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There are roughly six weeks until the April 18 federal tax deadline for most Americans.
If you haven’t filed your tax return yet, there are some key things to know, according to tax experts.
“Every tax season has its own unique challenges,” said Mark Jaeger, vice president of tax operations at TaxAct.

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1. Tax refunds may be ‘somewhat lower’ this season

While this year’s tax season kicked off with a flood of returns, early filings have slowed, according to Jaeger.
He believes the change in refunds is the reason why early returns have tapered off. “What we’re seeing is refunds are going down and more people have a balance due,” he said. 

The average refund was $3,079 as of Feb. 24, compared to $3,473 one year prior — about an 11% decline, according to the IRS. Of course, the average may change with millions of returns still to come.

What we’re seeing is refunds are going down and more people have a balance due.

Mark Jaeger
Vice president of tax operations at TaxAct

Typically, you receive a federal refund when you overpay the year’s taxes or withhold more than what you owe. The IRS warned in January that refunds this year may be “somewhat lower” than last year due to expiring pandemic relief that delivered tax breaks in 2021. 
In 2021, many families got a boost from the enhanced child tax credit, worth up to $3,600 per child, and child and dependent care tax credit of up to $4,000 per dependent. But those tax breaks, among others, have reverted to previous levels.
“Now you’re seeing this drop-off because you have people who are either less sure because they maybe getting a smaller refund,” Jaeger said. “Or they actually owe the IRS money … nobody really wants to pay that balance due until April 18.”

2. Avoid refund delays with a complete, accurate return

One of the best ways to avoid refund delays is by filing a complete and accurate return, according to the IRS. Typically, the agency issues refunds within 21 days for error-free, electronically filed returns with direct deposit for the payment.
However, experts say it’s critical to have all your tax forms ready before sending your return. Employers and financial institutions send tax forms every year, with a copy going to taxpayers and the IRS.

“If anything is furnished on a tax statement, the IRS knows it’s coming,” said Nicole DeRosa, senior tax manager at accounting firm Wiss, noting the missing information may trigger a tax notice from the agency, along with possible penalties and interest.
You can make a checklist of the forms you may need by reviewing last year’s tax return, experts suggest. If you’re still not ready by April 18, you can file for an extension, Jaeger said. But you still must pay your balance due by the tax deadline to avoid racking up penalties and interest.

3. There’s a one-year delay for 1099-K reporting

Whether you’re a gig economy worker, online seller or transfer money between family and friends, payments from apps like Venmo or PayPal have become a confusing tax topic.  
Although business income has always been taxable, individuals and the IRS shouldn’t receive Form 1099-K unless 2022 payments crossed a threshold of more than 200 transactions worth an aggregate above $20,000.
If you receive the form by mistake, the IRS says to contact the issuer immediately. But tax professionals say to include the form’s details on your return to avoid a mismatch at the agency. “If you did get one, you want to report it,” Jaeger said.

Originally, the threshold for 1099-K reporting was set to change for 2022, dropping to $600 for even a single transaction. This means many more filers would have received Form 1099-K this season — but the IRS delayed the reporting change until 2023.
However, even if you don’t receive the form for 2022 business payments, you still need to include that income on your tax return, DeRosa said.

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NVIDIA President and CEO Jen-Hsun Huang
Robert Galbraith | Reuters

Recession risk is on the minds of investors, particularly as the Federal Reserve remains resolute in hiking interest rates.
In these tough times, investors would be well advised to find stocks that are positioned to navigate a potential economic downturn.

related investing news

To help with the process, here are five stocks chosen by Wall Street’s top professionals, according to TipRanks, a platform that ranks analysts based on their past performance.

Nvidia

Chip giant Nvidia (NVDA) has been under pressure due to the slump in the PC gaming market. Revenue and earnings declined in the fiscal fourth quarter compared to the prior year, but the company managed to beat Wall Street’s expectations due to the year-over-year rise in data center revenues.
Investors cheered Nvidia’s first-quarter revenue guidance and CEO Jensen Huang’s commentary about how the company is well-positioned to benefit from the heightened interest in generative artificial intelligence (AI).   
Jefferies analyst Mark Lipacis expects Nvidia’s data center revenues to reaccelerate year-over-year beyond the first quarter and grow 28% in 2023 and 30% in 2024, supported by higher AI spend. (See Nvidia Stock Chart on TipRanks) 
Lipacis said, “In contrast to INTC/AMD noting cloud inventory builds, NVDA discussed a positive H100 ramp (already crossing over A100 in just second quarter after launch), accelerating DC [data center] revs YY beyond C1Q23, and alluded to better visibility and more optimism for the year due to increasing activity around AI infrastructure, LLMs [large language models], and generative AI.”

The analyst views Nvidia as a “top pick” following the recent results, and reiterated a buy rating. He raised the price target for NVDA stock to $300 from $275.
Lipacis is ranked No. 2 among more than 8,300 analysts on TipRanks. His ratings have been profitable 73% of the time, with each rating delivering a return of 27.6%, on average.

Ross Stores

Ross Stores (ROST) delivered upbeat results for the fourth quarter of fiscal 2022, as the off-price retailer’s value offerings continued to attract customers. However, the company issued conservative guidance for fiscal 2023 due to the impact of high inflation on its low-to-moderate income customers.
Following the results, Guggenheim analyst Robert Drbul, who is ranked 306th among the analysts on TipRanks, lowered his fiscal 2023 earnings per share estimate for Ross Stores to reflect the impact of persistent macro headwinds.
Nonetheless, he expects Ross Stores’ earnings to return to double-digit growth in fiscal 2023, driven by a higher operating margin, the accelerated opening of new stores and the company’s share buyback program.
Drbul reiterated a buy rating for Ross Stores and a price target of $125, citing “the favorable environment for the company given greater supply of branded goods in the marketplace, stronger value proposition, and broader assortment compared to pandemic levels.”
Drbul has delivered profitable ratings 63% of the time, and his ratings have generated an average return of 9.1%. (See Ross Stores Hedge Fund Trading Activity on TipRanks)

Kontoor Brands

Next on our list is another consumer discretionary company – Kontoor Brands (KTB), which owns the iconic Wrangler and Lee Brands. Shares of the clothing company rallied on the day it reported solid fourth-quarter results and issued a strong outlook for 2023.   
Williams Trading analyst Sam Poser noted that the demand for Wrangler and Lee continues to improve, fueled by the company’s brand-enhancing initiatives. Further, he thinks that Kontoor’s fiscal 2023 outlook “will likely prove conservative.” He expects the company’s revenue growth in China to turn positive in the second quarter and sequentially accelerate thereafter.
Poser raised his fiscal 2023 and 2024 earnings per share estimates, reiterated his buy rating for Kontoor Brands and increased the price target to $60 from $53. (See Kontoor Brands Insider Trading Activity on TipRanks)
“The combination of better than expected 4Q22 results, led by a 20% increase in U.S. DTC [direct-to-consumer] revenue, ongoing improvements in the positioning of both the Wrangler & Lee brands, and reasonable guidance, are indicative of ongoing improvements in KTB’s consumer facing capabilities and its overall operations,” said Poser.  
Poser is ranked 134th among the analysts tracked by TipRanks. Further, 55% of his ratings have been successful, generating a return of 17.7%, on average.

Fiserv

Fiserv (FISV), a provider of payments and financial services technology solutions, is also on our list this week. Last month, the company announced its fourth-quarter results and assured investors about being well-poised to deliver its 38th consecutive year of double-digit adjusted earnings per share growth, supported by recent client additions, solid recurring revenue and productivity efforts.
Tigress Financial analyst Ivan Feinseth noted that Fiserv continues to experience strong business momentum, thanks to the performance of its payments product portfolio and the strength in Clover, the company’s cloud-based point-of-sale and business management platform. (See Fiserv Financial Statements on TipRanks)
“FISV’s diversified product portfolio and industry-leading technology position it at the forefront of the ongoing secular shift to electronic payments and the growing use of connected devices to deliver payment processing services and financial data access,” said Feinseth. The analyst reiterated a buy rating for FISV stock and raised the price target to $154 from $152.
Feinseth holds the 176th position among more than 8,300 analysts tracked on the site. Moreover, 62% of his ratings have been profitable, his ratings generating an average return of 12.3%.

Workday

Workday (WDAY), a provider of cloud-based finance and human resources applications, issued a subdued outlook for fiscal 2024, which overshadowed better-than-anticipated results for the fourth quarter of fiscal 2023.
Baird analyst Mark Marcon noted that Workday continues to gain market share in human capital management and financial management solutions in the enterprise space, though its pace of growth ahead is “slightly tempered by macro uncertainty.”
Marcon also noted that despite elongated enterprise sales cycles due to macro pressures, Workday gained seven new Fortune 500 and 11 new Global 2000 customers in the fiscal fourth quarter. The analyst said that the new co-CEO Carl Eschenbach is “quickly making a mark on WDAY” and that the company is expected to reaccelerate subscription revenue growth to the 20% level once the macro backdrop is normalized.
“While our near-term expectations are more muted, we believe the valuation relative to the long-term potential continues to be attractive considering WDAY’s high net revenue retention (over 100%), high GAAP gross margins, strong FCF [free cash flow] and strong growth potential given financials moving to the cloud,” said Marcon.
The analyst slightly lowered his price target for Workday stock to $220 from $223 to reflect near-term pressures. He reiterated a buy rating, given the company’s long-term growth potential.
Marcon ranks 444th out of the analysts followed on TipRanks. His ratings have been profitable 60% of the time, generating a 13.5% average return. (See Workday Blogger Opinions & Sentiment on TipRanks)

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The New Road to Retirement

Without action from Congress, Social Security may only be able to pay full benefits for another decade.
As lawmakers weigh potential fixes, getting bipartisan agreement won’t be easy.

Pascal Broze | Onoky | Getty Images

To be sure, other changes may be on the table.
Sens. Angus King, I-Maine, and Bill Cassidy, R-La., are reportedly leading a bipartisan coalition to propose changes including raising the retirement age to 70. Their plan also reportedly calls for the creation of a sovereign wealth fund that could invest Social Security’s funds in stocks. If the returns on those funds fell short, that could trigger more wages to be subject to payroll taxes, as well as higher rates on those levies.
Spokesmen for the Cassidy and King declined to provide further details, noting the plan is not finalized.

Meanwhile, Senate Democrats led by Elizabeth Warren, D-Mass., and Bernie Sanders, I-Vt., last month reintroduced legislation that calls for reapplying the Social Security payroll tax on wages over $250,000. It would also require wealthy individuals to pay a 12.4% tax on business and investment income. The plan would also add $2,400 per year to benefits.
Discussion about how to shore up Social Security has increased since President Joe Biden’s State of the Union address, during which he prompted both sides of the aisle to promise not to cut the program.

“I will not cut a single Social Security or Medicare benefit,” the president vowed later that same week at an event in Florida.
Yet the clock is ticking to shore up the program.
A recent Congressional Budget Office report projected Social Security’s combined funds may run out in 2033, two years sooner than the Social Security actuaries estimated last year. Once those depletion dates are reached, that would mean benefit cuts of 23% or 20%, respectively.
Changes to prevent those cuts may have profound effects on Americans’ retirements and the U.S. wealth distribution.

Raising retirement age may be a 20% benefit cut

The Social Security full retirement age is gradually changing to 67, based on changes enacted in 1983.
Lawmakers are considering raising the full retirement age again to age 70.
“This absolutely is a benefit cut,” said Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities.
The change would result in a 20% benefit cut across the board to lifetime benefits, she noted.
People who retire at 62, the earliest eligibility age, would see a 43% reduction from their full benefit, according to Romig. A $1,000 benefit, for example, would be reduced to $570.
“It would be hard for people to absorb that cut,” she said.

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Here’s a look at more retirement news.

While delaying benefits could help increase a beneficiary’s monthly checks, many people are not able to do that.
In 2021, 3 in 10 Social Security beneficiaries claimed at age 62. Of those who claimed at that age, about a quarter had already stopped working, Romig noted.
The most common reasons for retiring early were job losses, health issues or caregiving responsibilities.
Current beneficiaries and near retirees would likely be spared from any retirement age changes. But younger generations may feel the pinch. The Republican Study Committee budget, put forward by House leaders, has called for raising the full retirement age to 70 for people born in 1978 or later.

Payroll tax changes could target wealth inequality

In 1983, 90% of earnings were subject to Social Security taxes, which was a record high following the reforms Congress put in place, according to the Economic Policy Institute. In 2021, 81.4% of all wages were subject to Social Security taxes, as income inequality has led more earnings of high wage workers to fall over the cap.
That drop has caused big revenue declines for Social Security.
Cumulative losses since 1983 mean the Social Security trust fund had 50% fewer reserves, or $1.4 trillion less, as of 2022, according to the Economic Policy Institute. Between 2019 and 2021, about $26 billion in revenue was lost.
“It’s pretty clear that we need to tax higher earners’ wages that are spilling over that Social Security cap,” said Elise Gould, senior economist at the Economic Policy Institute.
In 2023, $160,200 of earnings are subject to Social Security payroll taxes. The tax rate is 6.2% for both employees and employers, or 12.4% for workers who are self-employed.
Warren and Sanders are calling for reapplying the Social Security payroll tax to income over $250,000, while also taxing certain business and investment income at 12.4%.
At a minimum, lawmakers should consider lifting the earnings cap to a level that results in 90% of earnings being subject to Social Security taxes, the Economic Policy Institute recommends.
“If we were back to that 90%, that would significantly increase revenues,” Gould said.

Leaders face tough trade-offs as debt ceiling looms

As Democrats resist benefit cuts, and Republicans oppose higher taxes, finding a compromise to fix the program will not be easy.
It will be crucial to look at the effects of any reform package in its entirely, said Shai Akabas, director of economic policy at the Bipartisan Policy Center.
A higher retirement age may be accompanied by other changes like a robust minimum benefit, for example, that can protect people at the bottom of the income distribution, Akabas said.
Just raising payroll taxes — without any benefit cuts — could provide enough money to shore up the program.
But some experts question whether that would be responsible when other tax increases are needed to pay for the country’s needs.
“If we rely only on more revenue from high income people to fix this problem, we’re not going to be able to tap that endlessly for other priorities that we have as a country, like a massive federal debt,” Akabas said.
It’s “dangerous” to think about Social Security without looking at the entire budget, said Maya MacGuineas, president of the Committee for a Responsible Federal Budget.
“It’s very easy for people to pretend there’s [an] infinity [of] resources in our budget, and there are not,” she said. More

Flexible spending accounts let you stash away pre-tax money to cover your health care expenses (or, separately, dependent-care expenses).
Last year, individuals could have contributed as much as $2,850 to their health care FSA.
If you had a balance remaining on Dec. 31, you may still be able to use the money, depending on your employer’s FSA rules.

Joos Mind | Photodisc | Getty Images

Workers who use health-care flexible spending accounts likely have at least one important deadline approaching.
FSAs, as they’re called, let you stash away pre-tax money to cover your health-care expenses (or, separately, dependent-care expenses). Last year, individuals could have contributed as much as $2,850 to their health-care FSA. The limit for 2023 is $3,050.

Yet most companies have a “use it or lose it” policy — meaning that if you have a balance remaining on Dec. 31, you’ll end up forfeiting that money if your health-care expenses during the year were lower than your contributions.
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However, you might still have options for using your 2022 FSA balance, depending on your employer’s rules.
Here’s what to know.

You may still have time to submit 2022 expenses

If you have proof of 2022 expenses that qualify but you haven’t yet submitted them for reimbursement, most employers give you extra time to do so — a so-called “run-out” period.

“It’s optional, but almost all employers offer it,” said Lisa Myers, director of client services and benefits accounts for consultant Willis Towers Watson. “It just gives [workers] extra time to get reimbursed for expenses incurred last year.”
The most common deadline for this is March 31, she said, although some companies may give you six or 10 months.

Be aware that any documentation you submit to substantiate your claim must include five key things, Myers said: date of service, patient name, the provider’s name (i.e., your doctor or dentist), the type of service and the amount. Otherwise, the claim may get kicked back to you.

Some offer a grace period or carryover amount

Meanwhile, some employers also provide a grace period to spend any remaining 2022 FSA money — meaning qualifying 2023 health-care expenses also can be applied against last year’s balance. This period typically ends March 15.
“You can think of it as a two and half-month extension of your 2022 plan,” Myers said. 
And other companies allow you to carry over up to a certain amount from the previous year. For 2022 carryovers to 2023, that limit is $570 — although your company may have a lower cap.

Among workers who are allowed to carry over money, 49% end up forfeiting all or part of it, according to the Employee Benefit Research Institute. For those with a grace period, that share is 37%. Additionally, 48% with a traditional Dec. 31 deadline forfeit money, as well.

Check with your employer about its FSA rules

It’s common for workers to not know what their employer’s FSA rules are. If you’re uncertain, reach out to your company’s human resources department.
Alternatively, you can check your online FSA portal (if your company has one) for information. There also should be a phone number for customer service on the back of your FSA debit card that you can call.

The list of FSA-eligible items is lengthy

If you discover you’ve only got until March 15 to spend down remaining 2022 funds and are unsure how to use the money, there’s a broad range of services and products that qualify.
“Most people are surprised to learn everything that’s eligible,” said Rachel Rouleau, chief compliance officer for Health-E Commerce, parent company of FSAstore.com.
For starters, over-the-counter drugs don’t need a prescription to qualify. This includes things such as cold medicines, anti-inflammatories and allergy medicine.

Most people are surprised to learn everything that’s eligible.

Rachel Rouleau
Chief compliance officer for Health-E Commerce

Additionally, menstrual care products are eligible, as are items that became pertinent during the pandemic, such as at-home Covid tests, masks, hand sanitizer and other personal protection equipment used to combat the virus.
Other products that qualify include sunscreen, thermometers, eye-care products, baby monitors and pregnancy tests. FSAstore.com has a list of eligible items if you are uncertain whether something would qualify.
Be aware that the IRS does not allow stockpiling, which generally means you can’t buy more of a product at one time than you can use in that tax year. The specifics, though, are determined by FSA administrators.

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Now that the Supreme Court has heard oral arguments over Biden’s student loan forgiveness plan, here’s what borrowers can expect next.
Experts say a decision may come by late June.

A sign calling for student loan debt relief is seen in front of the Supreme Court as the justices are scheduled to hear oral arguments in two cases involving President Joe Biden’s bid to reinstate his plan to cancel billions of dollars in student debt in Washington, U.S., February 28, 2023. 
Nathan Howard | Reuters

Now that the Supreme Court has heard oral arguments over student loan forgiveness, borrowers may be wondering: What’s next?
Oral arguments last only a day, but the justices can take months to reach a decision, experts say. In an analysis of the last Supreme Court’s term, higher education expert Mark Kantrowitz found that half of the decisions were issued in June.

For many borrowers, that may be an agonizing wait: More than 26 million people applied for the Biden administration’s relief program before the U.S. Department of Education had to close its application portal amid legal challenges. The decision reached by the nine justices will determine whether those borrowers get up to $20,000 of their debt canceled.
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“For many people, this is life and death,” said Thomas Gokey, co-founder of the Debt Collective, a national union of debtors. “What’s at stake is being forced to choose between paying for student loans or being able to buy groceries, make rent and pay medical bills.”
Here’s what borrowers need to know while they wait for the Supreme Court’s ruling on student loan forgiveness.

Experts say the ruling could go either way

President Joe Biden’s plan has faced at least six lawsuits since it was rolled out in August.

The nine justices on Tuesday considered two of those legal challenges: one from six GOP-led states —Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — and another backed by the Job Creators Network Foundation, a conservative advocacy organization.
Prior to the oral arguments, legal experts expected Biden’s plan to face tough odds with the justices. However, they then lobbed praise on Solicitor General Elizabeth Prelogar, the lawyer who represented the Biden administration in front of the highest court, for her performance, and some changed their tune.
“The Biden administration now seems more likely than not to win the cases,” Kantrowitz said.
University of Illinois Chicago law professor Steven Schwinn said Prelogar “knocked it out of the park.”
“I do think she could have influenced or even changed the thinking of two justices, maybe more,” he added.

The plaintiffs argued that the president doesn’t have the power to wipe out $400 billion in student debt without the authorization of Congress. The government attorney defending the policy countered that the Education Department can make changes to the federal student loan system, including debt forgiveness, during national emergencies.
A top Education Department official recently warned that the public health crisis has caused considerable financial harm to student loan borrowers and that its debt cancellation plan is necessary to stave off a historic rise in delinquencies and defaults.
At times, the justices seemed skeptical that those emergency powers included the kind of sweeping loan forgiveness the president is trying to carry out. But they also seemed doubtful at points that the plaintiffs had successfully proven they’d be harmed by the plan, which is typically a requirement to have standing to sue.

Payment pause on federal student loans is still ongoing

Federal student loan payments have been on pause since March 2020, when the coronavirus pandemic first hit the U.S. and crippled the economy. When the bills restart depends on how long the Supreme Court justices take to issue a decision, Kantrowitz said.
The Education Department in November said the bills would resume 60 days after the litigation over its student loan forgiveness plan resolves.
If the legal issues with the administration’s forgiveness plan are still unfolding by the end of June, or if it’s not allowed to move forward with forgiving student debt by then, payments will pick up at the end of August.
If the justices allow student loan forgiveness to go through, many borrowers will never have to restart payments. According to a White House estimate, roughly 20 million people could have their debt entirely cleared under the president’s plan.
“Sixty days will be enough to forgive student loan debt if the president’s plan survives,” Kantrowitz said. “They’ve already approved forgiveness for 16 million borrowers, so they just need to transmit this information to the loan servicers.”
He added: “It should take one to two weeks for the servicers to implement.”

A ruling against student loan forgiveness isn’t the end

Experts say that should the justices rule against the student loan forgiveness plan, the Biden administration could look for other ways to deliver its relief. The administration also could try to keep the payment pause in place for longer while it figures out those next steps.

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Smart Tax Planning

The Senate Finance Committee this week voted to advance Daniel Werfel’s nomination to become IRS commissioner.
The nomination process comes amid fierce debate over the agency’s $80 billion in new funding. 
The bipartisan committee vote was the final step before a full Senate vote on confirmation. 

Sen. Ron Wyden, D-Ore., speaks during a Senate Finance Committee nomination hearing on Feb. 23, 2021.
Greg Nash | Pool | Reuters

The Senate Finance Committee this week voted to advance Daniel Werfel’s nomination to become IRS commissioner amid fierce debate over the agency’s $80 billion in new funding. 
Following a confirmation hearing on Feb. 15, the bipartisan committee vote was the final step before a full Senate vote on confirmation.

Senate Finance Committee Chair Ron Wyden, D-Ore., said Werfel’s February testimony demonstrated he’s a “rule follower” who will work with “both sides of the committee.”  

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“He’s going to go through, I believe, in a matter of weeks,” said Mark Everson, a former IRS commissioner and current vice chairman at Alliantgroup, noting there is support from both sides of the aisle. 
“There’s a great deal of contention about the proper role of the IRS and tax administration in terms of its role on wealth distribution and a host of other issues,” he said. “But there’s agreement that you need a competent, accountable commissioner running this vital organ of government — and Danny Werfel is that person.”
Prior to Werfel’s role at Boston Consulting Group, he served former President George W. Bush as acting controller of the Office of Management and Budget. Under former President Barack Obama, he become permanent OMB controller, and later served as acting IRS commissioner.

Oversight of IRS funding is a priority for Republicans

The Senate Finance Committee vote comes amid continued scrutiny of the $80 billion in IRS funding allocated in August through the Inflation Reduction Act.

After months of disapproval, House Republicans in January voted to rescind the funding. But without support from the Democrat-controlled Senate or the White House, the bill was largely seen as political messaging.
And a group of House Republicans in January revisited the Fair Tax Act, which aimed to replace certain federal levies with a national sales tax and to decentralize the IRS. But policy experts say the fair tax has never been a mainstream idea.

In February, the Republican-led House Ways and Means Committee announced oversight priorities, with the $80 billion IRS funding “at the top of the list,” according to Chairman Jason Smith, R-Mo.  
Meanwhile, the IRS missed the six-month deadline to submit a plan for the funding on Feb. 17, as requested by Treasury Secretary Janet Yellen in August. Her priorities focused on taxpayer service, such as clearing the backlog of unprocessed tax returns, boosting customer service, overhauling technology and hiring workers.
Sen. John Cornyn, R-Texas, a member of the Senate Finance Committee, on Thursday spoke about the missed deadline during his opening statement, noting it’s “not inspiring when it comes to regaining the confidence of the American people.”
However, Everson believes the delay is an intentional choice from the agency.
“It would only muddy the waters because it would potentially give rise to another round of questions for the nominee,” he said.   More

Omar Marques | Lightrocket | Getty Images

Shares of Silvergate Capital plummeted Thursday after the bank delayed the filing of its annual 10-K report as it evaluates events that have happened since the end of 2022.
The company, which provides banking services to crypto businesses, ended the day lower by 57.72%. That pushed its year-to-date loss to 67%. It’s lost 95.7% in the past year.

Silvergate said in a filing Wednesday that it needs additional time for its accounting firm to complete certain audit procedures and that it’s “currently analyzing certain regulatory and other inquiries and investigations.”
Specifically, it cited the “sale of additional investment securities beyond what was previously anticipated” and the “impact that these subsequent events have on its ability to continue as a going concern.”
“The losses from the securities sales appear large enough to result in Silvergate calling out that it may now be less than well capitalized on its regulatory capital ratios,” JPMorgan analyst Steven Alexopoulos said in a note Thursday. “Given significant regulatory challenges (including the pending investigations from regulators) and business challenges (including the exacerbating liquidity challenges amid a crisis of confidence from digital asset customers), the company is reevaluating its businesses and strategies.”
JPMorgan downgraded Silvergate shares Thursday along with other Wall Street analysts.
Silvergate noted that its preliminary, unaudited financial results for 2022, filed Jan. 17, included a net loss attributable to common shareholders of $948.7 million, compared with net income of $75.5 million in 2021.

Silvergate is has been facing several challenges since the end of last year, following the blowup of crypto exchange FTX. In January it suffered another 40% drop in a single day after reporting massive withdrawals in the fourth quarter, in light of the FTX collapse. Then in February the Department of Justice opened an investigation into the bank’s dealings with FTX and its sister company Alameda Research.
The move in its shares weighed on Signature Bank, which also banks crypto startups. Its stock hit a 52-week low intraday, and fell as much as 7%
Coinbase also fell as much as 11%, but cut losses as the stock market rallied and finished the day down just 1.5%. The crypto services company said in a statement that has de minimis corporate exposure to Silvergate and that it has stopped accepting or initiating payments to or from Silvergate. Hedge fund Galaxy Digital, stablecoin issuers Circle and Paxos and others have taken the same measure.
The move did not have a big effect on cryptocurrencies, however. Bitcoin and ether both hovered at the flatline.

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Smart Tax Planning

If you’re banking on a refund this tax season, the IRS said you should file a complete and accurate return to avoid delays.
Before rushing to file, it’s important to gather tax documents for activity like your income, deductions and credits.
You can review last year’s tax return to make a checklist of which forms you may need this season.

Valentinrussanov | E+ | Getty Images

If you’re banking on a refund this tax season, the IRS has a warning: You should file a complete and accurate return to avoid delays.
While it’s been a smoother filing season compared with years past, it’s still important to file correctly the first time, experts say. One way to avoid possible issues is by getting organized with the necessary tax forms, known as information returns, sent to the IRS and taxpayers yearly.

“Missing tax documents are definitely going to cause a refund delay,” said Sheneya Wilson, a certified public accountant and founder of Fola Financial in New York.

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Here’s why: If you skip tax forms received by the agency, the IRS systems may flag your return and mail you a notice, she explained.
Whether you’re working with a tax professional or filing on your own, here’s what to know about your tax forms — and when to expect them.

When you’ll receive each tax form

While most tax forms have a Jan. 31 deadline, others aren’t due until mid-February or beyond, said certified financial planner John Loyd, owner at The Wealth Planner in Fort Worth, Texas. 
For example, the deadline for 1099-B for capital gains and losses and 1099-DIV for dividends and distributions is Feb. 15. But some investment firms get an extension from the IRS for more time to validate forms and avoid corrections, meaning you may not receive these forms until March, Loyd said. 

If you do need a corrected form, it can slow down your filing process because it takes time for the investment firm to update and reissue your documents, he said.
Regardless of your situation, it’s important to have all the necessary forms handy before filing your return, Loyd said. “It’s 1,000 times better” to file correctly the first time, he added, noting that IRS notices may take months to resolve.

Make a checklist with last year’s return

If you’re not sure which tax forms to expect, experts say last year’s tax return is a great starting point.
“I go page-by-page with the prior year and current year’s [returns],” said Marianela Collado, a CFP and CEO of Tobias Financial Advisors in Plantation, Florida. She is also a CPA. “That’s always a good check,” she said.
For earnings, some of the common forms include a W-2 for wages, 1099-NEC for contract or gig economy work, 1099-G for unemployment income and 1099-R for retirement plan distributions. 
For 2022, you probably won’t receive a 1099-K for payment apps such as Vemno or PayPal unless there were more than 200 payments worth an aggregate above $20,000. If you receive this form by mistake, the IRS said it is working on guidance.

Of course, it’s also important to make sure the numbers on your tax return match those on your 1099s because “that’s something that could trigger a delay,” Collado said.   
As for tax breaks, you may need forms 1098 for mortgage interest, 5498 for individual retirement account deposits, 5498-SA for health savings account contributions, 1098-T for tuition, 1098-E for student loan interest and more. More