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The collapses of Silicon Valley Bank and Signature Bank over the weekend continue to dominate headlines and send ripples through markets. But even before the pair of bank failures, 2023 was on track for a nasty year for corporate defaults across the globe. According to S&P Global Ratings,… Read More »More Companies Are Going Bust This Year—and It’s Not Just Banks

Before the pandemic, Logikcull had an office in downtown San Francisco and, like most tech companies, it had a lot of meetings. After the pandemic, the company bought out the office lease and 110 employees scattered across 40 states and four countries.  Just as other companies were adding online… Read More »Could this meeting have been an email? Employees are over meetings. Now companies are too

KEY POINTS Wholesale prices posted an unexpected decline in February, providing some encouraging news on inflation as the Federal Reserve weighs its next move on interest rates. The producer price index fell 0.1% for the month, against the Dow Jones estimate for a 0.3% increase… Read More »Wholesale prices post an unexpected decline of 0.1% in February; retail sales fall

KEY POINTS The pace of wage growth seems to be decelerating, according to the February jobs report issued Friday — but workers still have bargaining power in a cooling but strong job market, economists said. “Workers have a very strong negotiating position,” Mark Zandi, chief economist of Moody’s… Read More »Wage growth is cooling — but workers still have bargaining power, economists say

NEW YORK (AP) — Depositors withdrew savings and investors broadly sold off bank shares Monday as the federal government raced to reassure Americans that the banking system was secure after two bank failures fed fears that more financial institutions could fall. President Joe Biden insisted that… Read More »Government races to reassure US that banking system is safe

Inflation eased in February but remained stubbornly high, presenting a challenge for the Federal Reserve as it confronts how to slow the economy with higher interest rates at the same time it moves to stem banking problems. The consumer-price index, a closely watched inflation gauge,… Read More »U.S. Inflation Cooled in February as Fed Confronts Bank Failures

A US court has ruled that “gig” economy giants including Uber and Lyft can continue treating their workers as independent contractors in the state of California. The California appeals court found that a labour measure, known as Proposition 22, was largely constitutional. Labour groups and some… Read More »US court rules Uber and Lyft workers are contractors

If you sometimes feel like your days are being taken up by meeting after meeting, leaving you little time to get your actual work done, you’re not alone. According to research, 70% of meetings are keeping employees from completing their tasks, and remote working has only exacerbated… Read More »This is how a no meeting week boosts employee productivity and wellbeing

73% of workers with a side hustle are actively thinking about quitting their job. 60% of workers said that they would rather quit their job than return to the office five days a week. A combination of low minimum wages and a rapidly increasing cost… Read More »Up to 45 Percent of Americans Have a Side Hustle

Overall, positivity about the U.S. economy remains muted, with just 23% of respondents to a recent survey saying they are optimistic about the domestic outlook for the next 12 months. That’s an improvement from the fourth quarter, when just 12% expressed optimism. Also, 45% of respondents in… Read More »Inflation, talent, labor costs: 3 challenges amid slightly rising optimism

(Bloomberg) — President Joe Biden unveiled a $6.9 trillion budget proposal on Thursday, a defiant opening salvo in high-stakes negotiations with congressional Republicans over the debt ceiling and government funding. The proposal, certain to be rejected by the Republican-controlled House of Representatives, showed little inclination… Read More »Biden Fires $6.9 Trillion Salvo to Open Budget Showdown With GOP

Should you buy long-term care insurance or save up to self-insure? There are many trade-offs to consider. And, surprise: It doesn’t have to be one or the other. The decision on whether to buy long-term care insurance vs. self-insuring is a question many clients ask.… Read More »Long-Term Care Insurance: To Buy or Not to Buy?

After hitting a historic low at the end of 2022, the outlook on the U.S. economy rebounded somewhat in February 2023, but concern about inflation remains high, according to the first-quarter Business and Industry Economic Outlook Survey released Thursday by AICPA & CIMA, together as the Association… Read More »Economic optimism is still low but improving; concerns about inflation remain

US companies added more jobs than expected in February, underscoring persistent demand for labor that’s keeping wage growth elevated. Private payrolls rose 242,000 last month after an upwardly revised 119,000 increase in January, according to figures out Wednesday from ADP Research Institute in collaboration with… Read More »US Companies Added More Jobs Than Expected as Demand for Workers Remained Elevated

Although the most significant advantage is the limited liability protection it provides its shareholders, the S Corp election also avoids the double taxation incurred by C Corps. There are many reasons for your clients to claim an S Corp election. Although the most significant advantage… Read More »Milestones for S Corporation Election

ChatGPT can write essays, poetry, letters, and more, so we posed the question—can it do our taxes? Our company, TaxBuzz, decided to take the technology for a test drive, asking, “What status I should use when filing my taxes?” It offered typical definitions of the… Read More »ChatGPT’s Tax Advice Was Wrong 100% Of The Time

KEY POINTS Federal Reserve Chairman Jerome Powell on Tuesday cautioned that interest rates are likely to head higher than central bank policymakers had expected. Citing data earlier this year showing that inflation has reversed the deceleration it showed in late 2022, the central bank leader warned of tighter monetary… Read More »Fed Chair Powell says interest rates are ‘likely to be higher’ than previously anticipated

As ChatGPT’s trendiness questions the value of some parts of the workforce, the value of human intuition is also up for debate. As industries and executives explore how to use AI-powered chatbots like ChatGPT best, the value of human intuition in the workplace has come into question.… Read More »ChatGPT’s Impact on CFOs: What is AI’s Limit in Replacing Humans?

Household debt rose to new levels in 20 years — jumping $394 billion in the fourth quarter of the year alone — driven by credit card balances and auto loans. A February 16 report from the Federal Reserve Bank of New York’s Center for Microeconomic Data(opens… Read More »U.S. Household Debt Hit a Record $16.90 Trillion in 2022

Cumberland, Rhode Island — Maryann O’Connor is juggling two jobs, sometimes working up to 11 hours per day, not what she expected to be doing at age 66. “I would hope to be retired, playing the piano again, just enjoying my life,” O’Connor said. With no… Read More »Millions of Americans nearing retirement age with no savings

I predict 2023 is going to be a year of reordering as the true breakthrough companies separate themselves from the rest of the pack while many others are acquired or fade away. It’s been a couple of years since I put forward a list of… Read More »Predictions for 2023: A make-or-break year for startups

This week, the Federal Deposit Insurance Corp. released its latest quarterly banking profile. That’s a survey of thousands of large and small banks that asks about profits, interest rates, and whether they’re lending more money (or less).  Now, you might think in this era of rising interest… Read More »Businesses and consumers are borrowing more, despite rising interest rates

The first quarter of this year finds businesses confronting plenty of tax and business challenges. Rising interest rates and inflation continue to plague the economy, and many companies are already girding for a potential recession. The first step to forming a tax strategy should be… Read More »Top 10 tax-planning considerations for 2023

Performance metrics are evolving. It’s time for financial leaders to do the same. In the digital economy, businesses are finding new paths to success. That means the metrics used to measure and steer performance need to change too — but many companies are still wedded… Read More »4 Ways to Turn Your KPIs Into Strategic Assets

The numbers: A key barometer of American factories was negative for the fourth month in a row at 47.7%, as manufacturers cut back on production to cope with a slower U.S. economy. The change in the ISM index has been corrected. The Institute for Supply Management’s manufacturing… Read More »U.S. factories contract for a fourth straight month, ISM shows, but there might be a silver lining

It’s a tough pill to swallow, but the entire VC ecosystem is slowly accepting that it will be a long slog to return to the peak of pandemic-era valuations. In 2021, it was not unusual for companies to raise capital with lofty valuations, in some… Read More »Calculate it: How long will it take to grow into old valuations?

New York Times, I.R.S. Decision Not to Tax Certain Payments Carries Fiscal Cost: More than 20 state governments, flush with cash from federal stimulus funds and a rebounding economy, shared their windfalls last year by sending residents one-time payments. This year, the Biden administration added a… Read More »NY Times: IRS Decision Not To Tax State Stimulus Payments Carries Fiscal Cost

The U.S. Supreme Court held Tuesday in a 5-4 decision that the $10,000 penalty for a non-willful failure to file a Report of Foreign Bank and Financial Accounts (FBAR) for foreign accounts accrues per report, not per account (Bittner, No. 21-1195 (U.S. 2/28/23)). The decision resolves a… Read More »Supreme Court holds FBAR penalty is imposed per report, not per account

(Reuters) – U.S. consumer confidence unexpectedly fell in February, with the decrease concentrated among lower-middle-income households, though Americans grew more upbeat about the labor market. The survey from the Conference Board on Tuesday also showed consumers apprehensive about buying big-ticket items like motor vehicles and… Read More »US consumer confidence retreats, house price inflation cools further

(Reuters) – Collapsing ocean shipping rates would seem to be good news for U.S. retailers, but they are now bracing for delays as some carriers try to prop up prices by canceling voyages. Retailers had paid as much as $20,000 to move a container of… Read More »U.S. retailers’ ocean shipping price woes ending, but new delays threaten

This decision isn’t easy, thanks to investment, tax, and other considerations. Let’s explore the implications of each. After 40 years of sitting in traffic and punching the clock, you will sit and punch no more. While your home was great for raising a family and… Read More »Should I Sell or Rent My House When I Relocate for Retirement?

KEY POINTS Getting into college is hard enough, but figuring out how to pay for it is another hurdle altogether. Higher education already costs more than most families can afford, and college costs are still rising. Tuition and fees plus room and board for a four-year private college averaged $53,430 in the… Read More »3 strategies can get you more financial aid for college

WASHINGTON (AP) — A majority of the nation’s business economists expect a U.S. recession to begin later this year than they had previously forecast after a series of reports have pointed to a surprisingly resilient economy despite steadily higher interest rates. Fifty-eight percent of 48 economists who… Read More »The 2023 US recession now expected to start later than predicted

KEY POINTS For some retirees, heading back to work has emerged as an aspiration. Roughly 1 in 6 retired Americans say they are mulling over whether to get a job, according to a recent study from Paychex. On average, those “unretiring” individuals have been out of the workforce for four… Read More »1 in 6 retirees are mulling a return to work. What to consider before ‘unretiring’

Inflation that is proving increasingly stubborn will prompt the Federal Reserve to raise interest rates to an even higher peak level and hold them there through the year, according to economists surveyed by Bloomberg this month. Forecasters boosted their projections for the Fed’s preferred inflation… Read More »Faster Inflation Portends Higher Fed Peak Rate in Latest Economists’ Survey

Average retirement account balances dropped nearly 25 percent last year, according to a new report by Fidelity. Although retirement balances increased in the fourth quarter of 2022, the average balance of individual retirement accounts (IRA) dropped by 23 percent from the fourth quarter of 2021, according… Read More »Retirement account balances lost almost 25 percent last year: Fidelity

Many people use their primary email to sign in to practically everything. That’s a privacy nightmare, and you might be shocked to see how easily someone can use it to effectively stalk you and violate your privacy. Your Email Can Be Used to Identify Which… Read More »Using Your Real Email to Sign In? Your Privacy Is at Risk

KEY POINTS The Supreme Court ruled Wednesday that an offshore oil rig worker who earned more than $200,000 annually — and whose company classified him as a “bona fide executive” — is entitled to overtime pay for having worked more than 40 hours per week. A lawyer for Helix Energy Solutions Group had… Read More »Supreme Court rules Helix Energy oil rig worker who makes $200,000 is entitled to overtime

Business owners can apply for their Employer Identification Number in minutes and use it to hire employees, borrow, pay taxes, and more. As a business owner, it is critical that you keep your business and personal lives separate. One of the best ways to do that… Read More »8 reasons why you need an EIN for your business and how to apply for one

The final regulations reflect changes made by the Taxpayer First Act that strengthen e-filing requirements. The IRS and the Treasury Department on Tuesday issued final regulations pertaining to companies filing returns and other documents electronically starting in 2024. The final regulations impact filers of: The final regulations… Read More »IRS and Treasury Finalize E-Filing Rules for Businesses

(Reuters) – Is the IPO winter finally easing? A year after Russia’s invasion of Ukraine and an inflation rally fueled a bout of market volatility that prevented most initial public offerings in 2022, last week saw a flurry of listings. It is 15 months since… Read More »U.S. IPO pick-up offers hope of market re-open

Taxpayers and tax practitioners can now submit information online in response to nine notices rather than mailing the information, in a change that could potentially help over 500,000 filers annually, the IRS announced. In IR-2023-29, a news release issued Thursday, the Service said the option will… Read More »Taxpayers can now submit information online in response to 9 IRS notices

Sometimes you just can’t avoid dipping into a retirement fund, but you might be able to qualify for an exception to the 10% tax penalty. Pulling money from your pre-tax retirement accounts before age 59½ should be done only as a last resort since it… Read More »Ways to Avoid the Penalty on Early Retirement Withdrawals

The IRS will not meet the Friday deadline imposed by Treasury Secretary Janet Yellen to turn over its spending plan for approximately $80 billion that Congress budgeted for it to spend over 10 years as part of the Inflation Reduction Act of 2022, P.L. 117-169.… Read More »IRS misses Friday deadline to turn over $80 billion spending plan

(Bloomberg) — Two of the Federal Reserve’s most hawkish policymakers signaled they may favor returning to bigger interest-rate hikes in the future, and said they saw the case for raising rates by a half-point at the central bank’s meeting earlier this month. Cleveland Fed President… Read More »Fed Officials Support More Rate Hikes to Ensure Lower Inflation

When the stock market reeled last year, the Dow Jones Industrial Average became a place where many found shelter. As risk appetite returns in 2023, they can’t exit fast enough.  The 30-member gauge is up 2% this year, compared with a 7% gain in the… Read More »Dow Lags Market by Most Since 1934 as Stock Rotation Continues

Three types of people could benefit from taking advantage of the after-tax 401(k) contributions option in their company’s retirement plan. The 401(k) has evolved over the past few decades, offering flexibility in the way American workers can save for retirement. More companies are offering their… Read More »After-Tax 401(k) Contributions: Pros and Cons

KEY POINTS Sales at retailers rose far more than expected in January as consumers persevered despite rising inflation pressures. Advance retail sales for the month increased by 3%, compared with expectations for a rise of 1.9%, the Commerce Department reported Wednesday. Excluding autos, sales rose 2.3%,… Read More »Retail sales jump 3% in January, smashing expectations despite an inflation increase

Consumer prices rose at a more rapid monthly pace in January, the Labor Department said on Tuesday — interrupting a monthslong streak of cooler inflation readings. By the numbers: The Consumer Price Index rose 0.5% last month, as prices for food, energy, and apparel accelerated at a more… Read More »Consumer prices rise at a faster pace in January

If you ask John Chambers, the startup world is about to be hit with a cataclysm: Within the next two years, at least a third of all startups will die. That’s a natural consequence of the last few years of record-breaking venture investing, said Chambers,… Read More »Ex-Cisco chief John Chambers says more than 1/3 of all startups will fail in the next two years

Many workers who quit last year in the so-called Great Resignation are now reporting Great Regret as Big Tech layoffs reduce coveted work-from-home positions. According to a survey of 825 employees and 354 employers that the human resources firm Paychex released last month, 80% of… Read More »‘Great Resignation’ becomes ‘Great Regret’ for job-hoppers

A new study co-authored by Wharton’s Daniel G. Garrett shows that giving businesses tax breaks for investment in new equipment doesn’t lead them to replace workers with machines. A new paper by experts at Wharton and elsewhere has set to rest “widespread concerns” that increased… Read More »Why Capital Investment in Equipment Doesn’t Hurt Employment

Jim Detert just wants to set the record straight. The University of Virginia professor, who holds a joint appointment in the Darden School of Business and the Batten School of Leadership and Public Policy, has spent the last few years reading about a couple of… Read More »How Changing the Connotation of ‘Quiet Quitting’ can Benefit the Workplace

KEY POINTS Inflation turned higher to start 2023, as rising shelter, gas, and fuel prices took their toll on consumers, the Labor Department reported Tuesday. The consumer price index, which measures a broad basket of common goods and services, rose 0.5% in January, which translated to… Read More »Inflation rose 0.5% in January, more than expected and up 6.4% from a year ago

The IRS has determined that in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns. After several days of requests by taxpayers, state agencies, and the National Taxpayer Advocate, the… Read More »IRS Says State-Issued Stimulus Payments are Not Taxable

KEY POINTS Moving money from a 401(k) plan to an individual retirement account — an action commonly known as a “rollover” — may sound straightforward. But the seemingly easy task has many pros and cons to consider before moving your money, according to financial advisors. More people… Read More »Rollovers from a 401(k) plan to an IRA: Weigh these 7 factors first

The IRS has asked a tax group for information from 21 states as it works to determine whether special tax refunds or payments that states made in 2022 as part of state pandemic relief measures are taxable for federal purposes. Meanwhile, the national taxpayer advocate… Read More »IRS seeks information on 21 states regarding special payments, refunds

The Federal Reserve has raised rates rapidly. But instead of cracking, some data point to an economy that’s thriving. Many economists and investors had a clear narrative coming into 2023: The Federal Reserve had spent months pushing borrowing costs rapidly higher in a bid to… Read More »What Recession? Some Economists See Chances of a Growth Rebound.

US government bond investors pushed two-year yields above 10-year yields by the widest margin since the early 1980s Thursday, a sign of flagging confidence in the economy’s ability to withstand additional Federal Reserve interest-rate hikes. The yield on the shorter-dated Treasury at one point exceeded… Read More »Treasury Yield-Curve Inversion Reaches Deepest Level Since the 1980s

A new report documents systemic discrimination in how the I.R.S. selects taxpayers to be audited, with implications for a debate on the agency’s funding. Black taxpayers are at least three times as likely to be audited by the Internal Revenue Service as other taxpayers, even… Read More »NY Times: Black Americans Are Much More Likely To Face Tax Audits, Study Finds

WASHINGTON — In the latest improvement for taxpayers, the Internal Revenue Service announced today that people electronically filing their Form 1040-X, Amended U.S Individual Income Tax Return, will for the first time be able to select direct deposit for any resulting refund. Previously, taxpayers who filed… Read More »New IRS feature allows taxpayers electronically filing amended returns to choose direct deposit to speed up refunds

WASHINGTON, D.C. — Reflecting on their personal financial situations, 35% of Americans say they are better off now than they were a year ago, while 50% are worse off. Since Gallup first asked this question in 1976, it has been rare for half or more… Read More »Half in U.S. Say They Are Worse Off, Highest Since 2009

Federal taxability of state-issued stimulus payments is causing frustration for taxpayers and tax professionals. Indeed, whether or not state-issued stimulus payments are federally taxable may be the most asked question of this filing season. For California’s taxpayers, the frustration and confusion boiled over into the… Read More »Are State Tax Refunds And Rebates Federally Taxable? It Depends.

(Reuters) – U.S. stocks rallied to a convincingly higher close on Tuesday, but trade was choppy as investors digested comments from Federal Reserve Chair Jerome Powell about how long the central bank may need to tame inflation. Powell said 2023 should be a year of… Read More »Wall Street rallies but trade choppy as investors digest Powell’s comments

Data last week showed that the unemployment rate stands at a 53-year low. Treasury Secretary Janet Yellen rejected recession fears in an interview with “Good Morning America” on Monday, saying the economy remains “strong and resilient.” A blockbuster jobs report last week showed that the economy added 517,000 jobs in January,… Read More »Treasury Secretary Janet Yellen rejects recession fears, says the economy is ‘strong’

Economists at Goldman Sachs Group Inc. said the risk of a US recession is receding amid a persistently strong jobs market and signs of improving business sentiment.  The Goldman team led by Jan Hatzius cut its estimate for the probability of a recession in the… Read More »Goldman Cuts US Recession Odds to 25% on Jobs, Business Outlook

Wall Street regulator is revisiting how proposals would affect financial reporting The Securities and Exchange Commission is considering a softening of planned rules requiring companies to disclose the effects of extreme weather and other costs related to global warming when the regulator completes its climate-change… Read More »SEC Considers Easing Climate-Disclosure Rules After Investor Pushback

After a strong jobs report, traders are betting the Fed might raise interest rates two more times this year The U.S. labor market remains incredibly strong. Investors can’t decide if that is a good or bad thing. At first glance, Friday’s jobs report seemed to have… Read More »Upbeat Economic Data Keep Investors on Edge About Fed

The federal research and development (R&D) Tax Credit is a useful credit for businesses of all sizes. The credit is designed to help organizations that engage in a range of activities, such as developing new products, processes, software, and more. In addition to providing a… Read More »R&D Tax Credit Misconceptions and Guidelines

Starting in January, the IRS has answered calls to its Practitioner Priority Service telephone line in under 10 minutes, thanks to new hires and the blocking of line-jumping services, the man who leads much of the agency’s taxpayer response said. Kenneth Corbin, the taxpayer experience… Read More »Wait times for practitioner phone line reduced, IRS official says

Financial Accounting Standards Board proposes that U.S. companies use fair-value accounting to measure certain cryptocurrency assets The Financial Accounting Standards Board voted to propose a new rule on cryptocurrency accounting and disclosure, creating new guidance for companies holding these assets and providing more details to… Read More »Standards Setter Floats New Rule on Crypto Accounting

President Joe Biden dislikes them. The taxman is coming after them. And Wall Street strategists warn the boom won’t last. Yet against all odds, Corporate America continues to splurge on its own shares — a force that has fueled the new year rally.   In… Read More »Stock Buybacks Race to Record $132 Billion Start as Companies Snub All Warnings

KEY POINTS Economists expect slightly slower, but still strong job growth in January, while the impact of corporate layoff announcements is unclear. According to Dow Jones, the consensus forecast calls for 187,000 new nonfarm jobs in January, down from 223,000 that were created in December.… Read More »January job growth is forecast to slow slightly, but the impact of big corporate layoffs is uncertain

Strategies around talent recruitment and retainment are a principal focus for CFOs, according to a new study by CFO. Competition for talent, primarily financial, has never been more intense. Alongside industries like private equity reporting fierce battles in finding and keeping talent as of late, CFOs, regardless… Read More »78% of CFOs Say Quiet Quitting is a Problem: Weekly Stat

The law known as the Tax Cuts and Jobs Act (TCJA),1 enacted in 2017, made significant changes to the corporate and individual tax structures. Corporate tax rates were reduced from a maximum rate of 35% to a flat rate of 21%, the corporate alternative minimum tax… Read More »Taxpayer marital status and the QBI deduction

The Fed has raised interest rates to cut prices but the move risks a recession. The Federal Reserve said Wednesday it was raising its short-term borrowing rate another 0.25%, the central bank’s second consecutive decision to slow rate increases while extending an effort to cool… Read More »Fed approves 0.25% hike, softening rate increases again

WASHINGTON, Feb 2 (Reuters) – The number of Americans filing new claims for unemployment benefits dropped to a nine-month low last week as the labor market remains resilient despite higher borrowing costs and mounting fears of a recession this year. The surprise decline in weekly… Read More »U.S. weekly jobless claims drop to nine-month low; productivity gains speed

CHICAGO/DETROIT, Jan 31 (Reuters) – The companies that produce goods at the heart of the U.S. consumer economy – SUVs, washing machines, heavy equipment, and hamburgers – kept rolling along at the end of 2022. But corporate executives on conference calls were guarded in their… Read More »U.S. execs sound a note of caution even as earnings outstrip estimates

(Bloomberg) — The share of Americans who say they live paycheck-to-paycheck climbed last year, and most of the new arrivals in that category were among the country’s higher earners, a new study shows. Some 64% of US consumers — equivalent to 166 million people —… Read More »Even on $100k Plus, More Americans Are Living Paycheck-to-Paycheck

Stocks rose on Tuesday as strong earnings and encouraging inflation data pushed the S&P 500 to its best January since 2019. The Dow Jones Industrial Average rose 368.95 points, or 1.09%, to 34,086.04. The S&P 500 gained 1.46% to 4,076.60. The Nasdaq Composite added 1.67%… Read More »Dow closes more than 350 points higher, S&P 500 caps best January in four years

Wall Street Journal, Who Goes First on Your Joint Tax Return? Probably Not the Woman. The IRS doesn’t care, so why do most people put the man first on 1040? Even Kamala Harris goes second to the second gentleman. When calculating federal income taxes, it makes… Read More »WSJ: Whose Name Goes First On Your Joint Tax Return? Probably Not The Woman.

US Treasury Secretary Janet Yellen said persistently weak inflation is likely to return as a long-term challenge for the economy and policymakers once pandemic-era distortions behind the recent surge subside and prices cool. “We’re just coming through an unusual and difficult period, but I do… Read More »Yellen Sees Low Inflation as More Likely Long-Term Challenge

If something’s going to be painful, it’s easier to bear if it’s of short duration, at least in some contexts.  Economic recessions generally follow that rule, but not always. A short, deep recession can leave a lot of scars, as the pandemic one did. Long… Read More »2023 Recession Could Last 3 Quarters

The business interest expense deductibility limitation provisions of Sec. 163(j) have taken on a broader scope since the passage of the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97. Under the TCJA, many businesses that rely on debt financing and historically… Read More »Sec. 163(j) business interest limitation: New rules for 2022

“It’s safe to assume your Social Security number is in the hands of someone you don’t want to have it,” one expert said. If you’ve been debating whether to file your taxes early this year, tax experts say there are now several reasons that might… Read More »With fraud on the rise, experts urge taxpayers to file their tax returns early

(Reuters) – U.S. central bankers have unambiguously telegraphed this week’s policy decision: a quarter-of-a-percentage-point increase in their benchmark interest rate, the smallest since they kicked off their tightening cycle 10 months ago with one the same size. Less clear is whether they will continue to… Read More »Fed’s words in focus as markets bet rate hikes will soon end

SECURE Act 2.0 includes numerous significant provisions affecting individual retirement savers. Following is a brief roundup of several key changes. SECURE Act 20 is finally here. The long-awaited upgrade to the initial legislation known as the Setting Every Community Up for Retirement Enhancement (SECURE) Act,… Read More »Highlights of SECURE Act 2.0 for Individuals

Dow, IBM, and SAP say they will lay off thousands of workers as belt-tightening becomes the new business priority Dow Inc., DOW 1.46%increase; green up pointing triangle International Business Machines Corp. IBM -0.04%decrease; red down-pointing triangle and SAP SAP -0.78%decrease; red down-pointing triangle SE joined the string of companies outlining plans to cut thousands of jobs to prepare for… Read More »Corporate Layoffs Spread Beyond High-Growth Tech Giants

The U.S. economy grew at a seemingly snappy pace in the waning months of 2022, but it appears to have gotten off to a tepid start in the new year. The first batch of reports on the health of the economy in the first quarter suggests… Read More »The U.S. economy doesn’t look as good as GDP suggests

Many people resolve in the new year to get healthier. Taking charge of your financial wellness can help improve your physical health by lowering your anxiety about money issues. New Year’s resolutions about taking better care of your health, reducing stress, or just “prioritizing self-care”… Read More »Financial Wellness Is Self-Care: 3 Steps to Help Improve Yours

CFOs should be aware of these data points on employment trends, CPI, and productivity going into 2023. CFOs are number-centric, data-driven thinkers. Through our Wednesday newsletters, we have brought you extensive content surrounding data, statistics, and the corresponding trends emerging from that data. Below are four… Read More »2023 Outlook: 4 Charts to Watch

The average long-term U.S. mortgage rate fell to its lowest level in more than four months, giving some relief to homebuyers faced with higher prices for just about everything, including homes.  The average rate on a 30-year fixed mortgage fell to 6.13% on Thursday from 6.15% last… Read More »Mortgage rates continue a downward trend

A majority of Americans say they would struggle to pay for a $1,000 emergency expense, with a record share saying they would have to turn to credit cards to cover the cost, according to a new study released Wednesday. Only 4 in 10 Americans said… Read More »Faced with a $1,000 emergency, most Americans say they wouldn’t have the money

Financial literacy and greater longevity awareness will help fix retirement planning gaps, according to a study that delved into multiple dimensions of undersaving. Many Americans head into their retirement years with little rigor in their planning, and then they find themselves nursing a bundle of… Read More »Why Older Americans Regret Not Saving Early and Enough

Being considered rich isn’t just about how much money you make, it’s where you live, too. State by state, the incomes the top 1% of earners in the U.S. bring in vary by over a half million dollars, according to a new analysis of 2022 incomes by… Read More »Here’s how much money you need to earn to be in the top 1% in every U.S. state

WASHINGTON — The Internal Revenue Service announced today that businesses can now file Form 1099 series information returns using a new online portal, available free from the IRS. Known as the Information Returns Intake System (IRIS), this free electronic filing service is secure, and accurate… Read More »IRS opens a free portal to file information returns; new electronic option can reduce millions of paper Forms 1099 estimated to be filed by businesses in 2023

CFOs are widely focused on reducing costs, spotting M&A opportunities, and restructuring supply chains, per Grant Thornton. The overall economy — and the issues it creates — are arguably the largest challenge for CFOs this year. Yet confidence to achieve growth is prevalent among financial executives, according… Read More »64% of CFOs Predict Net Profit Growth in 2023

Investors and retirement savers have many tools at their disposal to whittle their incomes down to a point where capital gains are taxed at a 0% tax rate. The magic number for couples? $83,350. One of the greatest expenses business owners and retirees alike face… Read More »How to Pay 0% in Taxes (Without Cheating)

KEY POINTS Few things are more frightening for everyday taxpayers than a possible IRS audit. But experts say tax exams may be different from what’s portrayed in the movies. In the Oscar-nominated film “Everything Everywhere All at Once,” a Chinese-American couple (played by Michelle Yeoh and Ke… Read More »Oscar-nominated ‘Everything Everywhere All At Once’ features an IRS ordeal, but here’s what really happens in an audit, according to tax pros

Consternation and chaos are two of the words used to describe some of the reactions to IRS updates related to Schedules K-2 and K-3. On this collaboration episode with the Tax Section Odyssey podcast, CPAs Tim Chan of KPMG and David Sites of Grant Thornton… Read More »What’s the 411? Explaining Schedules K-2 and K-3

KEY POINTS Randy had an 850 credit score. According to FICO, the most popular scoring model, that’s as good as it gets. Still, a line on his credit report said he could lower his utilization rate, so he promptly paid off the remainder of his… Read More »These common misconceptions can prevent you from achieving that perfect credit score

All it takes is protecting what you save, having an income plan, knowing your health care options, reducing your tax burden, and making an estate plan. Planning for retirement is actually pretty simple. Just answer the question in the headline above with a resounding “Yes!”… Read More »Am I Going to Be OK in Retirement? Yes, With Focus on 5 Key Areas

The Biden administration is focusing on making the agency more responsive amid concerns that a funding increase will result in more audits. WASHINGTON — The Biden administration is aiming to significantly improve customer service at the Internal Revenue Service as the 2023 tax season begins… Read More »As Tax Season Starts, a Beleaguered I.R.S. Looks to Bolster Customer Service

As they debate the size of their next rate hike, Federal Reserve officials grapple with the broader needs of an economy expected to keep slowing The Federal Reserve spent most of last year in emergency mode, scrambling to catch up to inflation. Now central bankers… Read More »The Fed’s new challenge: Stay on the gas or tap the brakes?

The pause in the stock market’s strong start to 2023 underscores the main question vexing much of Wall Street: When will it be safe to start buying again?  Yes, markets have grown increasingly confident that the slowdown in inflation will allow the Federal Reserve to… Read More »Investors Aren’t Sure When to Dive Back Into US Stock Market

KEY POINTS Federal Reserve Governor Christopher Waller said Friday he favors a quarter percentage point interest rate increase at the next meeting, as he waits for more evidence that inflation is heading in the right direction. Confirming market expectations, the central bank official said during a… Read More »Fed Governor Waller backs quarter-point interest rate hike at next meeting

Americans are piling on credit-card debt just as interest rates are reaching historic highs.  Multiple polls show American consumers sinking deeper into credit card debt. A new survey from Bankrate, the consumer finance company, found 46 percent of cardholders carrying credit-card balances from month to month, up… Read More »A growing number of Americans face potentially crippling credit-card debt

Hybrid work is here to stay. That’s the prediction from Wharton management professor Martine Haas, who was asked to share what she thinks will be the biggest workplace trend of 2023. Although the mix of remote and in-person work can be challenging, she said, the hybrid… Read More »Why Hybrid Work Will Reign in 2023

The bigger and better child tax credit that applied for 2021 is gone, replaced by a new set of rules for taking the credit on 2022 returns. The IRS’s tax filing season is upon us. The agency starts accepting individual tax returns for 2022 on January 23.… Read More »Child Tax Credit Changes and FAQs for Your 2022 Tax Return

Getting an early start on laying the groundwork for your exit is imperative. Empowering others to make decisions and delegating responsibilities also play key roles. If you’re a small-business owner approaching retirement, it’s important to start thinking about how to avoid common small-business exit strategy… Read More »3 Mistakes Business Owners Can’t Afford to Make When Planning Their Exit Strategy

It’s the beginning of every American’s favorite time of the year to hate: tax season. The IRS will begin accepting tax returns for the 2022 tax year on January 24th. Here are three of the biggest tax filing mistakes people make. 1) Missing last-minute tax-saving… Read More »Don’t Make These 3 Big Mistakes This Tax Season

The Internal Revenue Service’s Criminal Investigation unit is increasingly relying on information provided by financial institutions under the Bank Secrecy Act to uncover tax-related crimes such as money laundering and drug trafficking. IRS-CI chief Jim Lee presented statistics Wednesday showing that 15.8% of all investigations… Read More »IRS turns to bank data to investigate tax criminals

Agency estimates new rule could increase workers’ earnings by nearly $300 billion per year The Federal Trade Commission proposed a new rule that would ban employers from imposing noncompetes on their workers, a widespread and often exploitative practice that suppresses wages, hampers innovation, and blocks entrepreneurs from… Read More »FTC Proposes Rule to Ban Noncompete Clauses, Which Hurt Workers and Harm Competition

Geopolitical risks are driving efforts to diversify but there are no quick solutions It is a year since New York Federal Reserve economists unveiled the Global Supply Chain Pressure Index. The barometer of port backlogs and freight costs, looking back over 25 years, showed that… Read More »Companies race to work around choke points in world trade

Multinational companies still want cheap and efficient markets, but they also want safety. That’s why they’re rerouting the pathways of global trade and finance. The future looked bright to all parties when Alphabet Inc.’s Google joined with Facebook Inc. and a Hong Kong partner in 2016 to build an… Read More »Globalization Isn’t Dead. But It’s Changing.

The first decline in 60 years is set to have long-term consequences for domestic and global economies China’s population fell in 2022 for the first time in decades a historic shift that is expected to have long-term consequences for the domestic and global economies. The… Read More »China’s population falls in a historic shift

(Bloomberg) — More than 5 million businesses were created in the US last year, a sign that the entrepreneurship boom spawned by the pandemic may be long-lasting.  New business applications rose by 44% from 2019 to 2022, with the sharpest increases in Southern states, according… Read More »Over 5 Million New US Startups Show Covid-Era Boom Has Legs

Become familiar with this hybrid type of pension plan and its advantages for the right businesses. Many successful business owners and professionals begin their high-earning years belatedly because of lengthy educational requirements and initial careers as employees. Financial planning for this group may come late,… Read More »The rise of the cash balance pension plan

The annual rite of filing a federal tax return is kicking into full swing, and this time, millions of Americans will need to adjust their expectations.  Stimulus checks are no more. Generous credits for children and for childcare and dependent expenses, mostly daycare, have shrunk… Read More »Tax season 2023: Smaller refunds, higher audit rates, jarring capital-gains bills

KEY POINTS Given today’s ongoing high inflation, many Americans worry they may not have put away enough money for retirement. They fear that sharp increases in food and energy prices and transportation and medical care costs could significantly affect their retirement savings. Yet there’s another… Read More »Life expectancy can have a greater impact than even record-high inflation on how long your retirement savings will last

(Bloomberg) — The World Economic Forum’s annual meeting began in Davos with corporate executives and economists warning a global recession is likely this year. Of 4,410 business leaders surveyed by PricewaterhouseCoopers LLP in October and November last year, 73% predicted global growth to decline over… Read More »Business Chiefs and Economists Brace for Recession as Davos Begins

Many people believe willpower is fixed and finite. Yet powerful strategies exist that can help us increase it. We all face demanding days that seem designed to test our self-control. Perhaps you are a barista, and you have some particularly rude and demanding customers, but… Read More »The mindset that brings unlimited willpower

WASHINGTON — The Internal Revenue Service today announced Monday, January 23, 2023, as the beginning of the nation’s 2023 tax season when the agency will begin accepting and processing 2022 tax year returns. More than 168 million individual tax returns are expected to be filed,… Read More »IRS sets January 23 as the official start to the 2023 tax filing season; more help is available for taxpayers this year

Housing is only one of the many costs of sending a child to college, but it is also an area that presents parents with numerous options. A student can live in a dormitory on campus or rent an apartment, or her parents can buy property… Read More »Tax Implications of Owning a Second Home for a Child in College

KEY POINTS Starting this month, more than 65 million Social Security beneficiaries will receive benefit checks that include a record-breaking 8.7% cost-of-living adjustment. Social Security benefits are slated to increase by more than $140 per month on average, according to the Social Security Administration. The average… Read More »When Social Security beneficiaries can expect the first checks of 2023 to include an 8.7% cost-of-living adjustment

The IRS will begin the 2023 filing season in much better shape than it was a year ago, with a greatly reduced backlog, a funding increase from Congress, and more workers, National Taxpayer Advocate Erin Collins said Wednesday in her annual report to Congress. The… Read More »National taxpayer advocate: IRS in better shape now than a year ago

CFOs should be aware of these data points on employment trends, CPI, and productivity going into 2023. FOs are number-centric, data-driven thinkers. Through our Wednesday newsletters, we have brought you extensive content surrounding data, statistics, and the corresponding trends emerging from that data. Below are four… Read More »2023 Outlook: 4 Charts to Watch

In addition, one in 10 small businesses went viral on TikTok organically, according to a new survey from Capterra. A new survey from Capterra, an online marketplace for the enterprise software industry, found that 78% of small businesses that run ads on TikTok have already realized… Read More »78% of Small Businesses Say TikTok Ads Have Boosted Profits

KEY POINTS Phishing is on the rise, and anyone who uses email, text messaging, and other forms of communication is a potential victim.  These attacks, in which a cybercriminal sends a deceptive message that’s designed to fool a user into providing sensitive information such as… Read More »Phishing attacks are increasing and getting more sophisticated. Here’s how to avoid them

KEY POINTS It’s not easy to prioritize financial goals, especially when choosing between two essentials in an unsteady economy: saving for retirement or building your emergency fund.  While there are higher 401(k) contribution limits for 2023, you shouldn’t skip rainy day savings to max out your retirement… Read More »How to balance retirement and emergency savings in a shaky economy

(Bloomberg) — There wasn’t much sunshine in the stack of Wall Street forecasts that predicted 2023 would bring a global economic contraction and rough going for risk assets. But as January trading picks up steam, a small cadre of optimists is breaking away from consensus… Read More »Optimism Makes Comeback on Wall Street With Soft Landing Eyed

The 2022 tax year has ended and tax professionals everywhere are encouraging their small business clients to close their books and start thinking about their tax returns. In a perfect world, these clients have worked with their tax and accounting professionals throughout the year to… Read More »3 After-Year-End Tax Strategies For Small Businesses

The IRS divides taxpayers into different examination classes. The IRS sees the typical taxpayer reporting an income of less than $200,000. These taxpayers faced an odds of audit of just 1.9 out of every 1,000 returns filed (0.19%). This group accounts for 80 percent of… Read More »IRS Audits Dropped Slightly in 2022

KEY POINTS Credit card interest rates reached record highs last year and there is still more to come in 2023, according to Greg McBride, chief financial analyst at Bankrate.com. Credit card rates are now more than 19%, on average — an all-time high — after rising at the… Read More »Credit card interest rates are heading to 20% on average — here’s the best way to pay down high-interest debt

Despite return-to-office initiatives and hybrid work models, virtual meetings are still on the rise. Despite some organizations going as far as to tell employees to turn down meetings they find unbeneficial, executives and their employees seem to be in more virtual meetings than ever before. A recent analysis from… Read More »Remote Meetings Up 60% Since 2020: Weekly Stat

The Consolidated Appropriations Act, 2023, P.L. 117-328, enacted on Dec. 29 included (as its Division T) the Secure 2.0 Act, which contains several retirement and tax provisions. The Secure 2.0 provisions mostly focus on expanding coverage, increasing retirement savings, and simplifying and clarifying retirement plan rules,… Read More »Key tax and retirement provisions in the Secure 2.0 Act

WASHINGTON (AP) — Federal Reserve officials suggested at their most recent meeting that a continuing streak of robust hiring could keep inflation elevated and was a key reason why they expected to raise interest rates this year more than they had previously forecast. In the minutes of… Read More »Fed minutes: Officials cited strong hiring to justify hikes

KEY POINTS Home prices are falling into a deep winter chill, as higher mortgage rates push more buyers to the sidelines. Prices in November were still 8.6% higher than during the same month in 2021, but it was the first year-over-year reading in single digits… Read More »Home price increases weakened sharply in November, posting the smallest annual gain in 2 years

If the ‘secondary’ spouse makes a balance-due payment to the IRS, it may not get credited to their account. Taxpayers who file as married filing jointly and make a balance-due payment online may find their payment somehow does not get credited to their account. That’s… Read More »MFJ taxpayers need to look out for this tax payment SNAFU

New York (CNN) — Many CEOs, investors, and consumers are worried about a recession in 2023. But Moody’s Analytics says the more likely scenario is a “slow session,” where growth grinds to a near halt but a full economic downturn is narrowly avoided. “Under almost any scenario, the economy… Read More »Get ready for a ‘slowcession’ in 2023, Moody’s says

More than two-thirds of economists at 23 major financial institutions expect the U.S. to have a downturn this year Big banks are predicting that an economic downturn is fast approaching. More than two-thirds of the economists at 23 large financial institutions that do business directly… Read More »Big Banks Predict Recession, Fed Pivot in 2023

65.5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022. The Internal Revenue Service has issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an… Read More »IRS 2023 Mileage Rate Rises to 65.5 Cents Per Mile

KEY POINTS As the calendar turns to 2023, workers in more than half of all states have something to look forward to this year: a higher minimum wage. That’s occurring as the federal minimum wage stands pat at $7.25 per hour — the same rate… Read More »These states are raising their minimum wages in 2023. Chart shows where workers can expect higher pay

Generally, investors in activities such as real estate in which they don’t materially participate can only take deductions up to the amount of their passive income for the year. The IRS often scrutinizes large deductions for rental real estate losses claimed by so-called “real estate… Read More »Tough Tax Law Test for Real Estate Professionals

Retail sales jumped despite inflation hitting 7.1% in November Retail sales jumped 7.6% during the critical holiday season that runs from Nov. 1 to Christmas Eve, according to Mastercard SpendingPulse, which tracks sales across all payment types.  Americans chose to eat out during the holidays, with restaurant… Read More »Retail sales jump 7.6% during the critical holiday shopping season

This chart shows an estimated timeline for when a taxpayer is likely to receive their refund, based on information we have now, and using projections based on previous years- and depending on when a person files their return. It’s still a bit too early to… Read More »When to Expect 2023 IRS Income Tax Refunds – Estimated Date Chart for Tax Refunds

The IRS on Friday announced a delay in the $600 reporting threshold for third-party settlement organizations, which had been in effect for the 2022 calendar year. As a result, the IRS says third-party settlement organizations will not have to report the tax year 2022 transactions… Read More »IRS delays Form 1099-K $600 reporting threshold

The Fed will keep fighting inflation, and the unemployment rate will rise. But there are positive trends on the horizon. If 2022 was the year U.S. investors came around to the reality of entrenched inflation and a reactionary Federal Reserve, 2023 will be the year… Read More »Brace for Recession Next Year. But the Outlook Isn’t All Doom and Gloom.

Third-quarter GDP was previously reported to have increased by 2.9% The U.S. economy grew at a faster pace in the third quarter than previously reported as American consumers continued to spend even in the face of painfully high inflation and rising interest rates. Gross domestic product, the… Read More »US economic growth revised up to 3.2% in the third quarter in a show of resiliency

Rate of inflation slows again to 5.5% from 6.1% The numbers: A key gauge of U.S. prices rose just 0.1% in November, marking the fifth month in a row in which inflation eased after peaking at a 40-year high over the summer. The yearly rate of… Read More »High U.S. inflation is on the wane, PCE price gauge shows

When is a company allowed to report as deductions on a tax return the expenses that have been incurred during the time leading up to getting the doors open for business? In other words, when can startup costs be deducted by a new business? This… Read More »Deduction of startup expenses

Consider these seven retirement portfolio management strategies for a recession. The U.S. economy is getting a head start on a New Year’s hangover, with economists calling for hard times in 2023. According to the Conference Board, there’s a 96% chance the U.S. economy will slip… Read More »How to Adjust Your Retirement Portfolio Against a 2023 Recession

The Federal Reserve’s super-sized interest rates are not scaring most companies into cutting back on spending, according to a survey released on Wednesday. About two-thirds of chief financial officers say the current level of interest rates has not impacted their spending plans, according to the CFO… Read More »Corporate America isn’t afraid of the Fed’s monster rate hikes

Consecutive down years are rare for US stocks, so after this year’s drop, there’s only a low probability they will decline again in 2023. Yet if they do, history shows that investors will have to brace for another very unpleasant 12 months. Since 1928, the… Read More »After This Year’s Slump, S&P 500 Faces a Historical Warning Sign

The new year promises many changes for the IRS, including a new commissioner (nominated, at least) and billions of dollars to spend with just two months left to develop a plan for spending it. And one big and old problem: a backlog of mail and… Read More »2023 brings lots of news to the IRS while keeping one problem: backlogs

An unexpected loss can send you spinning, but knowing where you stand and where to turn financially if something happens could ease some of the stress. As an adviser, I stress the importance of a well-thought-out, long-term plan to keep financial goals and objectives “on… Read More »4 Ways to Prepare for a Personal Financial Crisis and Keep Goals on Track

Putting 60 percent of a portfolio in stocks and 40 percent in bonds is supposed to hedge against both assets dropping simultaneously. But it didn’t pan out that way in 2022. Inflation and rising interest rates whacked both asset classes, and a Bloomberg index tracking… Read More »Will the 60/40 portfolio stage a comeback in 2023?

The amount of money workers are demanding to switch jobs has been escalating — recently hitting a new eight-year high amid powerful inflation and the prospect of a recession. Asked about the minimum pay they would accept to switch to a new job, workers, on… Read More »Here’s how much pay Americans say they’d need to start a new job

KEY POINTS Amid record-high inflation, stretching Social Security benefit checks became more difficult in 2022. Even as a 5.9% cost-of-living adjustment went into effect in January, the record-high annual benefit increase still fell short, according to new research from The Senior Citizens League. The average retiree benefit… Read More »The average Social Security retirement benefit fell short by 46% in 2022. Here are the costs that went up the most

A second marriage means a new financial plan. Read below to see how this couple navigates building one. Second marriages can be challenging. Throw in a young second family, older kids from a previous first marriage, intense work schedules and personalities and you have a… Read More »Second Marriage – Second Chances

Across the world, governments have intervened to mitigate the effects of inflation on businesses and consumers. Price tags are seen as a woman shops at a local market in Nice, France, on 7 June 2022. Pandemic-related disruptions to global supply chains and the effects of… Read More »How governments are trying to ease the impact of inflation

There’s still time. You’ve got two weeks left to take capital losses, using them to cut your 2022 tax bill. This is a use-it-or-lose-it proposition. It’s not just that a tax year deadline is approaching. I think the whole technique of loss harvesting is endangered.… Read More »The Loss Harvesting Tax Dodge: Use It Or Lose It

BlackRock Inc. thinks markets are too complacent about inflation staying high for longer and is maximizing assets by hedging that risk. While its strategists acknowledge that a decline in US prices is playing out faster than expected, they are sticking to a view that inflation… Read More »BlackRock Bucks Bets on Plunging Inflation

KEY POINTS The end of the year is a time to give thanks and celebrate the holidays with our families. It’s also an opportunity to reevaluate the previous 12 months and ask your financial advisor some very productive questions. 1. What’s your investment decision process?… Read More »Op-ed: Here are 5 questions to ask your financial advisor before the end of the year

KEY POINTS The ranks of employers offering a Roth savings option to 401(k) investors continue to grow, giving more workers access to its unique financial benefits. About 88% of 401(k) plans allowed employees to save in a Roth account in 2021, up from 86% in… Read More »88% of employers offer a Roth 401(k) — almost twice as many as a decade ago. Here’s who stands to benefit

Tax experts sound off on the funding the IRS will get from Congress and what it could mean for the 2023 tax season. The IRS has about 80 billion reasons to be thankful this holiday season. That’s because President Biden signed the Inflation Reduction Act… Read More »What’s Next for the IRS?

Taxpayers claim that IRS penalties are not warranted for many reasons. One of the biggest and most misunderstood is the defense that a tax position was based on reasonable cause and that you acted in good faith. Those seem like friendly, easy-to-understand words, but they… Read More »Pay IRS Penalties Or Show Reasonable Cause

Inflation in the United States hit a record high in June 2022. Consumer prices soared by 9.1% compared with a year prior — the largest annual increase since 1981. While wages are rising, they’re not keeping up with inflation. Wage growth has been consistent with an inflation rate… Read More »Here’s why salaries in the U.S. don’t keep up with inflation

In 2021, I published a piece about the top myths regarding the Employee Retention Credit (ERC) that was preventing business owners, charity managers, and Indian tribes from claiming this important tax incentive. Now, the misinformation has gone the other way, and businesses (as well as tax-exempt/charities and… Read More »5 Top ERC Myths Businesses Need To Beware Of

The Federal Reserve is going slower but aiming higher. The Fed raised its key short-term interest rate by half a percentage point Wednesday, dialing back from recent outsize hikes as it draws up an end game in its aggressive campaign to tame soaring inflation. But the central bank… Read More »Federal Reserve raises interest rates by 0.50 percentage points to curb inflation and predicts a higher peak

US credit card and personal-loan delinquencies are likely to rise in 2023 to the highest in a dozen years, with lenders cutting back on originations as a potential recession looms. Serious card delinquencies are expected to climb to 2.6% at the end of next year… Read More »US Credit-Card Delinquencies to Rise Next Year, TransUnion Says

Tax withholding rules mean that a portion of your announced bonus pay won’t make it into your bank account. For some fortunate workers, December means that a year-end bonus is on the way. That can be considered good news (especially since some companies are cutting… Read More »How Your Year-End Bonus Will Be Taxed for 2022

KEY POINTS SEATTLE — If you’re living together before marriage or committed long-term without plans to tie the knot, you’ll need to prepare for the future — or you may face challenges later, experts say. There are “rising rates of cohabitation,” with many couples skipping… Read More »‘It could be a blessing and a curse.’ Here are 3 unexpected financial pitfalls unmarried couples need to know

KEY POINTS Prices rose less than expected in November, the latest sign that the runaway inflation that has been gripping the economy is beginning to loosen up. The consumer price index, which measures a wide basket of goods and services, rose just 0.1% from the… Read More »Consumer prices rose less than expected in November, up 7.1% from a year ago

Talent, technology, and ESG remain top concerns against a backdrop of economic pessimism. During the past two years, we’ve witnessed Russia’s attacks on Ukraine, a clogged global supply chain, rising prices at the gas pump and in grocery stores, soaring housing costs, and increased spending… Read More »The trends that will affect CPAs in 2023

Morningstar researchers say higher interest rates and lower equity evaluations will make starting with a 3.8% withdrawal rate safe for a balanced saver over a 30-year time horizon. Morningstar’s annual model of how much a retiree with a balanced portfolio should withdraw over a 30-year… Read More »Morningstar Raises “Safe” Retirement Withdrawal Rate to 3.8%

The penalty for fairly innocent goofs can run into millions of dollars. Is there any limit to how unpleasant the IRS can be with people who pay all their taxes but don’t fill out the forms correctly? Monica Toth, 82, is a naturalized American whose… Read More »The IRS Versus The Clumsy Taxpayer

KEY POINTS As inflation has kept prices high in 2022, Social Security beneficiaries may look forward to a record-high cost-of-living adjustment in 2023. “Your Social Security benefits will increase by 8.7% in 2023 because of a rise in the cost of living,” the Social Security Administration states… Read More »As a record 8.7% Social Security cost-of-living increase starts in 2023, here’s what beneficiaries should look for in annual statements

2023 is set to be a tough year economically. Here’s how to get your financial and life plans in the best possible shape. There’s no escaping the fact 2023 is going to be challenging, but focusing on financial planning for the new year could help. From soaring… Read More »10 Key Things to Think About in Your New Year Financial Planning

’Tis the season to be spending. Holiday retail sales are predicted to soar as high as $960 billion, according to the National Retail Federation. In 2021, overall holiday spending reached a record $889 billion.  Americans are expected to spend about $1,455 each this season, according to Deloitte’s… Read More »The average American may spend nearly $1,500 on the holidays

The percentage of audits found to have deficiencies during PCAOB inspections is expected to increase approximately 25% year-over-year, according to a board staff report released Thursday. The report said the PCAOB expects about 55% of 690 engagements reviewed for 2021 to have one or more Part I.… Read More »PCAOB report: Audit deficiencies increase in 2021

Whether you are considered rich depends on how you measure it – and the bar for that is changing. Have a look at the numbers that define who’s wealthy today. This is a question that many people ask themselves in quiet moments but would never… Read More »Are You Rich? The Answer May Surprise You

KEY POINTS The deadline is fast approaching for mandatory retirement plan withdrawals, which may force some retirees to sell assets in a down market. But experts say there may be ways to reduce the negative effects. Required minimum distributions, known as RMDs, are yearly amounts… Read More »Taking required minimum distributions? How to reduce the sting of selling in a down market

Back in January, 109 container ships waited off the California coast to unload cargo in Los Angeles and Long Beach, the nation’s two largest ports. Consumers, stuck at home amid the pandemic, had unleashed an avalanche of orders for goods that overwhelmed factories and ports.… Read More »As supply chains unclog, consumers enjoy (tentative) relief

KEY POINTS American consumers are tapping the brakes on spending as the Federal Reserve’s interest rate increases reverberate throughout the economy, according to the CEOs of two of the largest American banks. After two years of pandemic-fueled, double-digit growth in Bank of America card volume, “the rate of growth… Read More »‘There is a slowdown happening’ – Wells Fargo, BofA CEOs point to cooling consumer amid Fed hikes

KEY POINTS After two years of Covid-related cancellations and the desire of many companies to bring remote workers back together, the office party is staging a comeback. About 42% of companies say they are planning an in-person holiday party this year, up from just 13%… Read More »Renewing a year-end tradition, companies are throwing holiday parties again to bring employees back together

These moves are good to make at any time of the year, but doing them before 2023 arrives can help you enjoy a fresh, confident start to the new year. The end of the year often has people feeling reflective about the year that they’ve… Read More »7 Financial Planning Steps to Take at the End of the Year

Slower hiring. Weaker spending. And softer growth. That’s what America’s CEOs are bracing for as the economy heads into 2023 facing a series of obstacles. The Business Roundtable said Monday its CEO Economic Outlook Index tumbled during the fourth quarter to the lowest level in more than… Read More »CEO economic outlook tumbles to a two-year low

One of the SPAC industry’s most well-known sponsors and a would-be serial backer have seen deals worth $10.6 billion go up in smoke in less than an hour. Alec Gores, one of the most well-respected sponsors, said Monday that Gores Holdings VIII Inc. would not… Read More »SPACs Collapse as $11 Billion of Deals Are Called Off Within an Hour

Experts suspect the IPO market won’t recover until the second half of 2023, if then 2022 was not a good year for public listings. Initial public offerings (IPOs) on the New York Stock Exchange (NYSE) fell off a cliff this year. The number of IPOs dropped 93% from last year,… Read More »When it comes to IPOs, 2022 was nothing like 2021

KEY POINTS With the holiday season in full swing, it can be easy to forget about the finer points of financial planning. While your tax return isn’t due until April, several key deadlines are approaching by year-end, experts say. “You can control your tax reporting… Read More »You can control your tax-reporting destiny.’ 4 key year-end tax moves

It’s time once again to make a fresh start. That’s the beauty of the New Year. We can all pause and reflect on the past year and figure out what we can improve in the year to come. Along with promising to eat better this… Read More »37 Money-Saving Resolutions for the New Year

A new $600 reporting threshold for IRS Form 1099-K involves payment networks like Venmo, PayPal, Amazon, Square, and Cash App. Did you get paid more than $600 in 2022 for goods or services through a third-party payment network like Venmo, PayPal, Amazon, or Square? Then,… Read More »IRS Form 1099-K: Will You Get One From Venmo, PayPal, or Cash App?

Brisk wage growth may lead officials to consider raising the policy rate above 5% in 2023 while approving a 0.5-point increase in December Federal Reserve officials have signaled plans to raise their benchmark interest rate by 0.5 percentage points at their meeting next week, but elevated… Read More »Fed to Weigh Higher Interest Rates Next Year While Slowing Rises This Month

November jobs report provides critical insight into the health of the US labor market U.S. job growth rose faster than expected in November, as the labor market remained resilient in the face of higher interest rates, scorching-hot inflation, and mounting recession fears. Employers added 263,000 jobs in… Read More »The US economy adds 263,000 jobs in November, better than expected as hiring remains solid

U.S. consumer spending increased solidly in October, while inflation moderated, giving the economy a powerful boost at the start of the fourth quarter as it faces rising headwinds from the Federal Reserve’s aggressive monetary policy tightening. The labor market, the economy’s other pillar of support,… Read More »U.S. consumer spending powers ahead in October; inflation cooling

Central bank’s business contacts saw greater economic uncertainty amid inflation and higher interest rates U.S. economic growth eased this fall with business activity in some parts of the country stalling or declining, the Federal Reserve said in a Wednesday report. Businesses also expressed greater uncertainty… Read More »U.S. Economic Growth Slowed This Fall, Fed’s Beige Book Says

Federal Reserve Chair Jerome Powell signaled that the central bank will slow its pace of rate hikes(opens in new tab) next month, but stressed that borrowing costs will remain high for the foreseeable future in a bid to halt the worst inflation(opens in new tab) in four decades. In… Read More »Fed Chief Jerome Powell Signals Slowdown in Rate Hikes: What the Experts Are Saying

KEY POINTS You’ve got about a month left to make sure you get it right when it comes to mandatory withdrawals from retirement accounts. Required minimum distributions, or RMDs as they’re called, are annual amounts that must be withdrawn beginning in the year you reach… Read More »How to avoid mistakes with required minimum distributions from your retirement accounts

The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning January 1, 2023. For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily, up from 6% for the quarter that began on October 1.… Read More »Interest rates increase for the first quarter of 2023

There is growing support for going cashless in the United States. Would you like cash back? When the choice comes up while you’re paying digitally, you probably decline most of the time; hard currency is not often used anymore. But while digital payments are certainly… Read More »The Way We Pay: Cash Isn’t King in These States

Nine Straight Months In January of this year, the number of single-family homes sold rose month-over-month, according to the National Association of Realtors®. Since then, the metric has fallen each month, coinciding with a rise in mortgage rates. As the average rate on a 30-year… Read More »Watching Rates and Inventory as Home Sales Keep Falling

Markdowns of up to 80% help drum up interest in the secondary market for shares in unlisted companies Tech startups are plunging in value in private trades, mirroring the big markdowns of their publicly listed brethren over the past year. Before companies go public, their shares are… Read More »Tech Selloff Catches Up With Private Startups

Careful tax planning can mean fewer surprises when it comes time to file. Here are a few tips to consider before the year winds down. With the holidays right around the corner, taxes might be the last thing on your mind. But a little bit… Read More »5 Tax Moves to Consider Before Year-End

The job market — although still hot — is slowing, and many Americans who had been working from home are being called back into the office Lori Black has been firing off dozens of applications with one goal: to land a work-from-home job. But four… Read More »The great mismatch: Remote jobs are in demand, but positions are drying up

Federal Reserve policymakers stressed on Monday that they will raise borrowing costs further to curb inflation, with one key official saying that he sees interest rates heading somewhat higher than he had forecast just a couple of months ago. “Stronger demand for labor, stronger demand… Read More »Fed Officials Say More Rate Hikes Coming; Williams Flags Path to Cuts

Inflation cast a long shadow over Black Friday 2022. Consumer prices rose 7.7% year over year in October, leaving millions of consumers wary as they entered the holiday shopping season. In total, 56 million United States consumers plan to opt out of holiday shopping entirely this year. For… Read More »More Consumers Shopped With Apps Than at Malls on Black Friday

Are you bullish about the stock markets in 2023? If so, you may be looking at year-end strategies to prepare for brighter investing horizons. For example, after the stock market declines of 2022, you may now hold securities—whether stocks, ETFs or mutual funds—that would generate… Read More »7 Wash Sale Facts To Know Before Selling Stock For Tax Loss Harvesting

New York Gov. Kathy Hochul (D) on Tuesday signed a law temporarily restricting cryptocurrency mining in the state over environmental concerns, making it the first state nationwide to implement such a move. The bill was delivered to the governor on Tuesday after the state legislature passed the measure in… Read More »New York becomes the first state to restrict cryptocurrency mining

Investors appear to have traded in their fleece vests for crystal balls — everyone on Wall Street seems to have a recession prediction. But lately, shouts of recession have become a bit quieter, and a growing group of economists says that any downturn will likely be mild.… Read More »Recession fears receded this earnings season

Audit firms would have to report once a year to the Public Company Accounting Oversight Board and their clients’ audit committees on how effective their systems are. The Public Company Accounting Oversight Board on Friday proposed tightening the rules that govern the controls audit firms… Read More »U.S. Audit Watchdog Looks to Strengthen Rules on Quality Controls

Investors flocked back into equities at the fastest pace in about eight months on signs of cooling inflation, but Bank of America Corp. strategists warn the rally will fizzle out due to earnings risks and staunchly hawkish central banks. Global stock funds saw inflows of… Read More »Bank of America sees bear rally fizzling out even as equity inflows surge

JPMorgan Chase & Co. economists projected the US will enter a “mild” recession next year thanks to interest-rate hikes that could cost more than 1 million Americans their jobs, and the Federal Reserve will pivot to cutting borrowing costs in 2024. The Fed will probably… Read More »JPMorgan Sees ‘Mild’ US Recession in 2023 on Fed’s Rate Hikes

The number of organizations hit with cyberattacks is rising, according to a new report focused on US and UK businesses. About 75% of organizations have experienced a serious cyberattack in the past three years — up from 60% last year — according to the 2022 Cyber Security Insights Report conducted… Read More »Serious cyberattacks on the rise, report shows

Americans stepped up their spending at retailers, restaurants, and auto dealers last month, a sign of consumer resilience as the holiday shopping season begins amid painfully high inflation and rising interest rates. The government said Wednesday that retail sales rose 1.3% in October from September, up from a… Read More »US retail sales rose 1.3% last month, a sign of resilience

Establishing eligibility for the employee retention credit (ERC) by satisfying the business operations suspension test (suspension test) is similar to venturing into remote parts of the world: The payoff from a successful journey can be tremendous, but the road is arduous. Complexity adds uncertainty, guidance… Read More »Employee retention credit: Navigating the suspension test

Retirees often need to take cash out of retirement accounts to handle basic household expenses on a regular basis. If you have to make withdrawals in a declining market, there are strategies you can use to minimize the damage to your long-term financial plan. Consider these retirement… Read More »Taking Retirement Withdrawals in a Declining Market

Last week’s market rally was an across-the-board move higher in asset prices. Not only did the S&P 500 post a nearly 6% gain on the week, small-caps, Treasuries, and even gold (yes, gold!) delivered huge gains! The global catalyst, of course, was an unexpectedly lower… Read More »New Bull Market or Another Bear Market Fakeout?

Economists see US inflation running hotter through next year than they did a month ago and recession odds continue to mount against a backdrop of rising borrowing costs. Projections for the personal consumption expenditures price index — the Federal Reserve’s preferred inflation metric — were… Read More »Economists See US Inflation Running Even Hotter Through Next Year

Federal Reserve Vice Chair Lael Brainard said the central bank should soon moderate the size of its interest-rate increases, signaling she favors slowing to a half-point hike as early as next month. “It will probably be appropriate soon to move to a slower pace of… Read More »Brainard says U.S. Fed should probably ‘soon’ slow pace of rate hikes

Michael Barr, the Federal Reserve’s top regulatory official, said Monday the U.S. central bank is watching for any stresses to the financial system amid a weakening economy and signaled that stiffer oversight of cryptocurrency is in the offing. The Fed “will be heightening its focus… Read More »Fed boosts focus on liquidity, other risks as the economy weakens: Barr

KEY POINTS The consumer price index rose less than expected in October, an indication that while inflation is still a threat to the U.S. economy, pressures could be starting to cool. The index, a broad-based measure of goods and services costs, increased 0.4% for the… Read More »Consumer prices rose 0.4% in October, less than expected, as inflation eases

The Internal Revenue Service had 4.4 million unprocessed individual returns received this year as of Oct. 28, including the tax year 2021 returns and late-filed returns from the prior year, as IRS funding has become more of an issue during election season. The IRS reported… Read More »IRS still coping with millions of unprocessed tax returns

The third-quarter corporate earnings season is wrapping up: We now have reports from about 450 of the S&P 500, or 90% of the index’s total membership. Results were mostly solid, with companies from Goldman Sachs to GM reporting strong profits. But it’s all about what’s… Read More »The 5 biggest takeaways from earnings season

WASHINGTON (AP) — Price increases moderated in the United States last month in the latest sign that the inflation pressures that have gripped the nation might be easing as the economy slows. Consumer inflation reached 7.7% in October from a year earlier and 0.4% in… Read More »US consumer inflation eased to 7.7% over the past 12 months

KEY POINTS The end of the year is one of the most important times for investors because there are so many decisions to make that impact their overall financial planning. This time around, the year’s end is marked with a lot of financial challenges, including… Read More »Op-ed: Here’s a year-end checklist to help you navigate some complicated financial issues

It’s been a painful year for investors, but focusing on the long term and implementing constructive actions can help weather the turbulence. Investors are understandably frustrated by a miserable year in which stocks are in a bear market and bonds have provided no relief. It is hard… Read More »5 Survival Tips for the Bear Market

The Federal Reserve on Friday confirmed what many investors were saying for some time: the $24 trillion Treasury market has been experiencing low levels of market liquidity in recent months. The central bank has been rapidly increasing interest rates since March as part of a… Read More »Fed warns of ‘low’ market liquidity in $24 trillion Treasury market, in latest financial stability report

The stock market’s short-term fate is riding on something that’s been a major boon for equities for more than 70 years: US midterm elections.  Rising interest rates, mounting recession risks, and the steepest inflation in four decades may cause a break with past trends. But… Read More »Wall Street Hopes History Repeats With a Post-Election Comeback

Though employers and regulators remain cautious, some plans are beginning to offer the option A small group of workers is finding something new in their 401(k) plan: the option to invest in cryptocurrency. Momentum has been built to allow workers to invest retirement savings in… Read More »401(k) Plans Now Let Workers Put Retirement Money Into Cryptocurrency

A retrenchment in venture capital funding for the digital-asset sector is the latest sign that a long slump in crypto markets may lie ahead. That’s the view of JPMorgan Chase & Co. strategists including Nikolaos Panigirtzoglou, who said Thursday such funding is running at the… Read More »Crypto Gloom Deepens on JPMorgan Team’s Venture Capital Warning

IRS-CI carried out more than 2,550 criminal investigations during its most recent fiscal year, according to a report. IRS Criminal Investigation initiated more than 2,550 criminal investigations, identified more than $31 billion from tax and financial crimes, and obtained a 90.6% conviction rate on cases… Read More »IRS Criminal Investigation Had a 90% Conviction Rate in FY 2022

Along with frustrating backlogs, declining audit rates have been the topic of many accountant discussions regarding how IRS budget constraints have affected taxpayers. The latest IRS statistics confirm the declining audit numbers. On May 26, 2022, the IRS released its Data Book, 2021 (Publication 55-B). The Data… Read More »Newly released IRS Data Book numbers confirm the decline in audit rates

As high inflation persists, so does worry among retirees and workers who are within a few years of retirement. One survey found that inflation is America’s biggest issue, and worry about it is acute among those 50 and older. Another survey found four out of five Americans in… Read More »5 Ways to Fight Inflation’s Impact on Your Retirement Plan

KEY POINTS The Federal Reserve raised the target federal funds rate by 0.75 percentage points for the fourth time in a row on Wednesday, marking an unprecedented pace of rate hikes. The U.S. central bank has raised the benchmark short-term borrowing rate a total of six times this year,… Read More »Here’s what the Federal Reserve’s fourth 0.75 percentage point interest rate hike means for you

A financial planner who has seen a lot and reflected on what brings his clients happiness and fulfillment shares some secrets to success. Welcome back to the five lessons that I learned about money and life by the time I turned 40. Check out part… Read More »3 More Money Lessons I Learned by Age 40

The bold, hype-laden pronouncements around AI and machine learning were hard to miss five or six years ago. Headlines about robo-accountants stealing jobs, algorithms that will cure disease, and autonomous vehicles were everywhere. Then, reality quickly caught up with the hype, and those promises eventually proved overly ambitious and many… Read More »How AI And Machine Learning Quietly Went Mainstream

U.S. manufacturing activity grew at its slowest pace in nearly 2-1/2 years in October while a measure of prices paid by businesses for inputs slid for a seventh straight month, as the Federal Reserve’s aggressive push to raise interest rates in order to quash inflation… Read More »U.S. manufacturing activity slowest in nearly 2-1/2 years in October -ISM

Here’s how to decide if you are better off renting in retirement or owning a home. When you’re planning to retire, owning a home gives you the most control over your living environment and monthly expenses. But there are scenarios when financial planners might suggest that… Read More »Pros and Cons of Renting Versus Owning in Retirement

The annual tax gap averaged $496 billion for tax years 2014 through 2016, and that figure is likely to grow, the IRS said Friday in its latest set of tax gap estimates. The gross tax gap is the difference between the estimated tax liability for the… Read More »Growing tax gap shows need for better service, compliance, IRS says

The decline comes as entrepreneurs and investors increasingly set up shop outside the tech mecca Silicon Valley accounted for less than 20% of deal-making nationally in the third quarter, marking the steady erosion of the region’s grip on startups and venture capital as companies increasingly… Read More »Silicon Valley’s Share of Startup Deals Drops Below 20% for First Time

This chart shows an estimated timeline for when a taxpayer is likely to receive their refund, based on information we have now, and using projections based on previous years- and depending on when a person files their return. I know it’s way too” early to… Read More »When to Expect 2023 IRS Income Tax Refunds – Estimated Date Chart for Tax Refunds

Accountants are truly living in the age of data, where sophisticated gathering techniques combine with computer-guided analytics to produce business insights for clients that translate into more revenue for the firm. It has transformed every level of the profession to the point where even sole… Read More »The Frontier: Accountants are drowning in data

The IRS has hired 4,000 new customer service representatives and plans to hire another 1,000 to be trained to field taxpayers’ questions on the phone and provide other services during the 2023 tax season. Many of the new hires will be in place for the… Read More »IRS hires 4,000 customer service reps, plans to hire 1,000 more

Bad news we received from some mega caps is necessary: Hogan Almost 25% of firms reporting are coming up short this season Was it good or bad this week when Alphabet Inc. told investors that advertising demand that helped swell its top line 50% in… Read More »Bad S&P 500 Earnings Are Playing Right Into the Fed’s Hands

One CPA said the employee retention tax credit is overlooked by many organizations that might be eligible to take advantage of the credit.   “This can be a complicated piece of legislation to discern whether an organization is eligible,” said David Cepek, CPA, client recovery agent… Read More »Myths about the ERC

KEY POINTS Preliminary data on Monday from Europe’s statistics office showed headline inflation came in at an annual 10.7% this month. This represents the highest-ever monthly reading since the euro zone’s formation. The 19-member bloc has faced higher prices, particularly on energy and food, for… Read More »Euro zone inflation hits record high of 10.7% as growth slows sharply

Treasury Secretary Janet Yellen said that while slower growth would help tame inflation, data released Thursday showed the US economy was resilient in the face of global challenges. A government report outlining a 2.6% annualized pace for expansion in the third quarter “clearly shows solid… Read More »Yellen Lauds GDP Report as Evidence of ‘Resilient’ Economy

KEY POINTS The core personal consumption expenditures price index in September increased 0.5% from the previous month and 5.1% from a year ago. Including food and energy, PCE inflation rose 0.3% for the month and 6.2% on a yearly basis. Personal spending rose 0.6%, more… Read More »Key inflation gauge for the Fed rose 0.5% in September, in line with expectations

FASB issued a proposed Accounting Standards Update (ASU) on Thursday that is intended to provide investors and other allocators of capital with more “decision-useful information” in a joint venture’s separate financial statements and to reduce diversity in practice in this area of financial reporting. The proposed… Read More »FASB seeks input on proposed changes to accounting for joint ventures

Retirement Daily’s Robert Powell sits down with Dana Anspach from Sensible Money to tackle the ten most common questions in retirement. In today’s episode, Anspach discusses the next most common retirement question: When should I begin taking Social Security? Anspach says that people are more… Read More »Common Retirement Questions: When Should I Begin Taking Social Security?

As people live longer and costs keep climbing, we offer some tips on how to navigate the changing retirement landscape. Preparing for retirement has changed dramatically throughout the last several decades. Not only are people living longer due to improved health care, but costs have… Read More »7 Big Retirement Risks to Avoid

KEY POINTS With persistent inflation eroding wage gains, the number of Americans living paycheck to paycheck is near a historic high, according to a recent report. Almost half of those earning more than $100,000 say they are just getting by. As rising prices continue to… Read More »63% of Americans are living paycheck to paycheck — including nearly half of the six-figure earners

KEY POINTS Gross domestic product rose 2.6% in the third quarter versus the estimate of 2.3%. A narrowing trade deficit and increases in consumer spending and government outlays boosted the number. A sharp pullback in housing subtracted from the number, part of a broader decline… Read More »U.S. GDP accelerated at a 2.6% pace in Q3, better than expected as growth turns positive

The Securities and Exchange Commission on Wednesday adopted two final rule packages. The first rule, approved in a 5-0 vote, requires mutual funds and exchange-traded funds to provide investors with concise, tailored shareholder reports that highlight key information, such as fund expenses, performance, and portfolio holdings.… Read More »SEC OKs mutual fund, ETF shareholder report, and executive compensation clawback rules

Lukewarm SPAC market’s fate is intertwined with IPOs It’s clear now that modern reverse mergers between SPACs and low-revenue, high-growth companies are faring about the same as the IPO market: not well. That’s largely due to the volatile public markets. PitchBook’s VC-backed IPO and deSPAC… Read More »SPAC Market Update

What You Need to Know The 2023 COLA is 8.7%, and Medicare Part B premiums will fall by 3.1%. Long-term projections show Part B premiums will likely rise faster than that. Typical COLAs will probably be much smaller. The 2023 Social Security cost-of-living adjustment (COLA) announcement was… Read More »Falling Medicare Costs and a Big Social Security COLA? Don’t Get Too Excited

KEY POINTS As everyday costs increase, Americans now say it will cost more to retire. Adults now say it will take $1.25 million to retire comfortably, a 20% increase from last year. The average expected retirement age has also increased to 64, up from 62.6… Read More »Americans now say they will need $1.25 million to retire comfortably, survey finds

The IRS has begun a pilot program that is meant to thwart line-jumping services that let those practitioners who pay a fee to a private company move ahead in the phone line so they can get their tax questions answered more quickly. In its e-News… Read More »IRS initiates pilot program to thwart line-jumping on PPS calls

Summary Consumer confidence index falls 5.3 points to 102.5 Labor market differential drops to 32.5 from 38.1 House price gains slow further in August U.S. consumer confidence ebbed in October after two straight monthly increases amid rising concerns about inflation and a possible recession next… Read More »Inflation worries hurt U.S. consumer confidence; house prices decelerating

JPMorgan Chase CEO Jamie Dimon said on Tuesday that he is more concerned about today’s geopolitics than a looming recession, following remarks warning that an economic downturn is likely in the next year. “There’s a lot of stuff on the horizon which is bad and could …… Read More »JPMorgan chief says geopolitics more concerning than a recession

Charles Evans and James Bullard are the U.S. Federal Reserve’s longest-serving monetary policymakers, a pair of PhD economists who’ve been at the center of central bank debates through two acute crises and often approached the job from markedly different perspectives. Where Evans, president of the… Read More »Fed’s Bullard, and Evans, shows two paths to the same policy rate

The hottest tax move right now doesn’t involve a fancy trust or gift to charity. Instead, it centers on a BMW X5 hybrid. Or a Cadillac Escalade. Or any luxury car that weighs as much as an elephant —  literally — and can cost upward of six… Read More »Want a big tax break for a Porsche? Better move fast

This article focuses on some of the considerations that investors should assess when determining whether to convert a traditional IRA to a Roth IRA. These include not only expected future income tax rates but also the account owner’s particular tax situation in the year in… Read More »When is a Roth conversion beneficial?

Fresh economic data pointed to a slowdown in U.S. and global growth, as higher prices and interest rates weigh on consumer demand, Europe enters a critical phase of its economic conflict with Russia, and China faces headwinds. U.S. and European business activity fell in October, according to new… Read More »Global Economic Growth Is Weighed Down by Inflation, Rising Interest Rates

Inflation won’t be cooling off until 2023, and there is likely going to be a recession next year, according to economic experts from Bank of America and Wells Fargo, who spoke at the Securities Industry and Financial Markets Association (SIFMA) Annual Meeting in New York… Read More »BofA Economist: ‘I Don’t See How We Avoid a Recession’

Hopeful economic signs compete with challenges to profits including inflation, rising rates, and a strong dollar Early results from the third-quarter earnings season haven’t provided much comfort to jittery investors. While some corporate leaders noted glimmers of hope for consumers and the economy, many have reported a host… Read More »Early Earnings Reports Worry Investors Already Battered by Stock Selloff

Here are five ways leaders may be hindering their own success without even realizing it. Most of us think leaders are these smart people who can’t make any mistakes and are automatically going to be successful in the future. It is a common misconception in… Read More »5 Ways Leaders Unconsciously Sabotage Their Own Success

KEY POINTS I’ve made many money mistakes that I’m not proud of but that may serve as an object lesson for others looking to better manage their personal finances. I have no idea how much my less-than-ideal decisions have cost me, but I’m sure I’d… Read More »Confessions of a personal finance reporter (Part Two): 3 more of my worst money mistakes

The IRS on Friday announced the 2023 inflation-adjusted dollar-amount ceilings and thresholds for a wide range of qualified retirement plans and accounts, including traditional individual retirement arrangements (IRAs) and Roth IRAs (Notice 2022-55). The notice also provides the 2023 limits on elective deferrals for plans… Read More »Retirement account inflation adjustments issued for 2023

These third parties often charge large upfront fees or a fee that is contingent on the amount of the refund and may not inform taxpayers that … The Internal Revenue Service is warning employers to be wary of third parties who are advising them to… Read More »IRS Warns of Third-Party Employee Retention Credit Claims

Sales of existing U.S. homes slid for an eighth straight month in September and will likely fall further in the months ahead as the housing market continues to stand out as the economic sector absorbs the hardest hit from the Federal Reserve’s aggressive interest rate… Read More »U.S. existing home sales slide again in September; jobless claims fall

More than 40 years after Dolly Parton sang about it, the “9 to 5” job is on life support. Gone are the days when workers stayed in the same profession — and often at the same company — until retirement. Today, living the dream doesn’t… Read More »The 9-to-5 workday doesn’t work anymore

Federal Reserve Bank of Philadelphia President Patrick Harker said officials are likely to raise interest rates to “well above” 4% this year and hold them at restrictive levels to combat inflation while leaving the door open to doing more if needed.  “We are going to… Read More »Fed’s Harker Expects Rates to Be ‘Well Above’ 4% by Year End

The Internal Revenue Service’s Criminal Investigation unit has been working with the Justice Department to uncover billions of dollars in fraud related to pandemic relief programs. The division, also known as IRS-CI, said Thursday it has conducted 840 tax and money-laundering investigations tied to COVID-19… Read More »IRS criminal investigators probe COVID fraud

With the prospect of a recession, people are worried about layoffs. You may get severance pay when you quit your job, or you are laid off or fired. You also might get severance if you sue and settle. Whether or not your pay is labeled… Read More »Worried About Layoffs? Understanding How The IRS Taxes Severance Pay Can Help

Other trends including the metaverse, adaptive AI, and wireless value realization will be coming into vogue in 2023. Because financial concerns are once again top of mind for most companies today, Gartner’s Top 10 Strategic Technology Trends for 2023 are focused on the technologies that help them… Read More »Sustainability and super apps top Gartner’s Top 10 2023 Trends List

KEY POINTS Retail and food services sales in total were little changed in September against the estimate for a 0.3% gain. Excluding autos, sales rose 0.1%, vs. the estimate for spending to be unchanged. The numbers are not adjusted for inflation, indicating that consumer spending… Read More »Consumer spending was flat in September and below expectations as inflation takes its toll

The Internal Revenue Service has released dozens of inflation adjustments affecting individual income tax brackets, deductions, and credits for 2023, and—no surprise—today’s four-decade-high inflation has translated into some big hikes. Consider the standard deduction, now claimed (instead of itemized deductions) by more than 85% of taxpayers.… Read More »IRS Sets Higher 2023 Tax Brackets, Standard Deductions, And Other Inflation Adjustments

A U.S. recession is effectively certain in the next 12 months in new Bloomberg Economics model projections, a blow to President Joe Biden’s economic messaging ahead of the November midterms. The latest recession probability models by Bloomberg economists Anna Wong and Eliza Winger forecast a… Read More »Forecast for U.S. recession within year hits 100%

KEY POINTS Eighty-four percent of adults say they are concerned that a recession is on the horizon, a new survey shows. Additionally, 74% said their concerns about inflation have increased. If you are worried about job loss during a recession, be sure to make arrangements… Read More »Delaying big purchases, reducing debt: 76% of adults are making lifestyle changes to prepare for a potential recession

In a post-pandemic world, 16% of companies have gone fully remote. Many workers have embraced and adapted to this new setup. Yet the shift from the office building to the home office carries complicated tax consequences for firms and businesses that have yet to fully adapt to… Read More »Understand the tax consequences of remote work

After almost two months since President Joe Biden signed an executive order to forgive some student loans for many Americans, the U.S. Department of Education has officially launched a website accepting applications for student loan forgiveness. Biden announced the action on August 24, 2022. Under… Read More »Student Loan Forgiveness Website Opens

Oil prices settled lower on Tuesday on fears of higher U.S. supply combined with an economic slowdown and lower Chinese fuel demand. Brent crude futures settled down $1.59, or 1.7%, to $90.03 per barrel, while U.S. West Texas Intermediate (WTI) crude settled down $2.64, or… Read More »Oil prices settle lower on U.S. supply, lower China demand

The US will enter a recession in the coming 12 months as the Federal Reserve battles to bring down persistently high inflation, the economy contracts, and employers cut jobs in response, according to The Wall Street Journal’s latest survey of economists. On average, economists put… Read More »Economists Now Expect a Recession, Job Losses by Next Year

The global turmoil provides the latest test of U.S. influence over international affairs after the Biden administration sought to re-engage with the world in the post-Trump era. America is driving the West’s response to the war in Ukraine. But U.S. officials are struggling to project… Read More »The global economy is in chaos. Nobody’s coming to the rescue.

KEY POINTS After two years of port congestions and container shortages, disruptions are now easing as Chinese exports slow in light of waning demand from Western economies and softer global economic conditions, logistics data shows. “The retailers and the bigger buyers or shippers are more… Read More »After two years of shipping snarls, things are starting to turn around

While many recent changes in state nexus rules are associated with sales and use tax, a movement to reframe the Interstate Income Act of 1959, P.L. 86-272, which limits the reach of state income taxes on remote sellers, could have a significant impact on state… Read More »Developments in state income tax nexus for remote sellers

The Biden administration officially launched the 2022 student loan debt forgiveness application and millions have already applied for relief. President Biden on Monday announced the official launch of the online student loan debt relief application after millions of borrowers applied for Biden’s student loan forgiveness… Read More »You Can Apply Now for Biden’s Student Loan Debt Forgiveness

Americans nearing retirement know the advice all too well: When it comes to Social Security, good things come to those who wait. And those who can’t wait? Their benefits get slashed. Those reduced benefits can add up. If you take Social Security before full retirement… Read More »Should I take Social Security at 62 or wait? Here are 3 smart reasons to start getting paid ASAP

The Federal Reserve’s rapid interest rate increases have contributed to the strength of the dollar against other currencies, but that may ease once the U.S. central bank reaches the point of pausing the hikes, St. Louis Fed President James Bullard said on Saturday. Fed policy… Read More »Fed’s Bullard says boost to dollar from interest rate hikes may ease

‘Retirement risks faced by workers are greater than ever before’ Almost half of baby boomers and more than one-third of Generation X expect to work past age 70 or do not plan to retire at all, highlighting the need for backup plans in case life’s… Read More »The number of baby boomers and Generation X who plan to work past age 70—or forever—is stunning

Everybody’s unhappy with the latest inflation report, which shows that the annual change in price increases dropped by just one-tenth of a percentage point, from 8.3% in August to 8.2% in September. The Federal Reserve has been jacking up interest rates to force prices down, and… Read More »Where inflation is getting better, and worse

KEY POINTS Eighty-four percent of adults say they are concerned that a recession is on the horizon, a new survey shows. Additionally, 74% said their concerns about inflation have increased. If you are worried about job loss during a recession, be sure to make arrangements… Read More »Delaying big purchases, reducing debt: 76% of adults are making lifestyle changes to prepare for a potential recession

Inflation in the United States accelerated in September, with the cost of housing and other necessities intensifying pressure on households, wiping out pay gains and ensuring that the Federal Reserve will keep raising interest rates aggressively. Consumer prices, excluding volatile food and energy costs, jumped 6.6%… Read More »Worsening inflation will pressure Fed to keep raising rates

JPMorgan Chase & Co (JPM.N) Chief Executive Officer Jamie Dimon on Thursday warned that persistent and elevated inflation could spur interest rates to rise higher than 4.5%, as he cautioned about the possibility of a looming recession. Consumers are in strong financial health, and are still spending… Read More »JPMorgan CEO warns higher inflation could push U.S. rates above 4.5%

KEY POINTS Social Security beneficiaries can expect an 8.7% boost to benefits in 2023, the Social Security Administration announced. The increase tops the 5.9% cost-of-living adjustment for 2022, which at the time was the highest in four decades. Amid record-high inflation, Social Security beneficiaries will… Read More »Social Security cost-of-living adjustment will be 8.7% in 2023, the highest increase in 40 years

KEY POINTS JPMorgan Chase CEO Jamie Dimon said the U.S. economy was “actually still doing well” at present and consumers were likely to be in better shape compared to the 2008 global financial crisis when the world tips into recession. “But you can’t talk about the economy… Read More »‘This is serious’: JPMorgan’s Jamie Dimon warns U.S. likely to tip into recession in 6 to 9 months

The biggest U.S. banks are expected to report weaker third-quarter profits as the economy slowed and volatile markets put the brakes on dealmaking. Four of the nation’s largest lenders – JPMorgan Chase & Co (JPM.N), Wells Fargo & Co (WFC.N), Citigroup Inc (C.N), and Morgan Stanley (MS.N) – will report third-quarter… Read More »PREVIEW U.S. banks’ Q3 profits set to shrink on economic risks, deal slump

Two Federal Reserve officials began laying out a case for exercising caution in raising interest rates after policymakers last month telegraphed plans to continue lifting rates at their fastest pace in decades to reduce inflation that has reached 40-year highs. Fed Vice Chairwoman Lael Brainard noted… Read More »Two Fed Officials Make Case for Caution With Future Interest Rate Raises

U.S. stocks fell Tuesday, reversing gains from earlier in the day as investors looked ahead to key inflation data out later in the week that will give the Federal Reserve updated information on the state of the U.S. economy. The S&P 500 slipped 0.65% to… Read More »S&P 500 closes lower, notches 5-day losing streak ahead of key inflation report

Ray Dalio, the billionaire investor who built Bridgewater Associates into one of the world’s biggest hedge funds, said a “perfect storm” is forming that will spread economic pain as the U.S. Federal Reserve raises interest rates. Dalio, who handed over control of the $150 billion… Read More »Bridgewater’s Dalio warns of a ‘perfect storm’ for economy

One of the biggest issues being discussed by the IRS, Congress, and the AICPA is the millions of businesses that are being targeted by tax credit companies looking to help them claim the employee retention tax credit.  While it’s true that many companies qualify, there… Read More »IRS to target abusive ERTC claims

Despite the drop, there is “a lot more job shedding that needs to occur before the Fed feels like its job is done,” said one executive. The number of job openings in the United States fell to about 10.1 million on the last business day of August,… Read More »U.S. Job Openings Fall by 1.1M, a 10% Drop From July

Giving your money to charity doesn’t have to be a totally selfless act. It can also be a way to keep the tax collector’s hands out of your pocket or away from your heirs. Charitable giving can be good for your conscience as well as… Read More »The Six Best Ways to Give to Charity (And Cut Your Tax Bill)

Our latest Marcum-Hofstra CEO survey shows that 93.6% of CEOs are concerned that the economy will experience a recession in the coming year. Some are already putting the brakes on hiring. 13% have already laid off workers, 27% are limiting or freezing hiring and 27% anticipate they… Read More »Recession Approaching?

Americans’ wages are losing ground to inflation at a steep rate, a report on Tuesday from the Federal Reserve Bank of Dallas said, a finding that offers some support for the central bank’s super-charged campaign to lower price pressures. “Despite the stronger wage growth due… Read More »Dallas Fed says inflation surge badly eroding many American’s wage gains

FASB issued a proposed Accounting Standards Update (ASU) on Thursday that is intended to improve disclosures about a public entity’s reportable segments and address requests from investors and other allocators of capital for more detailed information about a reportable segment’s expenses. FASB Chair Richard R.… Read More »FASB proposes improvements to segment reporting

With new laws from Colorado to Rhode Island, employers are under growing pressure to publicly share how much a job pays. Last week, California became the largest state to join the push for salary transparency when Gov. Gavin Newsom signed the measure, which takes effect next year. Though it was not… Read More »Making salaries public: More employers are sharing how much jobs pay. Will it close the wage gap?

American workers quit 4.2 million jobs in August, but one type of employee appears to be getting cold feet about switching employers or quitting to take a career timeout: office workers. People with jobs classified as professional and business services, including those who work in… Read More »People Still Quit Jobs, but More Office Workers Are Staying Put

KEY POINTS Nonfarm payrolls increased by 263,000 for the month, short of the Dow Jones estimate of 275,000. The unemployment rate was 3.5%, down 0.2 percentage points as the labor force participation rate edged lower. Average hourly earnings rose 5% from a year ago, slightly… Read More »Unemployment rate falls to 3.5% in September, payrolls rise by 263,000 as job market stays strong auto Draft

The big global venture capital pullback we were all expecting is truly here.  Venture and growth investors in private companies scaled back their investment pace significantly as the slump in the public markets stretched into the third quarter. Venture funding for the third quarter of… Read More »Global VC Pullback Is Dramatic In Q3 2022

The World Trade Organization is predicting global trade volumes will grow a lackluster 1% next year as crises and challenges weigh on markets, including high energy prices, rising interest rates, and uncertainties about Chinese manufacturing output amid the lingering COVID-19 pandemic. The Geneva-based trade body said Wednesday that… Read More »WTO predicts trade growth to slow next year amid crises

OPEC+ agreed to make a large production cut to keep oil prices high, drawing an immediate rebuke from the U.S.  The move was defended by ministers from the producer’s group as necessary to protect the oil industry and their own economies from the risk of… Read More »OPEC+ was rebuked by the U.S. after cutting output to keep prices high

Federal Reserve Bank of Atlanta President Raphael Bostic said he favors lifting interest rates to between 4% and 4.5% by the end of this year and then keeping the tightening in place to reduce inflation that remains near a four-decade high. “I would like to… Read More »Fed’s Bostic Favors Raising Rates as High as 4.5% by Year-End

KEY POINTS Job openings in August totaled 10.05 million, a 10% drop from the 11.17 million reported in July and more than a million less than expected. The Job Openings and Labor Turnover numbers are watched closely by the Federal Reserve, which is trying to… Read More »Job openings plunged by more than 1.1 million in August

Major CEOs aren’t buying the notion that the US economy could have a soft landing following a series of historically large interest rate hikes by the Federal Reserve to fight inflation. According to a survey of 400 leaders of large US companies by consulting firm KPMG, a whopping… Read More »CEOs are preparing for a recession, and they don’t think it will be short

U.S. employers pulled back sharply on job openings, while layoffs rose in August, adding to signs the labor market and overall economy are cooling. Employers’ total job openings fell 10% in August to a seasonally adjusted 10.1 million from 11.2 million the month before, the… Read More »U.S. Job Openings Fell in August, Layoffs Up Slightly

Governments around the world are determined to bring down inflation whatever the cost, but a growing chorus of voices is pointing out that aggressive monetary policies could have some serious and long-lasting consequences on the world economy. Central banks in the U.S., Europe and the U.K. have pursued relentless monetary tightening policies… Read More »‘Excessive’ policy choices could trigger an economic downturn even worse than the 2008 recession, UN agency says

The KPMG 2022 CEO Outlook asked more than 1,300 CEOs of the world’s largest businesses about their strategies and outlook. The survey included leaders from eleven key markets Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, the UK, and the US. A report by… Read More »Nearly 50% of CEOs Looking at Job Cuts, and 39% have Frozen Hiring: KPMG Survey

Hurricane Ian victims throughout Florida now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments. Hurricane Ian victims throughout Florida now have until February 15, 2023, to file various federal individual and business tax returns and… Read More »Hurricane Ian Victims Granted Tax Extensions

Venture capital and private equity have left the market, and the third quarter’s proceeds are the lowest since 2008. Move over crypto, meme stocks, and SPACs — the IPO market is also in the tank. The third quarter of 2022 was the worst one for… Read More »The IPO Market Is on Track for Its Worst Performance in 30 Years

THE COST OF shipping containers is in retreat around the world, as the shortages and bottlenecks that plagued maritime trade throughout much of the pandemic subside rapidly (see chart). The drop could help to reduce stubbornly high inflation and offer a signal of slowing demand in the global economy. The… Read More »Global shipping costs are plunging as the world economy slows

Summary Cuts could include Saudi voluntary reduction Largest cut since the pandemic reduction Oil fell due to rising Fed rates, a weak economy OPEC+ will consider an oil output cut of more than a million barrels per day (bpd) next week, OPEC sources said on… Read More »OPEC+ to consider an oil cut of over 1 million barrels per day

Battered by surging consumer prices and rising interest rates, the U.S. economy shrank at a 0.6% annual rate from April through June, the government announced Thursday, unchanged from its previous second-quarter estimate. It marked the second consecutive quarter of economic contraction, one informal rule of… Read More »US economy drops at a 0.6% annual rate from April through June

Millions of companies in the U.S. will have to report primary ownership, in an effort to close anti-money-laundering loopholes Millions of companies in the U.S. will have to disclose their ownership to the federal government under a new anti-money-laundering rule issued by the Biden administration… Read More »New U.S. National Security Rule Requires Firms to Disclose Key Owners

A recent analysis has found that the United States suffers more ransomware attacks than any other country. The United States suffers more ransomware attacks than any other country in the world. This is according to a recent analysis from cloud platform NordLocker based on data collected from… Read More »U.S. No. 1 target for ransomware

Tax collections this year in the U.S. are up 23% compared to last year, according to a new study by the Tax Foundation citing Congressional Budget Office data. Inflation seems to be everywhere. The Tax Foundation’s report on surging IRS collections might make you scratch your head… Read More »Tax Collections Are Up 23% As Inflation, Wages, And Profits Rise

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… 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… 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… 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… 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… 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… 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… 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… 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… 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… 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… 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… 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”… 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… 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… 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… 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… 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… 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… 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… 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… 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… 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… 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… 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,… 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… 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… 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… 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… 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… 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%.… 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… 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… 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… 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… 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… 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… 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… 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… Read More »Sliding Earnings Forecasts Pose Next Test for Markets