Financial decision-makers lowered their expectations for real growth in gross domestic product during the third quarter amid concerns over inflation and trouble finding skilled labor, according to the results of The CFO Survey, a collaboration of Duke University’s Fuqua School of Business and the Federal Reserve Banks of Richmond and Atlanta. At the same time,… Read More »CFOs See Higher Costs and Lack of Skilled Labor; Reduce Outlook for Growth

Minneapolis Fed chief says need to hike until inflation falls Get to policy that restraining economy and then be ‘patient’ Federal Reserve Bank of Minneapolis President Neel Kashkari said the US central bank is committed to restoring price stability and its current pace of interest-rate increases is appropriate. “We are moving very aggressively,” he said… Read More »Fed’s Kashkari Says Rate-Hike Pace ‘Appropriate’ to Cool Prices

Inconsistent lead times and shipping delays force companies to maintain inventory buffers. Efficient handling of working capital frees up cash that can be used to replace the forms of capital getting more expensive as interest rates climb. The Hackett Group’s Working Capital Survey, updated for the second quarter of 2022, showed the 1,000 companies studied… Read More »Supply Chain Pressures Keep Inventories High in Q2

The special per diem rates by which taxpayers may substantiate ordinary and necessary business expenses of travel away from home will be slightly higher starting Oct. 1, the IRS provided Monday in Notice 2022-44. Generally, in lieu of actual lodging, meal, and incidental expenses incurred, a payer may consider substantiated for federal tax purposes an employee’s… Read More »Crypto M&A Slows As Its Own Type Of Winter Sets In

When the United Nations (UN) first laid out principles for environmental, social, and corporate governance (ESG) investing in 2006, then-Secretary General Kofi Annan hailed the considerations as critical to underpinning “responsible investing” in the financial markets. Amid growing scrutiny from conservative lawmakers and accusations of greenwashing at some of the world’s largest funds, these so-called green funds stand at… Read More »ESG funds are ‘definitely at a crossroads’: EY executive

An IRS Form W-9 verifies your taxpayer ID number, typically your Social Security Number, or for a company, your employer identification number. Before paying you, many companies will ask for this form so they can issue you an IRS Form 1099. If you want to be paid, refusing to hand over a Form W-9 can… Read More »This IRS Tax Form Can Cost You 24%

Some investors are growing concerned the dollar’s meteoric rise is setting the stage for a rapid reversal, which would bruise those who have sought refuge in the U.S. currency in recent months. Soaring U.S. interest rates, a comparatively strong American economy, and demand for a haven from wild gyrations in asset prices have lured investors… Read More »Analysis: A crowd of dollar bulls raises the risk of a violent pullback

The state has become the first in the U.S. to accept cryptocurrency for tax payments. Colorado has become the first state in the nation to accept cryptocurrency for tax payments. Governor Jared Polis made the announcement yesterday during a speech at Denver Startup Week. The website for the state’s Department of Revenue confirms that, for tax payments starting… Read More »Colorado now accepts crypto for taxes

KEY POINTS The UNC Tax Center used 2021 financials to predict the effect of the Inflation Reduction Act’s minimum corporate tax. The 15% minimum tax would impact around 78 companies, with Berkshire Hathaway and Amazon paying the most. President Joe Biden signed the tax into law, along with the rest of the Inflation Reduction Act,… Read More »The new minimum tax could hit Berkshire Hathaway and Amazon hardest, a study shows

Currency’s plunge sparks talk of emergency central bank action UK 10-year yield rises above 4% for the first time since 2010 The sell-off in UK assets went into overdrive on Monday, sending the pound to an all-time low, slamming government bonds, and sparking talk of emergency action by the Bank of England. The market mayhem… Read More »UK Market Selloff Slams Gilts, Pound, Piling Pressure on BOE

From the best of times to the worst of times: The market for initial public offerings has fallen off a cliff in 2022. Investors faced with high inflation and rising interest rates have ditched high-flying growth stocks and turned to safer, more profitable alternatives. The decline has been striking given the record level of proceeds… Read More »The IPO market went from ‘boom to bust in 2022. Here’s what’s driving the massive slowdown

After a fast start to the year, M&A deal-making in crypto has hit its own type of “winter.” Earlier this month, one-click checkout company Bolt dropped plans to buy crypto and payment infrastructure company, Wyre, for $1.5 billion. The news came just more than three weeks after digital asset investment firm Galaxy Digital called off its proposed $1.2 billion acquisition of Palo… Read More »Crypto M&A Slows As Its Own Type Of Winter Sets In

Gig economy companies classifying their workers as independent contractors continue to face lawsuits, state action, and federal agency enforcement For much of the last decade, a legal and regulatory storm at the state and federal levels has surrounded the classification of workers as “independent contractors” or “employees.” The dramatic growth of the gig economy, especially… Read More »The Independent Contractor Dilemma

Less than one-third of HR professionals are preparing for an economic slowdown, according to a new study. While CFOs are tightening budgets in preparation for a likely economic downturn, their counterparts in human resources are still focused on putting the best quality employees in an ideal work environment, according to a recent survey from Challenger, Gray &… Read More »85% of Companies Still Actively Hiring Despite Recession Fears: Weekly Stat

While Fed officials predict rates going higher than had been expected, we still see rates coming down by the end of 2023. Even as the Federal Reserve notched another aggressive interest-rate increase Wednesday, officials are once again letting investors, businesses, and consumers know there will be more where that came from in the months ahead.… Read More »Fed Signals No Letup in Inflation-Fighting Rate Increases

KEY POINTS The Federal Reserve raised interest rates by three-quarters of a point, citing persistent inflation. Everything from mortgages and credit cards to student and car loans will be impacted by another major rate hike. Here’s what it could mean for your monthly expenses. The Federal Reserve raised the target federal funds rate by 0.75 percentage points for the third… Read More »Here’s what the Federal Reserve’s third 75 basis point interest rate hike means for you

Your 401(k) can be a bridge from retirement to a higher monthly income. Although you can start collecting Social Security at age 62, you can get much higher monthly payments if you wait as long as age 70. But many people want to or must retire before 70. If you’re one of them, consider a… Read More »Using Your 401(k) to Delay Getting Social Security and Increase Payments

If CFOs had a Magic 8 Ball, it would read: “Outlook not so good.” There is a severe decline in optimism about the economy among CFOs across the country — thanks to increasing costs of goods and services, increasing energy costs, and supply chain challenges — according to a quarterly survey. Grant Thornton’s 2022 Q2 CFO… Read More »CFO optimism is declining as cost concerns rise

Even companies that have claimed the ERC may want to review their documentation of qualification for the credit. The Employee Retention Credit (ERC) started out as something of a secret. Originally part of the CARES Act, the ERC was limited in 2020 and only available to organizations that did not receive Paycheck Protection Program (PPP)… Read More »Who Actually Qualifies for the Employee Retention Credit?

The Federal Reserve approved its third consecutive interest-rate rise of 0.75 percentage points and signaled additional large increases were likely even though they are raising the risk of recession. Fed officials voted unanimously to lift their benchmark federal-funds rate to a range between 3% and 3.25%, a level last seen in early 2008. Nearly all of them expect to… Read More »Fed Raises Interest Rates by 0.75 Percentage Point for Third Straight Meeting

As part of the survey, employees also shared which incentives they value most that keep them engaged and loyal to their organization.  A majority of employed adults (52%) are content in their roles and not engaged in a job search right now, according to a new survey by CareerBuilder, which also showed that 23% of Gen… Read More »52% of Workers are Content with Their Jobs

KEY POINTS The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 6.25% from 6.01%. Applications to refinance a home loan, which are usually very sensitive to big rate swings, actually rose 10% for the week, although they were still 83% lower than the same week one… Read More »Mortgage demand rises for the first time in six weeks, despite sharply higher interest rates

There’s big money in waiting to collect Social Security, but most U.S. seniors leave that cash on the table. The U.S. government is not hiding the fact that the longer you wait to collect Social Security, the more money you collect. In fact, the concept is fairly straightforward. Here’s the deal, straight from the U.S. Social… Read More »U.S. Retirees Aren’t Waiting Till Age 70 to Collect Social Security

One surprise that hits retirees in their first few years is that even without the costs of working and contributing to retirement accounts, they end up spending more than when they held down a job. Don’t miss Mitt Romney says a billionaire tax will trigger demand for these two physical assets — get in now before the… Read More »Boomer’s remorse: Here are the top 5 ‘big money’ purchases you’ll (probably) really regret in retirement

Delta Air Lines and JetBlue Airways each have seen business travel ramp up again in September, with no discernible “cracks” in total demand, according to executives from each carrier, who spoke last week at a Morgan Stanley conference.  “I think everybody is looking for cracks, and what I’d say is that we haven’t seen any… Read More »Delta, JetBlue: Corp. Travel Ramping Up, No Cracks in Demand

Stocks fell and government bond yields rose to multiyear highs Tuesday ahead of the next decision by the Fed’s rate-setting committee  Stocks fell Tuesday ahead of the Federal Reserve’s next policy decision as investors grappled with the impact of rising rates on corporate earnings and valuations. The central bank is expected to sharply raise interest rates again… Read More »Rising Interest Rates Squeeze Stocks on Both Sides, Constraining Earnings, Multiples

Higher rates and shrinking margins are among key concerns Goldman likes companies with the highest returns on capital After a hotter-than-expected inflation print and FedEx Corp.’s shocking profit warning, top Wall Street strategists see mounting risks for US earnings and equity valuations. Both Morgan Stanley’s Michael J. Wilson and Goldman Sachs Group Inc.’s David J. Kostin said headwinds… Read More »Morgan Stanley, Goldman Sachs Warn of Mounting Risks for US Earnings

US central bank to publish first ‘dot plot’ since June after months of persistently high inflation Federal Reserve officials are under pressure to prove they are serious about stamping out elevated inflation by backing up their hawkish rhetoric with a new set of interest rate projections set to be published this week. Following its two-day… Read More »Federal Reserve under pressure to back up hawkishness with rate projections

The buck isn’t stopping. The value of the U.S. dollar has been on a tear for more than a year against everything from the British pound across the Atlantic to the South Korean won across the Pacific. After rising again Friday, the dollar is near its highest level in more than two decades against a… Read More »EXPLAINER: How the strong U.S. dollar can affect everyone

Markets are increasingly betting on policymakers raising borrowing costs higher and faster Investors are pricing in a sharper surge in interest rates over the coming months after the world’s major central banks strengthened their resolve to tackle soaring prices, signaling they would prioritize inflation over growth. A Financial Times analysis of interest rate derivatives, tracking… Read More »Central banks set to hit peak rates at a faster pace

Treasury yields climbed on Monday as traders anticipated the Federal Reserve’s next moves in the face of persistently high inflation. The benchmark 10-year Treasury yield gained 6 basis points to 3.518%, hitting its highest level since April 2011, and was last up 4 basis points to 3.49%. The yield on the 2-year Treasury bond rose 9 basis points to… Read More »10-year Treasury yield jumps to 3.51%, the highest level since 2011

Investors who were lucky enough to hop on the cryptocurrency bandwagon ahead of its sharp rise in popularity were also fortunate enough to avoid taxation for a time. Cryptocurrency, an alternative payment system started in 2008, caught on for many reasons. One major draw of this new form of financial exchange was that it cut… Read More »The ‘taxing’ complication of cryptocurrency

Inflation at the wholesale level jumped 8.7% in August from a year earlier, a slowdown from July yet still a painfully high level that suggests prices will keep spiking for months to come. Wednesday’s report from the Labor Department also showed that on a month-to-month basis, the producer price index — which measures inflation before… Read More »US wholesale inflation declined in August to still-high 8.7%

Taxpayers are concerned the extra $80 billion will lead to more tax audits The additional $80 billion in funding over the next decade for the Internal Revenue Service from the Inflation Reduction Act is supposed to go toward improving taxpayer service, modernizing the IRS’s outdated technology, increasing enforcement efforts, and hiring more staff to process… Read More »IRS’s extra enforcement funding brings audit worries

The premium of the two-year Treasury yield over the comparable 30-year benchmark increased to a level unseen this century after short-end rates extended their climb in the wake of this week’s hotter-than-anticipated US consumer-price inflation data. The two-year yield was as much as 35 basis points above the 30-year rate on Thursday, sending the inversion… Read More »US 2- to 30-Year Curve Reaches Most Inverted Level This Century

From Bartleby, the Scrivener telling his 18th-century employer “I would prefer not to” to George Costanza setting up a nap station beneath his desk in the 1990s, “quiet quitting”—broadly understood as a retreat from workplace ambition—is not a new concept. But the alliterative buzzword born on TikTok is novel in the scope of the national conversation it has launched,… Read More »WHAT IS ‘QUIET QUITTING’?

KEY POINTS The Social Security cost-of-living adjustment for 2023 could be 8.7%, according to a new estimate from The Senior Citizens League. An increase that high would be the biggest cost-of-living adjustment in four decades, surpassing this year’s 5.9% cost-of-living adjustment. There is still one more month before the official adjustment is announced. Here are… Read More »There could be a record high Social Security cost-of-living adjustment in 2023, but it’s not set in stone: 3 things to watch

The Internal Revenue Service’s backlog is having an impact in many areas, including the handling of noncorporate applications for refund claims on net operating losses. The Internal Revenue Service’s continuing backlog is having an impact in many areas, including the processing of noncorporate applications for refund claims on net operating losses by pass-through businesses, leading… Read More »IRS delays in processing NOL refund claims cost taxpayers millions in interest

Stocks are riding a tentative recovery, with the S&P 500 up 1.1% on Monday, but whether they can keep their momentum hinges in part on how earnings season plays out next month. Analysts have cut their estimates for third-quarter earnings growth by 5.5 percentage points since June 30, according to John Butters, the senior earnings… Read More »Sliding Earnings Forecasts Pose Next Test for Markets

Summary The consumer price index rises 0.1% in August Rents, food, and healthcare account for the increase in CPI Core CPI surges 0.6%; increases 6.3% year-on-year U.S. consumer prices unexpectedly rose in August and underlying inflation accelerated amid rising costs for rents and healthcare, giving the Federal Reserve ammunition to deliver a third 75 basis… Read More »Stubbornly high rents and food prices boost U.S. inflation in August

The Federal Reserve will deliver another 75-basis-point interest rate hike next week and likely hold its policy rate steady for an extended period once it eventually peaks, according to a Reuters poll of economists released on Tuesday. Policymakers have done little to push back on market pricing for a third consecutive rate hike of three-quarters… Read More »Fed set for another 75-basis-point rate hike; early pivot unlikely: Reuters poll

Finance chiefs are finding it harder to peg yearly guidance as they struggle for visibility on the direction of the economy, leading them to broaden their annual revenue ranges and revise spending plans more frequently. Finance chiefs, through their annual guidance, offer clues on the health of the business. But given the mixed signals in the… Read More »Finance Chiefs Struggle to Set Guidance as Economy Flashes Mixed Signals

The Employee Retention Credit (ERC) remains one of the best tax benefits out there for small and medium businesses – as well as tax-exempt entities – to keep doors open and employees on payroll during this difficult economy. As I’ve previously written in detail, the ERC provides eligible employers up to $7,000 per employee per quarter in… Read More »Congress And IRS Need To Focus On Those Backlogged Employee Retention Credit Claims

The U.S. securities regulator will set up two new offices to deal with filings related to crypto assets and the life sciences sector, the agency said on Friday. The “Office of Crypto Assets” and the “Office of Industrial Applications and Services” will join seven existing offices under the Securities and Exchange Commission (SEC) department which… Read More »U.S. SEC to set up a new office for crypto filings

When it comes to retirement, you can’t save enough money — until you do. Saving for a post-work world is now a near-universal ideal: The 50-something workers who fret over their nest eggs have been joined by younger workers, who during the pandemic tasted new working arrangements and the promise of life outside the office.… Read More »Is it possible to save too much for retirement? Here are the top 3 signs you’re going way overboard

US inflation likely slowed for a second month in August as gas prices continued to drop, but that probably won’t be enough to stop the Federal Reserve from delivering another jumbo rate hike later this month. Tuesday’s consumer price index, landing during the central bank’s pre-meeting quiet period, is the last major report they’ll receive… Read More »Slower Inflation Unlikely to Sway Fed From Another Jumbo Hike

Whatever structure your clients launched with, at some point, for various reasons, changing structures may become a valid consideration. Many factors determine what kind of business structure your clients choose when starting their businesses. But whatever structure your clients launched with, at some point, for various reasons, changing structures may become a valid consideration. Although… Read More »Converting an S Corp to a C Corp

The European Central Bank has announced a record rise in eurozone interest rates as it seeks to fight inflation. Prices in the bloc are rising at the highest pace for half a century as energy costs soar. The ECB lifted all its key rates by three-quarters of a percentage point and warned that it was… Read More »Eurozone interest rates in record rise to fight inflation

With up to 87,000 new IRS agents on the way now that the Inflation Reduction Act is unleashing a Tougher IRS, there’s lots of tax about tax audits. The widely published 87,000 figure appears to come from a 2021 Treasury Department study saying that the IRS could hire about that many with $80 billion of funding. In… Read More »IRS Audits With No Time Limit And No Statute Of Limitations

It’s too soon to declare victory, but Federal Reserve Chair Jerome Powell is on track to navigate the U.S. economy to a soft landing. That’s the view of Jan Hatzius, the chief economist of Goldman Sachs, in a new note to clients. “Since the FOMC started hiking the fund’s rate early this year, we have… Read More »The U.S. is on track for a soft landing, Goldman Sachs chief economist says

The Internal Revenue Service has been slow in processing employer tax credits and tax refunds that businesses were supposed to receive. The Internal Revenue Service has been slow in processing employer tax credits and tax refunds that businesses were supposed to receive to cope with the pandemic, according to a new report. The report, released Tuesday… Read More »IRS continued to delay business tax refunds from pandemic

KEY POINTS The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 5.94% last week from 5.80% the previous week, according to the Mortgage Bankers Association. Mortgage applications to refinance a home loan fell another 1% for the week and were 83% lower than the same week one year ago.… Read More »Mortgage demand drops further as interest rates shoot back to June high

Gen Z and younger millennials under 35 are one cohort that has seen a large drop in employee engagement. About half of U.S. workers could be described as “quiet quitters,” according to new research by survey firm Gallup, meaning they fulfill their job description but are psychologically detached from their work. According to Gallup’s survey… Read More »Gallup Poll: ‘Quiet Quitters’ Make Up Half of the U.S. Workforce

OPEC+ agreed to make a token oil supply cut for October, a surprise moves that shows the alliance is seeking to stabilize global markets after a faltering economic backdrop triggered the longest price rout in two years. The group will reduce production by 100,000 barrels a day next month, taking output back to August levels.… Read More »OPEC+ agrees to make a token supply cut to steady the oil market

A shift is underway at the Federal Reserve in how to describe neutral — the interest-rate level that neither stimulates nor restrains growth — as it debates how much higher to hike. For an abstract concept — neutral can’t be directly measured — the stakes are high: If the assessment is too low, Fed policy… Read More »Fed’s Long-Sought Neutral Goal Proves Elusive and Moving Target

Inflation is high, but U.S. consumers’ relative purchasing power has never been higher. An index that considers inflation when measuring the dollar’s strength relative to currencies of major U.S. trading partners in July topped its previous peak in 2002, showing how the dollar’s surge has helped mitigate rising domestic prices. The Real Effective Exchange Rate… Read More »U.S. Dollar Strength Lifts Americans’ Relative Spending Power

KEY POINTS If you’re feeling unsteady amid stock market volatility, high inflation, and rising interest rates, you may wonder how much cash you really need to have handy. Experts may suggest three months, six months, or one year of expenses, depending on your situation. If you’re feeling unsteady amid stock market volatility, high inflation, and… Read More »Single workers, families, retirees: How much cash you need in an emergency fund at every career stage, according to advisors

KEY POINTS Nonfarm payrolls rose by 315,000 jobs in August, just below the Dow Jones estimate of 318,000. The unemployment rate climbed to 3.7%, two-tenths of a percentage point higher than expectations. Wages also rose, with average hourly earnings up 5.2% from a year ago, slightly lower than the estimate. The biggest sector gainers were… Read More »Payrolls rose 315,000 in August as companies keep hiring

The yen tumbled to its weakest level since 1998 against the US currency Greenback supported after jobless claims, manufacturing data A gauge of the dollar’s strength rallied to a record high Thursday as Treasury yields climbed, while the yen slumped past the key 140 level for the first time since 1998. The moves came as… Read More »Dollar Gauge Rallies to Record High as Yen Cracks Key 140 Mark

There was some rain on the parade of celebration of the student loan debt forgiveness. The Tax Foundation, perhaps with a touch of schadenfreude, announced that the forgiveness, while not federally taxable due to recent legislation, might be taxable in as many as thirteen states. They have taken a closer look and backpedaled quite a bit. It… Read More »How To Avoid State Tax On Student Debt Forgiveness

Summary Snap jumps as it restructures ad business, lays off staff Bed Bath & Beyond sinks on a corporate overhaul Biggest August pct drop for Dow, S&P 500, and Nasdaq since 2015 Dow down 0.88%, S&P 500 down 0.78%, Nasdaq down 0.56% NEW YORK, Aug 31 (Reuters) – U.S. stocks ended the month with their… Read More »Wall Street ends August with a whimper on Fed worry

The number of people who applied for unemployment benefits at the end of August fell to a nine-week low of 232,000, showing no sign that the slowing U.S… The numbers: The number of people who applied for unemployment benefits at the end of August fell to a nine-week low of 232,000, showing no sign that a… Read More »Jobless claims tumble to a nine-week low of 232,000. U.S. layoffs are still historically low.

The budget reconciliation bill, P.L. 117-169, known as the Inflation Reduction Act, was signed into law on Aug. 16. It includes numerous tax provisions, including new corporate taxes. It also contains numerous clean-energy-related tax incentives and money for IRS enforcement and other initiatives. Earlier budget reconciliation bill proposals were known as the Build Back Better… Read More »A deeper dive into the Inflation Reduction Act’s tax provisions

KEY POINTS Euro zone inflation hit a new record high in August at 9.1%. The rate was above expectations, with a Reuters poll of economists anticipating a rate of 9%. Euro zone inflation hit a new record high in August of 9.1%, according to flash figures from Europe’s statistics office Eurostat, with high energy prices… Read More »Euro zone inflation hits another record of 9.1% as food and energy prices soar

There were nearly 1 million more job openings than expected in July, an inflationary sign that the U.S. labor market is still extremely tight, the Bureau of Labor Statistics reported Tuesday. Available positions totaled 11.24 million for the month, well in excess of the 10.3 million FactSet estimate, according to the Job Openings and Labor Turnover… Read More »Job openings top 11.2 million in July, well above estimate and nearly double the available workers

Workers of U.S. small businesses continue to benefit from higher wages, according to the latest Paychex | IHS Markit Small Business Employment Watch. Average hourly earnings growth increased to 5.18 percent, matching a record set in May 2022. Meanwhile, the pace of job growth at small businesses moderated from the previous month, slowing to -0.20… Read More »Hourly Wage Growth Increases

The Federal Reserve is on track to deliver an instant payment service called FedNow between May and July 2023, the central bank’s clearest timeline yet for a new system enabling the settlement of U.S. payments in seconds. The FedNow service also potentially negates the need for the creation of a central bank digital currency, or… Read More »Fed’s instant payment service ‘FedNow’ is set to launch by July 2023

The FedNow system is supposed to be a cheaper option than wire transfers or debit card transaction fees. A Federal Reserve official said the agency’s new real-time payments system FedNow is slated to launch as early as May 2023. FedNow has been in development for around a decade and is supposed to allow banks to send payments… Read More »Federal Reserve says a real-time payment system could begin as early as May 2023

With the pandemic-fueled demand for more workplace flexibility, could the four-day workweek become the norm in American business? Three Wharton experts don’t hold out hope for change. When Wharton management professor Matthew Bidwell first came to the United States from England in the 1990s, he was struck by the dogged American work ethic. “It was a culture… Read More »Can the U.S. Embrace a Four-day Workweek?

Federal Reserve chair says central bank ‘must keep at it until the job is done on inflation US stocks tumbled after Federal Reserve chair Jay Powell emphasized his resolve to hoist interest rates to curb inflation in a hawkish address on Friday at the annual Jackson Hole central banking summit. Wall Street’s S&P 500 index… Read More »US stocks tumble more than 3% after Powell stands firm on rate rises

The pace of consumer price gains slowed, though it stayed near a four-decade high Inflation decelerated in July, measured by the Federal Reserve’s preferred gauge, though it remained close to its fastest pace since 1982. Consumer prices rose 6.3% in July from a year earlier, down from 6.8% in June, as measured by the Commerce… Read More »Inflation Eased in July, According to the Fed’s Preferred Measure

Second quarter GDP contracted 0.6%, better than the prior estimate Gross domestic income rose at a 1.4% pace, and spending revised up The government’s main measures of US growth pointed in different directions in the first half of 2022, adding to the ongoing debate on the health of the economy. Inflation-adjusted gross domestic product, or… Read More »Key US Growth Measures Diverge, Complicating Recession Debate

A measure of US profit margins has reached its widest since 1950, suggesting that the prices charged by businesses are outpacing their increased costs for production and labor. After-tax profits as a share of gross value added for non-financial corporations, a measure of aggregate profit margins, improved in the second quarter to 15.5% — the… Read More »US Corporate Profits Soar, Taking Margins to Widest Since 1950

The increase for 2023 may rise even higher as insurance carriers price record inflation into employers’ renewal rates, per a Mercer survey. With inflation eating wage gains, most workers would rather not see more money drained from their paychecks to cover healthcare insurance. At the same time, healthcare plans are the most expensive part of… Read More »Employers Project 5.6% Jump in Health Benefit Costs

The SEC on Thursday adopted amendments that require specific disclosures about the relationship between a public company’s executive compensation and its financial performance. Registrants must begin to comply in proxy and information statements that are required to include Item 402 executive compensation disclosure for fiscal years ending on or after Dec. 16, 2022. The “pay versus performance”… Read More »SEC adopts ‘pay versus performance’ disclosure rules

KEY POINTS Borrowers who will benefit from student loan forgiveness won’t need to worry about getting hit with a federal tax bill. But they may owe state taxes on the forgiven debt. Here’s what you need to know. If you’re poised to benefit from President Joe Biden’s up to $20,000 in student loan forgiveness, you may… Read More »Here’s what President Biden’s student loan forgiveness means for your taxes

A broad range of tax and information returns for the 2019 and 2020 tax years will receive automatic relief from failure-to-file penalties, under Notice 2022-36 released by the IRS Wednesday. The estimated 1.6 million taxpayers who have already paid these penalties will automatically receive an estimated $1.2 billion in refunds or credits, the IRS said in the… Read More »IRS relieves penalties for 2019 and 2020

Pass-through effects have increased during the pandemic Imported input prices have a larger effect on US inflation US consumer inflation, which is running near the fastest pace in 40 years, has been increasingly affected by higher wages and import prices, according to a new study from the Federal Reserve Bank of New York. “We find that the… Read More »Inflation Gets a Boost From Higher Wages and Import Prices, New York Fed Study Says

US business activity contracted for a second straight month in August, reflecting softer demand at both manufacturers and service providers and adding to concerns about the health of the overall economy. The S&P Global flash composite purchasing managers output index slid 2.7 points to 45, the weakest reading since May 2020, the group reported Tuesday.… Read More »US Business Activity Contracts Again, Weakest Since May 2020

The Inflation Reduction Act only offers tax credits on electric vehicles assembled in North America. Those looking to purchase an electric vehicle could be eligible for a $7,500 tax credit from the federal government, but because of language in the recently signed Inflation Reduction Act, only certain vehicles qualify. The new law hopes to encourage electric… Read More »Which Vehicles Qualify for New $7,500 Electric Vehicle Tax Credit?

KEY POINTS Sales of existing homes were down last month by 20.2% to 4.8 million properties from 6 million a year earlier. However, the median price last month was $403,800, up 10.8% from July 2021, and homes are still selling quickly. There are implications for buyers and sellers, who may already be seeing shifts in… Read More »We’re in a ‘housing recession,’ experts say. Here’s what that means for homeowners, sellers, and buyers

Inflation, rising interest rates, and Russia’s invasion of Ukraine sent shock waves through the stock market, putting a freeze on the IPO pipeline The IPO market is on pace for its worst year in decades, leaving fledgling companies with few options but to burn through cash while they wait for the stock market to calm.… Read More »IPO Market Faces Worst Year in Two Decades. ‘Really Hard Pill to Swallow.’

Workers are less satisfied with their wages as inflation erodes buying power The number of Americans quitting their jobs for a different one declined in July, according to a Federal Reserve Bank of New York survey published Monday, a sign the so-called Great Resignation is slowing down.  The rate of transitioning to a different employer… Read More »Fewer Americans are switching to new jobs, NY Fed survey shows

As the prices of many goods and services continue to skyrocket, there’s been a ton of media coverage on the subject of inflation. In July, the year-over-year inflation rate was a whopping 8.5%, as measured by the Consumer Price Index, or CPI. Most news coverage references CPI as the main indicator of how bad inflation is… Read More »Inflation is through the roof: How the Consumer Price Index measures the cost of living

Next time you stop at a gas station, think of it as a $100-a-month tax cut. Or a maybe $100-a-month raise. The steady drop in gas prices over the last few months has turned into an unexpected form of economic stimulus, coming at a time when the Federal Reserve is trying to cool the economy and battle rising… Read More »America just got a $100-a-month raise

Federal Reserve Chairman Jerome Powell will use his closely-watched Jackson Hole speech this week to stress that the central bank is going to bring down the high U.S. inflation rate even if it means a recession, economists said. “The core message will be the Fed’s dogged determination to bring inflation down even though they know… Read More »Fed Jackson Hole preview: Powell to stress a recession won’t stop Fed’s fight against high inflation

The U.S. Supply Chain Index in July was back above neutral for the first time in nearly three years on the back of the continuing strong rebounds in inventories and capacity utilization. With most of the COVID-19 concerns behind us and the renormalization of supply-chain linkages around the world, we should expect substantial relief coming… Read More »RSM U.S. Supply Chain Index: Back to normal for the first time since the pandemic hit

Dive Brief: The U.S. economy probably will not grow this quarter and, after more weakening, may fall into a brief recession by early next year, the Conference Board said Thursday, citing its Leading Economic Index (LEI). “Consumer pessimism and equity market volatility — as well as slowing labor markets, housing construction, and manufacturing new orders — suggest… Read More »The U.S. may fall into recession by early 2023: Conference Board

Dive Brief: Federal Reserve officials last month affirmed their goal of curbing inflation to 2% and favored further increases in borrowing costs while noting the risks of overdoing their most aggressive withdrawal of stimulus since the 1980s. Fed officials “continued to anticipate that ongoing increases in the target range for the federal funds rate would… Read More »Fed planned more tightening while noting the risk of going too far

The Inflation Reduction Act that President Biden signed into law this week has a lesser-known provision that could benefit many small business startups, allowing them to potentially double the amount they can claim on the research and development tax credit from $250,000 to $500,000 per year against payroll taxes. Under current law, small businesses that… Read More »Inflation Reduction Act potentially doubles R&D tax credit

That jump may lead to an increase in tax reporting requirements for companies, according to a recent analysis by tax solutions provider Sovos. A surge in gig work over the past few years can be seen in the rising number of 1099 filings, according to tax solutions provider Sovos. Based on a recent analysis, Sovos has… Read More »A surge in gig work is evident from 1099 filings

If your organization isn’t letting people go, the one next door probably is. That’s a key finding from a survey released Thursday by consultant PwC, which last month polled more than 700 US executives and board members across a range of industries. Half of the respondents said they’re reducing headcount or plan to, and 52%… Read More »Layoffs Are Planned at Half of US Companies, PwC Survey Shows

Data from Fidelity found the number of seven-figure retirement accounts down sharply after stocks cratered in the first half of 2022. The number of people with at least $1 million in their Fidelity 401(k) accounts plunged 29% in the second quarter to 294,000, data from the company shows. The S&P 500 posted its lowest closing price so far this year on… Read More »Stock Market Plunge Punished 401(k) Millionaires

Rule of 20 has a ‘perfect track record,’ bank strategists say Another indicator from CFRA signals that the market bottom is in Bank of America Corp.’s quant analysts say a US stock market indicator with a perfect track record has bad news for bulls: Equity prices haven’t bottomed out yet.  The measure looks at the… Read More »BofA Quants Say a Winning Stock Signal Is Bad Omen for Bulls

Federal Reserve officials at their July meeting indicated they likely would not consider pulling back on interest rate hikes until inflation came down substantially, according to minutes from the session released Wednesday. During a meeting in which the central bank approved a 0.75 percentage point rate hike, policymakers expressed resolve to bring down inflation that is running… Read More »Fed sees interest rate hikes continuing until inflation eases substantially, minutes show

Internal Revenue Service Commissioner Chuck Rettig is promising not to use the nearly $80 billion his agency will be receiving over the next 10 years to increase audits of small businesses or taxpayers who earn less than $400,000. The Inflation Reduction Act, which President Biden signed into law Tuesday, allocates $79.6 billion to the IRS… Read More »IRS pledges not to use the extra funding to audit lower-income taxpayers

KEY POINTS Tips for wait staff and cashiers haven’t taken a hit despite inflation, according to new data. Aggregated sales data from Toast showed people tipped an average of 19.6% at full-service eateries and 16.9% at quick-service restaurants during the second quarter. The cost of food away from home rose 7.6% over the 12 months… Read More »People aren’t cutting back on tips even as inflation surges

KEY POINTS Retail sales for July were flat, compared with the estimate for a 0.1% gain. Excluding autos, sales increased 0.4% against expectations for no gain. Falling fuel prices held back receipts at gas stations, while consumers took those savings and spent them at other retailers. Retail activity was flat in July as falling fuel… Read More »Retail sales little changed in July amid a fall in gas prices and a drop in auto sales

KEY POINTS President Joe Biden signed the Inflation Reduction Act into law The new law passed with majority Democratic support in the Senate and the House. The more than $430 billion package is expected to reduce the deficit by more than $300 billion over a decade. After more than a year of debate over costs,… Read More »Biden signs the Inflation Reduction Act into law, setting 15% minimum corporate tax rate

Once-hot blank-check firms have fallen out of favor alongside cryptocurrencies and other speculative investments SPACs were one of the hottest investments on Wall Street early last year, booming alongside cryptocurrencies, meme stocks, and other speculative trades as an easy way for buzzy startups to raise money and go public. Fast forward 18 months and much of the… Read More »SPAC Activity in July Reached the Lowest Levels in Five Years

The increase for 2023 may rise even higher as insurance carriers price record inflation into employers’ renewal rates, per a Mercer survey. With inflation-eating wage gains, most workers would rather not see more money drained from their paychecks to cover healthcare insurance. At the same time, healthcare plans are the most expensive part of benefits… Read More »Employers Project 5.6% Jump in Health Benefit Costs

The interest rates the Internal Revenue Service uses will go up for the quarter beginning Oct. 1, the agency said. The rates will be: 6% for overpayments (5% in the case of a corporation); 3.5% for the portion of a corporate overpayment exceeding $10,000; 6% for underpayments; and, 8% for large corporate underpayments.  The rates… Read More »IRS interest rates increase for Q4

A number of EVs should become more affordable, but only after a “subsidy winter” when far fewer cars will qualify. Big changes are coming to the federal electric car tax credit with congressional passage of the Inflation Reduction Act, changes that may make it eventually easier to own an EV, but initially harder to afford one.… Read More »New Electric Car Tax Credits Are About to Radically Change Buying EVs

An account of the debate at the Federal Reserve’s July policy meeting,set to be published after two weeks of whiplash on Wall Street, willprobably offer clues as to what would push the central bank to go bigwith tightening yet again in September. Fed officials’ decision at their July 26-27 gathering to raise theirbenchmark interest rate… Read More »Fed Minutes May Reveal Inclinations on Size of Next Rate Hike

People want to hear from JPMorgan (JPM) CEO Jamie Dimon. He’sinsightful, provocative, and never boring. So it’s little wonder that the company puts him on calls with wealthyclients to give his take on, well, just about everything, which iswhat Dimon did this past Tuesday. Here are some curated highlights of Dimon’s comments, which, believeme, could’ve… Read More »Jamie Dimon sounds off on… almost everything: Morning Brief

An end to corporate America’s record stock-buying spree is givingequity bulls one more thing to worry about. JPMorgan Chase & Co., Citigroup Inc., and Best Buy Co Inc. all pausedbuyback plans when reporting their second-quarter results, deciding tohold on to cash instead as the Federal Reserve’s interest-rate hikesrisk driving the economy into a recession. They’re… Read More »Stock Market Recovery Faces a New Hurdle as Record Buybacks Slow

Venture-capital firms are sitting on a record cash pile. Theirso-called dry powder—money raised but not deployed—has increased bymore than $100 billion worldwide since the end of last year, reachingalmost $539 billion in July, according to data firm Preqin Ltd. The buildup comes as many venture firms have slowed deal-making amidthe market pullback, a signal that… Read More »Venture Capital’s Cash Stockpile Swells Amid Slowdown

A new poll found that a majority of voters (76%) weren’t worried aboutthe prospect of being audited by the IRS. As we await the House of Representatives’ vote on legislation thatwould provide the IRS with $80 billion in additional funding over thenext decade, a new Morning Consult/Politico poll found that a majorityof Americans are not… Read More »Most Americans: ‘I’ve Got 99 Problems, But an IRS Audit Ain’t One

KEY POINTS The Federal Reserve is unlikely to pivot from its hawkish interestrate hikes despite positive signs this week that inflation in the U.S.could be easing, according to market strategists.As both CPI and PPI soften, markets have started to moderate theirexpectations for Fed rate hikes.But that doesn’t mean it is “mission complete” for the Fed,… Read More »Fed expected to stick with hawkish rate hikes until data show further slowing in inflation

Tax planning for real estate activities often involves a myriad of taxconsiderations. For example, if the real estate produces a loss, adetermination must be made whether the loss is limited by insufficientbasis or by the at-risk or passive activity loss rules which ariseunder IRC sections 465 and 469. When income is generated, otherquestions arise, including… Read More »Rental Activity and Self-Employment Tax

House Democrats on Friday approved a sprawling bill to lowerprescription drug costs, address global warming, raise taxes on somebillion-dollar corporations, and reduce the federal deficit, sendingto President Biden the long-delayed, last component of his economicagenda in time for this year’s elections. The 220-to-207 vote marked the culmination of roughly a year and ahalf of debate… Read More »House passes Inflation Reduction Act, sending climate and health bill to Biden

Summary World demand growth to slow to 3.1 million bpd in 2022In contrasts with IEA, which raised its demand outlookOPEC July output rises 162,000 bpd, less than pledgedSees slightly higher U.S. shale growth in 2023 OPEC on Thursday cut its 2022 forecast for growth in world oil demandfor a third time since April, citing the… Read More »OPEC, in contrast to IEA, sees lower 2022 oil demand growth

Market volatility triggered by Russia’s invasion of Ukraine andsoaring global interest rates have forced investors to pull back frombacking initial public offerings, resulting in a dramatic decline instock market listings in the United States. According to data from Refinitiv, 2022 is on track to be the worstyear for U.S. listings since 2009, with IPOs having… Read More »Factbox: U.S. IPO activity plunges as Ukraine war triggers volatility

Summary Fed now seen delivering 50 bps hike in SeptemberU.S. consumer price growth slows in JulyMusk sells Tesla shares worth $6.9 blnThe volatility index closes at a four-month low Wall Street surged on Wednesday, putting the Nasdaq more than 20%above its June low after U.S. inflation slowed more than expected inJuly and raised hopes the… Read More »Wall Street rally lifts Nasdaq 20% from low as inflation fears ebb

Consumers struggling with skyrocketing prices for food, gas, autos,and rent got a tantalizing hint of relief last month when pricesdidn’t budge at all from June after 25 straight months of increases.With gas prices continuing to fall, inflation is probably slowingfurther this month. So has the worst bout of inflation in four decades possibly peaked?Economists say… Read More »EXPLAINER: Mixed US inflation signs. Where are prices going?

Workers’ wages are rising briskly, a factor contributing tofour-decade high U.S. inflation. Average hourly earnings grew 5.2% in July from a year earlier, andannual wage gains have exceeded 5% each month this year, the LaborDepartment said Friday. The rapid earnings growth adds to otherevidence that employers are continuing to increase pay as they try tofind… Read More »Rapid Wage Growth Keeps Pressure on U.S. Inflation

Small and medium-sized businesses (SMBs) are known as the backbone ofthe U.S. economy and play a major role in most economies, withtremendous contributions to job creation. They represent about 90% ofbusinesses, and more than 50% of employment worldwide. Although some continue to thrive, many SMBs were hit severely by theeconomic impact of the COVID-19 pandemic.… Read More »4 Ways SMBs Can Recession-Proof Their Businesses

The Internal Revenue Service has released a draft version of Form 1040for next tax season, with an expanded question about virtualcurrencies, now referred to as digital assets, along with otherchanges on drafts of that form and related forms and schedules. Last tax season, the question was: “At any time during 2021, did youreceive, sell, exchange,… Read More »IRS expands crypto question on a draft version of 1040

KEY POINTS The consumer price index rose 8.5% in July from a year ago, belowexpectations, due largely to slumping energy prices.Excluding volatile food and energy prices, so-called core CPI rose5.9% annually and 0.3% monthly, compared with respective estimates of6.1% and 0.5%.The report was good news for workers, who saw a 0.5% monthly increasein real wages.… Read More »Consumer prices rose 8.5% in July, less than expected as inflation pressures ease a bit

KEY POINTS A new Wells Fargo analysis looked at the best 20 days for the S&P 500between August 1992 and July 2022. Almost half of them occurred amid adownturn.The findings underscore the impossibility of timing the market, withthe dips and upswings being so jumbled together. “It was the best of times, it was the worst… Read More »On rare days, the market rises 5% — or even 10%, Wells Fargo finds. How to make sure you’re there for it

President Joe Biden signed two bills on Friday that give the federalgovernment more time to catch and prosecute fraud related to two ofthe most popular COVID-19 small business relief programs — thePaycheck Protection Program (PPP) and COVID-19 Economic InjuryDisaster Loans (EIDL). The bills are: H.R. 7352, the “PPP and Bank Fraud Enforcement Harmonization Act of2022,”… Read More »Bills extend the statute of limitation for prosecuting PPP, and EIDL fraud

By a vote of 51 to 50, the U.S. Senate on Sunday passed a budgetreconciliation bill, H.R. 5376, now known as the Inflation ReductionAct of 2022. The bill contains numerous tax provisions, including a15% corporate minimum tax, expanded eligibility for premium taxcredits, and numerous clean energy credits. The Senate vote, in which no Republicans joined… Read More »Key tax provisions in the Senate reconciliation bill

KEY POINTS Senate Democrats on Sunday passed their climate, health, and taxpackage, including nearly $80 billion in funding for the IRS.The Inflation Reduction Act allocates $79.6 billion to the agency overthe next 10 years, with more than half of the money going toenforcement. Senate Democrats on Sunday passed their climate, health, and taxpackage, including nearly… Read More »Reconciliation bill includes nearly $80 billion for IRS including enforcement, audits: What that means for taxpayers

One doesn’t have to be the loneliest number anymore. For years, soleproprietors weren’t able to choose from as wide a range of retirementplan options as bigger operations could. Or, in the case of a 401(k)plan, the administrative costs would outweigh the potential benefitsin the business owner’s eyes. But the landscape has changed dramatically over time.… Read More »Solo 401(k) Plans: Looking Out for Number One

When we think of penalties we naturally think of punishment.  I mean,to channel Steven Wright, if a penalty is not punishment when why doesthe word start with “penal”?  Both this week and next week’s lessonteach us how penalties serve other purposes as well.  Today, in LionelE. Larochelle and Molly B. Larochelle v. Commissioner, T.C. Summ.… Read More »Lesson From The Tax Court: Non-Receipt of 1099 Does Not Get You Out of Penalties

The biggest US companies keep stepping up their spending on capitalprojects and encouraging signals to investors in an uncertain economicclimate. Companies from Google parent alphabet incorporated to General MotorsCompany to Pepsi Cola incorporated are among those that have increasedspending on big-ticket items such as real estate, equipment, ortechnology to fuel growth. The investments are generally… Read More »Companies From Google to Pepsi Are Boosting Capital Spending

The recent scam appears to cut across Intuit’s cloud and desktopproducts. In a worrying development pointing to the increasingsophistication of such scams, Intuit also stated that hackers appearto now be able to link emails to existing email chains, boosting theperceived authenticity of such communications. QuickBooks owner Intuit recently warned users that they risk beingtargeted by… Read More »Intuit Issues Phishing Warnings to QuickBooks Users

Stress on global supply chains eased in July to the lowest level sinceJanuary 2021 as port congestion and other snags eased, the New YorkFederal Reserve reported on Thursday, in its latest update to aworldwide index of supply problems. It was the third straight month of declines an encouraging sign forU.S. Federal Reserve policymakers who are… Read More »Global supply chain stress at 18-month low in July, NY Fed’s index shows

National Taxpayer Advocate Erin Collins is protesting a decision byInternal Revenue Service officials to postpone the implementation ofscanning technology by the next tax season to deal with a backlog ofmillions of paper tax returns. Collins called on the IRS during tax season to implement the kind ofcommonly used scanning technology already in use by many… Read More »Taxpayer advocate appeals IRS decision to delay scanning tech

Gig economy companies classifying their workers as independentcontractors continue to face lawsuits, state action, and federalagency enforcement  For much of the last decade, a legal and regulatory storm at the stateand federal levels has surrounded the classification of workers as“independent contractors” or “employees.” The dramatic growth of thegig economy, especially app-based services such as… Read More »The Independent Contractor Dilemma

The IRS is continuing to hone its filters to catch business identitytheft and tax fraud, using 84 selection filters last year to identifybusiness tax returns claiming refunds for potential fraud but notalways succeeding, according to a new report. The report, released Monday by the Treasury Inspector General for TaxAdministration, found the filters identified and selected… Read More »IRS adding more filters trying to catch business tax fraud

US household debt increased by 2% to $16.2 trillion in the secondquarter, with mortgages, auto loans, and credit-card balances allseeing sizable increases, according to a report by the New YorkFederal Reserve Bank. The increase in borrowing, which equals $312 billion over threemonths, is reflected in part in higher prices for homes and cars.Americans also are… Read More »US Household Debt Surpasses $16 Trillion on Higher Mortgages

The Federal Reserve is “nowhere near” being almost done in fightingthe hottest inflation in four decades, and officials are fullycommitted to achieving price stability, San Francisco Fed PresidentMary Daly said. “We have made a good start, and I feel really pleased with where we’vegotten to by this point,” but inflation is “far too high,” Daly… Read More »Fed ‘Nowhere Near’ Finished With Inflation Fight, Daly Says

Equifax this spring sent out incorrect credit scores for millions ofcustomers applying for home and auto loans, the Wall Street Journalreported on Tuesday. As one of three major credit-reporting companies in the US., Equifaxprovides financial information and scores for consumers, affectingwhether people are approved for products including mortgages, creditcards, and car loans, and what interest… Read More »Equifax issued wrong credit scores for “millions” of customers, report says

KEY POINTS Despite seeing real wage gains this year, Americans must contend witha higher cost of living, which is growing at the fastest annual pacein more than four decades.As inflation outpaces wage growth, credit card balances jumped in thesecond quarter of 2022.Americans now say they need to be making about $107,800 a year to feelfinancially… Read More »Credit card balances jump 13%, the highest leap in over 20 years, as inflation outpaces wage growth

Someone in Illinois bought the winning ticket, and if he or she doeslike most winners, they will take the lump sum, not the annuity. The$1.28 billion prize, which is the second-largest jackpot in MegaMillions lottery history, can be claimed in a lump sum or over time.The 1.28 billion is only if you take it over… Read More »Winner Of $1.28 Billion Lottery Gets $433.7 Million After Tax

JPMorgan Chase & Co.’s Marko Kolanovic is quickly emerging as one ofthe very few bulls among Wall Street’s top strategists, who says USstocks will rally in the second half. Kolanovic, voted the No. 1 equity-linked strategist in last year’sInstitutional Investor survey, has stuck to his calls for risky assetsthis year despite the sharp rout in… Read More »JPMorgan’s Kolanovic stands apart in saying stocks will rebound

KEY POINTS Home price gains are cooling fast, as demand wanes and supply builds.The annual rate of price appreciation fell two percentage points from19.3% to 17.3%.Price gains are still otherwise strong because of an imbalance betweensupply and demand. The housing market has had a severe shortage foryears. Rising mortgage rates and inflation in the wider… Read More »Home prices cooled at a record pace in June, according to housing data firm

Employers continued hiking workers’ pay at a brisker-than-expectedpace, but the increases still weren’t enough to compensate for theeven faster rise in inflation. Wages and salaries for civilian workers increased 1.4% in the secondquarter and 5.3% over the year ending in June, according to the Bureauof Labor Statistics Employment Cost Index, released Friday. Bothmeasures show swifter… Read More »Workers’ wages continue to climb, but not as fast as inflation

With the busiest week of the second-quarter earnings season over,investors are relieved that results are holding up better than feared,according to Goldman Sachs Group Inc. strategists. Of the 56% of S&P 500 companies that have reported earnings so far,more than half have beaten analyst estimates — above the long-termaverage of 47%, strategists led by David… Read More »Goldman’s Kostin Says US Results Season Better Than Feared

The Internal Revenue Service admitted that some married couplesreceived an erroneous balance due notices for their 2021 tax returns. The IRS added that no immediate response to the notice or phone callwas necessary right now and it’s working on fixing the problem. “The IRS is aware that some payments made for 2021 tax returns havenot… Read More »IRS sent incorrect balance due notices to couples

The stock market is wrestling with a “bad news is actually good news” scenario. US gross domestic product shrank in the second quarter after slowingin the first quarter as well. Two consecutive quarters of contractionis the technical definition of a recession, although the real-worlddefinition is more nuanced. In addition, personal consumption fell inthe second quarter.… Read More »Stock Market Has No Fear of a Recession That’s Almost Priced In

KEY POINTS The U.S. economy shrank for a second straight quarter, one definitionof a recession, the Bureau of Economic Analysis reported Thursday.However, fewer than half of Americans feel “financially secure enough”for another prolonged economic downturn, according to a PersonalCapital survey.“People are being very short-term defensive, regardless of what theirlong-term goals are,” said Bill Parrott, president,… Read More »U.S. economy continues to shrink and many aren’t prepared for an economic downturn. Here’s what advisors are telling clients as recession fears grow

One of the Treasury markets more widely watched yield-curve indicatorsextended its inversion after the Federal Reserve’s decision to liftits benchmark rate in line with expectations. The yield on the two-year Treasury moved to be as much as 32 basispoints higher than the 10-year yield, which slid in the wake of theFed’s announcement that it was… Read More »Widely Watched Yield Curve at Most Inverted in Decades After Fed Hike

KEY POINTS The Federal Reserve on Wednesday enacted its second consecutive 0.75percentage point interest rate increase, taking its benchmark rate toa range of 2.25%-2.5%.Chair Jerome Powell said there will be a point where the Fed starts toslow hikes to assess their impact.“We actually think we need a period of growth below potential in orderto create… Read More »Fed hikes interest rates by 0.75 percentage points for the second consecutive time to fight inflation

KEY POINTS Gross domestic product fell 0.9% at an annualized pace for the period,according to the advance estimate.That follows a 1.6% decline in the first quarter and was worse thanthe Dow Jones estimate for a gain of 0.3%.The drop came from a broad swath of factors, including decreases ininventories, residential and nonresidential investment, and governmentspending… Read More »GDP fell 0.9% in the second quarter, the second straight decline, and a strong recession signal

Summary Fed raises policy rate to 2.25%-2.50% rangeU.S. central bank flags weakening economic dataFed’s Powell says failure to tame inflation is not an option The Federal Reserve said on Wednesday it would not flinch in itsbattle against the most intense breakout of inflation in the UnitedStates since the 1980s even if that means a “sustained… Read More »Fed jacks rates again, Powell vows no surrender in inflation battle

As the Federal Reserve prepares to meet this week, Wall Streetinvestors are betting that officials will raise interest ratesaggressively through the end of the year and then turn around andstart cutting them in six months. The unusual nature reflects investors growing sense that the Fed isdriving the economy into a recession as it tries to… Read More »Investors Bet Fed Will Need to Cut Interest Rates Next Year to Bolster the Economy

The US corporate earnings season is turning out to be better thanfeared as consumer spending remains resilient, while stocks havealready priced in much of the bad news according to Citigroupincorporated and UBS Global Wealth Management strategists. Of the US companies that have reported so far 60% have beaten salesestimates while 75% have topped profit expectations.… Read More »Citi, UBS Wealth Say US Earnings Holding Up Better Than Feared

Questions hold the potential for change but thought without action is defeat. “It is easier to act yourself into a new way of thinking than it is tothink yourself into a new way of acting.” Anonymous Each question listed below includes clear action items. 5 questions that can change your life: #1. What beliefs about… Read More »5 UNEXPECTED QUESTIONS THAT CAN CHANGE YOUR LIFE

Disappointing earnings reports from several big companies don’t seemto be fazing investors, with the S&P 500 up nearly 5% this month, and2.5% last week, after a punishing start to the year. Even some companies that have posted sharply lower quarterly resultshave seen their shares rally in the following days. Bank of AmericaCorp BAC -0.44%▼. posted… Read More »Weak Earnings Reports Aren’t Fazing Investors After Brutal Year for Stocks

What inspires us to follow a CEO, founder, or thought leader?Certainly, there is a toughness, particularly in the face ofadversity, that can encourage us to do the same and elevate ourefforts. In other words, toughness or grit can be inspirational. In this shortarticle, I want to share how grit is essential and that it can… Read More »5 Inspirational ‘Grit in Leadership’ Skills for Overcoming Adversity

Benchmark: “Something that serves as a standard by which others may bemeasured or judged,” according to Merriam-Webster. As necessary as benchmarks are, in my opinion, the modern businessworld has become entirely too fascinated with them. Don’t get mewrong—all businesses need to monitor success, failures, and progress.Benchmarks can absolutely help you do that. But where you’ll… Read More »The Problem With Traditional Business Benchmarks

From rising interest rates to battling growing inflation and supplychain issues that don’t show any hint of resolving, warning signs of arecession are becoming hard to ignore. Despite the state of ourcurrent economy, there are many reasons not to panic about a possiblerecession.  we all began to emerge from the pandemic in 2021, and Americansstarted… Read More »Is A Recession Looming? Why History Says We Shouldn’t Panic

Amid the “Great Resignation,” many people continue to relish the ideaof being their own boss. While autonomy and flexibility can bealluring, there are also important financial considerations. This is especially important advice given that new businessapplications remain historically strong, albeit down 2.5% in June fromthe prior month, according to U.S. Census Bureau data adjusted forseasonal… Read More »What to know about the financial risks of becoming your own boss

U.S. Treasury Secretary Janet Yellen said on Sunday that U.S. economicgrowth is slowing and she acknowledged the risk of a recession, butshe said a downturn was not inevitable. Yellen, speaking on NBC’s “Meet the Press,” said strong hiring numbersand consumer spending showed the U.S. economy is not currently inrecession. U.S. hiring remained robust in June,… Read More »U.S. economy slowing, but recession not inevitable, Yellen says

The bond market wants to believe that Federal Reserve boss JeromePowell will succeed in getting inflation under control. It’s unclear just when the economy might witness an actual slowdown inconsumer-price gains, which are presently running at the fastest pacein four decades. But as investors brace for the Fed’s next hike on Wednesday,bond-market measures suggest the… Read More »Bond Traders Regaining Faith That Fed Can Slay Inflation Dragon

More than 4 million people have left their jobs each month in the U.S.so far this year — and according to new research, this record-breakingtrend isn’t going to quit anytime soon. About 40% of workers are considering quitting their current jobs inthe next 3-to-6 months, a report from McKinsey and Co. published lastweek, which surveyed… Read More »40% of workers are considering quitting their jobs soon—here’s where they’re going

New research that analyzed the impact of same-day pay showed that 60%of working Americans want employers to offer workers immediate accessto daily earned wages. A new national research study that analyzed the impact of same-day payshowed that, among other things, more than 60% of working Americansthink that all employers should offer their employees immediate accessto… Read More »On-Demand Pay: 60 Percent of U.S. Workers Want Daily Access to Earned Wages

As we enter the home stretch, 2022 has been an eventful year for taxprofessionals. New proposed regulations, court decisions, and InternalRevenue Service pronouncements have all impacted the tax landscape.While the major developments are familiar to most professionals, thereare a few that might have been overlooked due to the busy nature ofthe profession. Below are some… Read More »The top 20 tax developments from 2022

Higher prices can sting retirees harder than others for a number ofreasons, but there are a few specific types of investments that canhelp ease the pain. Inflation hurts everyone. It seems to reach every sector, product, andbusiness in one way or another, whether it raises the cost of heatingyour home, lunches, or road trips. But… Read More »Is Inflation Costing You More as a Retiree?

KEY POINTS A CNBC poll found more than 6 out of 10 Americans think there will bea recession next year.Although Americans age 50 and older feel better prepared for recessionthan younger people, 68% of U.S. adults overall don’t feel ready for adownturn at all, according to a MagnifyMoney report.Here are some strategies for coping with… Read More »Here are 6 strategies to recession-proof your finances at any age

The slowdown in venture-capital funding has spread to early-stagestartups, with that part of the market suffering one of the biggestinvestment drops in more than a decade. In the second quarter, venture capitalists invested around $16 billionin U.S. early-stage deals—known as Series A and B rounds—a 22%decrease from the year-earlier period, according to PitchBook DataInc. That… Read More »Tech Downturn Slows Early-Stage Startup Funding

Improving the taxpayer experience while surmounting operationaldifficulties that include a shrinking workforce are among the goalsthe IRS has set for itself in the next five fiscal years. The 26-page IRS Strategic Plan FY 2022–2026 (Publication 3744) wasreleased Wednesday, outlining strategic goals broadly for service,enforcement, people, and transformation. IRS Commissioner Chuck Rettig wrote in a prefatory… Read More »IRS seeks transformation in a new 5-year plan

Citigroup Inc. economists have labeled a global recession a “clear andpresent danger,” while repeating they estimate a 50 percentprobability of such a slump. In a report to clients, economists led by Nathan Sheets said they nowexpect the world economy to grow 2.9 percent this year and 2.6 percentin 2023, slightly lower than previously. That means… Read More »Citi economists call global recession a present danger

The giants of private credit — the only game in town lately forbig-ticket leveraged buyouts — are dialing back on risk, in a turningpoint that threatens to reduce crucial financing for mega deals. Blackstone Inc., Apollo Global Management Inc., Ares Management Corp.,KKR & Co., Antares Capital LP, and the asset management arm of GoldmanSachs Group… Read More »Private Credit Giants Curb Buyout Lending Spree in Big Shift

Talk about recession and inflation has been a dominant topic onsecond-quarter corporate earnings calls that are starting to flood in. Recession fear is already dominating Washington. Now it’s grippingcorporate America. CEOs across industries are increasingly grappling with the threat ofan economic slump — possibly in a matter of months — sparked byrampant inflation and the… Read More »Wall Street braces for economic ‘hurricane’

KEY POINTS A high rate of inflation — 9.1% in June from a year earlier — hastaken a toll on household budgets.In addition to dealing with earnings not keeping up with the cost ofliving, most middle-class households (77%) expect the U.S. to be in arecession by the end of 2022.Experts say it’s important to set… Read More »75% of middle-class households say their income is falling behind the cost of living

It may often be a good idea for a small business owner to havechildren and other relatives on the company payroll. However, a newTax Court case put a spotlight on what truly qualifies for the taxdeductibility of compensation to that employed relative, and what doesnot. Certainly, small business clients may know the tax benefits of… Read More »Taxpayer Fails to Prove Compensation Deduction

Stocks rallied Tuesday, with the market resuming a bounce from lastmonth’s lows, as traders bet on strong corporate earnings reports andwagered that markets have found a bottom. The Dow Jones Industrial Average jumped 754.44 points, or 2.43%, to31,827.05 — closing near the highs of the session as gains acceleratedin the final hour of trading. The… Read More »Dow rallies more than 750 points as traders bet that the bottom is in

Federal Reserve officials have signaled they’re likely to raiseinterest rates by 0.75 percentage points later this month for thesecond straight meeting as part of an aggressive effort to combat highinflation. Policymakers left the door open to a larger full percentage pointincrease at the July 26 to 27th gathering, but some of themsimultaneously poured cold water… Read More »Fed Officials Preparing to Lift Interest Rates by Another 0.75 Percentage Point

US stocks dipped to start the week as investors considered another setof earnings reports from major companies and looked ahead to a slateof key central bank meetings. Stocks were in the green for much of Monday’s session before turningdownward in the afternoon. The s&p 500 fell 32.31 points or 0.8% to3,830.85. The broad index on… Read More »Stocks Lose Ground as Banks Give Quarterly Updates

Lots of questions continue to swirl around the state of like-kindexchanges (real estate in particular) both in the near and long-term.As a tax planner, it’s best to look at the current legislative impactand the possibilities. Mike Pusey, CPA offers his perspective. The IRC Section 1031 “landscape” has narrowed significantly and may befurther restricted, but is… Read More »Near and Long-Term Tax Planning for Section 1031

The legislation would direct the IRS to create software that wouldallow any taxpayer to prepare and file their individual income taxreturn beginning in the tax year 2023. U.S. Senator Elizabeth Warren is leading fellow Democrats in renewinga push for the IRS to create its own free tax-filing services and moveaway from its current private partnership,… Read More »Congress Again Considers Free IRS Income Tax Filing System

Baby boomers have lived through the tech bubble, the 2008 housing andmarket crash, and even double-digit inflation in the 1970s, but neverall these financial crises together. Now we have inflation,pandemic-related supply chain disruptions, a bear market, higher gasprices, and rising interest rates. That makes an already formidablegoal of saving for retirement even more challenging, especially… Read More »Why Saving for Retirement Is More Difficult in 2022

Inflation at the wholesale level climbed 11.3% in June compared with ayear earlier, the latest painful reminder that inflation is runninghot through the American economy. The Labor Department reported Thursday that the U.S. producer priceindex — which measures inflation before it hits consumers — rose atthe fastest pace since hitting a record 11.6% in March.… Read More »Wholesale inflation in June surged 11.3% from a year ago

Most companies use too many incomplete measures and would benefit fromusing one complete measure instead, as railroading company CSX hasimplemented. At a recent financial training session for railroading company CSXCorporation, CFO Sean Pelkey asked his teammates to list what theyconsidered to be the three most important financial measures. Thepurpose was to consider both the merits… Read More »Rethinking the Value of 3 Common Financial Metrics

Deepening fears about the health of the global economy have shoved theeuro down to parity against the US dollar for the first time in 20years. Investors gravitate towards the perceived safety of the dollar intimes of stress — a feature that led to a ferocious rally in the UScurrency when the coronavirus pandemic took root… Read More »Euro falls to parity with US dollar for the first time in two decades

Recently, FASB issued a new Accounting Standards Update (ASU 2019-12),Simplifying the Accounting for Income Taxes. The new standard amendssection 740 of the Accounting Standards Codification (ASC),eliminating some problematic exceptions and technicalities. CPAs hoping the new standards would reduce the overall complexity ofdeferred income taxes will be disappointed. The basic principles havenot changed; instead, FASB has… Read More »ICYMI | FASB Streamlines Income Tax Accounting

One of the US bond market’s most widely watched indicators ofpotential recession risk has reached levels last seen in 2007. The yield on the benchmark 10-year Treasury note moved to be as muchas 10 basis points below the 2-year rate, eclipsing the9.5-basis-point gap reached in early April. So-called inversions of the yield curve — situations… Read More »Treasury Curve Inversion Deepens to Level Last Seen in 2007

KEY POINTS The consumer price index increased 9.1% from a year ago in June, abovethe 8.8% Dow Jones estimate.Excluding food and energy, core CPI rose 5.9%, compared with the 5.7% estimate.Costs surged for gasoline, groceries, rent, and dental care.Adjusted for inflation, workers’ hourly wages fell 1% during the monthand are down 3.6% from a year… Read More »Inflation rose 9.1% in June, even more than expected, as consumer pressures intensify

Such a frenetic pace of downgrades seen only four times beforeRecession or not, the UBS model shows a 1,100-point gap for S&P 500 Even diehard bulls are yielding to recession angst. Wall Street analysts, the majority of whom clung to buy ratings andoptimistic profit forecasts as markets cratered, are showing signs ofgiving in. On a… Read More »Stock Drubbings Finally Convince Holdout Analysts to Get Real

Remote work is equalizing tech startup pay across the country, withSilicon Valley and San Francisco as the benchmark, and Seattle asExhibit A. That’s one insight from a recent study by financial technology companyCarta: compensation packages at tech startups in the Seattle regionnow match those in the Bay Area, after increasing 3 percentage pointsin the past… Read More »How remote work is changing tech pay: Seattle startup comp equals Silicon Valley, study says

The biggest overhaul of cross-border tax rules in a generation is nowon course to take effect in 2024, the Organisation for EconomicCooperation and Development said on Monday in an update on the projectfor G20 finance ministers. The shake-up, which has been shepherded by the OECD and which nearly140 countries agreed to last year, aims to… Read More »OECD sees global corporate tax overhaul on course for 2024

Monthly consolidated financials need to be prepared within a few daysto be of use to operational leaders. Consolidated financial statements enable organizations with a parentcompany and subordinate reporting units (e.g., subsidiaries, regionaloperations, or multiple locations) to report their finances as asingle enterprise for creditors, investors, operational leaders, andother stakeholders. Preparing these statements can be a… Read More »Best Organizations Report Consolidated Financials in 4 Days: Metric of the Month

Investors expect concerns about hot inflation and strapped consumersto dominate the corporate earnings season that kicks off this weekcreating winners and losers in the battered stock market. Stocks have come under pressure this year with inflation hovering at afour-decade high in the Federal Reserve in the midst of an aggressivecampaign to raise interest rates to… Read More »The Stock Market Faces Next Test as Inflation Looms Over Earnings Season

Another record-breaking number of imports passed through the US’smajor container ports this spring — showing no sign of a slowdown inconsumer demand, the National Retail Federation, or NRF, said Friday. “Cargo volume is expected to remain high as we head into the peakshipping season, and it is essential that all ports continue tooperate with minimal… Read More »US ports saw record imports this spring, as port workers’ contract expires

Commerce Secretary Gina Raimondo on Sunday expressed doubt that thenation will head into a significant economic downturn but warnedagainst “talking ourselves into a recession.” She said it’s typical for the Federal Reserve’s hikes in interestrates to slow economic growth. For over two years, the U.S. hasstruggled to recover from pandemic-related economic problems, namely asupply-chain crisis… Read More »Commerce Secretary Warns against ‘Talking Ourselves into Recession’

After a period of relative sanity, another wave of shipping congestionis expected to happen soon. By now weary retailers are familiar withthe drill and are recalibrating supply chains and warehousing andmanufacturing strategies. At the moment, congestion has improved, according to a report inAvison Young, with only about 30 ships waiting offshore versus the 100that lined… Read More »Another Wave of Shipping and Supply Chain Challenges is On the Way

You might be feeling pain at the pump, but it could be worse; gas is a lot more expensive in some other countries. Historically high gas prices in the United States have led to consumer complaints, political consternation, and even some changes in tax policy, but a look at prices paid in countries around the world reveals… Read More »Gas Prices Around the World

There’s no need to fret about the timing of a US recession anymore,according to Wells Fargo Investment Institute — because we’re alreadyin one. The investment strategy arm of the bank says the US is entering arecession in the second half of the year — in other words, now —amid inflation that’s faster and more broad-based… Read More »US Recession Is Already Here, According to Wells Fargo Investment Group

KEY POINTS The federal minimum wage has been $7.25 per hour since 2009.Starting this month, workers in Connecticut, Nevada, Oregon, andWashington, D.C., are seeing higher minimum pay rates.Some experts say a higher federal standard for hourly pay is needed. Workers earning minimum wage are getting an income boost in some partsof the U.S., thanks to… Read More »As states and cities raise minimum wage rates, some experts say a higher federal rate is long overdue

Homebuyers are feeling the squeeze of rising mortgage rates. On top ofthat, housing prices remain high. That may lead many to rethink theirbudget. “As mortgage rates go up, it raises the cost of buying a home with amortgage,” explained Danielle Hale, chief economist at Realtor.com. “For many homebuyers, higher mortgage rates equal a higher monthlycost,… Read More »Rising mortgage rates are hitting Americans’ wallets. Here’s how to adjust your housing budget

After a nurse bought clothing for work at a clinic at her own expenseand deducted it from her taxes, she wound up in front of the Tax Courtto ensure the purchase was a legitimate business-related taxdeduction. In this case, she prevailed. Ken Berry offers the detailsbelow. Under prior law, an individual could deduct the unreimbursed… Read More »Tax Court Tailors Outcome to Fit Clothes Deduction

FASB issued an Accounting Standards Update (ASU) that improvesfinancial reporting for investors and other financial statement usersby increasing the comparability of financial information acrossreporting entities that have investments in equity securities measuredat fair value that are subject to contractual restrictions preventingthe sale of those securities. FASB ASC Topic 820, Fair Value Measurement, according to a… Read More »FASB issues standards to improve fair value guidance for equity securities

Operating cash flows boosted many balance sheets in the 12 monthsending March, but that will be harder to do this quarter. The Association for Financial Professionals’ annual Liquidity Surveytakes a thorough look into corporate treasury trends and informationon corporate cash holdings, cash management, and short-term investing. Among other questions on cash management, the survey asks… Read More »1 Out of 3 Companies Increased Cash Holdings: Weekly Stat

The coronavirus (COVID-19) pandemic triggered an exodus of workersfrom their comfortable offices to the safety of their homes and otherremote locations. For some, this displacement is temporary and willend when the pandemic subsides; for others, the ability to workremotely represents a paradigm shift that may be felt for many yearsto come. This article explores some… Read More »ICYMI | Working from Home State Income Tax Complications

Traditional IRAs are set up in a way that basically incentivizes you(and your heirs) into paying the highest tax bill possible. Don’t fallfor it. Consider a Roth conversion instead. When you first decided to contribute to an IRA or anemployer-sponsored retirement account, it probably seemed like a greatdeal – at least at the time. After… Read More »Don’t Be Tricked Into Voluntarily Paying Higher Taxes on Your IRA

Federal Reserve officials were concerned at their meeting last monththat consumers were increasingly anticipating higher inflation, andthey signaled that much higher interest rates could be needed torestrain it. The policymakers also acknowledged, in minutes from their June 14-15meeting released Wednesday, that their rate hikes could weaken theeconomy. But they suggested that such steps were necessary… Read More »Fed: Sharply higher rates may be needed to quell inflation

The tax agency is the gatekeeper for America’s charity system, butreduced vetting has opened the door to scams. The “American Cancer Society of Michigan,” state authorities say, wasa fake charity. And not even a good fake. It was not in Michigan, for one thing. When the group applied to theInternal Revenue Service to become a… Read More »NY Times: The IRS Is The Gatekeeper For Charities, But Approves 99.96%Of All Applications; Form 1023EZ = EZ Fraud

Three out of four public company audit partners believe thatinflationary concerns could persist well into 2023 and possiblybeyond, according to a new survey by the Center for Audit Quality(CAQ). The CAQ’s inaugural Audit Partner Pulse Survey found that 75% of the700 auditors surveyed anticipate that the current inflation cycle willimpact their primary industry sector for… Read More »Audit partners see signs that inflation will persist

The U.S. economy has experienced 12 recessions since World War II, andeach one included two features: Economic output contracted andunemployment rose. Today, something highly unusual is happening. Economic output fell inthe first quarter and signs suggest it did so again in the second. Yetthe job market showed little sign of faltering during the first halfof… Read More »Economic output is falling, but so is unemployment

-Move could include announcing new probe into China’s subsidies-Easing tariffs seen as way to counter accelerating inflation President Joe Biden may announce as soon as this week a rollback ofsome US tariffs on Chinese consumer goods — as well as a new probeinto industrial subsidies that could lead to more duties in strategicareas like technology.… Read More »Biden Close to Rollback of Chinese Tariffs to Fight Inflation

By some early estimates, the U.S. economy, as measured by grossdomestic product, may have shrunk in the three months from Aprilthrough June. Add that to the decline from January through March, andthat would be a contraction for two quarters in a row. By an often-cited rule of thumb, that means the world’s largesteconomy is in… Read More »Explainer: Is the U.S. in a recession? GDP is not the only measure

Fed Chairman Jerome Powell on Wednesday said there was no guarantee that the central bank can engineer a soft landing for the U.S. economy. “We think that there are pathways for us to achieve the path back to 2% inflation while still retaining a strong labor market. We believe we can do that,” Powell said,… Read More »Powell says no guarantee of a soft landing for the U.S. economy

A U.S. Supreme Court decision to curb the Environmental Protection Agency’s power to regulate greenhouse gas emissions may be bad news for a Securities and Exchange Commission (SEC) bid to force companies to disclose their emissions. While Thursday’s ruling relates to the EPA’s authority to regulate power plant emissions, legal experts said it raises questions… Read More »U.S. Supreme Court emissions ruling may stop SEC drive for disclosure

How the second half will play out is still a coin toss Inflation will ease in coming quarters: Northwestern Mutual The S&P 500 suffered its worst first half since 1970. But its dismal performance is not an indication of what’s to come. That’s according to an analysis by S&P Dow Jones Indices that says historically,… Read More »S&P 500’s Brutal First Half Has Little Bearing on the Future

FASB issued an Accounting Standards Update (ASU) that improves financial reporting for investors and other financial statement users by increasing the comparability of financial information across reporting entities that have investments in equity securities measured at fair value that are subject to contractual restrictions preventing the sale of those securities. FASB ASC Topic 820, Fair Value Measurement, according… Read More »FASB issues standards to improve fair value guidance for equity securities

Q. Help! I have been working on a very important Excel file for a client, and suddenly my computer locked up and says, “Excel is not responding.” Is there anything I can do so that I don’t lose all of my work? A. We have all been there. It’s a terrible feeling when you have put so… Read More »2 ways to recover unsaved Excel files

KEY POINTS Thanks to inflation, even a backyard barbecue is more expensive this year. Here are five ways to save money over the Fourth of July weekend without sacrificing the festivities or fun. Nothing says Independence Day like a good, old-fashioned barbecue. In keeping with tradition, most Americans — roughly 60% — plan to grill… Read More »Inflation is making Fourth of July celebrations more expensive than ever

If your client just set up their startup business, they might not wantto try to write off the costs and forget about it. As Ken Berry pointsout, a new Tax Court case makes the IRS’s opinion of this move veryclear. The tax law provides a faster-than-usual write-off for costsassociated with starting a business venture, but… Read More »Tax Court Halts Deduction for Start-Up Costs

KEY POINTS Major corporations tell CNBC that even as the stock market is volatileand recession risk elevated, spending levels will increase.Technology is a primary reason as firms need to stay on top of areaslike AI or risk falling behind and losing long-term market share tocompetitors. Short-term market volatility can be a distraction, but it shouldn’tdeter… Read More »The corporate spending that can’t wait for a recession to pass

Summary U.S. consumer expectations sink to a near-decade lowNike slips on downbeat quarterly revenue forecastIndexes down: Dow 1.56%, S&P 2.01%, Nasdaq 2.98% Wall Street closed sharply lower in a broad sell-off on Tuesday asdire consumer confidence data dampened investor optimism and fueledworries over the recession and the looming earnings season. The S&P and the Nasdaq… Read More »Wall Street stumbles as consumer pessimism stokes growth fears

Companies last year defied the coronavirus pandemic to go public at arecord pace. Now, market volatility, inflation, and fears of adownturn have brought an abrupt end to the listing party. Companies have raised a combined $4.9 billion via US initial publicofferings this year, less than 6% of the record sum raised in thefirst half of… Read More »US IPOs Can’t Shake 2022 Slump After Thriving Through Pandemic

A speedy recovery from a disaster can depend on your recordkeeping.Kiplinger’s Personal Finance writer Rivan Stinson tells us how to getour papers in order. Transcript: David Muhlbaum: What documents can you throw out, and which must yousave, and where do you put them, is a debate as old as, well, writingthings down. But technology and… Read More »PODCAST: Which Documents to Keep, Which to Shred, and Which to Scan

The chaotic mix of record fuel prices and an unending supply chaincrisis have retailers considering the unthinkable: Instead ofreturning your unwanted items, just keep them. In recent weeks, some of the biggest store chains, including Target(TGT), Walmart, (WMT) Gap (GPS), American Eagle Outfitters (AEO), andothers have reported in their latest earnings calls that they have… Read More »Just keep your returns: Stores weigh paying you not to bring back unwanted items

Tech firms and banks, including Bank of America, Goldman Sachs,Citigroup, and JPMorgan Chase, add a ‘critical healthcare’ package Many large US corporations have moved swiftly to provide support andfinancial assistance to employees seeking abortions in states thatoutlawed the procedure after the US supreme court’s decision on Fridayto overturn its landmark Roe v Wade ruling. With… Read More »Many US companies move to pay travel costs for employees seeking abortions

A pair of U.S. central bankers said on Friday they supported furthersharp interest rate hikes to stem rapid price rises, even as investorscheered economic data showing inflation expectations to be lessworrisome than initially feared. Last week, the Federal Reserve raised its benchmark overnight interestrate by three-quarters of a percentage point – its biggest hike since1994… Read More »Fed policymakers embrace more rate hikes, markets a little less

This year has been an especially tough one for seniors on fixedincomes. To stay on track, try these eight financial survival tips. Why is this year different from all other years for seniors?Inflation. The latest numbers show a whopping inflation rate that’sthe highest since 1982.  This means that everything you buy will bemore expensive.  You… Read More »8 Money Tips for Seniors Suffering from Inflation

KEY POINTS The percentage of people who are uncomfortable with the money theyhave set aside is now 58%, up from 44% two years ago, a newBankrate.com survey finds.“Inflation being at four-decade highs will erode your comfort level inthe buying power of your emergency savings,” said Greg McBride, chieffinancial analyst at Bankrate.com.Here’s how to think about… Read More »High inflation has 58% of people nervous about their savings, a survey finds. One trick may help you boost your emergency cash

At the end of May 2022, the agency had a backlog of 21.3 millionunprocessed paper tax returns, an increase of 1.3 million over thesame time last year. On June 22, National Taxpayer Advocate Erin M. Collins released herstatutorily mandated mid-year report to Congress. The report expressesconcern about continuing delays in the processing of paper-filed taxreturns… Read More »IRS Still Has Backlog of 21.3 Million Tax Returns

Equities have yet to fully price in the risk of a recession and mayhave further fall, according to Morgan Stanley and Goldman Sachs GroupInc. strategists. Although this year’s slump in US stocks has left them more fairlypriced, the S&P 500 Index needs to drop another 15 percent to 20percent to about 3,000 points for the… Read More »Morgan Stanley and Goldman see more stock market losses

NPR’s Leila Fadel talks to Stephen Cecchetti, professor ofinternational finance at Brandeis University, for a preview ofPowell’s testimony which follows the Fed’s biggest rate hike since1994. LEILA FADEL, HOST: Inflation is also the focus of lawmakers today. They’re questioningFederal Reserve chairman Jerome Powell. Last week, the Fed announcedits biggest interest rate hike in almost 30… Read More »Federal Reserve Chair Jerome Powell will testify before 2 congressional panels

And 40% of those surveyed have less than $50,000 saved for their old age Many older Americans are willing to work during their retirement years— and they may have to be — because they aren’t financially preparedfor their old age. Almost three in 10 people between 55 and 67 years old have less than$10,000 saved… Read More »Nearly one-third of older Americans have less than $10,000 saved for retirement

Goldman Sachs Group Inc. economists warned the risk of a US recessionhas grown more likely, and have downgraded their gross domesticproduct growth forecasts for the economy. The Goldman economists now see a 30% probability of entering arecession over the next year, compared to 15% previously, and a 25%conditional probability of entering a recession in the… Read More »Goldman Warns US Recession Risk Now Higher and More Front-Loaded

NEW YORK, June 16 (Reuters) – Investors’ faith in a soft landing forthe U.S. economy is being heavily tested, as a jumbo-sized interestrate hike from the Federal Reserve stirs worries over the recessionand more volatile trading ahead. Analysts and investors said they believe a recession is more likelyafter the Fed at the close of its… Read More »Analysis: Investors brace for recession, more market turmoil after Fed’s supersized hike

The market route has been painful for investors. But the sting may beespecially sharp for anyone who has recently retired or is planning toin the next year or two. It’s worth remembering that bear markets are not unusual or permanent.Since 1928 there has been roughly one or two a decade. They don’talways precede recessions. And… Read More »Retiring into a bear market: What to do, what to avoid

Microsoft’s spreadsheet still dominates corporate finance for plentyof good reasons, but is it holding you back from growth? Why Does Excel Survive in Finance Departments? Microsoft’s spreadsheet still dominates corporate finance, for plentyof good reasons. Growing Pains: Stuck on Excel As a company scales, the spreadsheet software can impede finance’spursuit of growth and efficiency. 3… Read More »The Excel Equation: When Is It Time to Move Away?

KEY POINTS The Federal Reserve raised its benchmark interest rates three-quartersof a percentage point in its most aggressive hike since 1994.According to the “dot plot” of individual members’ expectations, theFed’s benchmark rate will end the year at 3.4%, an upward revision of1.5 percentage points from the March estimate.Officials also significantly cut their outlook for 2022… Read More »Fed hikes its benchmark interest rate by 0.75 percentage points, the biggest increase since 1994

The Federal Reserve’s plan to raise its benchmark rate to a neutrallevel, around 2.5%, by the end of the year is under pressure aftersurprisingly strong May consumer inflation data on Friday. “The May CPI was a stunning blow to the Fed’s hopes that inflationwould cool off any time soon,” said Stephen Stanley, chief economistat Amherst… Read More »A 75-basis-point hike? Here are 3 ways the Fed can sound more hawkish this week.

A key inflation reading showed a glimmer of hope on Tuesday, revealinga slight slowdown in rising prices — though they remain uncomfortablyhigh. The Producer Price Index, which measures wholesale prices before goodsand services reach consumers, rose 10.8% in May compared to where itstood a year ago, according to data released Tuesday by the Bureau ofLabor… Read More »Key inflation measure slows slightly but remains uncomfortably high

WASHINGTON (AP) — The Federal Reserve intensified its fight againsthigh inflation on Wednesday, raising its key interest rate bythree-quarters of a point — the largest bump since 1994 — andsignaling more rate hikes ahead as it tries to cool off the U.S.economy without causing a recession. The unusually large rate hike came after data released… Read More »Fed attacks inflation with its largest rate hike since 1994

The US stock market has entered a bear market and if history is anyguide, it could be long and painful. This is the fourth such event for the S&P 500 Index over the past twodecades. While the last bear market of 2020 was mostly a so-calledshock trade brought about by the Covid-19 pandemic, earlier ones… Read More »Wall Street’s Latest Bear Market May Be Here to Stay for a While

US consumer inflation reached its highest level in more than fourdecades in May as surging energy and food costs pushed prices higher,with little indication of when the upward trend could ease. The Labor Department on Friday said the Consumer Price Index increased8.6% in May from the same month a year ago, marking its fastest pacesince… Read More »U.S. Inflation Hit 8.6% in May

The writing is on the wall, and the majority of U.S. economists agreethat the U.S. is in store of a recession next year. Year-over-year U.S. consumer price increases unexpectedly surged lastmonth to 8.6%. That means that the Federal Reserve’s efforts to slowdown the economy over the past few months through two differentinterest rate hikes have… Read More »Over two-thirds of economists believe a recession is likely to hit in 2023

US inflation accelerated to a fresh 40-year high in May, a sign thatprice pressures are becoming entrenched in the economy. That willlikely push the Federal Reserve to extend an aggressive series ofinterest-rate hikes and adds to political problems for the White Houseand Democrats. The consumer price index increased 8.6% from a year earlier in abroad-based… Read More »US Inflation Quickens to 40-Year High, Pressuring Fed and Biden

WASHINGTON — The Internal Revenue Service today announced an increasein the optional standard mileage rate for the final 6 months of 2022.Taxpayers may use the optional standard mileage rates to calculate thedeductible costs of operating an automobile for business and certainother purposes. For the final 6 months of 2022, the standard mileage rate for businesstravel… Read More »IRS increases mileage rate for the remainder of 2022

Depending on your income in 2021, you may be feeling the pain ofpaying your state and federal income taxes. Some of you reading thispost may be feeling a bit more pain based on the state within whichyou live, how you earn your income, and whether or not you own a home.The overall tax burden can… Read More »5 States With The Highest State Income Tax Burdens

KEY POINTS Amid high inflation that has become the No. 1 business risk, not asingle chief financial officer surveyed by CNBC thinks a recession canbe avoided.The macroeconomic view of CFOs informs a bearish stock market outlook,with most expecting the Dow Jones Industrial Average to fall to 30,000before reaching a new high, which would represent a… Read More »The recession will hit in the first half of 2023 and the Dow is heeded lower: CNBC CFO survey

Treasury Secretary Janet Yellen said Wednesday that tariff reductionson Chinese goods may be warranted as the White House tries to cool thehottest inflation in four decades, but said that such cuts are not a“panacea” to runaway consumers prices. While testifying before the House Ways and Means Committee, Yellensaid the Biden administration is looking to reconfigure… Read More »Yellen says White House looking to ‘reconfigure’ China tariffs as inflation roars

The stock market has been cratering so far this year — leaving specialpurpose acquisition companies, which buy private firms in order tomake them public without the need for a traditional initial publicoffering, with difficulty finding targets.SPACs, also known as blankcheck companies, are facing the same concerns about inflation and alooming recession on the horizon that… Read More »Wall Street’s blank-check boom has gone bust

Prices for chips and shipping containers have come off peaksCentral bankers are scrambling to snuff out soaring inflation Three of the key supply-side factors driving today’s global inflationlevels have already turned around, meaning relief could be on thehorizon for shoppers worldwide. A bellwether semiconductor price — a barometer of costs of finishedelectronics products as diverse… Read More »Inflation Is Poised to Ease According to These Three Key Indicators

More than 8 in 10 Americans believe the state of the nation’s economyis poor or not so good, according to a new Wall Street Journal-NORCpoll. The poll found that just 1 percent of respondents described the U.S.economy as excellent, while 27 percent described it as poor and 55percent as not so good. More than a… Read More »Americans in a new poll deeply pessimistic about the economy

KEY POINTS Japan has made key advancements in the quantum computer race, Indiahas developed its own strategy for the technology, and debates aresimmering over whether China has surpassed the U.S. on some fronts.Quantum computing will ultimately speed up the computational powerthat drives many industries and could affect everything from drugdiscovery to how data is secured.However,… Read More »The race toward a new computing technology is heating up — and Asia isjumping on the trend

KEY POINTS Social Security’s combined trust funds are now projected to be able topay scheduled benefits until 2035, a full year later than wasprojected last year.But if nothing is done to shore up the program, just 80% of benefitswill be payable at that time.Congress may choose to make select changes to repair the program.Here’s what… Read More »Social Security’s funds have a new, later-projected depletion date of 2035. How Congress may shore up the program

KEY POINTS The IRS is working to boost audit rates for the wealthiest Americans,according to a statement from the agency.While plummeting audits have drawn congressional scrutiny, the numbersdoubled for higher earners over the past seven months, the IRSreported.Still, “resource constraints” have limited the agency’s ability toreview high net worth individuals, large corporations, and complexbusiness structures.… Read More »The IRS is working to increase its audit rates for higher earners

SummaryTesla employed around 100,000 people at end of 2021Musk warned staff on Tuesday to return to the office or leaveU.S. executives sounding increasingly gloomy about the economy SAN FRANCISCO, June 3 (Reuters) – Tesla (TSLA.O) CEO Elon Musk has a“super bad feeling” about the economy and needs to cut about 10% ofsalaried staff at the… Read More »Exclusive: Elon Musk wants to cut 10% of Tesla jobs

BlackRock Inc. Chief Executive Officer Larry Fink said he expectsinflation to remain elevated for several years primarily because ofsnarled global supply chains. “It’s been aggravated by Covid and lockdowns in different parts of theworld,” Fink, 69, said Thursday in a wide-ranging interview on “TheClose” on Bloomberg Television. “It’s more supply-driven.” The world’s largest asset manager,… Read More »Fink Sees Elevated Inflation for Years Amid Supply Shocks

The IRS on Wednesday began its annual “Dirty Dozen” series, warning ofabusive tax transactions and scams, with four schemes the Serviceadvised taxpayers to shun. The four arrangements the IRS described as potentially abusive “arevery much on our enforcement radar screen,” a news release quoted IRSCommissioner Charles Rettig as saying. The release also remindedtaxpayers that they… Read More »Abusive CRATs and Maltese IRAs among ‘Dirty Dozen’ tax scams

KEY POINTS There are two main factors that have Dimon worried: So-calledquantitative tightening, or QT, is scheduled to begin this month andwill ramp up to $95 billion a month in reduced bond holdings.The other large factor worrying Dimon is the Ukraine war and itsimpact on commodities, including food and fuel. Oil could hit $150 or$175… Read More »Jamie Dimon says ‘brace yourself for an economic hurricane caused by the Fed and Ukraine war

The US private sector added fewer jobs than expected in May as theFederal Reserve ramped up its effort to slow the economy and coolinflation. Private-sector firms added 128,000 payrolls last month, ADP saidThursday in its monthly employment report. The median estimate fromeconomists surveyed by Bloomberg saw an increase of 300,000 privatepayrolls. The May sum marks… Read More »Private businesses added 128,000 jobs in May, marking the smallest gain of the pandemic recovery

The ‘retirement ideal’ has been changing for years. Older people areincreasingly unretiring, changing the shape of this life stage. Picture retirement in your head. It’s a laughing, grey-haired couplesipping piña coladas on a white sand beach; perhaps they’re gettingsome liquid courage for their skydive later. Not a care in the world,their only responsibility is getting… Read More »Is this the end of retirement as we know it?

The blue-chip S&P 500 stock index ended the month of May with amarginal 0.01 percent gain, following weeks of tumultuous trading asinvestors questioned the trajectory of US inflation, growth, andFederal Reserve policy. Wall Street stocks have whipsawed in May due to economic data andcorporate earnings that have thrown doubt over the health of the USeconomy.… Read More »US stocks end volatile May roughly unchanged

Summary The consumer confidence index falls to 106.4 in MayLabor market gauge softens; more say jobs hard to findBuying intentions for cars, homes, and major appliances easeHouse prices accelerate year-on-year in March U.S. consumer confidence eased modestly in May as persistently highinflation and rising interest rates force Americans to become morecautious about buying big-ticket items,… Read More »The rising cost of living hurts U.S. consumer confidence; house prices soar

In some instances, C corporations prefer to designate payments asamounts for compensation, rather than payments of dividends. The IRSsees it another way, and the Courts backed it up. As shown in a new case decided by a court of appeals, Aspro, Inc. v.CIR, No. 21-1996, CA-8, 4/26/22,  a C corporation can’t disguisedividends as compensation or… Read More »IRS Finds Disguised Non-Deductible Dividends

In a typical month, a couple of hundred American companies disclosesizable seed funding rounds. And every few quarters, Crunchbase Newshas made it a habit to peruse those rounds to see what trends we canglean. This time around, we looked at nearly 1,000 U.S. seed and pre-seedrounds of $500,000 and up announced in 2022. And, as… Read More »5 Areas Where US Seed Funding Is Strong In 2022

Corporate executives have this month bought shares in their companiesat a rate not seen since the early days of the Covid-19 pandemic inwhat some Wall Street analysts said was an encouraging sign for the USstock market. Between the start of the month and May 24, insiderbuying at S&P 500 companies has been the strongest since… Read More »Executives ‘buy the dip’ at a rate not seen since the start of the pandemic

Global equity funds saw their biggest inflows in 10 weeks, led by USstocks, as cheaper valuations lured buyers after a steep selloff onrecession fears. Investors added about $20 billion to global stocks in the week to May25, led by inflows into the US, according to Bank of America Corp.’snote citing EPFR Global data. Cash led… Read More »Dip Buyers Storm Back to Stocks After Selloff

KEY POINTS First-quarter GDP declined at a 1.5% annual pace, worse than the 1.3%Dow Jones estimate and a write-down from the initially reported 1.4%.The pullback in gross domestic product represented the worst quartersince the pandemic-scarred Q2 of 2020.Initial jobless claims totaled 210,000, a decline of 8,000 from theprevious week. The U.S. economic contraction to start… Read More »First-quarter GDP declined 1.5%, worse than thought; jobless claims edge lower

Blank-check companies settled on deals to buy a members-only startupairline, a startup augmented reality firm and a company called Two BitCircus this month as SPACs face pressing deadlines to strike deals orclose shop. At least 16 special-purpose acquisition company tie-ups have beenannounced so far in May, the most since December, chipping away at abacklog of… Read More »SPACs Make Flurry of Deals as Blank Checks Seek Something to Own

KEY POINTS The core personal consumption expenditures price index, the Fed’spreferred inflation gauge, rose 4.9% from a year ago in April, in linewith estimates and a deceleration from March.Personal income rose slightly less than expected, but spending beatestimates as consumers tapped savings.Headline PCE rose just 0.2%, a sharp reduction from March’s 0.9% increase. The Federal… Read More »The Fed’s favorite inflation measure rose 4.9% in April in a sign that price increases could be slowing

Beneath the latest global market disruptions are clues that the Federal Reserve is making slow but sure progress in its bid to curb the excesses of this inflation-addled business cycle.  Ever-tightening financial conditions and the draining of stock-market froth suggest Wall Street is taking the Fed’s hawkish stance seriously, a development that should eventually help cool the… Read More »Fed’s Inflation Fight Gets a Boost Amid the Wall Street Rout

KEY POINTS Fed minutes released Wednesday indicated that officials are prepared to move ahead with multiple 50 basis points interest rate increases. In addition, the Federal Open Market Committee said policy may have to move past “neutral” and into “restrictive” territory. The minutes indicate that members are hopeful they can bring down inflation, but also… Read More »Fed minutes point to more rate hikes that go further than the market anticipates

When adding an LLC member, business clients need your guidance on handling the change legally and for tax purposes. Here, Nellie Akalp, CEO and founder of CorpNet, shares six basic steps for adding a new member, including what to do if the LLC members decide to file for S Corp election for taxation. There could be a number… Read More »6 Steps for Adding New Members to an LLC

WASHINGTON — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning July 1, 2022. The rates will be: 5% for overpayments (4% in the case of a corporation). 2.5% for the portion of a corporate overpayment exceeding $10,000. 5% for underpayments. 7% for large corporate underpayments.  Under the… Read More »IRS interest rates increase for the third quarter of 2022

We’re nearing the end of the second quarter of the year, and it’s been unpleasant to say the least. Inflation, rising interest rates, and the war in Ukraine have caused a lot of volatility in the stock market, with the S&P 500 dipping into bear market territory last week. While last year was a record… Read More »The Market Minute: Halfway Through 2022 And The Outlook For SPACs And IPOs Isn’t Good

Another week, another message to startups that the good times are dead. This time the message comes directly from the original authors of R.I.P. Good Times in 2008—Sequoia Capital. The venture giant—known for investments in tech titans such as Apple, Uber, and Google—shared a 52-slide presentation with 250 founders on May 16 over Zoom that warned of a “crucible moment” of uncertainty for… Read More »Sequoia Latest To Issue Warning Shot To Founders

All participants at the Federal Reserve’s May 3-4 policy meeting backed a half-percentage-point rate increase to combat inflation they agreed had become a key threat to the economy’s performance and was at risk of racing higher without action by the U.S. central bank, minutes of the session showed on Wednesday. This month’s 50-basis-point hike in… Read More »Fed embraces 50-basis-point rate hikes in June, and July to curb ‘very high’ inflation

Walmart announced on Tuesday that it’s planning on expanding thenumber of stores that offer drone-delivered packages; by the end ofthe year, it hopes to fly deliveries from 34 sites across Arizona,Arkansas, Florida, Texas, Utah, and Virginia. The company says theexpansion will give up to 4 million households access to the service,which is a significant increase.… Read More »Walmart is expanding its drone deliveries to reach 4 million households

American workers say it will take $1.1 million on average to retirecomfortably — but less than one in four-figure they’ll be able to savethat much. Just 22% of people approaching retirement age said they’ll have enoughmoney to maintain a comfortable standard of living, according to the2022 Schroders US Retirement Survey, down from 26% a year… Read More »A Comfortable Retirement Appears Out of Reach for Most Americans

When it comes to retirement planning, educating yourself can keep youfrom making big mistakes. Here are three key lessons that everyonepreparing for their golden years should know. Do you feel like you know enough about money to get by? A newlyreleased survey by the TIAA Institute shows that people of all agesand experience levels could… Read More »Education is Key: 3 Financial Lessons for Retirees Nearing Retirement

Recession fears have markets into panic. But the leaders of America’sbiggest banks and US consumers appear to be in good financial health. JP Morgan Chase & CO. expects credit losses to remain abnormally lowthrough March of 2023. Because customers haven’t yet drank cashbalances that grew fatter during the pandemic executive say at thebank’s investor day… Read More »JPMorgan Says U.S. Consumers Are Doing Just Fine

The IRS correctly calculated taxpayers’ eligibility for a recoveryrebate credit in the 2021 filing season 99.3% of the time, theTreasury Inspector General for Tax Administration (TIGTA) reportedMonday. However, even the corresponding 0.7% error rate involved hundreds ofmillions of dollars in improper allowances of the credit, and TIGTAfound other instances where individuals should have received arecovery… Read More »IRS mostly correct on recovery rebate credits, TIGTA says

The Internal Revenue Service issued potentially improper RecoveryRebate Credit payments totaling $898 million, according to a newreport. The report, from the Treasury Inspector General for TaxAdministration, noted that $79.8 million in Recovery Rebate Creditsactually should have been paid to eligible individuals, but $818.5million was paid to ineligible individuals. Nevertheless, the IRSdeclined to review nearly $598… Read More »IRS sent over $800M in potentially improper recovery rebate payments

Stephanie Pomboy digs around to find risks and opportunities whereothers fail to tread. Right now, the founder and president of the economic research firmMacroMavens are forecasting a profits recession, marked by a “hugemargin squeeze for the average corporation.” It will be a significant price squeeze not experienced since the1970s, as she tells ThinkAdvisor in an… Read More »The Big Economic Risk Wall Street Isn’t Talking About Stephanie Pomboy

KEY POINTS Bank of America’s account holders saw strong growth in their balancesduring Covid, CEO Brian Moynihan told CNBC.Moynihan said predicted that people “probably” won’t start spendingtheir stimulus check-boosted balances right now. Bank of America’s account holders saw strong growth in their balancesduring Covid and have yet to spend down their pandemic-era stimulusmoney, CEO Brian… Read More »Bank balances surged during Covid even as pandemic-era stimulus ended, BofA CEO says

The average U.S. price of regular-grade gasoline spiked 33 cents overthe past two weeks to $4.71 per gallon The average U.S. price of regular-grade gasoline spiked 33 cents overthe past two weeks to $4.71 per gallon. Industry analyst Trilby Lundberg of the Lundberg Survey said Sundaythat the price jump comes amid higher crude oil costs… Read More »Average US gasoline price jumps 33 cents to $4.71 per gallon

Under the Tax Code, the rate of interest is determined on a quarterlybasis. For taxpayers other than corporations, the overpayment andunderpayment rate is the federal short-term rate plus three percentagepoints. Generally, in the case of a corporation, the underpayment rate is thefederal short-term rate plus three percentage points, and theoverpayment rate is the federal short-term… Read More »IRS increases interest rates for Q3

Corporate tax rates in major economies around the world have fallen toan average of just 25.1% this year, according to a study releasedFriday by the UHY international accounting firm network. With the COVID-19 pandemic leaving a gaping hole in the publicfinances of many countries, however, UHY predicts the trend ofdeclining corporate tax rates worldwide is… Read More »Corporate taxes plunged to a new low worldwide

The national median rent was $1,827 a month in April, up 16.7% from ayear ago, according to a report from Realtor.com. Rent has beensteadily increasing since early last year. If recent trends continue,the report projects the typical rent could be more than $2,000 a monthby August. The continued surge in rental prices is driven by… Read More »Rents in the US just hit another record high

‘It’s going to be hard to avoid some kind of recession,’ ChiefExecutive Charlie Scharf says Wells Fargo and company CEO Charlie Scharf said Tuesday there was noquestion that the US is headed for an economic downturn. The Federal Reserve has raised rates twice this year and plans to keepdoing so, part of it’s been called… Read More »U.S. Economy Is Headed for a Downturn, Wells Fargo CEO Says

The Internal Revenue Service has been auditing fewer taxpayers since2010, according to a new report, but audit rates have been plungingthe most for higher-income taxpayers. A report released Tuesday by the Government Accountability Officefound that in recent years, the IRS audited taxpayers with incomesbelow $25,000 and those with incomes of $500,000 or more athigher-than-average rates.… Read More »IRS audit rates plummet, especially for wealthy

Inflation may have you worried about your retirement. Prices have been rising on everything from food to housing. In April,the consumer price index, which measures the prices of goods andservices, notched an 8.3% increase from the year-earlier period. In fact, 70% of Americans are calling inflation “a very big problem”for the country, according to a… Read More »Does inflation have you worried about retirement? Here’s what experts say to do

Federal Reserve Chairman Jerome Powell said Tuesday that the centralbank will continue to raise short-term interest rates — which willlikely slow economic activity — until there is “clear and convincingevidence” that inflation is coming down. “We will go to that point and there won’t be any hesitation aboutthat,” Powell said at a Wall Street Journal… Read More »Powell: ‘Some pain’ may be required to slow inflation

WASHINGTON (AP) — Chair Jerome Powell on Tuesday underscored theFederal Reserve’s determination to keep raising interest rates untilthere is clear evidence inflation is steadily falling — a high-stakeseffort that carries the risk of causing an eventual recession. The Fed’s increases in its benchmark short-term rate typically lead,in turn, to higher borrowing costs for consumers and… Read More »Powell: Fed to keep hiking rates until it controls inflation

The Biden administration is poised to fully block Russia’s ability topay U.S. bondholders after a deadline expires next week, a move thatcould bring Moscow closer to the brink of default. The Treasury Department’s Office of Foreign Assets Control is expectedto allow a general license that expires May 25 to lapse, according topeople familiar with the… Read More »The US Set to Block Russian Debt Payments, Raising Odds of Default

Many adults under 35 are throwing financial caution to the wind. It’sall about saving less, spending more, and pursuing passions. In a tumultuous time, many adults under 35 have stopped playing itsafe. Instead of banking as much of their pay as they used to, they’resaving less, spending more, and pursuing passion projects or riskycareers. Namrata… Read More »The World’s a Mess. So They’ve Stopped Saving for Tomorrow.

The Partnership for New York City found a wider embrace of hybrid workplaces, with 78 percent of businesses adopting the model. The best-laid plans for a full-time return to the office remain bedeviled by Covid-19 case rates and a workforce reluctant to go back to their commutes, according to data published this week by the Partnership for New… Read More »Just 8% of Manhattan office workers are back full-time, a survey shows.

Inflation is still on the rise, prompting consumers to change their shopping habits to keep up. The Consumer Price Index jumped 8.3% year over year in April, the U.S. Bureau of Labor Statistics reported Wednesday. While the reading was a slight decline from the 8.5% increase seen a month prior, it still represented inflation near a 40-year… Read More »Inflation remained near a 40-year high in April. Here’s where consumers plan to cut spending

KEY POINTS The consumer price index accelerated 8.3% in April, more than the 8.1% estimate and near the highest level in more than 40 years. Core CPI, which excludes food and energy, also was higher than expected, rising 6.2%. Shelter costs, which comprise about one-third of the CPI, rose at their fastest pace since 1991.… Read More »Inflation barreled ahead at 8.3% in April from a year ago, remaining near 40-year highs

The Internal Revenue Service decided to destroy an estimated 30million paper-filed information return documents in March 2021 becauseof its inability to process its backlog of paper tax returns,according to a new report. The report, released Monday by the Treasury Inspector General for TaxAdministration, noted that the IRS typically uses information returndocuments for post-processing compliance matches… Read More »IRS destroyed 30M paper information returns due to the backlog

With first-quarter U.S. earnings in the final stretch, corporategrowth expectations for the current quarter and 2022 mostly aredeclining as costs surge for oil and other supplies and interest ratesrise. Sky-high oil has boosted forecasts for energy company earnings whilefeeding into concerns about profit margins for many other S&P 500industries. Disappointing outlooks from Amazon.com (AMZN.O), Netflix… Read More »U.S. profit forecasts weaken as companies assess inflation risks

Bank of America Corp. scaled back work with some SPACs, part of aretreat by banks including Goldman Sachs Group Inc. and Citigroup Inc.from blank-check firms over concern about potential liability risksassociated with the vehicles. The Charlotte, North Carolina-based lender ended its relationshipswith some of the special purpose acquisition companies it helped takepublic while reviewing its… Read More »BofA scales back on SPAC work as bank retreat accelerates

Expanded U.S. government sanctions against Russia in response to thewar in Ukraine include a ban on accounting and management consultingservices by U.S. citizens. The sanctions announced Sunday “prohibit U.S. persons from providingaccounting, trust, and corporate formation, and management consultingservices to any person in the Russian Federation,” a White Housestatement said. The statement included other sanctions… Read More »US sanctions ban the provision of accounting and consulting services to Russia

To fix errors on form 1040, filers need to submit a separate Form1040-X. Here, tax guru, Julian Block offers guidance on how to submit1040-X, how the IRS might respond, and other considerations, such asfiling a state’s version of the 1040-X and what forms are right forfreelance workers. Just joining us? Go to part one for… Read More »How to Amend Form 1040 and Submit Form 1040-X

Continued personnel shortages and a growing backlog of some returnssignificantly impeded the IRS’s performance during the 2022 income taxfiling season that ended last month, the Treasury Inspector Generalfor Tax Administration (TIGTA) reported in a preliminary audit. The report, Interim Results of the 2022 Filing Season (Rep’s No.2022-40-035), dated May 2, provided a snapshot of the… Read More »Staffing shortages and backlog hampered IRS in 2022 filing season, TIGTA says

A day after celebrating the Federal Reserve’s signal that it wouldn’tbe making any jumbo-sized moves, traders woke up on Thursday decidingthat the central bank will struggle to fight high inflation amid thelingering threat of a recession. In a sharp about-face, investors sold stocks, bonds, andcryptocurrencies on Thursday. The S&P 500 Index lost 3.6 percent,erasing about… Read More »Wall Street staggers with ‘vicious’ US$1.3T stock selloff

The Federal Reserve on Wednesday raised short-term interest rates by0.50%, as part of an effort to tamp down the inflationary pressuresweighing on Americans. The central bank suggested that it will further raise borrowing coststhroughout this year as it attempts to undo its pandemic-era, easymoney policies. The policy-setting Federal Open Market Committee alsodetailed plans on unwinding… Read More »Fed raises interest rates by 0.50%, the largest move since 2000

Among numerous other changes, the Tax Cuts and Jobs Act (TCJA) chippedaway at several tax breaks for individuals, including the deductionfor mortgage interest. But the fall-out isn’t as bad as it firstseems. Most taxpayers can continue to deduct … Among numerous other changes, the Tax Cuts and Jobs Act (TCJA) chippedaway at several tax breaks… Read More »Key Tax Rules for Deducting Mortgage Interest

It was the worst first four months of the year for the stock marketsince the 1970s! No, the 1930s! Can’t we just say it was a really badstart to the year? “Bad” might not do it justice. After dropping 3.3% this past week, theS&P 500 index has fallen 13% during the first four months of… Read More »The Stock Market Isn’t Falling Like It Did In the 1970s—It’s Even Worse

The pandemic-era trend known as the “Great Resignation” is stillred-hot, as workers enjoy the perks of record-high demand for theirlabor. However, economic headwinds mean those benefits may not last muchlonger, according to economists. A record 4.5 million workers quit their jobs in March, edging justabove the previous high-water mark set in November, the U.S.Department of… Read More »The Great Resignation is still red hot — but may not last

Jerome Powell doesn’t like to bless banks and financial markets, buthe could shift the needle this week on how high investors expect theFederal Reserve to raise interest rates to cool overheated prices. The Fed chair and his colleagues want to lift rates expeditiously to aneutral level this year that neither stimulates nor restrains growtharound 2.5%.… Read More »Powell’s Fed Set to Go Big and Keep Going Until Inflation Tamed

Many of the concerns small business owners have now are about how theycan stay afloat after the COVID-19 pandemic. Here, Bryce Sandersexplains how changes to the market might affect these clients and whatyou can do to help them navigate the recovery afterward. “This time it’s different.” Some say these are the four most dangerouswords uttered… Read More »How Running a Small Business Might Change in 2022

Now that this year’s tax filing season is over, it’s time to startthinking about next year’s return. After all, the more tax planningyou do, the more money you may be able to save. But proper taxplanning requires an awareness of what’s new and changed from lastyear — and there are plenty of tax law changes… Read More »Tax Changes and Key Amounts for the 2022 Tax Year

In mid-April, months into an increasingly frustrating house hunt,Harsh Grewal and his wife settled on a place in a San Francisco suburband were prepping a bid, above the listed price so they’d have achance of besting other offers in one of the nation’s hottest housingmarkets. Then he checked his phone and saw several alerts, all… Read More »The Fed wants to cool the U.S. housing market. Here’s what that feels like

People are worn out. They are trying to make it through the stress ofthe pandemic, a continually volatile market, and record inflation.And, for many who are years from retirement, they have decades of workahead of them. These younger Americans are in the middle of their working years –those critical saving-for-retirement years. It’s not easy to… Read More »How People with Pandemic-Induced Financial Fatigue Can Get Back on Track

Cryptocurrency is prevalent topic news these days, falling in and outof favor depending on whom you ask. Institutions are decrying it inone instance and then taking large amounts of it onto their books inanother. Goldman Sachs, Morgan Stanly, JP Morgan, and bank of America-to name a few – have all dipped their toes in the… Read More »Crypto Cares: The Rise of Virtual Currencies and You

Many filers discover after having mailed in their Form 1040 that theymade a mistake, such as missed deductions or understated income. Notto worry, says tax guru Julian Block. Here, he explains what a filermust do to amend 1040 depending on their error and how to minimize thechance of IRS audits. When Form 1040 time rolls… Read More »How to Fix Errors on Form 1040

A year ago, startup founders often found themselves fought over byventure investors eager to grab a piece of any promising young companywith fast growth potential. Investors competed in an increasinglyheated environment in which they were often under pressure to closeoutsized deals in a matter of days. All told, venture capitalistsspent a record $643 billion in… Read More »‘Cash Is King’ As VC Spigot Slows

Consumer prices rose more than 6 percent annually in March, showingconsumer spending taking a bigger bite out of household incomes,according to data released Friday. The personal consumption expenditures (PCE) price index — the FederalReserve’s preferred gauge of inflation — rose 6.6 percent over the 12months ending in March, up from a 6.3 percent annual inflation… Read More »Fed’s inflation gauge rose 6.6 percent annually in March

The U.S. dollar touched a two-decade high against rivals on Thursday,as Wall Street rallied and European shares rose from six-week lowswith strong earnings reports offsetting gloomy U.S. economic data. The yen dropped to a 20-year low after the Bank of Japan vowed to buyunlimited amounts of 10-year bonds daily to defend its yield target.The bank’s… Read More »Global shares rise as earnings boost, U.S. dollar hits 20-year high

Vanesa Sojor Apr 29, 2022, 7:27 PM (4 hours ago) to me The US economy shrank in the first quarter America’s economy unexpectedly shrank in the first quarter of 2022,data from the Bureau of Economic Analysis showed Thursday. Thenation’s gross domestic product — the broadest measure of economicactivity — declined at an annualized rate of 1.4%… Read More »The US economy shrank in the first quarter

Think of it like playing chess. Making sense of the strategicinterplay between investments, taxes and retirement income canposition you for a winning retirement. When I was 12, I attended a weekend church camp for young men. I wasbrand new to the group, and as the youngest attendee, I was, as to beexpected, mostly ignored by… Read More »Up Your Retirement Planning Game

KEY POINTS Fed Chairman Jerome Powell on Thursday said the central bank iscommitted to raising rates “expeditiously” to bring down inflation.That could mean an interest rate hike of 50 basis points in May asprices rise at their fastest pace in more than 40 years.“It’s absolutely essential to restore price stability,” he added. Federal Reserve Chairman… Read More »Powell says taming inflation is‘ absolutely essential,’ and a 50 basis
point hike is possible for May

Internal Revenue Service Commissioner Charles Rettig told lawmakersthe IRS has been working hard this past filing season during acongressional hearing Thursday as he heard first-hand testimony fromtheir constituents about the problems they encountered. “IRS employees want to do more to help taxpayers,” he said in hisopening statement. “We want to be able to answer the… Read More »IRS pledges to overcome challenges from overburdened tax season

Companies that used a buzzy strategy for going public throughout thepandemic have had a dismal track record for investors. Out of 199 companies that used a so-called SPAC to go public in 2021,only 11% now trading above their offering price, meaning thatinvestors who have held on to the stocks have been left with hugelosses, according… Read More »SPACs are sputtering in 2022, leaving retail investors holding the bag for a Wall Street innovation that just hasn’t panned out

As the global startup market digests a changing valuation environmentand climate for venture investment, not every sector is taking thesame amount of damage. One is indeed faring better than the rest. It’s not the flashiest sector in startup land. Instead, it’s thetried-and-true software-as-a-service (SaaS) category that appears tobe in the best shape to fend off… Read More »Why SaaS is bucking the venture slowdown

Makers of chocolate bars and coffee to lawnmowers and industrialrobots succeeded in passing on soaring costs to consumers,first-quarter earnings showed on Thursday, allaying fears higherprices could dent demand for their products. Some of Europe’s biggest companies reported first-quarter salesincreases, with KitKat maker Nestle (NESN.S), Evian water owner Danone(DANO.PA), and Dulux paint maker Akzo Nobel (AKZO.AS)… Read More »Big companies manage to pass on soaring costs to cash-strapped consumers

JPMorgan Chase & Co. strategists expect Corporate America to easilytrounce Wall Street’s earnings forecasts. Consensus earnings estimates for the S&P 500 are “overly pessimistic”for the first quarter and companies in the index are poised to delivera surprise of 4% to 5% on “better-than-feared margins,” according to ateam of JPMorgan strategists led by Dubravko Lakos-Brujas and… Read More »JPMorgan Expects S&P 500 Earnings to Blow Past Gloomy Estimates

If you’re ready to retire but don’t want to leave the workforceentirely, semi-retirement might be a good option for you. Before youtake the leap, there are strategies that can help you navigate thislifestyle. For decades, the goal has been to work hard, earn money and thenretire! However, in recent years, the traditional retirement modelseems to… Read More »3 Strategies to Help You Plan a Successful Semi-Retirement

The dollar is reaching fresh nearly two year highs lifted by loominginterest rate increases from the Federal Reserve, strong US growth,and geopolitical jitters overseas. The Wall Street Journal Dollar Index, which measures the US currencyagainst a group of 16 others has climbed in 13 of 15 sessions to itshighest level since May. 2020. The dollar… Read More »Dollar’s Upward March Reaches a Nearly Two-Year High

Low-rated US companies borrowed record amounts in the loan market lastyear taking advantage of low-interest rates and generous credit. Now,all that debt is starting to get more expensive. So-called leveraged loans typically have borrowing costs that floatand the Federal Reserve suddenly faster pace of interest rate hikes isset to drive them up. Investors are paid… Read More »Rising Rates Threaten Companies Acquired in the LBO Boom

When it comes to investing, you’ve likely heard the arguments forputting your hard-earned money into exchange-traded funds (ETFs) ormutual funds to diversify your portfolio or to allocate more of yourportfolio toward conservative investments like bonds as you age.Before you begin the investing process and siphon away thousands ofdollars for retirement or other future financial goals,… Read More »What are expense ratios? These fees could be eating away at your investment earnings

There are two universal principles regarding the reasonableness ofemployee compensation: (i) most people feel they are under-compensatedand (ii) those same people feel their friends and neighbors areovercompensated. There are many reasons for this phenomenon, but forour unscientific purposes it’s enough to think of reasonableness likebeauty – it’s in the eyes of the beholder. The tax… Read More »Is Your Compensation Reasonable? For Tax Purposes, That Is

A bull market is developing in recession expectations. This week, investors will have the chance to hear if dozens ofcompanies share that fear. Even armchair investors have heard thewarnings from the bond market and its inverted yield. Usually, thelonger the loan, the higher the interest rate. When that changes, as it has ever so slightly… Read More »Corporate profits stay strong at double-digit gains, but the sound of investor fears gets louder

Gas prices jumped 48 percent year over year, the Bureau of LaborStatistics said. U.S. inflation data hit a multidecade high last month as gas pricesand rents skyrocketed, climbing to 8.5 percent, the Bureau of LaborStatistics reported Tuesday. A survey by the financial data group FactSet had predicted that theinflation reading for March would come in… Read More »Inflation hits a 40-year high of 8.5 percent because of war in Ukraine, rent hikes

Knowing which of the financial phases of life you are in can help youbetter plan to build, protect and enjoy your assets, no matter whatyour age. Every year we see the same months, holidays, and seasons – it’s allpretty predictable. While you may not know when a winter storm willhit, you can usually count on… Read More »Which of the 3 Financial Phases Are You In?

Economists see a growing risk of recession as the relentlessly strongUS economy whips up inflation, likely bringing a heavy-handed responsefrom the Federal Reserve, economists surveyed by The Wall StreetJournal this month, on average put the probability of the economybeing in a recession sometime in the next 12 months and 28% up from18% in January and… Read More »Recession Risk Is Rising, Economists Say

The new pilot program will benefit the IRS through more efficientaccess to digitized records and related metadata and improve securityand data privacy. Ripcord, a robotic intelligent digitization company, has advanced tothe second phase of the new Pilot IRS Solution Challenge. Incollaboration with the Enterprise Digitalization and Case ManagementOffice (EDCMO), the Pilot IRS Solution Challenge is… Read More »IRS to Digitize Archived Tax Filings in Tech Pilot Program

Do you ever wake up thinking your day will turn out one way, and itends up being completely different? Did you ever ask yourself why? Isit because you become blindsided by events or because other peoplehijack your day with their priorities? It’s fine if it happens once ina while, but it’s a problem if it’s… Read More »Why Is Everything An Emergency?

Tax returns are piling up at the Internal Revenue Service, andmillions of taxpayers are experiencing refund delays beyond thetypical 21 days or fewer for e-filed returns electing a direct depositrefund. The IRS even issued a press release cautioning taxpayers notto count on getting a refund by a certain date, especially when makingmajor purchases or paying… Read More »IRS: We Apologize, Your Tax Refund Is Delayed

KEY POINTS Excessive write-offs compared with income, unreported earnings andrefundable tax credits are among the most common IRS red flags.However, you may avoid trouble by keeping detailed receipts and othertax paperwork readily available, experts say. If you’re among the millions of Americans scrambling to meet the taxdeadline, it’s critical to avoid errors that may flag… Read More »Don’t play the ‘audit lottery.’ These are the top reasons your taxreturn may be flagged by the IRS

Owning a home is part of the American Dream. Whether you fancy a logcabin in the middle of nowhere, a suburban Cape Cod with a whitepicket fence, or a downtown condo in the sky, there’s just somethingspecial about trading in a lease for a deed. But that transition canbe difficult – and expensive. It’s tough… Read More »13 Tax Breaks for Homeowners and Home Buyers

The U.S. jobs market has never been tighter than it is today,increasing the risks to the economy as Federal Reserve policymakersmove to rein in inflation, according to Goldman Sachs Group Inc. The Wall Street bank’s economists have compiled a gauge of U.S. laborthat they say better tracks wage gains — which are key toinflationary pressures… Read More »U.S. Labor Market Is Tightest of Postwar Era, Goldman Gauge Shows

Oil prices jumped over 3% on Monday, with investors worried abouttighter supply as mounting civilian deaths in Ukraine increasedpressure on European countries to impose sanctions on Russia’s energysector. Global benchmark Brent crude jumped$3.14, or 3%, to settle at $107.53a barrel. U.S. West Texas Intermediate crude rose $4.01, or 4%, tosettle at $103.28 a barrel. Trading… Read More »Oil jumps over 3% as deaths near Kyiv prompt talk of new sanctions

National Taxpayer Advocate (NTA) Erin Collins formally directed theIRS to take immediate steps toward implementing existing scanningtechnology to process tax returns filed on paper. Collins issued the directive, which is dated March 29, under herauthority pursuant to a delegation order in the Internal RevenueManual to mandate administrative or procedural changes by the IRS toimprove its… Read More »National taxpayer advocate directs IRS to implement scanning technology

KEY POINTS You may have a wildly different tax bill depending on where you live.That’s because your tax burden — individual income, property, sales,and excise taxes as a share of total personal income — varies bystate.You can expect to spend the most in New York, Hawaii, Maine, Vermont,and Minnesota, according to a WalletHub report. As… Read More »These states have the highest and lowest tax burdens

US bond’s worst quarter in more than 40 years has come to a close. Thequestion for many investors now is whether it is time to buy thebiggest dip in recent memory. The Bloomberg US aggregate bond index largely US Treasuries highlyrated corporate bonds and mortgage-backed securities returned minus 6%in 2022 through Wednesday on track for… Read More »Bond Market Suffers Worst Quarter in Decades

The question, which on Form 1040 is just below the address block,asks, “At any time during 2021, did you receive, sell, exchange, orotherwise dispose of any financial interest in any virtual currency?”Taxpayers must check either the “yes” or “no” box that follows,regardless of whether they engaged in any transaction involvingvirtual currency during the tax year,… Read More »Individual taxpayers must answer crypto-asset questions, IRS notes

For retirees who turned 72 during the last half of 2021, in mostcases, Friday, April 1, 2022, is the last day to begin receivingpayments from Individual Retirement Arrangements (IRAs), 401(k)s, andsimilar workplace retirement plans. For retirees who turned 72 during the last half of 2021, in mostcases, Friday, April 1, 2022, is the last day… Read More »April 1 is the Last Day for New Retirees to Take RMDs

KEY POINTS The Federal Trade Commission on Monday sued TurboTax owner Intuit infederal court and filed a parallel administrative complaint. Bothrelate to alleged deceptive marketing practices related to TurboTax.Intuit offers a free version of TurboTax. The FTC claims it’s a “baitand switch” because most users are charged when they file their taxreturns.The company says the… Read More »FTC sues TurboTax owner Intuit for advertising tax software as ‘free’

Deloitte’s latest quarterly survey of Fortune 500 chief financialofficers found the executives have a gloomier outlook on the economythan last quarter, with respondents citing inflation, geopoliticalrisks, and the regulatory environment as their top external concerns. In the first quarter survey of 97 CFOs, only 36% told Deloitte theysee economic conditions improving in the North American… Read More »Inflation, geopolitical risks, and regulation top CFO worries, survey says

First-quarter listings plunged to the lowest level since 2016Several big companies on file are yet to move ahead with plans Some of the big-name startups expected to go public early this yearhave slowed their rush to market as stocks continue to whipsaw. Companies including Reddit Inc. and Cohesity Inc. each discussedlisting shares as soon as… Read More »U.S. IPO Hopefuls Are Hunting for Signs of Elusive Market Window

Analysts and investors of major Wall Street banks are eagerlyanticipating any insight from executives on the outlook for consumerspending and borrowing, a key source of revenue when first-quarterearnings are unveiled next month. U.S. consumer spending has been rising for months as the countryemerges from the COVID-19 pandemic and Americans make up for lost timetraveling, shopping,… Read More »Bank analysts, investors are antsy for spending outlook as inflation risks grow

The trust fund penalty sometimes called the 100% penalty, is one ofthe most onerous federal tax law provisions on the books. Even worse,the IRS and the courts typically don’t grant much leniency totaxpayers. In a new Tax Court case, Kazmi, TC Memo 2022-13, 3/1/22, a harsh taxpenalty was imposed on a part-time bookkeeper that was… Read More »Bookkeeper Hit Hard by Trust Fund Penalty

President Joe Biden unveiled a budget plan Monday that includes aminimum tax for ultra-wealthy households, raises the corporate taxrate, and backs restrictions on stock buybacks. The president’s fiscal year 2023 budget would create a 20% minimum taxfor households worth more than $100 million. The minimum tax wouldapply “only to the wealthiest 0.01% of households …… Read More »Biden releases budget plan with tax hikes, stock buyback restrictions

President Joe Biden’s administration released its $6 trillion budgetMonday for the federal government’s 2023 fiscal year, which beginsOctober 2022. Also on Monday, Treasury released its general explanations of thebudget’s revenue proposals, known as the Greenbook. Revenue provisions in the proposed budget prominently include what anadministration fact sheet calls a new billionaire minimum income taxof 20%… Read More »Biden proposes a higher corporate tax rate, 20% billionaire minimum tax

Initial public offerings worldwide have plummeted in the first quarter after a record showing in 2021, as volatility stoked by the war in Ukraine and soaring inflation set investors on edge and scuppers deals. About $65 billion has been raised via IPOs around the world in 2022, down 70% from $219 billion in the first… Read More »IPO Market Plunges 70% as Higher Rates, War Curb Risk Appetite

This two-part series will be devoted to the twists and turns in the rules that govern sales of investments to “related parties” (Internal Revenue Code Section 267). In most cases, the tax code allows an investor to claim losses on her investments when she sells them. But I remind investors about Section 267, which generally… Read More »Rules for Selling Investments to Related Parties

Return-to-office plans may lead to more resignations, separate research shows. In a survey of more than 1,000 professionals, half of the respondents currently working from home (50%) would look for a new job that offers remote options if … Professional firms considering returning to pre-pandemic office protocols had better learn to be flexible, or they… Read More »Half of the Remote Professionals Say They Would Quit if Required to Go Back to Office

The Tax Court recently found that there’s indeed a limit on the tax-deductibility of wages paid to employees by the employer.  What constitutes “reasonable” compensation for this purpose? It depends on the particular circumstances. Traditionally, the courts have relied on several key factors to make a determination if compensation is reasonable or not. Background: It makes… Read More »Tax Court Weighs in on Reasonable Compensation

The question, which on Form 1040 is just below the address block, asks, “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?” Taxpayers must check either the “yes” or “no” box that follows, regardless of whether they engaged in any transaction involving virtual… Read More »Individual taxpayers must answer the crypto-asset questions, IRS notes

When it comes to ACH Fraud, the fraudster sends what looks like a legitimate email from an employee or from a vendor, requesting a change to their ACH or Direct Deposit bank account. As a professional bookkeeper, Jody Linick personally knows of three businesses that have been hit by this fraud since January. ACH fraud has unfortunately… Read More »Spotting ACH Fraud and What Bookkeepers Can Do

Lawmakers are asking the Internal Revenue Service to expedite the processing of Employee Retention Tax Credits and not to penalize small businesses for incorrectly paying their estimated quarterly taxes as they await their claims. During a hearing, Thursday before the House Ways and Means Oversight Subcommittee, Rep. Carol Miller, D-West Virginia, asked IRS Commissioner Charles… Read More »Congress presses IRS on ERTC processing and tax penalty relief

For almost the past decade, there has been an annual spike in illicit voice, and now text, communications during tax season in the United States. Truecaller’s Clayton LiaBraaten shares tips on how tax professionals can educate clients and protect them from scams. As we go through another tax season, it’s important for tax pros to… Read More »How Tax Pros Can Protect Clients Against Scams During Tax Season

It can be pretty satisfying to tell the IRS they are too late to audit you. But when might you be able to say that? Your exposure is at least three years after when you file your return, but many people are surprised that you might be a risk for years more. The time periods… Read More »IRS Can Audit Your Taxes Forever If You Miss A Key Form

KEY POINTS Some 13% of Gen Xers and baby boomers say they have postponed or considered delaying retirement due to inflation, according to a Nationwide survey. However, these shifts may reflect a lack of understanding and confidence in their financial plan, experts say. As inflation rises, many Americans are shifting life milestones, including retirement. Some… Read More »Inflation is causing some older Americans to delay retirement plans, survey shows

IRS Commissioner Charles Rettig told House members in a hearing Thursday that the Service will process its backlog of unprocessed work — some of it dating back to 2020 — by the end of 2022. Rettig appeared before the House Ways and Means Committee’s Subcommittee on Oversight to report on the current filing season. Members’ statements and… Read More »Commissioner to Congress: IRS will clear the backlog by year’s end

U.S. stock indexes rallied for a third straight day, putting the S&P 500 on pace for its biggest weekly gain since late 2020. Stocks started Thursday nearly unchanged, but pushed into the green late in the morning, with gains accelerating into the end of the session. Indexes finished near their highs of the day. The… Read More »S&P 500 Extends Rally, Up Nearly 5% for the Week

Summary Russia was due to pay $117 mln by Wednesday’s deadline Creditors see this week’s deadline as a test for Moscow Russia says it has cash, any default ‘artificial’ Some creditors have received payment, in dollars, of Russian bond coupons which fell due this week, two market sources said on Thursday, meaning that Russia, for… Read More »Some Russia creditors have received dollar bond payment -sources

Summary Fed lifts policy rate by a quarter of a percentage point U.S. central bank sees more rate hikes in 2022, 2023 Powell says Fed needs to limit inflation hit for families The Federal Reserve on Wednesday raised interest rates for the first time since 2018 and laid out an aggressive plan to push borrowing… Read More »Fed hikes interest rates, signals aggressive fight to curb inflation

The IRS issued sharply higher new depreciation limitations Wednesday for passenger automobiles, reflecting inflation of vehicle prices in the past year. These limits are updated annually for inflation according to the automobile component of the chained consumer price index for urban consumers. Rev. Proc. 2022-17 contains the Sec. 280F(a) inflation-adjusted dollar limitations on depreciation deductions for… Read More »Auto depreciation limits leap with inflation

As many of you know, the deadline for submitting IRS Form 2553 was March 15. The clients that did so may now be asking, “so, now what?” CorpNet’s Nellie Akalp helps you answer that question in this pointed article. Many of your clients that have filed for the S Corporation election this tax season may… Read More »What to Do When Clients File for S Corp Election

The US Small Business Administration (SBA) has extended the deferment period for COVID-19 Economic Injury Disaster Loan (EIDL) payments for the third time in 12 months. In a news release, the SBA said that small businesses and not-for-profits that received EIDL funds do not have to begin payments on the loan until 30 months after the… Read More »SBA again extends the deferment period for EIDL payments

KEY POINTS “Under reasonable circumstances,” savers can earn the same amount investing in either traditional or Roth retirement savings accounts, says Steve Rosenthal of the Urban-Brookings Tax Policy Center. Owning both types of accounts can give you flexibility when it comes to paying taxes in retirement. Should a piece of tax legislation known as the Secure… Read More »Tax expert: Traditional and Roth retirement accounts are ‘economically identical,’ so how do you choose?

The Internal Revenue Service’s ambitious plans to hire 10,000 more employees over the next year are going to be difficult to attain as a new report reveals that the IRS met only 67% of its hiring goals for last year in a key area. The report, released Monday by the Treasury Inspector General for Tax Administration,… Read More »IRS plans to hire thousands likely to fall short

On Wednesday the Federal Reserve will likely take the first steps in paring back its stimulus — by raising interest rates for the f