HomeNews

Trump Tax Plan Could Spell Doom For Tax Preparation Firms

Like Tweet Pin it Share Share Email
Last week the Trump Administration released a high-level plan for significant changes to the US Tax Code. Ones, which if put into effect, could decimate the tax preparation industry.

 

Key points of the plan were outlined to be:

  • Reducing the marginal tax brackets from seven to threee
  • Doubling the standard deduction for each filing status.
  • Repealing the Alternative Minimum Tax.
  • Eliminating the additional 3.8% capital gains tax created by Obamacare.
  • Eliminating all itemized decutions except for mortgage interest and charitable giving.
  • Repealing the inheritance tax.
  • Slashing the corporate tax rate from 35% to 15%.

If these changes were to become law, then Steve Mnuchkin’s promise of creating an environment where most taxpayers could file their taxes on the back of a (large) postcard, could become a reality.

Add that to the impending explosion of blockchain managed accounting, and the tax preparation industry would become an endangered species, except for those firms who already prepare an existing base of corporate and other artificial entity returns.

The tax preparation industry could become an endangered species Click To Tweet

In a recent podcast, leading tax marketing expert, Chauncey Hutter, warned that the potential for change is so drastic that tax preparers should begin planning by looking at alternative streams of income, a topic he will be covering at his annual Crash Course Success Summit in Charlottesville, Virginia, on June 1through 3, 2017.

Practitioners have limited options.

First of all, they should begin an SWOT analysis of their existing customer base to assess the revenue their threats and opportunities in relation to their strengths and weaknesses. Especially the proportion of individual and business engagements. That should be followed by an examination of client lists to see which clients would most likely be affected by the changes and be at risk of leaving. This should all be done well in advance of the next filing season, in case the proposed legislation becomes law.

Simultaneously, practitioners should prepare to position themselves so they can assist corporate and other entity clients with how best to meet their new, and hopefully reduced, tax obligations. New and improved or differentiated service offerings should be targeted to maximize opportunities with entity clients and prospects. Finally, these entity, and non-entity (proprietorship) clients should be profiled to determine who among them would make good candidates for reorganization, and begin reaching out to them.

Firms who plan for these changes have a large opportunity to seize, while others who fail to prepare may find themselves subject to a significant reduction in compliance revenues, leading to contraction and possible failure.

Join us here at Practice Builder Publishing and become a part of the community, whether you become a contributing author, a peer recruiter, or merely a raving devotee of the Practice Builder Publishing resources, I'll work with you personally so you can reach the goals you set.

Best to you and yours,

kirks-sig

 

Kirk

P.S. Think I'm full of B.S.? Maybe you ought to let me know what you think. Plop your comments in the section down below the related articles and let me know what you think.!

P.P.S. Got questions about products and services I talk about, the terms of service, privacy nd all that stuff related to Practice Builder Publishing? Click Here to read the fine print.


Join over a half dozen accounting practitioners like yourself that like us on Facebook, plus join over 7 fast growing practitioners by joining our private Practice Builder Publishing Facebook Members Group! (Like those numbers? I just made them up. The group is small, but the advice is huge. Join now, while you can get in for free.)
Share your experiences, and pick our brains.

 

Get Into Tax Representation NOW!

I would love to see you build a great Tax Practice, building a strong client base by helping troubled taxpayers solve their problems with the IRS.

I want you to become a part of the Practice Builder Publishing network, and I want to work with you personally to reach maximum profit potential this year! Nothing I teach or help you with damage your credibility. It will simply get you more clients and help you make more money.

If you stop searching for the next magic trick, the perfect software, the "shiny object" that's going to do all the work for you (note: it doesn't exist)- and just focus on building & serving your market - you'll actually start seeing GREAT results. FAST.

Get started building your practice by learning how actual practitioners build their business marketing tax representation services, and start building it FAST, by clicking on the link below. Click the button below and find out more!



Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.