Changing Tax Laws and Our Role
Tax law is constantly changing, and sometimes those changes are major. Unfortunately, almost all of the changes we see are in the direction of making the law and compliance with the law more complex. It’s not uncommon in many businesses or personal lives that income taxes are the single largest factor in determining profitability or viability.
There are many different sorts of income which are treated differently under the tax code as well as differences in things like filing status, tax rates and various other fundamental characteristics. The particular situation of a business or individual can have a lot to do with the actual amount of tax that they pay and also what sort of tax breaks they can take advantage of.
Because of the sheer number of all the different tax breaks which are available these days, there is a pretty decent chance that there is something out there you either don’t know about or haven’t been able to take advantage of.
WE ARE HERE TO HELP
Keeping up with all of the intricacies and developments in both Federal and State income taxation is very much a full-time job. Fortunately for you, it’s our full-time job, and not yours.
There is lots legislation that comes through Congress, as well as numerous rulings and regulations issued by the Internal Revenue Service. There are also tax court and other decision which are handed down and other issues which change the face of Federal Taxation on a continuing basis. All too often, something which was true last year is true no more. In addition, the overall direction that our tax system is taking is to become not only more complicated but also more “revenue productive,” if we can use such a euphemism. The bottom line is that the role of both Federal and State governments are expanding significantly, and their need for money is expanding right along with that. As a result, you can expect that more of the laws and regulations which have been on the books for along time will actually be enforced or enforced more aggressively; you can expect that the government will continue to make better and better use of computer systems to ferret out information which might lead them to higher taxes or collections; and you can expect that the average tax examiner will be somewhat less sympathetic to not only flaws in your paperwork or records but also any arguments that you might raise. It is a significant part of our service for our clients that we put them in a position where they not only know enough about tax laws to be able to protect themselves, but also where their affairs and their records are sufficiently well arranged that an effective defense can be mounted no matter how greedy, grabby or unreasonable some government official might choose to be. It’s an unfortunate commentary on the nature of government politics and economics at this time, but the pressure on the average productive citizen to pay more and more of his income out in taxes is going to continue, whether this be by simply having tax rates go up, or by having tax breaks and and loopholes go away, by having more taxes, or by having enforcement actions increase.
WE HAVE NO AXES TO GRIND
We know that the picture we’ve painted above is perhaps a bit unsettling, but it is, unfortunately, the actual situation at this time. Having said this, it’s also our position that the governments engaging in these activities are our governments and not merely some dictator from another planet. It’s important that we realize that, as nasty as our tax system may behave from time to time, the United States is still probably one of the best places in the world in which to live and work. We recognize that any reasonable government has a need for funding and that the people of the country should take part in the handling of that need. This is where the ofttimes misapplied notion of “your fair share” comes from. So, rest assured that we are not either rabidly anti-government nor of the viewpoint that you should roll over and do whatever they say, “just to be on the safe side.” Our position is that we are here to ensure that you responsibly meet your legal obligations while keeping them as non-burdensome as possible. We have no ax to grind in this fight except to see that you and the people like you in this country do as well as possible, so that by extension the country does as well as possible.
Give us a call or shoot us an email, we would like to hear from you! 323-257-5762 or email@example.com
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