded that the\u00a0payment for the third quarter of 2022 is due Thursday, September 15. The 2022\u00a0Form 1040-ES, Estimated Tax for Individuals<\/a>, can help you estimate your quarterly tax payments.<\/p>\n

The Automatic 6-Month Extension Deadline is Approaching<\/h4>\n

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.\u00a0 We are coming up to the filing deadlines which if are not met may cause additional penalties and interest.<\/p>\n

\u00a0Time is Running Out to Make Annual Deferred Compensation Plan Contributions<\/h4>\n

The upcoming filing deadlines are also deadlines for funding company pension plans:\u00a0 September 15th for corporations, October 15th for sole proprietorships.\u00a0 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.<\/p>\n

Reminder:\u00a0 Certain 2019 & 2020 Late IRS Filers May Have Penalty Relief<\/h4>\n

As we reported last week, the IRS issued IR-2022-155,\u00a0Notice 2022-36<\/a>\u00a0which 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.\u00a0 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.\u00a0 You can visit\u00a0IRS.gov\/penalty relief for details.<\/a><\/p>\n

The IRS Continues to be Slow Processing Various<\/h4>\n

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.\u00a0 These clients even received letters alerting them about the forthcoming payment and interest earned.\u00a0 We knew the IRS had been overwhelmed with an increased workload due to their involvement with stimulus payments and\u00a0 staff shortages.\u00a0 Our experiences have been highlighted in an\u00a0audit report<\/a>, 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.<\/p>\n

Reminder Extended Election for 2022 NYS PTET<\/h4>\n

You may have received a reminder in your in box.\u00a0 \u00a0The extended deadline is September 15th, 2022.\u00a0 This is a great opportunity if your the numbers make sense.\u00a0 Check out my\u00a0blog post from July 29th for more detail<\/a>\u2026<\/p>\n

NYC has Moved the Eligibility for PTET<\/h4>\n

Not so New News:<\/strong>\u00a0The 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\u00a0wants to opt in\u00a0must\u00a0first<\/strong>\u00a0opt in to the New York State PTET by September 15, 2022.<\/p>\n

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.<\/p>\n

ECONOMY<\/h3>\n

Mortgage Rates Rise Again<\/h4>\n

Things still aren\u2019t looking good for those in the market to buy a home.\u00a0Mortgage rates jumped again last week, up to 5.66%<\/a>. Higher borrowing costs have thrown a wrench in the plans of many would-be homebuyers.<\/p>\n

Bank of America Offering Zero Down Mortgages<\/h4>\n

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\u2019re calling the\u00a0Community Affordable Loan Solution<\/a>.<\/p>\n

Passage of the CHIPS and Science Act Leads to New Projects<\/h4>\n

Last Thursday, Micron announced that it\u2019s\u00a0investing $15 billion to build a new semiconductor plant in Idaho<\/a>. This comes just weeks after Congress passed $52 billion in new money to boost domestic chip manufacturing.\u00a0 Again another example of tax laws influencing behavior.<\/p>\n

Omicron-Specific Booster Recommended by CDC<\/h4>\n

Last week, the CDC recommended that everyone get an\u00a0Omicron-specific COVID-19 booster shot<\/a>\u00a0as 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.<\/p>\n

Soon you Can Edit Your Tweets \u2013 for a Fee<\/h4>\n

Twitter teased the long-requested feature last week. Starting later this month, users who subscribe to the premium Twitter Blue service for $5\/month\u00a0will gain the ability to edit a tweet after it\u2019s been posted<\/a>.<\/p>\n

GENERAL RESOURCES<\/h3>\n