Business Update – April 20 2022

Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

CDC Removes All Countries from COVID “Do Not Travel” List

The US Centers for Disease Control and Prevention has removed all countries from its “Do Not Travel” recommendations. The highest Level 4 designation will now be reserved for “special circumstances” reflecting a dangerous spike in COVID-19 cases, a new variant or health care infrastructure collapse. You can find the CDC’s travel recommendations here.

Fannie Mae Economists: Economy Facing ‘Modest’ Recession Next Year

The economic outlook is dimming and a downturn could be on the horizon, as the Federal Reserve moves to ease the hottest inflation in four decades, according to Fannie Mae economists.

The economists said in a new economic and housing forecast that the economy faces a “modest recession” in 2023 due to the Fed’s aggressive monetary policy tightening, the fallout from the Russian war in Ukraine, and the worst inflation in a generation.

Taxpayers Who Missed the Filing Deadline Should File Now

The IRS encourages taxpayers who missed the tax filing deadline on April 18 to file as soon as possible. While taxpayers due a refund receive no penalty for filing late, those who owe and missed the deadline without requesting an extension should file quickly to limit penalties and interest. Families who don’t owe taxes can still file their 2021 tax return and claim the Child Tax Credit for the 2021 tax year at any point until April 15, 2025.

Some taxpayers automatically qualify for extra time to file and pay taxes without penalties and interests, including:

  • Members of the military who served or are currently serving in a combat zone
  • Support personnel in combat zones or a contingency operation in support of the Armed Forces
  • Taxpayers outside the United States
  • Some disaster victims

You can find out more here.

Monthly Child Tax Credit Payments

If you have questions about the advance Child Tax Credits for 2021, the two best sources are the instructions for Schedule 8812, which is used to calculate and report the credit on your 2021 tax return, and the IRS FAQs. Before filing your tax return, check your IRS Online Account to be sure you report the correct amount of any advance Child Tax Credit payments received during 2021. This will help ensure that refunds are paid promptly within 21 days. As a reminder, couples who filed Married Filing Joint will each receive a letter reporting half of the payments received. When filing 2021 tax returns, married couples will need to combine both amounts when they file their joint return.

IRS Announces Funding for Low Income Taxpayer Clinic Grant

The IRS announced that more than $12.1 million in matching grants were awarded to 131 organizations across the country for development, expansion or continuation of qualified Low-Income Taxpayer Clinics (LITCs) for the 2022 grant year. The grant year runs from January 1 to December 31, 2022.

Housing Starts Unexpectedly Rise in March

Homebuilding unexpectedly increased in March, but starts for single-family housing declined due to rising mortgage rates. Housing starts increased 0.3% to a seasonally adjusted annual rate of 1.793 million units last month, while permits for future homebuilding increased 0.4% to a rate of 1.873 million units. However, single-family housing starts, which account for the biggest share of homebuilding, dropped 1.7% to a rate of 1.200 million units.

Hotels Face $21 Billion Business Travel Decline in 2022

Business travel revenue for the hotel industry is expected to decline by about $20.7 billion from pre-pandemic levels this year, after an estimated $108 billion decline over 2020 and 2021, according to a report from American Hotel & Lodging Association and Kalibri Labs. The report forecasts that hotel business travel revenue will remain 23% down from 2019 by the end of this year. On the other hand, leisure travel is expected to rebound to pre-pandemic levels in the coming months.

We sincerely hope that you and your family are well and remain well. If you have any questions or concerns, don’t hesitate to reach out to us. We are all in this together!

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