Raphael Stevens

Constantine Johnny | Moment | Getty ImagesThe IRS may be extending the deadline to file your annual taxes for 2020 to May 17, but there’s no time like now to get started on them — no matter your circumstances.Perhaps you owe money that you don’t currently have. Maybe your life has been turned upside down and doing your taxes is the last thing you want to do. But don’t even think about not filing a tax return.”It’s a terrible idea,” said Nayo Carter-Gray, founder of 1st Step Accounting, of not filing. “It’s one of the worst things you can do.”Lisa Greene-Lewis, a tax expert at TurboTax, concurs.”It is definitely a bad idea,” she said. “File the return even if you can’t pay what you owe.”Let’s start with the penalties. If you don’t file your return, you’ll be assessed a penalty of 5% of the taxes due per month, up to a maximum of 25% of the unpaid amount.More from Smart Tax Planning:Here’s a look at more tax-planning news.This tax pitfall could affect millions due to CovidState tax departments set their sights on pro athletesPeople fled from these high-tax states in 2020So, if you don’t file and owe $10,000, the penalties accrue at the rate of $500 per month, up to $2,500 in total. If you do file your return but don’t pay the taxes you owe, the penalty is only 0.5% of the balance due per month.The IRS also charges interest on overdue taxes at the rate of the federal short-term interest rate plus 3%. That rate currently stands at 3% and is reviewed every three months.The interest will start accumulating from the new May 17 filing deadline until you pay the taxes owed. (The deadline for paying quarterly taxes remains April 15.)If you are unable to file the return on time, one solution is to file for an extension using IRS Form 4868. It gives you an extra five months — until Oct. 15 — to pull the return together. Businesses filing for an extension use Form 7004, though the filing deadline for sole proprietorships, partnerships and other pass-through business entities was March 15. The IRS, however, does expect you to pay your estimated taxes along with the extension.”A lot of people think that an extension gives you extra time to pay taxes you might owe,” said Greene-Lewis. “It doesn’t.”In other words, if you don’t pay your estimated taxes due when filing for an extension, you’re still liable for the 0.5% monthly penalty, as well as the current 3% monthly interest charged on the balance due.Failing to file a return and/or pay taxes due, has consequences beyond the direct monetary penalties, as well. Every year, the IRS reports more than $1 billion in unclaimed taxpayer refunds. Much of that is the result of people not filing returns because they are under the income threshold for the filing requirement.That threshold currently stands at $12,400 for individuals and $24,800 for married couples filing jointly. Many of those individuals are eligible for refundable credits, said Greene-Lewis, and may never know it unless they file a return. Taxpayers have up to three years to claim refunds.With the variety of tax benefits in the three coronavirus relief packages over the past year, people may also miss out on valuable benefits and payments from the government if they don’t file.For example, if you did not receive the full stimulus payments you were eligible for last year, you can get a recovery rebate credit — but only if you file a tax return. “There were a lot of changes in the tax code last year that affect people,” said Greene-Lewis. “Filing a return let’s you know where you stand.”For people in dire financial straits, ignoring your tax liabilities will make things much worse, said Carter-Gray. The IRS may use information it has on your income to file a “substitute for return” and thereby assess a tax liability for you. To say the least, the agency won’t give you all the deductions and credits you may be eligible for.What’s more, if you’re facing personal bankruptcy, failing to file a return will complicate matters. “You have to file a return in order to put tax debt into the pot for bankruptcy purposes,” said Carter-Gray.Taxpayers unable to pay taxes they owe can arrange a payment plan with the IRS, but again, only if they file a return or at least an extension. Carter-Gray has worked with people who have failed to file returns for many years — and says it is ugly.”The IRS can put liens on your property and garnish your wages,” she said. “Get into compliance, because you really don’t want that.” More

Members of the medical staff check information of a patient at the pneumology unit of the AP-HP Cochin hospital, in Paris on March 18, 2021 as the number of people hospitalized with the Covid-19 is on the rise in the French capital.CHRISTOPHE ARCHAMBAULT | AFP | Getty ImagesMore than a year after the coronavirus outbreak was declared a pandemic, Europe is continuing to struggle with the virus amid a third wave of infections and ramping up of lockdown measures.At the same time, the bloc’s vaccination rollout remains sluggish, hit by manufacturing issues and supply snags, to the extent that European Union leaders are meeting this week to discuss — once again — the introduction of possible vaccine export bans.It comes as a handful of countries re-introduce lockdowns to curb a third wave of infections, with France, Poland and Ukraine all implementing stricter measures at the weekend that are set to last several weeks at least.A month-long partial lockdown was reintroduced in Paris Saturday, as well as in 15 other regions in France, in an effort to get on top of rising case numbers, largely attributed to new, more infectious Covid variants.The latest partial lockdown is less stringent than previous ones, however, prompting some to question the point of such a move, while others have said that the new measures are confusing. A curfew is still in place and inter-regional travel remains effectively banned. Around 21 million people in France are affected by the new rules.The country reported over 30,000 new daily cases on Sunday, bringing the country’s total number of infections to over 4.2 million. Over 92,000 people have died due to the virus in France to date.Meanwhile, Europe’s largest economy Germany could be set to extend a national lockdown into April as the country also battles a third wave of Covid-19 cases. Several states have reportedly called for an extension to current restrictions as the Covid incidence rate passed 100 cases per 100,000 people, a level the government previously said would prompt it to implement an “emergency brake” — a stalling of the lifting of lockdown measures — to prevent further spread.The move would be a blow for Germany that had started to ease lockdown measures, allowing schools to reopen in February and some non-essential shops to admit customers again earlier this month.Vaccine strugglesAs much of the EU experiences rising coronavirus cases, the bloc’s vaccine rollout remains sluggish and contentious.EU leaders are set to meet virtually on Thursday to discuss whether to block vaccine exports while supplies within the region remain in short supply, and its vaccination program lags behind those in other developed nations.The EU was criticized for bulk-ordering coronavirus vaccines later than the U.K. and U.S., and has subsequently had to deal with supply issues, despite two of the vaccines it has authorized for use — the Pfizer-BioNTech and AstraZeneca-University of Oxford shots — being manufactured in the EU.There are reports that the EU could block exports of the AstraZeneca vaccine being made at a Dutch plant — a move that could also jeopardize the U.K.’s so-far successful vaccine rollout. U.K. Prime Minister Boris Johnson is expected to reach out to his European counterparts to try to resolve the impasse over vaccines.The rollout of the AstraZeneca-Oxford University vaccine has faced several hurdles in recent weeks, with a handful of European countries suspending use of the shot due to concerns over a possible link to reports of blood clots.The World Health Organization and European Medicines Agency conducted safety reviews into the vaccine with the latter ruling last Thursday that it is safe and effective and the benefits outweigh any risks.The conclusion prompted a reversal of the vaccine’s suspension from most (but not all) of the European countries that had stopped its use, but the move could damage public confidence in the vaccine, which was already shaky due to misplaced questions over the efficacy of the shot in the over-65s.Real-world data has since proven the vaccine is highly effective at reducing severe Covid cases, hospitalizations and deaths in adults. The vaccine got another boost on Monday when the results of a large U.S. trial were published showing that the AstraZeneca vaccine is 79% effective in preventing symptomatic illness and 100% effective against severe disease and hospitalization.However, a YouGov poll published on Monday showed that the decision of some European nations to suspend use of the AstraZeneca vaccine has “hugely damaged public perceptions of the vaccine’s safety in Europe.”The poll, conducted in seven European countries (the U.K., Germany, Italy, France, Spain, Denmark and Sweden) between March 15-18 found that people were more likely to see the vaccine as unsafe than safe in France, Germany, Spain and Italy. It should be noted that the survey was conducted during the week when the vaccine’s safety credentials were being questioned and mostly before the EMA published its safety ruling on the shot. More

The Jeep Wrangler Magneto concept is a fully electric SUV based on a two-door 2020 Jeep Wrangler Rubicon.JeepJeep has unveiled a new all-electric version of its iconic Wrangler SUV, but consumers will likely have to wait at least a few years to purchase one.The brand on Monday debuted the Wrangler “Magneto” as a concept vehicle, meaning it’s a custom product typically built by automakers to gauge customer interest or show the future direction of a vehicle or brand.”It’s a sustainable, stealthy, rock-climbing force,” Jim Morrison, vice president of the Jeep brand in North America, said during a media event. “It’s a zero-emissions concept vehicle with Jeep 4×4 capability taken to the next level.”Jeep executives have said every Jeep will offer some form of electrification going forward, but it has not confirmed an all-electric version of the Wrangler. The company recently started selling a plug-in hybrid electric version of the Wrangler under a new “4xe” moniker, a play on the brand’s off-road reputation combined with electrification. Plug-in hybrid electric models have batteries like EVs but also still have a traditional internal combustion engine.The Jeep Wrangler Magneto concept is a fully electric SUV based on a two-door 2020 Jeep Wrangler Rubicon.JeepThe Jeep Wrangler Magneto concept is based off a two-door 2020 Jeep Wrangler Rubicon. To make it an EV, engineers swapped out its internal combustion engine and some supporting parts for electric components such as four batteries and an e-motor.The vehicle is capable of up to 273 foot-pounds of torque and 285 horsepower. The Magneto runs 0-60 mph in 6.8 seconds. The company did not release the electric range of the vehicle.The most unique thing about the Magneto is it has a six-speed manual transmission, which electric vehicles don’t require because of their motors. Mark Allen, head of Jeep design, said the vehicle “has the best characteristics” of an automatic transmission but the “direct-drive feel” of a manual transmission, which is a key draw for off-road enthusiasts.The Magneto was unveiled alongside several other custom or concept vehicles for the Jeep Easter Safari, an annual off-road event for the brand in Moab, Utah. Jeep regularly uses the off-road event as a testing ground for the capabilities of its vehicles as well as a way to gauge customer interest in new products.”The Moab Easter Jeep Safari has been a great tradition for more than half a century,” Morrison said. “It’s a place where we get to connect with our most die-hard off-road enthusiasts and the ones who are most loyal to our brand.”Concept vehicles for this year’s Jeep Easter Safari include (left to right) Jeep Red Bare, Jeep Magneto, Jeepster Beach and Jeep Orange Peelz.Jeep More

All commodities markets have their levered investment bets. Crude oil has wildcat exploration and production companies; gold and precious metals have the mining operations out doing the dirty work in the ground. A commodity of the future, bitcoin, is no exception to the rule that when there’s a scarce resource to exploit in the world, and investors are placing increasing value on it, miners will rush in to stake their claim to the riches.Recent gains in what may be the most high-risk bitcoin bet of all led Leeor Shimron, vice president of digital asset strategy at Fundstrat Global Advisors, to take a look at the “digital gold rush” in trading of bitcoin miners.These mining companies are fairly new and young, they lack track records, and some came to market in “roundabout ways” — and some of the biggest, like Riot Blockchain, attracted regulatory scrutiny in their early days. They also have been operating at losses, but Shimon noted they have reached over $1 billion in market cap after investing heavily during the bitcoin downturn in the hardware and facilities that helped them to “strike it big” in the current bitcoin bull market cycle.High-beta, high-risk bitcoin tradingShimron described the miners in a note last week to clients who expressed interest in the surging stocks as a “high beta play” on bitcoin. During the recent bull run for the cryptocurrency, during which bitcoin is up 900%, the average return among the biggest publicly traded miners was 5,000%, according to his analysis.Bitcoin miners, in Shimron’s words, form the core backbone of bitcoin’s blockchain, as they “burn electricity to computer-generate guesses aiming to solve cryptographic puzzles” and generate revenue in the form of mined bitcoin. As the bitcoin is mined, the miners sell the assets to cover their expenses. Many choose to also hold a portion of their mined bitcoin on their corporate balance sheet, a trend which is starting to gain traction with the more digitally-oriented, disruptive CEO class in the broader market, such as Jack Dorsey at Square and Elon Musk at Tesla. Musk just added “Technoking” to his executive title and the Tesla CFO recently had “Master of Coin” added to his. The North American mining company, Marathon Digital Holdings, recently announced it had purchased an additional $150 million worth of bitcoin to hold on its balance sheet.The largest publicly listed mining companies which the Fundstrat analyst reviewed include the two Nasdaq-listed companies, Riot Blockchain and Marathon Digital Holdings, and two over-the-counter market stocks, Hive Blockchain and Hut 8.Zoom In IconArrows pointing outwardsOver the past year, bitcoin miners greatly outperformed bitcoin, a dynamic that Fundstrat Global Advisors says will continue as the bull market plays out, but could turn violently to the downside in any correction.Fundstrat Global AdvisorsShimron’s analysis shows that the beta these bitcoin mining companies exhibit generates a return of 2.5% for every 1% move in the cryptocurrency. While there is not enough historical data to draw firm conclusions, the miners’ performance is clearly tied to the price of bitcoin, and their trading profile amplifies the upside and downside, he said.It is a “notoriously competitive industry,” in Shimron’s words, where the ability to be profitable can come down to cheap electricity and access to specialized mining hardware. As bitcoin’s price increases, “miners spin up new rigs or upgrade their hardware with more powerful and efficient machines.”Marathon recently made a $170 million deal for 70,000 S-19 ASIC miners from Bitmain, which when fully deployed later this year, will up its mining power to 103,000 machines.This high cost of doing business in bitcoin mining results in low or negative free cash flow and muted earnings, Shimron writes. But the mining companies have for the moment captured the growth of the current bitcoin bull cycle as a result of their spending. (They saw wild trading in the bitcoin boom of 2017, too.)Now they have also attracted attention from some of the market’s newest forces, as a recent Bloomberg piece noted of the bitcoin miners getting discussed within the WallStreetBets message board on Reddit which fueled the mania in shares of GameStop.”For investors looking to gain exposure to miners, that beta makes it a great opportunity during the middle of a roaring bull market. …There are fits and starts and pullbacks, but we still have lots of room to grow here,” Shimron said in an interview with CNBC.Investing in bitcoin in 2021, and beyondIt is the broader bull market in cryptocurrency that has fueled the miners and Shimon thinks that can continue in 2021, driven by macroeconomic and demographic factors. Fears of inflation will support bitcoin prices, and even amid recent yield pressure from the 10-year Treasury which can act on cryptocurrency as it does on technology stocks, he said it is clear from Fed signalling that the central bank wants to keep its dovish policies in place until 2023.Another driving force is continued adoption of new digital technology and digital assets from younger investors. “You see younger people gravitate to bitcoin and other digital currencies as opposed to gold and commodities and it speaks to a demographic shift. … To them it’s not crazy to interact with money in a purely digital way,” he told CNBC.Last week, Morgan Stanley became the first big Wall Street bank to offer its wealthy clients access to bitcoin. It limited access to clients with at least $2 million given the risks involved.There already are ways into the crypto market other than the underlying currencies, such as the exchanges which trade coin and soon will be available to more investors. Coinbase was recently valued at $68 billion in the private market and is planning a direct listing on the Nasdaq.Waiting for a bitcoin ETF in the USThere are three bitcoin ETFs in Canada, and at some point, there may be a bitcoin ETF available in the U.S. The latest attempt at the Securities and Exchange Commission was filed mid-March by VanEck ETFs, but with investors not holding out high hopes the SEC will approve a bitcoin fund soon, they are looking elsewhere for cryptocurrency investment ideas that go beyond buying bitcoin itself.Shimon, who ran an early-stage cryptocurrency and blockchain venture fund before joining Fundstrat, said he does view the miners as being a foundation for the crypto space. “The top companies will be here to stay,” he said, pointing to the economies of scale investing in equipment which newer entrants will have a tougher time competing against.After making the “smart move” during the bitcoin bear market to build out operations, current tech sector supply chain shortages caused by Covid may further help the positioning of these miners after the capital they have already put into specialized machines for the space.Still, like many traders and hedge funds do with gold miners and small-cap oil explorers, he is inclined to trade the bitcoin miners in a bull market run, rather than see them as investments to hold for the long-term.Zoom In IconArrows pointing outwardsThe outperformance of the SPDR Gold Shares ETF relative to a VanEck ETF tracking an index of gold miners, since 2006.Shimron continues to prefer bitcoin as a long-term investment, as well as any ETF ultimately approved by the SEC for U.S. investors. “It is just a matter of time before the SEC approves a bitcoin ETF,” he said. “When a BTC ETF comes, the fees will be low and it will be the safest and easiest way of using traditional rails to get exposure to bitcoin,” he said.The miners have faced criticism over the huge amounts of electricity required in bitcoin operations, but Shimron’s view comes down to the financials and market performance. (He says there is plenty to criticize about the fiat currency system’s impact on the world, too.)”It is pretty clear the U.S. dollar as a global reserve currency is on its last legs, not disappearing any time soon, but we are in the later stages of the U.S. dollar as the reserve currency, and decentralized is the next stage.”Even if the bitcoin mining stocks are too high risk for most investors, he is confident in saying that the world of cryptocurrency should be on everyone’s radar. “This is where everything is going. Finance has been the last vestige that hasn’t been touched by the internet,” Shimron said.  More