The numbers I’m seeing in certain industries tell me that the recovery is not the same for all. While many industries have rebounded nicely, those relying on consumers in a face-to-face setting are still suffering.
The bar and restaurant industry immediately comes to mind. This seemed to be going well until Omicron reared its ugly head.
Now food and beverage facilities are operating well under their capacities. No one has any problems getting a reservation, even at Chicago’s finest restaurants.
The Hospitality Industry has the same difficulties. Hotel occupancy rates are low given the reductions in business travel and general tourism.
Between our difficulties with crime and the pandemic, few even consider Chicago a destination. The live event and convention businesses are down as well.
The fitness industry has also seen steep declines. How can a business that relies on a constant flow of new memberships to stay afloat, when no one is walking in the door?
Given the fact that these industries make very little money in even the best circumstances, how long will they be able to hang on?
All this happens while the gridlock in Washington seems worse than ever. Voices on both sides of the aisle are calling for further federal financial help to no avail.
Businesses in these industries are taking on additional debt to pay their current bills, but sooner or later lenders stop lending to beleaguered industries. I worry that many will end up going out of business before any federal response arrives way too late.
Let me leave you with this.
Some taxpayers are beginning to receive IRS Letter 6475. This letter details the stimulus payments for your 2021 tax return.
In bold letters near the top, it says, “Your 2021 Economic Impact Stimulus Payment(s).” Please keep a copy of this letter and provide it to us for your return.
This is the only actual proof we will have to properly claim any stimulus money received.
If you receive this letter and did not receive the stimulus payments that it details, you will need to call the Service to put in a claim. This process will take several months, so please don’t expect it to be any more timely than anything else happening at the IRS this year.
Either way, please get your work into us as soon as possible. We would love to get your returns completed in a timely fashion.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, PPP Loan Forgiveness, Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
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