Tax Year 2022 Update: The IRS Responds to Inflation With A Rare Midyear Mileage Rate Change

6/21/2022

Tax Year 2022 Update: The IRS Responds to Inflation With A Rare Midyear Mileage Rate Change

The IRS has announced an increase in the optional standard mileage rate for the final 6 months of 2022.
Taxpayers may use the optional (instead of actual expenses) standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other tax deductible purposes.

Midyear increases in the optional mileage rates are rare; the last time the IRS made such an increase was in 2011.

For the final half of 2022 (July 1, 2022 to December 31 2022):

Business and Medical Mileage Change

• The standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents.
• The new rate for deductible medical & moving* expenses will be 22 cents, up 4 cents.
• The rate for charitable organizations remains unchanged at 14 cents per mile.

* availlble only for active-duty members of the military

Prices Means Infation

"The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices," said IRS Commissioner Chuck Rettig. "We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate."

Though the price of fuel is definitely a major factor when it comes to calculating your mileage, there are other factors that have to be taken into account, including the rate at which your car depreciates as well as its insurance and any other fixed costs you might have.

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Optional Business Standard Mileage Rate vs. Actual Costs

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage. Taxpayers continue to have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates, although this does require extensive recordkeeping.

Midyear increases in the optional mileage rates are rare; the last time the IRS made such an increase was in 2011.

Further details are available in IR-2022-124.

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Are you Looking to Attain Government Contracts? We've Complied a List of 14 Need to Know Websites to Help.

6/9/2022

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Are you Looking to Attain Government Contracts? We've Complied a List of 14 Need to Know Websites to Help.

We have compiled a list of websites that can be helpful to those who are seeking government contracts. Although most of these sites are intended for pre-award activities, some may be useful for post-award, or contract execution as well.

Name:

Website:

This is helpful if you want to:

Federal Business Opportunities (FBO)

https://sam.gov/content/opportunities

Find Federal Opportunities that exceed $25,000

Federal Procurement Data System

https://www.fpds.gov/ezsearch/search.do?ind exName=awardfull&templateName=1.4.4&s=F PDSNG.COM&q=contracts

Research contract awards in a number of ways including by agency, company, department, NAICS code, and many other options

General Services Administration (GSA)

Assistance for Small Business

https://www.gsa.gov/small-business#hubzone

Obtain advice if you want to sell to/through GSA, particularly if you are a small business

Government Forms

https://www.opm.gov/forms

Find a specific Government Form

Schedule a FREE No Pressure Consultation!

See All of Our Gov Con Services & Solutions

Small Business Administration (SBA)

http://www.sba.gov

Obtain information about how to start and grow a small business

8(a) Business Development (BD) Program

http://www.sba.gov/8abd/

The 8(a) Business Development Program is a business assistance program for small disadvantaged businesses.

Historically Underutilized Business Zone (HUBZone) Program

http://www.sba.gov/hubzone/

The HUBZone program fuels small business growth in historically underutilized business zones.

Bonus Resource:

Hubzone Workbook

Service-Disabled Veteran-Owned Small Business (SDVOSB)

http://www.sba.gov/content/service-disabled-veteran-owned-small-business-concerns-sdvosbc

The federal government aims to award at least 3% of all federal contracting dollars to Service-Disabled Veteran-Owned Small Businesses each year.

Procurement Program Women- Owned Small Business (WOSB)

http://www.sba.gov/wosb

The federal government aims to award at least 3% of all federal contracting dollars to Service-Disabled Veteran-Owned Small Businesses (SDVOSB) each year.

Small Business Size Standards for NAICS codes

https://www.sba.gov/contracting/getting-started-contractor/make-sure-you-meet-sba-size-standards/table-small-business-size-standards

Scroll Down--From there, there’s a table you can access.

https://siccode.com/naics-code-lookup-directory

Check the Size Standard to see what qualifies to be a small business under each NAICS code
Search for NAICS codes by description or number

NAICS Codes Lookup - North American Industry Classification System

System for Award Management (SAM)

https://www.sam.gov

Register your organization in order to do business with the Federal Government
Update your registration annually at a minimum
Explore other companies to see whether they are a small business, HUBZone etc. and
Inquire to see whether a potential Teaming Partner is debarred

Time and Date

https://www.timeanddate.com/date/duratio n.html

Check whether an employee or candidate has the length of experience necessary to meet a position qualification

USA Spending

https://www.usaspending.gov/explorer

Search website that provides access to information on entities and organizations receiving federal funds

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Business Insights: Why You Need More Then Data Analysis To Get The Full Picture?

4/4/2022

Business Insights: Why You Need More Then Data Analysis To Get The Full Picture?

A universal change that is evident in this day and age is that companies are relying more and more on data analytics to support their strategies and initiatives. This has become even more apparent as businesses' focus shifted to their online presence.

Data alone is not enough

In many ways, the fact that data analytics is not enough is a good thing. That's because data alone cannot tell the whole story or paint the full picture of a situation at hand.

If you rely only on data regarding a company's marketing efforts, customer base and key performance indicators, you could end up making decisions that are not fully in the best interests of the business. In order to operate from a position of being completely informed, data must be accompanied by additional information, including a competitive analysis, as part of the process.

Suppose, for example, a company is considering a brand-new offer that is supported by the data, which depicts that accepting said offer will result in a successful outcome. In addition to the data, certain questions must be answered:

Are other companies already successfully offering the same product or service?
If so, what is the market share of the product or service?
If other companies are not already successfully offering the same product or service, is there a compelling reason why the market either would or would not accept the product?
Does it make sense to offer a competing product at this time?

Additionally, the privacy concerns of users are imperative to not only consider but also address, making it unwaveringly important that companies train their employees and teach them how to handle sensitive information.

4 Keys to a Successful Data Strategy

Data invitation
Data security
Data dialogue
Value proposition

Data is [Absolutely] integral for success

While data is not everything, it is not nothing, either. From artificial intelligence-driven systems that allow for personalization and drive productivity to data collected via social media platforms and predictive systems that identify problems before or shortly after they arise, data is undoubtedly an integral part of life today.

Perhaps the most valuable aspect of data collection is also the most problematic: the nature of privacy and how the data that is being collected is being used. Gone are the days in which data could be collected without much thought about doing so. Nowadays, concerns about the protection of consumers' privacy and speculation as to how companies are using the data they collect from users have resulted in strict government regulations.

For instance, there's the European Union's General Data Protection Regulation. While the United States has not enacted any regulations at the federal level, some states have taken it upon themselves to pass state-level laws. Similarly, certain tech companies have initiated actions and taken steps to protect the privacy of their users.

As a result, third-party cookies are being phased out, despite having been in place since 1994. Apple already has omitted its use of third-party cookies, whereas Google intends to do so by 2023. The result of the decision to obliterate the frequent and normalized use of cookies will be that advertisers and websites no longer will be allowed to utilize the power of tracking technology to follow users as they scour the internet.

All of this is happening just as businesses are moving more and more of their operations online. Since online businesses rely on data to connect with users, they must create a new strategy that allows them to gather the first-party data they need to grow and thrive, while at the same time being in compliance with state laws and making users feel comfortable.

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Strategies of this nature must combine better technology with a deep and trust-based relationship that companies develop with their users over time. Such strategies generally have four parts:

Data invitation. Many data invitations are deceptively simple, and most of them are along the lines of "Please accept our data policy in order to use our website." In the developing data use environment, companies need to create an explicit, easy-to-understand and personalized message that is clearly visible and delivered through multiple channels.
Data security. Customers should have access to details about the type of data that is being collected from them and how it is being used by the company. By prioritizing this level of transparency and pairing it with the option for users to opt in or out of certain aspects of the data collection process, companies can establish trust between the brand and the customers. This is beneficial in many ways, namely that users who trust companies are more willing to opt in to the option to share their data as opposed to users who are hesitant about the brand. To summarize, users should be permitted regular, ongoing and transparent access to the list of data. Also, any updates that are made must be reported as soon as possible.
Ongoing data dialogue. Companies should provide regular communications about their data privacy protocols. Doing so will subsequently promote user engagement and establish high levels of trust as a result of transparency.
Value proposition. Users must be able to clearly understand the benefits of sharing their data and sensitive information with your company. This is not always easy, especially because certain states, such as California, have laws that prohibit companies from excluding from discounts or services users who opt out of sharing their data. Due to the restrictions imposed by state laws, companies have to learn how to be innovative. For instance, companies can say the data their customers provide to them will help create a much better and more personalized experience.

Before you can make smart and well-informed decisions, you must compile a holistic review of all pieces of information that have the potential to impact the end result. Companies that understand that will have an advantage over companies that do not.

5 Personal Finance Tips That both Young and Old Can Use Effectively

2/19/2022

Blog Summary

Even if you have enough money in the bank and take home a consistent paycheck, you still need to make a conscious and consistent effort to manage your money effectively.

Create a Budget
Pay Down Debt
Build Your Savings
Minimize Impulse Purchases
Maximize Employee Benefits

Concentrate on making incremental gains consistently. Financial situations rarely turn around overnight, as more often, positive change is brought about by many small wins.

Many people overestimate their financial stability. Even if you have enough money in the bank and take home a consistent paycheck, you still need to make a conscious and consistent effort to manage your money effectively.

If you want more financial freedom and to take complete control of your finances, follow these 5 guidelines.

Create a Budget

A true budget is much more than a dollar amount you don't exceed each month. Have you listed and added up your expenses lately? If you haven't, there's a good chance you're spending more than you think. Keep close track of where your money is going so you can adjust accordingly. You should never be unsure of what you can and can't afford

For more Budgeting tips and ways to achieve your Financial Goals subscribe to our newsletter.

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Pay Down Debt

The interest you pay on debt is money you're literally giving away. If you have a large balance on a credit card, limit your spending on that card until you pay it down. If you're paying off student loans, try to pay more than the minimum so you actually see your total go down and you're not just paying the interest each month.

Build Your Savings

It can be downright painful to take even a small chunk out of your paycheck for savings, but if you can force yourself to do it the first few times, you'll be happy with the results when you start to see your savings account grow. Pick a realistic percentage of each paycheck to deposit into your savings account and hold yourself to the task. If you want your savings to grow faster, look into a savings account with higher interest. The bank may require that you keep a large balance in it at all time, but it's worth it for the interest your money will accrue.

Minimize Impulse Purchases

Payday is a wonderful thing, and there's nothing wrong with treating yourself in order to unwind after a long week. However, if you are thinking of purchasing an item you don't necessarily need, it's best to walk away from it and see if it's still on your mind a day or two later. If it is and you can afford it, then go for it. But you might find that you'd rather save the money.

Maximize Employee Benefits

Employee benefits are the company's way of thanking you for your hard work and supporting your overall well-being. Take them up on free gym memberships or parking passes instead of wasting your own money on these things. If your company has a 401k matching program, definitely enroll. Pick a dollar amount to take out of your paycheck that will go into the account each pay period. Choose a number that you're comfortable with but try to challenge yourself to put in more than you think you can. Your company will now match that number and you can watch your 401k blossom!

Acquiring financial freedom and being debt-free is one of the best feelings in the world. Contact us today for more information on how to get a handle on your personal finances.

Blog Post Link: ramlcpa.link/022022a

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