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CPAs, unlike providers of personal financial services, who are required by law to inform their clients of their policies regarding privacy of client information, have been and continue to be bound by professional standards of confidentiality that are even more stringent than those required by law. At Smoker, Smith & Associates, we have always protected our client’s right to privacy and will continue to use our best efforts to do so in the future. We have adopted a privacy notice similar to that as required by financial services to inform you of our practices with regard to your personal financial information.

Types of Nonpublic Personal Information We Collect

We collect non-public personal information about you that is directly provided to us by you or obtained by us only following your direct written authorization. No other or additional non-public personal information will be collected by Smoker, Smith & Associates absent your written direction or approval.

Parties to Whom we Disclose Information.

For a current and former client we do not disclose non-public personal information obtained in the course of our services for you except as may be required and permitted by law without your written direction. Thus, we may disclose confidential information made in response to a valid Order of Court or authorized agency of the government and always work to establish a legal means to limit such disclosure to only that segment of personal financial information which must be legally required to be disclosed.

We also may disclose information to our employees and in very limited situations and to unrelated third parties who need to know the information for the purpose of assisting us in providing professional services to you. To the extent reasonably possible, we will notify you in advance and disclose to you any non-public personal information provided to any third parties for such purposes. In all such situations, and at all times, we stress the confidential nature of the information being shared to both employees and third parties.

All disclosure of information to persons other than employees or consultants to Smoker, Smith & Associates is performed by the method of transmission as requested by the client. If facsimile is requested, such is sent only after the fax number is verified to be correct and the fax machine is in secure information with appropriate disclosures regarding IRS Circular 230. If transmission is by mail, normally certified mail or nationally recognized delivery service will be utilized requiring a signature from the receiving party. If information is desired to be transmitted electronically, various and appropriate security devices and practice to prevent improper obtainment or interception of information.

Protecting the Confidentiality and Security of Current and Former Clients’ Information

We retain records relating to professional services that we provide so that we are better able to assist you with your professional needs and, in some cases, to comply with professional guidelines. Such records are retained, however, for so long as necessary to fulfill the stated purposes of our engagement and thereafter either destroyed or returned to the client as directed. In order to guard your nonpublic personal information, we maintain physical, electronic, and procedural safeguards that comply with our professional standards.



WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU TO ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW OR SPECIFICALLY DIRECTED BY YOU. 




Smoker, Smith & Associates retains the right and obligation to update this privacy policy at any time without advance notice. If you have any questions regarding this privacy policy, our professional ethics and/or the ability to provide you with quality financial services, please contact us immediately. 



Reminders & Updates

 

 

2022 Standard Mileage Rates

Purpose Rates 1/1 to 6/30/22 Rates 7/1 to 12/31/22
   Business 58.5 cents 62.5 cents
   Medical/Moving 18 cents 22 cents
   Charitable 14 cents 14 cents

 

2021 Standard Mileage Rates

  • 56 cents per mile for business miles driven
  • 16 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

Check It Out!

Check out the article in PICPA CPA Now by Greg Kashella, published November 2021, Enhanced Financial Statement Disclosures for Small Businesses.

https://www.picpa.org/articles/cpa-now-blog/cpa-now/2021/11/19/financial-statement-disclosure-enhancements-for-small-businesses 

Check out the article in the Central Penn Business Journal, Women Who Lead, March 2019 article featuring our partner Jori Culp

http://www.cpbj.com/article/20190306/CPBJ01/303069999/women-who-lead-jori-m-culp-cpa?fbclid=IwAR1QS3LqoY_P5jEkST4y0QOhRYFYvqzr3UunTpTTFF5PKLUqEfT3JSxd-Tw

Tax-Related Identity Theft

The IRS combats tax-related identity theft with aggressive strategies of prevention, detection and victim assistance. To find out more about tax-related identity theft call our office or visit https://www.irs.gov/identity-theft-fraud-scams/identity-protection for information and guidance.

Remember that the IRS will never contact you by electronic means. This includes emails, phone calls, text messages, or social media channels. If you are ever in doubt whether contact by someone claiming to be from the IRS is legitimate, call our office first for verification.

 

 

Weekly Tax Brief

Now that fall is officially here, it’s a good time to start taking steps that may lower your tax bill for this year and next.

One of the first planning steps is to ascertain whether you’ll take the standard deduction or itemize deductions for 2022. Many taxpayers won’t itemize because of the high 2022 standard deduction amounts ($25,900 for joint filers, $12,950 for singles and married couples filing separately and $19,400 for heads of household). Also, many itemized deductions have been reduced or abolished under current law.

If you do itemize, you can deduct medical expenses that exceed 7.5% of adjusted gross income (AGI), state and local taxes up to $10,000, charitable contributions, and mortgage interest on a restricted amount of debt, but these deductions won’t save taxes unless they’re more than your standard deduction.

Bunching, pushing, pulling

Some taxpayers may be able to work around these deduction restrictions by applying a “bunching” strategy to pull or push discretionary medical expenses and charitable contributions into the year where they’ll do some tax good. For example, if you’ll be able to itemize deductions this year but not next, you may want to make two years’ worth of charitable contributions this year.

Here are some other ideas to consider:

  • Postpone income until 2023 and accelerate deductions into 2022 if doing so enables you to claim larger tax breaks for 2022 that are phased out over various levels of AGI. These include deductible IRA contributions, child tax credits, education tax credits and student loan interest deductions. Postponing income also is desirable for taxpayers who anticipate being in a lower tax bracket next year due to changed financial circumstances. However, in some cases, it may pay to accelerate income into 2022. For example, that may be the case if you expect to be in a higher tax bracket next year.
  • If you’re eligible, consider converting a traditional IRA into a Roth IRA by year end. This is beneficial if your IRA invested in stocks (or mutual funds) that have lost value. Keep in mind that the conversion will increase your income for 2022, possibly reducing tax breaks subject to phaseout at higher AGI levels.
  • High-income individuals must be careful of the 3.8% net investment income tax (NIIT) on certain unearned income. The surtax is 3.8% of the lesser of: 1) net investment income (NII), or 2) the excess of modified AGI (MAGI) over a threshold amount. That amount is $250,000 for joint filers or surviving spouses, $125,000 for married individuals filing separately and $200,000 for others. As year-end nears, the approach taken to minimize or eliminate the 3.8% surtax depends on your estimated MAGI and NII for the year. Keep in mind that NII doesn’t include distributions from IRAs or most retirement plans.
  • It may be advantageous to arrange with your employer to defer, until early 2023, a bonus that may be coming your way.
  • If you’re age 70½ or older by the end of 2022, consider making 2022 charitable donations via qualified charitable distributions from a traditional IRA — especially if you don’t itemize deductions. These distributions are made directly to charities from your IRA and the contribution amount isn’t included in your gross income or deductible on your return.
  • Make gifts sheltered by the annual gift tax exclusion before year end. In 2022, the exclusion applies to gifts of up to $16,000 made to each recipient. These transfers may save your family taxes if income-earning property is given to relatives in lower income tax brackets who aren’t subject to the kiddie tax.

These are just some of the year-end steps that may save taxes. Contact us to tailor a plan that will work best for you.

© 2022

339 West Governor Road, Suite 202, Hershey, PA 17033
Phone: (717) 533-5154  •  Toll-Free (888) 277-1040