Latest / Financial Survival Network / Tax Talk: Chaos and Change - Chris Hervochon - #6268

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Tax Talk: Chaos and Change - Chris Hervochon - #6268 · Financial Survival Network

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  Speaker 1: You know, we're following to get into a place where
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  Speaker 1: it's a little bit consistent. Things are a little bit
• 0:04
  Speaker 1: the same as last year, you know, and then we're
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  Speaker 1: going to add some sort of tax legislation that happens
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  Speaker 1: this year, and it's just going to be a whole
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  Speaker 1: bunch of change again. So the pace of change is
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  Speaker 1: most definitely getting, is most definitely increasing. You've got state
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  Speaker 1: and local governments that are always on the move, and
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  Speaker 1: trying to keep track of that is a challenge.
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  Speaker 2: You're listening to Carrie Let's's Financial Survival Network where you
• 0:25
  Speaker 2: get valuable information you just can't find anywhere else to
• 0:29
  Speaker 2: thrive in today's trying times. You need the Financial Survival
• 0:33
  Speaker 2: Network now more than ever. Go to Financial Survivalnetwork dot
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  Speaker 2: com and get your free newsletter in gift. Financial Survival
• 0:42
  Speaker 2: Network now more than ever.
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  Speaker 3: And welcome you are listening to and watching the Financial
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  Speaker 3: Survival Network. I'm your host, Carrie Lutz. Well, hey, it's
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  Speaker 3: tax time again. You know, you think you finish your
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  Speaker 3: taxes last year and you never think it's going to
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  Speaker 3: happen again, and then boom, here we are. It's tax time.
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  Speaker 3: A lot of changes happening at your least favorite three
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  Speaker 3: letter agency in Washington, d C. That's for sure, But
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  Speaker 3: it really doesn't matter because you have to manage your
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  Speaker 3: finances properly, and you've got to you got to meet
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  Speaker 3: these deadlines. The forum's got to be filed, the money's
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  Speaker 3: got to be paid. It's that simple. But someone who's
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  Speaker 3: an expert in this is Chris Prva Sean CPA and Chris,
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  Speaker 3: it's great to have you on the show. So a
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  Speaker 3: three pieces of advice, since we're coming up on April fifteenth,
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  Speaker 3: what are you recommending to like, all of your businesses
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  Speaker 3: that are your clients.
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  Speaker 1: Yeah, so you're coming up here as we're recording this
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  Speaker 1: as March twenty six, right, So three piece of advice
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  Speaker 1: would be number one, be organized, Be as organized as
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  Speaker 1: you can because at this point we're at a very
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  Speaker 1: tight turnaround. Be patient, everybody's everybody's crazy busy in the
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  Speaker 1: tax world right now. And then the third piece of
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  Speaker 1: advice would be looking out beyond April fifteenth. We know
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  Speaker 1: that we're going to get some tax legislation this year.
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  Speaker 1: We don't know exactly what that's going to look like,
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  Speaker 1: but we do that we're going to get it probably,
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  Speaker 1: so just kind of keep an eye out and see,
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  Speaker 1: you know, what's happening, what's developing in Washington, and then
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  Speaker 1: how that might impact your situation.
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  Speaker 3: Yeah, so what do you think, what kind of text
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  Speaker 3: stuff you think is coming down the pike at US.
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  Speaker 1: I said, anybody's Yeah. I was on a webinar last
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  Speaker 1: week with the as CPA. They do it a semi
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  Speaker 1: monthly talent hall and kind of just let us know
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  Speaker 1: what's going on in Washington and what they're what they're
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  Speaker 1: paying attention to, and their message was basically nobody knows.
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  Speaker 1: Some of the things that that I've heard are interesting, like,
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  Speaker 1: you know, maybe we're not going to have tax for
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  Speaker 1: individuals under that are making less than one hundred fifty
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  Speaker 1: thousand dollars. That's interesting. How's I think going to play
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  Speaker 1: in with tariffs? And you know, how the administration is
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  Speaker 1: looking at actually raising revenue. That's interesting. The provisions that
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  Speaker 1: are in the Tax Cuts and Jobs Act, which we
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  Speaker 1: had at the very end of twenty seventeen, it's like
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  Speaker 1: effect in twenty eighteen, But what is actually going to
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  Speaker 1: expire or what are they going to extend or what
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  Speaker 1: are they going to replace? What's that going to look like?
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  Speaker 1: That's all very interesting, especially when you get into tax
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  Speaker 1: brackets and pasterentity tacks and things like that, which is
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  Speaker 1: kind of near and dear to the hearts of my clients.
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  Speaker 1: But you know, all of those things are interesting, and
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  Speaker 1: what we're going to we're going to end up with
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  Speaker 1: is anybody's guess. I would say at this point.
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  Speaker 3: You know, it's interesting because I live in Florida, you know,
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  Speaker 3: which is considered one of the best managed states in
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  Speaker 3: the country for what that's worth. And our governor says
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  Speaker 3: he'd like to eliminate the property tax, and I mean,
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  Speaker 3: you know, like, hey, we wouldn't want to get rid
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  Speaker 3: of that. But the thing is, they got to get
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  Speaker 3: money from someplace. The cops aren't working for free, the
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  Speaker 3: streets aren't going to fix themselves, and you know, one
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  Speaker 3: fire and the whole town will burned down. It's the
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  Speaker 3: same thing with the federal government. Now, I happen to
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  Speaker 3: have studied this tariff thing. Right now, we collect approximately
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  Speaker 3: eighty billion dollars a year in tariffs. The effective tariff
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  Speaker 3: rate is two percent, right, So if we multiply that
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  Speaker 3: and made it five ten percent, all right, it would
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  Speaker 3: go up to four hundred billion it's just not enough here.
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  Speaker 1: Something has Tenny's yet. Right, Yeah, it's a waterbed, right,
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  Speaker 1: you got to you push one thing down, the other
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  Speaker 1: side goes up. That sort of think, and you know, yeah,
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  Speaker 1: how serious are they really about getting to some sort
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  Speaker 1: of bounced budget reducing spending and that's where things what
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  Speaker 1: number they actually have to get to? Like what does
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  Speaker 1: all that mean? You know, it's it's an interesting kind
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  Speaker 1: of time.
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  Speaker 3: Well, I finally believe that there's enough fat to cut
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  Speaker 3: out of there to at least cut the deficit in half, right,
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  Speaker 3: I think, so we have a numbercent economic growth, maybe
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  Speaker 3: that's going to do it. But I think we've been
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  Speaker 3: in a recession for a couple of years, and they
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  Speaker 3: just redefined this recession last administration to fool everybody. So
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  Speaker 3: you know there's a third a third and a third
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  Speaker 3: third tariffs, a third government cuts, and a third economic growth.
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  Speaker 3: You know, when you knock a million people out of
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  Speaker 3: work or half a million, that's going to affect your
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  Speaker 3: tax your tax collections, right, yeah, as.
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  Speaker 1: To it has to. You know, it's going to take
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  Speaker 1: some period of time for those people to get reseated.
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  Speaker 1: And you know, somewhere else in the economy, so where
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  Speaker 1: they're being productive and gaining a wage and those sorts
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  Speaker 1: of things, and that means paying tax too.
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  Speaker 3: Right. You know, we don't have to worry about the
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  Speaker 3: businesses around those government offices closing down because they haven't
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  Speaker 3: been showing up to work for four or five years anyway,
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  Speaker 3: So those businesses have already closed. So that's really not
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  Speaker 3: going to have any effect. Except maybe I wanted to
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  Speaker 3: call it the newspaper stand, but we really don't. It's
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  Speaker 3: not really a newspaper stand anymoreere is it. But that
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  Speaker 3: guy who runs the little coffee bar in the building,
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  Speaker 3: maybe he got hit. Maybe he's been hanging on praying
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  Speaker 3: these people are coming back, and now they aren't coming back.
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  Speaker 1: Yep, one hundred percent. So it's an.
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  Speaker 3: Interesting phenomena here smoking mirrors.
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  Speaker 1: You know.
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  Speaker 3: I have a theory about the way they're going to
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  Speaker 3: get rid of the thirty six trillion dollars, but we're
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  Speaker 3: not going to go into that here. It's very ingenious.
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  Speaker 3: I've written an article about it. You can go over
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  Speaker 3: and look on Financial Survival Network dot com.
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  Speaker 1: But no doubt it's coming. Hey, So.
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  Speaker 3: Stay organized, keep all your numbers close, you know. Now
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  Speaker 3: with the digital information, everything getting sent to you digitally.
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  Speaker 3: It's it's a lot easier to keep track of your
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  Speaker 3: info than ever before, isn't it. It is for those
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  Speaker 3: who are technologically savvy.
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  Speaker 1: For sure. You've still got a segment of the population
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  Speaker 1: who's not comfortable with things like tax organizers that are
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  Speaker 1: digital client ortals, things like that. Certainly, interacting with the
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  Speaker 1: irs in a digital way is theoretically easy, but in
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  Speaker 1: practice difficult, I would say for a lot of folks.
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  Speaker 1: But certainly the tools that we have at our at
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  Speaker 1: our at our disposal are way better than they were,
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  Speaker 1: you know, a decade ago or twenty years ago when
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  Speaker 1: I've started to get into the business, you know, online
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  Speaker 1: tax organizers, online tax software, all the all the good stuff.
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  Speaker 1: It's certainly made it a lot easier. Yeah.
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  Speaker 3: So so like looking at this thing, you know, uh,
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  Speaker 3: it's definitely easier, but there's definitely more stuff than they
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  Speaker 3: want than ever before, right.
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  Speaker 1: One hundred percent. Yeah, it's it's it's not getting any
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  Speaker 1: it's not getting any less complicated, and in fact, it's
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  Speaker 1: just getting more complicated. You had a lot of a
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  Speaker 1: lot of folks in our profession. We're talking about that
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  Speaker 1: around twenty seventeen twenty eighteen, when the Tax Cuts and
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  Speaker 1: Jobs That came into effect. Right on the heels of that,
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  Speaker 1: we had everything that related to COVID and all of
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  Speaker 1: the stimulus, and you know, all the accounts were certainly
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  Speaker 1: involved in that. So that's just more complexity and more
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  Speaker 1: to deal with. And then you had, you know, things
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  Speaker 1: like you know, the states how they're dealing with some
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  Speaker 1: of the provisions and passives or some of the state
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  Speaker 1: and local tax provisions of the Tax Cuts and Jobs Act.
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  Speaker 1: And now we're you know, we're finally to get into
• 8:19
  Speaker 1: a place where it's a little bit consistent. Things are
• 8:22
  Speaker 1: a little bit the same as last year, you know,
• 8:23
  Speaker 1: and then we're going to have some sort of tax
• 8:25
  Speaker 1: legislation that happens this year, and it's just going to
• 8:27
  Speaker 1: be a whole bunch of change again. So the pace
• 8:29
  Speaker 1: of change is most definitely getting is most definitely increasing.
• 8:34
  Speaker 1: You've got state and local governments that are you know,
• 8:36
  Speaker 1: always on the move, and trying to keep track of
• 8:38
  Speaker 1: that is a challenge. You know, it's just the it's
• 8:41
  Speaker 1: just layered complexity that's just getting worse as we go through.
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  Speaker 3: Yeah, well, maybe nobody's really talking about simplification though, are they, Chris, No,
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  Speaker 3: not really.
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  Speaker 1: You know, I think probably the biggest hint at simplification
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  Speaker 1: that we've seen so far is, hey, we're not going
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  Speaker 1: to have anybody who earns less than Harvey two thousand
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  Speaker 1: dollars pay tax. But you still, you still get into
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  Speaker 1: all these duridic questions around well what does that mean?
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  Speaker 1: Does that mean they're not going to have to file
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  Speaker 1: a tax return? Is that What is that going to
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  Speaker 1: mean from a state perspective? Are they going to be
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  Speaker 1: filing a federal or not following a federal or term
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  Speaker 1: but following state returns? Is it actually going to make
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  Speaker 1: it easier in practice? Be hard to say, but nobody's really.
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  Speaker 3: Well, you know, the future is always uncertain, right for sure?
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  Speaker 3: I don't.
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  Speaker 1: I don't think anybody's really seriously come up with a
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  Speaker 1: simplification package that has gotten a lot of trackage fraction
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  Speaker 1: that I've seen yet.
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  Speaker 3: No doubt, no doubt.
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  Speaker 1: So all right, Uh well, hey tell us.
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  Speaker 3: Where we find you, how we connect with you on
• 9:39
  Speaker 3: the web and uh in and then your social media
• 9:45
  Speaker 3: contact whatever?
• 9:47
  Speaker 1: Sure? Yeah, best best pace to find us is on
• 9:50
  Speaker 1: our website, better numbers dot cp A and You can
• 9:53
  Speaker 1: find me on Twitter mostly on social uh chray service
• 9:57
  Speaker 1: on and you can also find me on LinkedIn at
• 9:58
  Speaker 1: per service on.
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  Speaker 3: Excellent well links. In the show notes this interview on
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  Speaker 3: Financial Survival Network dot com. Appreciate you coming on, Chris,
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  Speaker 3: and a happy tax season and I'm sure you'll be
• 10:10
  Speaker 3: happy when it's all over.
• 10:11
  Speaker 1: Yes, sir, absolutely, Thanks Gerry, thanks for having me on.
• 10:14
  Speaker 2: Thanks for listening to Carrie Letz's Financial Survival Network, your
• 10:18
  Speaker 2: solution to today's trying times. For the latest, go to
• 10:22
  Speaker 2: Financial Survivalnetwork dot com. Financial Survival Network now more than ever,