President Biden Signs Inflation Reduction Act into Law

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On August 16, President Biden signed the Inflation Reduction Act (IRA) into law. The enormous bill—clocking in at 725 pages—contains a wide range of provisions and comes with a nearly $750 billion price tag. “The bill is fighting inflation and has a whole lot of collateral benefits as well,” said former Treasury Secretary Larry Summers, who reportedly helped craft the legislation.

Read on for an overview of the key items contained in the new act.

Provisions for Funding the IRA

In order to cover the $750 billion price tag of the IRA, authors of the legislation included a variety of savings- and revenue-related provisions. Here is a breakdown of how the IRA will be funded (please note that the numbers are estimates from the Joint Committee on Taxation and the Congressional Budget Office):

  1. Savings in the Healthcare Arena ($288 billion)
    1. Repeal of a Trump-era drug rebate rule
    2. An inflation cap on drug prices
    3. An allowance for Medicare to negotiate certain drug prices
  2. New Revenue
    1. A new 15% corporate minimum tax for corporations with financial statement (“book”) income exceeding $1 billion ($313 billion)
    2. Increased revenue as a result of IRS tax enforcement funding ($124 billion)
    3. A 1% excise tax on corporate stock buybacks
    4. Methane and Superfund fees

How IRA Funds Will be Spent

So how will the $750 billion raised via savings and new revenue be spent? Here is a brief overview of initiatives included in the IRA (please note that the numbers are estimates from the Joint Committee on Taxation and the Congressional Budget Office):

  1. Climate & Energy Spending ($369 billion)
    1. Creation of new clean manufacturing tax credits
    2. Establishment of additional clean electricity grants and loans
    3. Creation of a new “Clean Energy Technology Accelerator”
    4. Incentivization of clean agriculture
    5. Incentivization of clean electronic vehicle manufacturing
    6. Additional energy and climate provisions
  2. Healthcare Spending ($64 Billion)
    1. A three-year extension of Obamacare subsidies for health care insurance costs
    2. A redesign of Medicare Part D and additional health care provisions
  3. IRS Funding
    1. Funding for increased IRS enforcement (namely, to enhance IT systems and compensate specialized employees—for more details, read IRS Commissioner Charles Rettig’s letter on the intended use of funding and plans for enforcement)
  4. Other Spending
    1. Reducing the Federal deficit ($300+ billion)

What’s Next?

Please be assured that your FIRM accounting advisors are keeping a close watch on the progress of the IRA and how it will impact your particular situation. You can reach out to your advisor if you have any specific questions regarding the new law.

Sources

  1. https://www.washingtonpost.com/us-policy/2022/07/28/manchin-schumer-climate-deal/
  2. https://finance.yahoo.com/news/inflation-reduction-act-how-a-new-bill-would-lower-costs-for-americans-200724803.html
  3. https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/07/28/remarks-by-president-biden-on-the-inflation-reduction-act-of-2022/
  4. https://www.vox.com/policy-and-politics/23282983/inflation-reduction-act-kyrsten-sinema-josh-gottheimer
  5. https://www.cnn.com/2022/08/07/politics/senate-democrats-climate-health-care-bill-vote/index.html
  6. https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_one_page_summary.pdf
  7. https://abcnews.go.com/Politics/senate-democrats-pass-climate-tax-health-care-bill/story?id=88067862

 

 

Avantax Planning Partners Recognizes Affiliate Accomplishments During Largest-ever National Conference

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Annual Elevate Conference showcases high-performance individuals and firms

Avantax Planning Partners℠, an employee-based RIA (registered investment advisor) that partners with CPA firms to provide clients with holistic financial planning, advisory services and retirement plan solutions, recently hosted its annual Elevate Conference, attended by accounting affiliates, sponsors and Avantax team members. The annual event gives attendees insights, best practices, and strategies to advance and deepen client relationships as it relates to wealth management and financial planning.

“The energy and enthusiasm of our CPA affiliates, sponsors and Avantax team members fueled this year’s Elevate conference from beginning to end,” said Louie Rosalez, President of Avantax Planning Partners. “The ideas, best practices and strategies we share with our affiliates, coupled with the hard work and dedication our affiliates give clients every day, delivers on the Avantax vision of profoundly impacting client lives by changing the way Americans plan and invest.”

This year’s conference – themed “Truth. Planning. And the Avantax way” – was conducted May 24 – May 26 in Des Moines, Iowa, and included educational sessions, networking opportunities, sponsor exhibits, and award presentations.

“The attractiveness of the Avantax Planning Partners model shows in the fact that this year’s event was the largest Elevate conference ever,” said Todd Mackay, President of Avantax Wealth Management®. “It was an honor to talk with so many of our accounting affiliates; seeing each other in person helps further deepen partnerships with our longtime partners and new members of the unique Avantax Community.”

As part of the annual awards night, Brady Martz president, Todd VanDusen, received the President’s Club award. This award is made up of the highest performing individuals among Avantax Planning Partners affiliates. President’s Club winners demonstrate exemplary productivity, client service, communication, planning guidance, and are advocates of Avantax Planning Partners.

In addition, Perry Mattson of Brady Martz & Associates received a Top Champion award recognizing Avantax Planning Partners’ top affiliates that exhibit leadership in planning and wealth management.

Brady Martz was also recognized as Firm of the Year. The Firm of the Year leads the Avantax Planning Partners nation in productivity, client service, communication, planning guidance, and are truly advocates of Avantax.

About Avantax Planning Partners℠
Avantax Planning PartnersSM is a national financial planning and wealth management firm that partners with CPA firms to combine and deliver holistic financial and tax-planning services to their clients. Using the Guidance Planning Strategies planning tool, Avantax Planning Partners visually lays out a long-term plan, considering a wide array of financial decisions and their potential impacts on clients’ financial health. Through this unique and proven approach, Avantax Planning Partners and CPA firms help clients make progress toward their financial goals through strategies such as asset management, estate planning, retirement planning, tax planning, risk management and more. The wealth management segment of Blucora, Inc. (NASDAQ: BCOR), which includes the Avantax Planning Partners℠ and Avantax Wealth Management® brands, had a collective
$86 billion in total client assets as of March 31, 2022. For more information, please visit us at www.avantax.com or on LinkedIn and Facebook.

Disclosure:

Investment advisory services are offered through Avantax Planning PartnersSM. Commission-based securities products are offered through Avantax Investment ServicesSM, Member FINRA, SIPC. Insurance services offered through licensed agents of Avantax Planning Partners. 3200 Olympus Blvd., Suite 100, Dallas, TX 75019. The Avantax entities are independent of and unrelated to Brady Martz & Associates. Although Avantax does not provide or supervise tax or accounting services, our Financial Professionals may offer these services through their independent outside business. Not all Financial Professionals are licensed to offer all products or services. Financial planning and investment advisory services require separate licenses.

Brady Martz Announces New Promotions

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The regional accounting firm of Brady Martz is excited to share that the firm has promoted Sidney Compton, EA, Rachel Jenson, CPA, Olivia Morton, CPA, Oakley Thoeny, CPA, Jolene Tollefson, CPA, Matthew Wrolstad, CPA, and Bradley Yoder, CPA to senior manager.

“These promotions make for a very exciting time at Brady Martz!” said Todd Van Dusen, President of Brady Martz. “These six professionals have worked diligently to serve the firm and our clients. They have demonstrated their dedication and proven that they are ready to take the next step in their careers. I would like to extend a sincere congratulations to Sidney, Rachel, Olivia, Oakley, Jolene, Matt, and Bradley.”

Compton joined Brady Martz in 2012, shortly after graduating from college. She works in both tax and audit. Compton holds a Bachelor of Science in Accounting and a Master of Science in Management from Minot State University. She is currently affiliated with the American Institute of Certified Public Accountants (AICPA), the North Dakota CPA Society (NDCPAS), and the Minot State University Alumni Association. Raised in Grand Forks, North Dakota, Compton currently lives in West Fargo with her husband and their two children.

In 2012, Jenson joined the Fiebiger, Swanson, West & Co (FSW) team; she later became a member of Brady Martz via its merger with FSW. She currently works in the firm’s Fargo office, helping to lead the Tax Department there. She serves both local and regional business in a variety of industries. Jenson graduated summa cum laude from Minnesota State University Moorhead in 2012, earning a Bachelor of Science in Accounting. She is a member of the AICPA and the NDCPAS. Raised in Crookston, Minnesota, Jenson now resides in Glyndon with her husband and their children.

Morton has been with Brady Martz since 2006 and works in the firm’s Audit Department. She holds a Bachelor of Science from St. Cloud University and is affiliated with the AICPA and the Minnesota Society of CPAs (MNCPA). Originally from Kuala Lumpur, Malaysia, Morton currently lives in Fertile, Minnesota with her husband and their two children.

Thoeny joined Brady Martz in 2013 and has spent the entirety of her professional career with the firm. She works primarily in trusts and estates and also serves as a co-leader of the firm’s Affordable Care Act (ACA) team. Thoeny graduated summa cum laude from Dickinson State University in 2013, earning a Bachelor of Science in Accounting with a minor in Leadership Studies. She is currently affiliated with the AICPA, the NDCPAS, the Western Dakota Estate Planning Council, the Red River Valley Estate Planning Council, and the Dickinson State University Alumni Association. Raised in Broadus, Montana, Thoeny currently lives in Dickinson, North Dakota.

Since 2011, Tollefson has been a member of the Brady Martz team—she has spent her entire career with the firm. Serving in the firm’s Tax Department, she specializes in cross-border taxation and tax-exempt organizations. Tollefson studied at the University of North Dakota, graduating summa cum laude in 2011 with a Bachelor of Accountancy. She is a member of the AICPA and the NDCPAS. Raised in Antler, North Dakota, Tollefson now lives in Grand Forks.

In 2015, Wrolstad joined Brady Martz via its merger with Dress Riskey & Vallager Ltd., which had had served since 2012. Today, he works in the firm’s Tax Department, serving both individuals and businesses and specializing in international tax issues. He holds a Bachelor of Accountancy from the University of North Dakota and is currently affiliated with the AICPA and the NDCPAS. Originally from Fargo, North Dakota, Matt currently lives in Grand Forks.

Yoder has been with Brady Martz since 2013. He is responsible for performing audits and completing 990 informational returns of non-profit and governmental entities. A graduate of Minot State University, he holds a Bachelor of Science degree. Yoder is currently affiliated with the AICPA and the NDCPAS. He sits on the boards of directors for Magic City Aquatics and the Minot Swim Club—he is treasurer of the former. He lives in Minot, North Dakota with his wife and their two children.

Jacob Franklin Featured on Well Grounded

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Brady Martz Announces Four New Shareholders

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Brady Martz is excited to announce the promotions of Jacob Franklin, CPA, Tory Hill, CPA, Daniel Macintosh, CPA, and Nicholas Peterson, CPA. These four professionals join the firm’s leadership group as shareholders. 

“These additions to the shareholder group make for a very exciting time at Brady Martz,” said Todd Van Dusen, President of Brady Martz. “All four professionals have demonstrated an outstanding dedication to the firm and our clients, as well as exemplary leadership, commitment, and perseverance. I am thrilled to congratulate them on this big career move and welcome them into their new leadership roles.”

An accounting professional since 2008, Franklin joined the Brady Martz team in 2013. His primary focus is on serving clients in the agriculture industry. Franklin studied at the University of North Dakota, graduating in 2008. He is currently affiliated with the American Institute of Certified Public Accountants (AICPA), the North Dakota CPA Society (NDCPAS), and the Minnesota Society of CPAs (MNCPA). 

Hill has served on the Brady Martz team since 2009—he has spent the entirety of his professional accounting career with the firm. He specializes in performing attest work for financial institutions and nonprofits. A 2009 graduate of North Dakota State University, Hill holds a Bachelor of Science in Accounting. He is a member of the AICPA and the NDCPAS. 

Macintosh joined Brady Martz in 2020, bringing with him a dozen years of valuable accounting experience. He currently leads the firm’s Strategic Business Solutions division, working in the areas of client service and business development. Macintosh studied at the University of North Dakota, graduating magna cum laude in 2007 with a Bachelor of Accountancy. He is currently affiliated with the AICPA, the NDCPAS, the MNCPA, and the UND Alumni Association. 

Peterson has been a  professional in the accounting field since 2009. He joined Brady Martz in 2019 through its merger with Fiebiger, Swanson, West & Co., PLLP. His primary focus is audit and attestation; he serves construction contractors, ESOP owned entities, other for-profit entities, and nonprofit organizations.  Peterson holds a Bachelor of Science in Accounting from Minnesota State University Moorhead and a Bachelor of Music from Concordia College. He is a member of the AICPA, the NDCPAS, and the Construction Financial Management Association (CFMA). 

Brady Martz Announces Retirements of Three Shareholders

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Three shareholders are set to retire from Brady Martz effective October 1, 2020. After successful, decades-long careers, shareholders Patrick Brown, Joe Martin, and Mark Miller will retire from the firm.  

“It is with mixed emotions that I congratulate Pat, Joe and Mark on their retirements,” said Todd Van Dusen, President of Brady Martz. “I am happy for the three of them, but I know Brady Martz will feel the loss of such seasoned professionals. Their many years of dedicated leadership have been integral to the success of Brady Martz. I wish them all the best as they enter this exciting new stage of life.”

An accounting professional for more than three decades, Brown joined Brady Martz in 1992 via its merger with Orser, Olson and St. Peter. He had been with Orser, Olson and St. Peter since 1985. Throughout his career, Brown worked primarily with clients in the nonprofit and governmental sectors. “I really enjoyed working with so many good clients and fellow accountants over the last 35 years,” stated Brown. 

Martin worked with the Brady Martz team for 30 years. He specialized in working with clients in the governmental and dealership industries. “It was thrilling to watch my client’s businesses grow with success over the course of my career.”

Miller has been part of the Brady Martz team for 29 years. He primarily worked with auto dealerships, tribal governments, and tribal gaming organizations. He spent 10 years as the shareholder in charge of the firm’s Grand Forks, Crookston, and Thief River Falls offices, 10 years on the Brady Martz management team, and six years on the firm’s board of directors. “It was an honor to be part of such an outstanding team with a focus on providing high quality service,” said Miller.