Author: Ramsay Capital Group

Have You Created Your IRS Online Account?

The IRS makes it easy to create an online account where you can view all kinds of account information, such as:

  • Your payoff amount
  • The balance if you owe taxes
  • Your payment history
  • Key information from your most current tax return
  • Payment plan details if you have one
  • Select IRS notices
  • Economic payments (if you have any)
  • Your address on file with the IRS

You can even pay online and receive a digital copy of your most recent tax return transcript.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS9

Footnotes and Sources

  1. IRS.gov, August 1, 2024

Weekly Market Insights | Mixed Data, Mixed Results

Stocks finished the week mixed, bookending losses around midweek gains as investors digested fresh inflation data.

The Standard & Poor’s 500 Index slipped 0.64 percent, while the Nasdaq Composite Index ticked up 0.34 percent. The Dow Jones Industrial Average dropped 1.82 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 1.48 percent.1,2

Up and Down Week

Stocks fell broadly over the first part of the week. Leading chipmakers who produce semiconductors for artificial intelligence applications were under pressure after Chinese regulators announced an antimonopoly investigation.3

Investors breathed a sigh of relief Wednesday morning following news that consumer inflation in November was in line with expectations. Mega-cap tech stocks led the rally, with the Nasdaq closing above 20,000 for the first time. Meanwhile, the Dow fell as healthcare stocks came under pressure.4

Stocks remained in the trading range for the rest of the week on mild concerns about Thursday’s warmer-than-expected wholesale inflation report and a spending slowdown among lower-income consumers. The Dow registered its worst losing streak since 2020.5,6,7

Final Fed Meeting of 2024

The consumer price index ticked up to 2.7 percent on an annualized basis in November, as expected. The market’s rally following the news reflected investor relief that inflation met expectations and that the increase from the prior month was slight.

Those two factors may reinforce the belief that the Fed would follow through with the December rate adjustment, which it penciled in back in September. The bellwether inflation measure was the last critical data point before the Fed’s two-day meeting, scheduled to end on December 18.8

Footnotes and Sources

  1. The Wall Street Journal, December 13, 2024
  2. Investing.com, December 13, 2024
  3. CNBC.com, December 10, 2024
  4. The Wall Street Journal, December 11, 2024
  5. The Wall Street Journal, December 12, 2024
  6. CNBC.com, December 13, 2024
  7. The Wall Street Journal, December 13, 2024
  8. The Wall Street Journal, December 11, 2024

Beware of the Fake Charity Scam

There are so many scams out there. One of the most heartless is taking advantage of people who want to give money to a legitimate charity, especially after a tragedy or disaster. Scammers can set up fake organizations to take advantage of people’s generosity.

These scams are usually over the phone, and while the organization may sound legitimate, the person on the other end might demand a donation immediately. Remember, a charity will happily receive a donation anytime, so you shouldn’t feel pressured.

You can research charity organizations using the IRS Tax Exempt Organization Search tool—this will help you narrow down a list of legitimate charities. You may even be able to claim a deduction on your tax return.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS10

Footnotes and Sources

  1. IRS.gov, April 4, 2024

Weekly Market Insights | Markets Mixed; Jobs Back on Track

Stocks were mixed during the first trading week of December. Technology stocks led, while the widely followed Dow Jones Industrial Average struggled.

The tech-heavy Nasdaq Composite Index picked up 3.34 percent while the Dow Industrials lost 0.60 percent. The Standard & Poor’s 500 Index added 0.96 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, gained 1.46 percent.1,2

Tech Takes Charge

The S&P and Nasdaq rallied to start the week, closing at record highs Monday and Tuesday. The Dow fell on both days. During a conference speech, Fed governor Christopher Waller said he supports a rate adjustment in December for now, which seemed to add momentum to the S&P’s and Nasdaq’s gains.3,4

Tech shares continued to propel stock gains midweek on the strength of a few better-than-expected Q3 reports.5

On Friday, the S&P and Nasdaq hit new record highs following the November jobs report. Both notched their third consecutive winning week. By contrast, the Dow was down four of the five trading days, ending the week in the red after two back-to-back weekly gains.6,7,8

Jobs Rebound

After two hurricanes and an aircraft maker strike weighed on the labor market in October, the November jobs report released Friday gave investors what they were looking for: confirmation that the October update was an anomaly.

While November payrolls topped expectations, investors believed the hotter-than-expected report would not influence the Fed’s upcoming decision regarding short-term interest rates. The Fed’s scheduled two-day meeting ends on December 18.9

Footnotes and Sources

  1. The Wall Street Journal, December 6, 2024
  2. Investing.com, December 6, 2024
  3. CNBC.com, December 2, 2024
  4. MarketWatch.com, December 3, 2024
  5. CNBC.com, December 4, 2024
  6. MarketWatch.com, December 5, 2024
  7. MarketWatch.com, December 6, 2024
  8. The Wall Street Journal, December 6, 2024
  9. The Wall Street Journal, December 6, 2024

How to Verify Your Identity When Calling the IRS

When calling the IRS, you can expect them to verify your identity before delving into personal information. Here’s what you’ll need to verify your identity:

  • Social Security number
  • Birthdate
  • An Individual Taxpayer Identification Number if you have one instead of your SSN
  • Your filing status
  • Your prior tax return. You may need information from your prior year’s return to answer certain questions.
  • A copy of the tax return you’re calling about
  • Any letters or notices you’ve received from the IRS

Important note: the IRS will only ask for this in documents or online. Never offer this info to someone who calls you and says they are from the IRS.

Having all this information handy before you call the IRS will make the process faster because IRS phone operators will only speak with the taxpayer or a legally designated representative.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS8

Footnotes and Sources

  1. IRS.gov, October 23, 2023

Weekly Market Insights | Solid Gains for Thanksgiving Week

Stocks posted solid gains over a short and busy holiday week as investors parsed fresh economic data, comments on potential future trade policy, and a few Q3 reports from technology companies.

The Standard & Poor’s 500 Index gained 1.06 percent, while the Nasdaq Composite Index advanced 1.13 percent. The Dow Jones Industrial Average rose 1.39 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 2.02 percent.1,2

Rally Extends

Stocks staged a broad-based rally to start the week as investors reacted to the nominee for Secretary of the Treasury. Small-cap stocks continued their month-to-date surge as the Russell 2000 Index rose to an all-time high. News that consumer confidence rose in November appeared to contribute to gains.3,4

Then stocks took a pre-Thanksgiving pause as investors digested economic data. Also, disappointing Q3 updates from two computer hardware manufacturers weighed on the tech sector in pre-Thanksgiving trading.5

Semiconductor stocks rallied on Friday, pushing all three averages higher for a second straight week. The Dow cracked 45,000 for the first time, and the S&P 500 hit a new record high—with each index closing out its best month of 2024.6

Tariff Talk

Some of the post-election rally has been driven by investor expectations for less regulation and lower corporate taxes proposed by the incoming administration. One area of concern has been the economic impact of proposed tariffs.

Some market observers believe that the markets have already priced in the impact of these tariffs. In contrast, others see a new Treasury Secretary as a potential buffer in the tariff talks.7

Footnotes and Sources

  1. The Wall Street Journal, November 29, 2024
  2. Investing.com, November 29, 2024
  3. The Wall Street Journal, November 25, 2024
  4. CNBC.com, November 26, 2024
  5. The Wall Street Journal, November 27, 2024
  6. The Wall Street Journal, November 29, 2024
  7. CNBC.com, November 26, 2024

Did You Know That You Have the Right to Challenge the IRS?

As a taxpayer, you can challenge the IRS’ position; this is part of the Taxpayer Bill of Rights, which outlines your fundamental rights when working with the IRS.

With this right, you can:

  • Raise objections to an IRS decision
  • Provide additional documentation in response to proposed or formal IRS actions
  • Expect the IRS to deliver a timely objection
  • Have the IRS consider any supporting documentation promptly and fairly
  • Receive a response from the IRS if they disagree with your position

In some circumstances, you may have a hearing before an independent Office of Appeals.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS8

Footnotes and Sources

  1. IRS.gov, July 5, 2024

Weekly Market Insights | Pre-Holiday Optimism Lifts Markets

Stocks advanced last week, powering ahead with pre-holiday optimism despite geopolitical tensions and two disappointing Q3 corporate updates.

The Standard & Poor’s 500 Index rose 1.68 percent, while the Nasdaq Composite Index gained 1.73 percent. The Dow Jones Industrial Average led, picking up 1.96 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, was flat (-0.05 percent).1,2

Stock Push Ahead

Stocks showed mixed results during the first half of the week due to geopolitical tensions that boosted precious metals and put pressure on Treasury yields.3

The Dow Industrials jumped out in front midweek and never looked back. Disappointing earnings on Tuesday from a large box retailer held back some gains in the broader S&P 500. A mixed Q3 update report from the nation’s leading AI chipmaking company also tempered gains a bit.4

Year-end optimism, especially around consumers driving a healthy holiday shopping season, supported the rally for much of the week. Fresh data that weekly jobless claims dropped to a seven-month low also lifted spirits.5,6

Small-Cap Focus

For several weeks, investors have favored small-cap names over larger-cap issues. This trend was again on display last week.

The Russell 2000, an index of 2,000 small-cap companies widely used as a benchmark for U.S. small-cap stocks, rose 4.50 percent for the five days of trading. In the month-to-date through November 22, the Russell is up nearly 9 percent.7

Footnotes and Sources

  1. The Wall Street Journal, November 22, 2024
  2. Investing.com, November 22, 2024
  3. MarketWatch.com, November 19, 2024
  4. CNBC.com, November 20, 2024
  5. CNBC.com, November 21, 2024
  6. MarketWatch.com, November 21, 2024
  7. The Wall Street Journal, November 22, 2024

What To Do If You Get Mail From the IRS

The IRS sends letters and notices for many different reasons. Some letters need a response or action item, while some are to keep you informed.

Here’s what to do if you receive mail from the IRS:

  • Don’t throw it away
  • Don’t panic
  • Don’t reply unless directed to do so
  • If a response is needed, respond promptly
  • Review the information to make sure it’s correct
  • Respond to a disputed notice
  • If you need to call the IRS, use the phone number printed on the notice
  • Avoid scams through email, social media, or text messages

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS7

Footnotes and Sources

  1. IRS.gov, May 6, 2024

Weekly Market Insights | Rally Loses Steam; Fed Weighs Move

Stocks fell last week as the postelection rally lost momentum amid an inflation uptick and cautious comments from Fed officials.

The Standard & Poor’s 500 Index fell 2.08 percent, while the Nasdaq Composite Index declined 3.15 percent. The Dow Jones Industrial Average lost 1.24 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, dropped by 2.38 percent.1,2

Rally Fizzles, Data Rattles

Stocks began the week with modest gains as all three major indexes hit record highs. On Tuesday, stocks took a breather with monthly inflation pending.3

News that the Consumer Price Index (CPI) ticked up slightly in October injected some uncertainty into the markets. The Producer Price Index released the following day showed wholesale inflation ticked up last month. While both the CPI and PPI aligned with expectations, investors hoped for better news.

Comments from Fed Chair Powell that the Fed wasn’t “in a hurry” to cut rates were a bit unexpected, which put stocks under more pressure.4,5

Stocks dropped again on Friday as strong October retail sales seemed to reinforce Powell’s comments about Fed rate adjustments. News that Boston Fed President Susan Collins expressed doubts about what the Fed might do in December, putting further pressure on stocks.6

Tug-O-War 

The inflation data that came in last week—retail and wholesale—show that the path to the Fed’s stated goal of 2 percent inflation may prove bumpy.

For the past couple of years, inflation has been the focus of the Fed’s efforts to manage rising prices by tightening the money supply. Ironically, strong retail sales numbers—while a sign of a strong economy—send a mixed message to investors. Confident consumers tend to spend money, which may take some pressure off the Fed as it looks to manage economic activity.

Footnotes and Sources

  1. The Wall Street Journal, November 15, 2024
  2. Investing.com, November 15, 2024
  3. CNBC.com, November 12, 2024
  4. The Wall Street Journal, November 13, 2024
  5. The Wall Street Journal, November 14, 2024
  6. CNBC.com, November 15, 2024