The Consumer Price Index numbers for last month came out this morning, and they weren’t good. The prices on a consumer basket of goods and services rose 3.5% from a year earlier in the month of March. This was up from 3.2% in the prior month.
So far this year, Inflation has done nothing but increase.
Core CPI, which strips away volatile energy and food prices, rose to 3.8% last month. It was only 3.4% in the prior month. This is the preferred measure that the Fed uses in determining interest rate and monetary policy.
Will the Fed be forced to further increase interest rates in order to get inflation under control this year? Only whatever God you pray to could possibly answer.
But traders had predicted as many as five or six interest rate decreases this year. Now, many don’t expect any to come until next year.
The problem is that The Fed can only do so much. They can increase interest rates and restrict monetary policy in trying to control inflation.
But if our Congress continues to run record deficits, demand for goods and services will continue to outweigh supply, further pushing prices higher. That, in addition to the normal summer surge in gas prices, may mean that we’ll be forced to deal with these higher interest rates for much longer than anyone expected.
Inflation first went out of control in February of 2020. On average, prices have increased 20.7% without taking into account the CPI numbers from this morning.
If your prices have not increased. again on average, by that amount in the same period, then you’re probably taking a major hit on your profits.
Let me leave you with this.
If you’re one of my clients and your income tax return hasn’t been completed, then unless you’re a newer client where we might be missing an address or a social security number, your returns have been extended.
I say again, your returns have already been extended. If my wife is still calling and asking for info, please respond to her calls or emails so that we can get an extension out for you as well.
Nothing more needs to be done. I got them out myself yesterday. A copy of your extension will be forthcoming in the mail.
Income tax extensions do nothing but extend the due date of the “paper” return by six months. They do not, in any way, change the due date of any money that may be due when the return is filed.
If you would like to make a deposit with your extension, please contact our offices today so that we may assist. If a deposit isn’t made and you end up owing taxes, a Failure To Pay Penalty will be assessed.
Further, if you don’t have an accountant and would like to have your returns extended, please call me today.
We’re all going to get through this. Let’s get through it together.
As an inducement, we’re offering 33% off your first six months of bookkeeping and / or the first three months of electronic payroll services on a complimentary basis. In order to claim this benefit, please click on the appropriate button below and provide your contact information. We’d love to help.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.SalarySolutions.net
www.AccountingSolutionsLtd.com
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.