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Inflation remained near a 40-year high in April. Here’s where consumers plan to cut spending

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… Read More »Inflation remained near a 40-year high in April. Here’s where consumers plan to cut spending

Inflation barreled ahead at 8.3% in April from a year ago, remaining near 40-year highs

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… Read More »Inflation barreled ahead at 8.3% in April from a year ago, remaining near 40-year highs

US sanctions ban the provision of accounting and consulting services to Russia

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… Read More »US sanctions ban the provision of accounting and consulting services to Russia

Staffing shortages and backlog hampered IRS in 2022 filing season, TIGTA says

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… Read More »Staffing shortages and backlog hampered IRS in 2022 filing season, TIGTA says

Powell says taming inflation is‘ absolutely essential,’ and a 50 basis
point hike is possible for May

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… Read More »Powell says taming inflation is‘ absolutely essential,’ and a 50 basis
point hike is possible for May

SPACs are sputtering in 2022, leaving retail investors holding the bag for a Wall Street innovation that just hasn’t panned out

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… Read More »SPACs are sputtering in 2022, leaving retail investors holding the bag for a Wall Street innovation that just hasn’t panned out

Big companies manage to pass on soaring costs to cash-strapped consumers

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… Read More »Big companies manage to pass on soaring costs to cash-strapped consumers

What are expense ratios? These fees could be eating away at your investment earnings

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… Read More »What are expense ratios? These fees could be eating away at your investment earnings

Is Your Compensation Reasonable? For Tax Purposes, That Is

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… Read More »Is Your Compensation Reasonable? For Tax Purposes, That Is

Corporate profits stay strong at double-digit gains, but the sound of investor fears gets louder

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… Read More »Corporate profits stay strong at double-digit gains, but the sound of investor fears gets louder

Inflation hits a 40-year high of 8.5 percent because of war in Ukraine, rent hikes

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… Read More »Inflation hits a 40-year high of 8.5 percent because of war in Ukraine, rent hikes

Don’t play the ‘audit lottery.’ These are the top reasons your taxreturn may be flagged by the IRS

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… Read More »Don’t play the ‘audit lottery.’ These are the top reasons your taxreturn may be flagged by the IRS

Oil jumps over 3% as deaths near Kyiv prompt talk of new sanctions

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… Read More »Oil jumps over 3% as deaths near Kyiv prompt talk of new sanctions

National taxpayer advocate directs IRS to implement scanning technology

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… Read More »National taxpayer advocate directs IRS to implement scanning technology

FTC sues TurboTax owner Intuit for advertising tax software as ‘free’

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… Read More »FTC sues TurboTax owner Intuit for advertising tax software as ‘free’

Inflation, geopolitical risks, and regulation top CFO worries, survey says

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%… Read More »Inflation, geopolitical risks, and regulation top CFO worries, survey says

Bank analysts, investors are antsy for spending outlook as inflation risks grow

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… Read More »Bank analysts, investors are antsy for spending outlook as inflation risks grow

Biden proposes a higher corporate tax rate, 20% billionaire minimum tax

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… Read More »Biden proposes a higher corporate tax rate, 20% billionaire minimum tax

Half of the Remote Professionals Say They Would Quit if Required to Go Back to Office

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… Read More »Half of the Remote Professionals Say They Would Quit if Required to Go Back to Office

Tax expert: Traditional and Roth retirement accounts are ‘economically identical,’ so how do you choose?

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… Read More »Tax expert: Traditional and Roth retirement accounts are ‘economically identical,’ so how do you choose?

Inflation rose 7.9% in February, as food and energy costs push prices to the highest in more than 40 years

KEY POINTS The consumer price index for February rose 7.9% from a year ago, the highest level since January 1982. Excluding food and energy, both of which moved sharply higher during the month, core inflation still rose 6.4%, in line with expectations but the highest… Read More »Inflation rose 7.9% in February, as food and energy costs push prices to the highest in more than 40 years

U.S. crude oil spikes to a 13-year high of $130 overnight, then give up most of that gain

Oil prices gave up most of their big overnight gains in a wild session, briefly dipping into negative territory after surging above $130 earlier in the session. On Sunday evening, prices jumped as trading began with the market reacting to supply disruptions stemming from Russia’s… Read More »U.S. crude oil spikes to a 13-year high of $130 overnight, then give up most of that gain

What to do if you want to eliminate Russian securities from your investment portfolio

The departure of corporations from investments in Russia has been swift following the country’s invasion of Ukraine, and individual investors may be examining their portfolios with similar divestment goals. It’s unlikely that most investors have substantial holdings in Russia-based bonds or stocks unless they own… Read More »What to do if you want to eliminate Russian securities from your investment portfolio