The knowledge you need

The COVID-19 pandemic was a challenging time for individuals, families, and businesses. Concern about the widespread transmission of a relatively unknown virus resulted in stay-at-home orders and forced business closures. While a practical step, it did create significant complications for many including restaurants, bars, and entertainment businesses. Additional challenges were created with the introduction of social distancing rules which only served to further complicate matters. The result was that revenue vanished while expenses compounded leaving employers with little choice other than to lay off staff.  

Failure to file a tax or information return by its due date generally results in extra fees and penalties. It also draws extra scrutiny from the IRS and can result in significant delays in having the return processed and other matters closed. Since the end of the pandemic, the IRS has been investing significant time and resources in reviewing returns originally due in 2019 and 2020. Now, for millions of taxpayers, those extra fees will be refunded or waived for certain returns.In August, the IRS announced penalty relief which is expected to impact 1.6M taxpayers and result in $1.2 in automatic refunds (assuming eligibility requirements are met). The relief is not limited just to individuals as foreign corporations, partnerships and S-corporations are also eligible.

The recently passed Inflation Reduction Act (Act) features several tax changes and benefits that incentivize the migration to energy-efficient systems. This not only includes changes to commercial, industrial, and retail buildings but also to housing and vehicles.  Currently, there are an estimated 10M electric vehicles on the road representing less than 1% of the global auto stock. The combination of advancements in technology and the popularization of recharging stations, and other infrastructure modifications, is expected to result in increased energy-efficient vehicle sales.

Sustainable building isn’t just the way of the future; it's what’s happening now. Achieving energy-efficient design and construction is a multi-faceted approach involving engineers, architects, builders – and even federal tax incentives. The Section 179D energy efficient tax deduction is one of the main tax incentives for building owners who install qualifying energy-saving systems can leverage. The good news for Atlanta contractors is the recently enacted Inflation Reduction Act contains dozens of new incentives for eligible renewable energy upgrades and purchases.

Earlier this month, President Biden signed the Inflation Reduction Act (Act) into law. It was a significant step forward in accomplishing the Administration’s climate change agenda. Passed through the Senate budget reconciliation process, it’s much less expensive than the non-starter Build Back Better Act but includes several provisions which originated with that legislation. Still, it is the single biggest climate action bill to date with additional measures to lower healthcare costs. Controlling two highly volatile cost centers – healthcare and energy – is the central focus and is expected to help control inflationary pressures.

Even when most people do the right thing and safeguard the information or assets they’re entrusted with, all it takes is one person to make the wrong decision, and trouble ensues. This is an unfortunate reality that both businesses and organizations alike face every day. It is one thing when a bad decision is made by accident, it is quite another when it was done as part of a fraud scheme. Fraud is an ever-present threat that Atlanta area nonprofits need to routinely address. The damage which can arise from such incidents can be devastating and more than just financially – think of brand trust and image.

Earlier this week, the Inflation Reduction Act  (Act) passed all Congressional hurdles and is expected to be signed into law by President Biden in the coming days. Passed through the budget reconciliation process, it’s less expensive than the Build Back Better Act, which is where most of the provisions started. Still, it is the single biggest climate action bill to date with additional measures to lower healthcare costs. Controlling two highly volatile cost centers – healthcare and energy – is thought to dampen the effects of inflation, though experts disagree on the extent.

As it turned out, semiconductor chips make the world turn. Though most notably missing from the auto industry, semiconductor chips also power smartphones, computers, electronic toothbrushes, and more. Since COVID began, there’s been a worldwide chip shortage. Unfortunately, it is unclear when this crucial-shortage will be resolved. In fact, it appears many major automobile manufacturers, including Ford, have elected to re-start production because of a lack of certainty about when the shortage will be resolved.

New equipment, machinery, new office furniture, business vehicles, and updated computer software are items that most businesses invest in from time to time. Since these can be expensive purchases, most will plan before buying by carefully crafting the annual budget to ensure enough capital is available. Although there are many considerations that must be made prior to asset acquisition, it is important not to forget about taxes. When making a large investment the last thing any business wants to do is pay more in taxes than is necessary.

There is a new change to federal estate planning rules which will be warmly received by Atlanta high net-worth individuals and family offices. The IRS recently released Revenue Procedure 2022-32, which allows certain qualified estates a longer timeframe to elect portability along with a simpler procedure. Previous guidance allowed for late elections for up to two years.