Cruz Tax Plans would end payroll tax and flatten tax code
Jeffrey B. Kahn, Esq. and Gary Sussman Discusses Cruz Tax Plan; Investing Tips; Tax Tips and the IRS On ESPN Radio – March 25, 2016 Show
Topics Covered:
1. Senator Ted Cruz’s Tax Plan
2. Emotions, expectations and your money
3. Hot tax tips to save money on taxes
4. Questions from our listeners:
a. I am about to finish my residency at UCSD and my student loans payments are about to begin. I have about $150k in debt and my required monthly payment is going to be huge. Luckily I have a good job but my student loan payment is going to be higher than my rent. How am I going to keep this up?
Gary states: Good afternoon! Yes sometimes we just have to take the money and run! Welcome to Inside Advantage – Your Financial And Tax Radio Show.
This is Licensed Financial Planner, Gary Sussman, Senior Vice President Of Investments at Trilogy Financial Services.
Jeff states:
And this is Board Certified Tax Attorney, Jeffrey B. Kahn, the principal attorney of the Law Offices Of Jeffrey B. Kahn, P.C. and head of the KahnTaxLaw team.
Gary states:
You are listening to our weekly radio show where we talk everything about finances and taxes from the ESPN 1700 AM Studio in San Diego, California.
Jeff states:
When it comes to knowing tax laws and paying taxes, let’s face it — everyone in the U.S. is either in tax trouble, on their way to tax trouble, or trying to avoid tax trouble!
Gary states:
And whether you are on the rebound or flying high, we have the information you need to make sound financial decisions and map out your strategy for success.
Gary states:
Our show is broadcasted each Friday at 2:00PM Pacific Time and replays are available on demand by logging into the KahnTaxLaw website at www.kahntaxlaw.com.
Gary states:
For today’s show we have coming up:
Segment 2 material: Emotions, expectations and your money.
Jeff states:
Also coming up is:
Segment 3 material: Hot tax tips to save money on taxes.
And of course towards the end of our show, we will be answering some of your questions.
Gary starts chit chat with Jeff.
Gary states: So for today’s top story:
Senator Ted Cruz’s Tax Plan
https://www.tedcruz.org/tax_plan/
http://taxfoundation.org/article/details-and-analysis-senator-ted-cruz-s-tax-plan
Gary states: So imagine this – 4.9 million new jobs, average wages rising 12.2% over the next decade, capital investment rising 43.9%, and every income-level seeing double-digit increases in after-tax income. Imagine exports and manufacturing jobs booming and our trade deficit falling as the tax bias against American made goods is eliminated. Imagine a 10% income tax, with every American filling out his or her taxes on a postcard or iPhone app. And lastly imagine abolishing the IRS as we know it.
Gary states: Maybe this is fantasy but according to GOP Presidential candidate Ted Cruz, this is what would happen under his tax plan.
Jeff states: And just like we critiqued other candidate’s tax plans, Ted Cruz is no different so here are the key points of Cruz Tax Plan:
Gary states: For individuals – Replace Current System With A Flat Tax. Under the Simple Flat Tax, the current seven rates of personal income tax will collapse into a single low rate of 10 percent.
a. For a family of four, the first $36,000 will be tax-free (compared to $26,000.00 under current law) .
b. The Child Tax Credit will remain in place.
c. The Earned Income Tax Credit would be expanded with greater anti-fraud and pro-marriage reforms.
d. Under the plan, deductions for charitable contributions and mortgage interest payments are preserved.
e. Eliminates the Net Investment Income Tax of 3.8% and the Medicare surtax of 0.9%, which were passed as part of the Affordable Care Act.
Jeff states: For businesses, the corporate income tax will be eliminated. It will be replaced by a simple Business Flat Tax (operating as a Value Added Tax) at a single 16% rate. The current payroll tax system will be abolished, while maintaining full funding for Social Security and Medicare. Also, provides a temporary tax holiday at a 10% rate (instead of a full 35% rate) on any deferred foreign profits that are repatriated.
Gary states: Other taxes eliminated: Payroll Tax will be eliminated. The Death Tax will be eliminated. The Alternative Minimum Tax will be eliminated. The tax on profits earned abroad will be eliminated. And of course, the Obamacare taxes will be eliminated.
Jeff states: Except for the Child Care Credit and Earned Income Credit, all other tax credits are eliminated.
Jeff continues: His plan also creates a new “universal savings account” that allows up to $25,000 of tax-deductible savings.
Gary states: A simpler Tax Code: replaced with new rules of the game – so simple, in fact, that individuals and families could file their taxes on a postcard or phone app. Also gone will be the unending loopholes in the current code, the stacks of depreciation schedules for businesses, and the multi-tiered rates on income and investments. Under the Simple Flat Tax, the Internet remains free from taxes.
Jeff states: And lastly Ted Cruz is looking the end the IRS. He states it will cease to exist as we know it, there will be zero targeting of individuals based on their faith or political beliefs, and there will be no way for thousands of agents to manipulate the system.
Gary states: Cruz believes his plan for the Simple Flat Tax will ensure that low- and middle-income Americans have greater opportunities – not only through minimal taxes, but also through better, high-paying jobs that the Simple Flat Tax will generate.
Jeff states: According to the Tax Foundation’s Taxes and Growth Model, the plan would significantly reduce marginal tax rates and the cost of capital, which would lead to a 13.9% higher GDP over the long term, provided that the tax cut could be appropriately financed. The plan would also lead to a 43.9% larger capital stock, 12.2% higher wages, and 4.8 million more full-time equivalent jobs. On a static basis, the plan would cut taxes by 9.2%, on average, for all taxpayers. Accounting for economic growth, all taxpayers would see an increase in after-tax income of at least 14% at the end of the decade.
Gary states: The figures for this model sound great but beware that The Taxes and Growth Model does not take into account the fiscal or economic effects of interest on debt. It also does not require budgets to balance over the long term, nor does it account for the potential macroeconomic effects of any spending cuts that may be required to finance the plan.
Jeff asks: So we all these grand tax cuts, how does Ted Cruz expect to pay for this?
Gary states: Senator Cruz’s plan would cut taxes by $3.6 trillion over the next decade on a static basis. However, the plan would end up reducing tax revenues by $768 billion over the next decade when accounting for economic growth from increases in the supply of labor and capital and the much broader tax base due to the new value-added tax which system is similar to most developed countries.
Jeff states: Senator Cruz’s tax reform would be a significant shift from the current tax code. Under this plan, the income tax would be greatly diminished in its importance compared to current law. Instead, the U.S. federal government would raise 71% of all revenue from the new broad-based value-added tax. The tax is a broad consumption tax that would include most of U.S. GDP, including both wages and profits. Due to these changes, the taxation of investment would significantly decline, which would greatly increase incentives to save and invest.
Gary states: But going back to the Death Of The IRS – Jeff what do you have to say about that?
Jeff states: Cruz claims each year, Americans spend 6.1 billion hours on tax compliance. That’s roughly the equivalent of every American taxpayer devoting 45 hours to filing their taxes every year. Well I do know that most individuals spend nowhere near close to 45 hours to prepare and file their tax returns.
Gary states: Of the 84,000 IRS employees roughly half (48%) work on “Examinations and Collections”; roughly another quarter (23%) work on “Filing and Account Services.” Under the Simple Flat Tax, with Americans filing taxes on a postcard, Cruz claims we will need vastly fewer examiners, collectors, filers and account servicers and that will save the government money. Furthermore, Cruz claims the IRS needs to be abolished because of the institutional corruption and political self-dealing it causes to abuse taxpayers.
Jeff states: So I guess in Cruz’s view the IRS is the only government agency that is so corrupt it should be abolished. So Mr. Cruz I ask you who would then be collecting the taxes under your system? Do you have an “app” in mind for this?
Gary states: Well it’s time for a break but stay tuned because we are going to tell you Emotions, expectations and your money.
You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman on Inside Advantage on ESPN.
BREAK
Gary states: Welcome back. This is Inside Advantage – Your Financial And Tax Radio Show on ESPN and you are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman.
And be aware of the special offer that I have for you: Gary states PLUG: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Gary Sussman. The number to call is 949.536.2030. That is 949.536.2030. Or visit www.yourfinancialstory.com.
Emotions, expectations and your money.
http://blogs.wsj.com/moneybeat/2016/01/08/stock-market-puts-in-its-worst-opening-week-ever/
www.usatoday.com/story/money/personalfinance/2016/03/21/stock-rebound-erases-bad-start-2016-proves-point-investors/81914668/
http://www.usatoday.com/story/money/personalfinance/2016/03/21/stock-rebound-erases-bad-start-2016-proves-point-investors/81914668/
www.dalbar.com
Franklin Templeton Investments: Emotions, Expectations and Economics Seminar Presentation (#2015-730)
Rules: FIN 2210, SEC 482
Jeff states: As we approach the end of the 1st quarter, Gary thought it would be a good idea to take notice of the wild ride the stock market has been on since the turn of the year and hopefully give our listeners some perspective on how to make sense of things moving forward.
Gary states: Jeff it certainly has been an interesting start to the year. As investors got over their New Year’s hangovers the stock market did not do much to relieve their headache. The first week of trading this year was literally the worst opening week in Wall Street’s history.
Jeff states: The DOW Jones ended the first five days of trading down 6.2% to start the year. The S&P 500 did not fare much better, closing down 6% to start the year. Naturally there was panic in the air. All the pundits were opening up their history books and charts to create their own narrative of what the future may hold. For all the bears out there, this was a feeding frenzy.
Gary states: After a horrible first week things did not get much better and after the first 2 weeks of the year both the DOW and S&P were off 9 percent, and by February the S&P had lost about 18% from its high last summer. Needless to say, people were concerned, and their emotions were starting to drive their financial decision making. That almost always is a recipe for disaster.
Jeff states: I remember the headlines. Oil was in a free fall, China was collapsing and interest rates were rising. If you were looking for a reason as to why everything was going to collapse, you wouldn’t have to go too far to find it.
Gary states: Well let’s fast forward to today. What a difference a few weeks make, the stock market has rallied strongly from its lows and is now back in the black. “While stocks are admittedly still down from their summer highs after this run, investors should learn from the recent rebound and try to think longer term instead of fretting about day-to-day volatility” says Josh Brown CEO of Ritholtz Wealth Management in New York.
Jeff states: The pressures we faced to start the year have largely abated driven primarily by the rebound in oil prices. And after last week’s meeting with the Fed where they indicated rates were not going higher anytime soon, investors continued to bid stocks higher.
Gary states: With such vicious volatility that is then amplified by the internet and social media, how can people keep a level head! How can you not get caught up in the hype? How do you stop your emotions from driving your investment decisions?
Jeff states: It seems many investors struggle with removing emotion from decisions about their investments, maybe even overestimating their ability to deal with periods of market decline and volatility.
Gary states: Completely correct, people only truly understand risk when they experience loss, and tend to be influenced more by the prospect of loss than by the opportunity for gain, with fear being the greatest motivator.
Jeff states: A loss aversion study conducted by the Journal of Marketing Research found that people place about twice the value on giving up an item than on receiving the same item.
Gary states: That is why, there is such a gap between the average return for the S&P 500 and the average equity investor.
Jeff states: In a recent DALBAR study of investor behavior, for the 20 year period from December 31, 1994 to December 31, 2014 the S&P 500 grew an average of 9.9% whereas the average equity fund investor earned an average of just 5.2%.
Gary states: Jeff, DALBAR has been releasing that study forever and the numbers don’t change very much. The primary reason for this occurring is that some investors jumped in and out of the market at the wrong time for the wrong reasons thus missing out on long term opportunities, by ultimately buying high, and selling low.
Jeff states: The media seems to be playing a major role in how people feel about their money. We seem to be living in a world made up of headlines and sound bites.
Gary states: Very true and with 24/7 access to information these headlines are changing by the hour. Think about what emotions words like “slammed,” “plunge,” “tumble” and “surge” provoke. They make you feel like you should be taking some sort of action daily and the only way to make money in the market is to effectively time it as when to get in and out.
Jeff states: Market timing in turn can be risky simply because you are now trying to predict the future, which is impossible. These investors think about missing the “worst” days, but what if they land up missing the “best” days?
Gary states: Trying to accurately time the market is impossible. I always tell people that it is hard enough to time it right once let alone on a consistent basis.
Jeff states: In a study conducted by Morningstar, they looked at what would have happened if an investor tried to time the market, but missed the best, 10,20,30 or 40 trading days over a 20 year period from 1994-2014.
Gary states: If you would have stayed fully invested in the S&P 500 you would have earned an average 9.85% return, once you started to remove the best days, results were not so pretty. If you missed the 10 best days you would have earned 6.11%, if you missed the best 20, you would have earned 3.63%, the best 30 it would be 1.5% and miss the best 40 days you would have actually lost .45%.
Jeff states: So how do investors stay unemotional?
Gary states: I would start off by managing expectations. If you expect the market to be going up every day or every year, you will be sadly disappointed. When the market is doing well, investors can become “blinded” by euphoria over their investment returns and tend to expect consistent double digit returns, the problem is that our memories of bear or declining markets are simply a blur. So keep a level head, and don’t let the daily movements in the market drive your long term decision making.
Jeff states: Franklin Templeton did a study that looked at the three investor types and their expectations of the markets. They broke the three types into optimist, the skeptic and the pessimist and the missed opportunities that can result.
Gary states: Optimists tend to think the stock market continually rises, but fail to consider the many short-term fluctuations that have occurred throughout history. In turn optimists may become too heavy in stocks and overlook other asset classes like bonds and cash and thus feel too much pain when markets correct or maybe even land up making rash decisions.
Jeff States: Then we have the skeptic. Skeptics tend to assume the market will stay flat, and tend to be handcuffed by indecision. The net result is that skeptics may then miss out on the opportunity for additional growth that can come out of owning stocks and may in turn limit their upside returns.
Gary states: Lastly we have the pessimist. They tend to see the stock market as too much of a gamble, and believe CDs are the only way to go. While the pessimist may not expose themselves to any market based risk they open up the door to a potentially bigger risk, that of inflation and the decreasing value of their dollars over time and severely limiting their ability to grow their wealth and maybe even land up locking in the likelihood that they never even reach their goals.
Jeff states: Regardless of which category you fall in, it seems investor’s expectations can lead to disappointment in the performance of their investments.
Gary states: Jeff, the thing I consistently strive to do when working with clients is manage expectations to avoid any type of surprise when their long term performance does not match the often times unrealistic expectation of what their money should be doing.
Jeff states: So what should our listeners do to keep their emotions and expectations in line with each other?
Gary states: Number 1, make sure you are working with a professional. Very few people can effectively manage the cycle of emotions on their own. Number 2, review your financial plan to determine if your portfolio matches your risk tolerance and don’t adjust your risk tolerances based on the movements in the market. Number 3, understand the rationale for your investment strategy. Number 4, set realistic performance expectations and lastly, discuss how to prepare yourself financially and mentally during times of market decline.
Jeff states: Sounds like, if you can set realistic investment expectations, you may be able to more easily ride the market’s ups and downs with a greater sense of confidence.
Gary states: Exactly! Having the right asset allocation is key to ensuring the ride you are taking matches the amount of risk you are comfortable taking. If that is in place, you may feel more at ease when we go through our next market correction which is why you should remember …
Gary states PLUG: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Gary Sussman. The number to call is 949.536.2030. That is 949.536.2030. Or visit www.yourfinancialstory.com.
Gary states: Stay tuned because after the break we are going to tell you hot tax tips to save money on taxes.
You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman on Inside Advantage on ESPN.
BREAK
Gary states: Welcome back. This is Inside Advantage – Your Financial And Tax Radio Show on ESPN and you are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman.
Gary states: And before we start our next segment, Jeff would you please tell our listeners of your offer?
Jeff states PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Jeffrey Kahn, right here in downtown San Diego or at one of my other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.
Six Facts You Should Know Before Deducting a Charitable Donation
Gary states: If you gave money or goods to a charity in 2015, you may be able to claim a deduction on your federal tax return. Here are six important facts you should know about charitable donations.
[Gary reads off the name of each fact and Jeff describes]
1. Qualified Charities. You must donate to a qualified charity. Gifts to individuals, political organizations or candidates are not deductible. An exception to this rule is contributions under the Slain Officer Family Support Act of 2015. To check the status of a charity, use the IRS Select Check tool.
2. Itemize Deductions. To deduct your contributions, you must file Form 1040 and itemize deductions. File Schedule A, Itemized Deductions, with your federal tax return.
3. Benefit in Return. If you get something in return for your donation, you may have to reduce your deduction. You can only deduct the amount of your gift that is more than the value of what you got in return. Examples of benefits include merchandise, meals, tickets to an event or other goods and services.
4. Type of Donation. If you give property instead of cash, your deduction amount is normally limited to the item’s fair market value. Fair market value is generally the price you would get if you sold the property on the open market. If you donate used clothing and household items, they generally must be in good condition, or better, to be deductible. Special rules apply to cars, boats and other types of property donations.
5. Form to File and Records to Keep. You must file Form 8283, Noncash Charitable Contributions, for all noncash gifts totaling more than $500 for the year.
6. Donations of $250 or More. If you donated cash or goods of $250 or more, you must have a written statement from the charity. It must show the amount of the donation and a description of any property given. It must also say whether you received any goods or services in exchange for the gift.
Save on Your Taxes and for Retirement with the Saver’s Credit
Gary states: If you contribute to a retirement plan, like a 401(k) or an IRA, you may be able to claim the Saver’s Credit. This credit can help you save for retirement and reduce the tax you owe. Here are some key facts that you should know about this important tax credit:
[Gary reads off the name of each fact and Jeff describes]
1. Formal Name. The formal name of the Saver’s Credit is the Retirement Savings Contribution Credit. The Saver’s Credit is in addition to other tax savings you get if you set aside money for retirement. For example, you may also be able to deduct your contributions to a traditional IRA.
2. Maximum Credit. The Saver’s Credit is worth up to $4,000 if you are married and file a joint return. The credit is worth up to $2,000 if you are single. The credit you receive is often much less than the maximum. This is partly because of the deductions and other credits you may claim.
3. Income Limits. You may be able to claim the credit depending on your filing status and the amount of your yearly income. You may be eligible for the credit on your 2015 tax return if you are:
o Married filing jointly with income up to $61,000
o Head of household with income up to $45,750
o Married filing separately or a single taxpayer with income up to $30,500
4. Other Rules. Other rules that apply to the credit include:
o You must be at least 18 years of age.
o You can’t have been a full-time student in 2015.
o No other person can claim you as a dependent on their tax return.
5. Contribution Date. You must have contributed to a 401(k) plan or similar workplace plan by the end of the year to claim this credit. However, you can contribute to an IRA by the due date of your tax return and still have it count for 2015. The due date for most people is April 18, 2016.
6. Form 8880. File Form 8880, Credit for Qualified Retirement Savings Contributions, to claim the credit.
Jeff states: You know we are always thinking of ways to save our clients’ money from taxes which we why …
PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Jeffrey Kahn, right here in downtown San Diego or at one of my other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.
Gary states: Stay tuned as we will be taking some of your questions. You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman on Inside Advantage on ESPN.
BREAK
Gary states: Welcome back. This is Inside Advantage – Your Financial And Tax Radio Show on ESPN and you are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman.
Jeff states: And Gary and I always pleased to make our offers to our listeners where… PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Jeffrey Kahn, right here in downtown San Diego or at one of my other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.
Gary states PLUG: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Gary Sussman. The number to call is 949.536.2030. That is 949.536.2030. Or visit www.yourfinancialstory.com.
You should also know that the securities and advisory services are offered through National Planning Corporation (NPC) Member FINRA, SIPC, and a Registered Investment Advisor. Trilogy Financial Services and NPC are separate and unrelated Entities.
Jeff states: If you would like to post a question for us to answer, you can go to my website at www.kahntaxlaw.com and click on “Radio Show”. You can then enter your question and maybe it will be selected for our show.
OK Gary, what questions have you pulled for us to answer?
Question from Sandra of San Diego: I am about to finish my residency at UCSD and my student loans payments are about to begin. I have about $150k in debt and my required monthly payment is going to be huge. Luckily I have a good job but my student loan payment is going to be higher than my rent. How am I going to keep this up?
Answer by Gary: Student debt is a serious problem for recent graduates. With the cost of college the average student is graduating with 30k in debt. Having a budget is essential no matter what and considering the amount of your payment you should look to see where else you can make cuts in your spending. Another alternative is to explore Income Driven Repayment plans. These programs exist for the majority of federal loans. They will base your payment on a percentage of your income rather than on the balance of the loan. These programs may allow you to significantly reduce your monthly payment and eventually have that debt forgiven. The benefit is that you may actually be able to afford to live. The caveat is that because this will become forgiven debt at some point in the future, it will be taxable. These programs are not right for everyone and I would definitely investigate this topic further with the guidance of a financial adviser and tax professional.
Gary states: Well we are reaching the end of our show.
Remember you can send us your questions by visiting the kahntaxlaw website at www.kahntaxlaw.com.
Jeff states: Have a great day everyone!
Hillary Clinton’s Tax Plan, DOL Fiduciary Rule, Undisclosed Foreign Bank Accounts and the IRS
Jeffrey B. Kahn, Esq. and Gary Sussman Discusses Clinton Tax Plan, DOL Fiduciary Rule, Undisclosed Foreign Bank Accounts and the IRS On ESPN Radio – March 18, 2016 Show
Topics Covered:
1. What You Need To Know About The Hillary Clinton Tax Plan.
2. How the new “Department Of Labor Fiduciary Rule” will impact your investing habits.
3. What taxpayers need to know about their filing requirements if you have foreign bank accounts.
4. Questions from our listeners:
- My wife and I are looking at Long Term Care Insurance. It just seems so expensive, are there any other choices out there.
- Can I receive a tax refund if I am currently making payments under an installment agreement or payment plan for a prior year’s federal taxes?
****************************************************************************
Jeff states: Yes sometimes we just have to take the money and run!
Good afternoon! Welcome to Inside Advantage – Your Financial And Tax Radio Show.
This is Board Certified Tax Attorney, Jeffrey B. Kahn, the principal attorney of the Law Offices Of Jeffrey B. Kahn, P.C. and head of the KahnTaxLaw team.
Gary states:
And this is Licensed Financial Planner, Gary Sussman at Trilogy Financial Services.
You are listening to our weekly radio show where we talk everything about finances and taxes from the ESPN 1700 AM Studio in San Diego, California.
Jeff states:
When it comes to knowing tax laws and paying taxes, let’s face it — everyone in the U.S. is either in tax trouble, on their way to tax trouble, or trying to avoid tax trouble!
Gary states:
And whether you are on the rebound or flying high, we have the information you need to make sound financial decisions and map out your strategy for success.
Jeff states:
Our show is broadcasted each Friday at 2:00PM Pacific Time and replays are available on demand by logging into the KahnTaxLaw website at www.kahntaxlaw.com.
Jeff states:
For today’s show we have coming up:
Segment 2 material: How the new Department of Labor Fiduciary Rule will impact you.
Gary states:
Also coming up is:
Segment 3 material: what taxpayers need to know about their filing requirements if you have foreign bank accounts.
And of course towards the end of our show, we will be answering some of your questions.
Jeff starts chit chat with Gary.
Jeff states: So for today’s top story:
What You Need To Know About The Hillary Clinton Tax Plan.
www.npr.org/2016/01/13/462944798/hillary-clinton-s-new-tax-proposal-likely-wont-affect-you
http://www.npr.org/2016/01/13/462944798/hillary-clinton-s-new-tax-proposal-likely-wont-affect-you
Gary states: Clinton’s plan has four major parts to it: A 4 percent surtax, Instituting The Buffett Rule, Tightening loopholes and Expanding the estate tax’s reach.
Gary continues: So let’s discuss in more detail each part.
Jeff states: A 4 percent surtax (the campaign calls it a “Fair Share Surcharge”), which has been getting the most attention. It involves taxing all income (that is, not just wage and salary income) over $5 million. That’s what makes it a surcharge and not just the creation of a new income-tax bracket.
Gary states: The Buffett Rule — Clinton would require people earning more than $1 million annually to pay at least a 30% tax rate.
Jeff states: Tightening loopholes that tend to be used by the wealthy. In particular, the Clinton camp points to what’s been dubbed the “Romney loophole.” That refers to the practice of stashing millions of dollars in IRAs. They also highlight the “Bermuda reinsurance loophole,” which has allowed some hedge-fund managers to reduce their taxes via insurance companies in Bermuda.
Gary states: Expanding the estate tax’s reach — Right now, the tax applies to estates worth more than roughly $5.5 million. She would take that threshold down to $3.5 million, where the level was in 2009 (but higher than the $2 million level that existed throughout the mid-2000s) and also raise the rate from the current 40% to 45%.
Jeff states: To be clear, this isn’t a full tax plan in the same vein as the ones many Republican candidates released. While GOP candidates like Jeb Bush and Marco Rubio released more comprehensive plans covering things like estate, corporate, capital gains and income taxes at once, Clinton has released her ideas in pieces. For example, she also released a corporate tax plan in December and a capital gains plan in July.
Gary states: So you may ask whom would this new proposal affect? Well it’s not supposed to impact the average American. That’s because the elements in this plan focus on either the richest sliver of Americans making more than $5 million, the wealthy people taking advantage of specific tax breaks, or the relatively few people earning $1 million or more.
Jeff states: According to the NPR article, the surcharge, firstly, would affect very, very few people. In 2013, about 34,000 tax returns out of 147 million (or about 0.02 percent) had an adjusted gross income of $5 million or more.
Gary states: Likewise, Clinton’s proposal says the estate tax expansion would affect 4 out of every 1,000 estates. And the Romney loophole would similarly be limited in scope — as of 2011, 98.5% of taxpayers with IRAs had balances of less than $1 million. In addition, only about 346,000 returns listed incomes of $1 million or more in 2013 — about 0.2 percent of returns.
Jeff states: So it won’t affect most people’s lives, and that’s kind of the point. Clinton’s plan over and over stresses that it’s aimed at the richest people, and it also provides numbers showing how limited the number affected will be.
Gary states: You may think these be big tax hikes but let compare to history. The 4 percent surtax would be on top of the current top marginal tax rate of 39.6 percent (so, 10 percent higher) and on top of the total 23.8 percent paid on long-term capital gains right now (so, nearly 17 percent higher).
Gary continues: From that perspective, those seem like sizable bumps, but in historical perspective, the rates still would be modest. Tax rates are much lower in these two areas than they have been in the past. Consider that in 1981, Ronald Reagan cut taxes from 70% to 50% according to the Tax Policy Center. Meanwhile, Clinton’s proposal would essentially raise the top marginal rate to nearly 44%.
Jeff states: So the big question is what’s the price tag? For its part, the Clinton camp says this plan will raise up to $500 billion in revenue over 10 years. Big difference from Bernie Sander’s raising an additional $1 trillion in just one year!
Jeff continues: But what’s just as important is what Clinton will do with that half-trillion dollars. She does not say how she would spend the new revenue but I guess she feels it is better to figure that out later than what is facing the Republicans on what spending cuts would make up for the lower revenues from their plans.
Gary states: So under Clinton’s plan what would it do to the economy? The plan could reduce economic growth because it could cause wealthy Americans to invest less, says Kyle Pomerleau, director of federal projects at the right-leaning Tax Foundation. However, he said it would only be a “minor” reduction to output. He pointed to a paper from the Brookings Institution’s William Gale, which found a weak relationship between tax changes and growth. He also said that wealthy Americans have been sitting on their cash lately (meaning new taxes wouldn’t reduce already-low investment levels, though if that changes, so could the effect of these taxes).
Jeff states: So it seems Clinton’s biggest revenue raiser is that surtax. Clinton says the surtax is to make sure the richest people pay higher tax rates than “middle-class families.” The campaign points to IRS data showing that the top 400 taxpayers, who had an average income of more than $260 million in 2013, also paid an effective income tax rate of 23% that year.
Gary states: But even if Clinton does win the Presidency, with a Republican led House and an almost balanced Senate, she will not be able to on her own pass her tax policies.
Jeff states: Well it’s time for a break but stay tuned because we are going to shed some light on the new Department of Labor Fiduciary Rule which will impact you.
You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman on Inside Advantage on ESPN.
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Welcome back. This is Inside Advantage – Your Financial And Tax Radio Show on ESPN and you are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman.
Before we start with our next segment, Gary would you tell our listeners about how they can reach you and what you offer.
Gary states PLUG: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Gary Sussman. The number to call is 949.536.2030. That is 949.536.2030. Or visit www.yourfinancialstory.com.
Jeff resumes:
Jeff states: So let’s continue with our next story. We are on the brink of finalizing of a new rule that will have major implications for investors and financial advisors.
The Department of Labor (DOL) Fiduciary Rule.
www.motherjones.com/print/288971 www.americanfunds.com/advisor/tools/policy-spotlight/fiduciary-rule-policy-update.html www.investmentnews.com/article/20160211/FREE/160219984?template=printart
www.investmentnews.com/article/20160204/FREE/160209953?template=printart www.investmentnews.com/article/20160229/FREE/160229937?template=printart www.wealthmanagement.com/february-2016?utm_rid=CPG09000002941562&utm_campaign=5095&utm_medium=email&elq2=6c06f3316e9242909297e623f2e37e27#1 www.fa-mag.com/news/ria-rollover-advice-could-fall-under-dol-rule-23473.html?print www.wsj.com/articles/financial-advisers-worry-fiduciary-duty-rule-to-have-negative-impact-1457949604
Gary states: Jeff, this is really something that for the most part has gone unnoticed. As an advisor I have been very well aware of what has been going on in D.C. regarding this proposal. But just about everyone else who is not working in the industry is completely unaware of what is about to take place even though just about everyone who has a retirement account or offers retirement accounts will be affected by this proposal.
Jeff continues: This proposal was initially introduced in 2011. However, widespread criticism from the industry and lawmakers forced the department to withdraw its initial proposal. In April of last year the DOL published its draft fiduciary rule and it is now possibly weeks or even days away from become law.
Gary states: Under this new rule, advisors who sell retirement savings products will likely be held to a fiduciary standard. This means they would have to put their clients’ interest above their own, which is a stricter standard than the current one for brokers in which recommendations must be merely “suitable.”
Jeff continues: Many brokers are fuming over the rule that would block them from selling any investment into a retirement account in return for a commission. Instead, the DOL would restrict a broker’s compensation to a fee based on a financial advisor’s hours or a flat percentage of the value of a retirement account.
Gary continues: The goal is to curb an advisor’s temptation to sell products with the highest commissions rather than those that serve the best interests of customers saving for retirement. The DOL would still allow commissions for easily valued investments including exchange-traded stocks and bonds, but only if brokers sign contracts giving customers the right to bring class-action lawsuits if their best interests are not met.
Jeff states: The Labor Department’s fiduciary standard is also different from the one under which registered investment advisers currently operate under securities law.
Gary continues: This is where this whole thing becomes a nightmare for everyone. Many advisors are already fee-based and don’t work on any type of commission. Many of them have naturally assumed they are immune to this and in turn have come out in favor of the rule, thinking that this is their way of cleaning out the small group of brokers who may not always do the best thing for a client.
Jeff continues: A little known provision in the rule would capture RIAs under the DOL’s proposed best interest contract exemption (BICE) if RIAs recommend a rollover and their fees are higher than the retirement plans. The fact that the RIAs charge higher fees to cover the extra cost of advice is immaterial. Many fee-based advisors, because of their level fees, have assumed they would be unaffected by the DOL’s rulemaking. But Gary, that’s simply not the case.
Gary states: Jeff, this is why those who offer advice whether it be for a commission or a fee are so up in arms. I think the intent of the rule is very genuine, however the consequence to investors and the financial services industry can ultimately mean that this proposal will do more harm than good.
Jeff continues: It seems that there are a wide array of conflicting and strong opinions on this proposal.
Gary states: The rule has been the source of a fierce lobbying battle. President Barack Obama has said the rule is needed to protect workers and retirees from conflicted advice that increases their investment costs and erodes savings.
Jeff continues: Senator Elizabeth Warren is in favor of the proposal and has been its biggest advocate. She contests that that many financial advisers promote inferior financial products to collect kickbacks. She references lavish trips and golf outings offered by companies that sell certain annuities.
Gary continues: Opponents say the rule will significantly increase liability risk and regulatory costs for financial advisers and force them to abandon clients with small accounts.
Jeff states: Gary doesn’t it seem like she is trying to address a specific problem with regulation that would have bigger consequences?
Gary states: Jeff, that’s what it sounds like to me. I agree that these kickbacks should be disallowed to negate the temptation to put your own interests before your clients, but this rule goes much further. The peculiar thing to me is that the companies she singles out, names like, American Equity and Fidelity Guarantee offer products that most broker dealers prohibit their representatives from even selling, because of the high commissions and kickbacks. When it comes down to it, the people selling these products may not even be securities licensed, yet the regulation is going to impact the securities industry the most.
Jeff continues: Just recently MetLife became the second major insurance company that decided to exit the brokerage business. They sold their advisor unit which included the firm’s Premier Client Group, consisting of about 4,000 advisers. MetLife is shedding the unit as brokerage firms face higher compliance costs tied to the Labor Departments proposed fiduciary rule.
Gary states: It seems like the writing is on the wall. Even though nothing is official, firms are scrambling in anticipation of this new rule.
The Financial Services Institute, the trade group for independent broker-dealers, calculated that its members would spend $3.8 billion alone for such startup costs as new record-keeping and disclosure systems to implement the rule, almost 20 times the estimate made by the Labor Department. The cost of implementation alone is going to drive companies out of the business.
Jeff continues: The rule will force small firms out of business, giving “small and medium-sized investors” less access to needed retirement advice. Brokers say they would have to abandon giving retirement advice to thousands of middle and working class investors who cannot meet the minimum balance requirements for fee-based advisory accounts if the DOL proposal is not changed.
Gary states: In a recent wealthmanagement.com article, Michael Wong, equity analyst for capital markets at Morningstar, said the “entire value chain” would be affected by this rule, resulting in fewer commission-based products available to investors and a decline in the overall number of financial advisors.
Jeff continues: Other theorists expect attrition levels at wirehouses and IBDs to increase. Some expect a wave of mergers and acquisitions in the independent space, as it gets more complicated and expensive to do business.
Gary continues: To survive, many resource starved smaller firms will need to join forces with larger firms, taking advantage of greater scale and a more robust infrastructure.
Jeff states: So Gary, what does this all mean for those people that are currently working with a financial advisor in some sort of capacity?
Gary states: I would stay tuned. If your advisor has not spoken to you about this, I would go ahead and suggest giving them a call to see how much they know about this proposal and see if they or their firm has any type of plan to make the necessary adjustments once the Office of Management and Budget has completed their review and the rule is finalized. Hopefully they have been following this as closely as we have and are not going to be caught off guard. Unfortunately the consequence is that some clients will be left in the dust as they won’t be able to afford to work in a fee only world, or their advisor will be abandoning them because the advisor won’t be able to afford to keep them as a client or perhaps some senior advisors may decide that this watershed moment represents a perfect opportunity to retire rather than adapt to the new way of doing business.
Jeff states: Seems like the DOL is going to accomplish their goal of driving down costs for retirees, but to what extent it will help or hurt the average consumer remains to be seen.
Gary states PLUG: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Gary Sussman. The number to call is 949.536.2030. That is 949.536.2030. Or visit www.yourfinancialstory.com.
Jeff states: Stay tuned because after the break we are going to tell you what taxpayers need to know about their filing requirements if you have foreign bank accounts.
You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman on Inside Advantage on ESPN.
BREAK
Jeff states: Welcome back. This is Inside Advantage – Your Financial And Tax Radio Show on ESPN and you are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman.
Jeff states: And before we continue with this segment, I want to remind our listeners that…
PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Jeffrey Kahn, right here in downtown San Diego or at one of my other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.
Foreign Bank Account Filings Top 1 Million – What Taxpayers Need to Know About Their Filing Requirements If You Have Foreign Bank Accounts.
Jeff states: Earlier this week the IRS announced that strong and sustained growth of taxpayers complying with foreign financial account reporting reflects improving awareness and compliance of this important part of offshore tax rules.
Gary states: By law, many U.S. taxpayers with foreign accounts exceeding certain thresholds must file Form 114, Report of Foreign Bank and Financial Accounts, known as the “FBAR.” It is filed electronically with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
Jeff states: So here are the statistics – In 2015, FinCEN received a record high 1,163,229 FBARs, up more than 8% from the prior year. In fact, FBAR filings have grown on average by 17% per year during the last five years, according to FinCen data.
Gary states: Filings of IRS Form 8938, Statement of Specified Foreign Financial Assets, are another sign of growing awareness of foreign reporting requirements. Taxpayers filed more than 300,000 Forms 8938 with their tax returns for tax year 2014, roughly the same as the prior year and up from about 200,000 for tax year 2011, the first year of the form. Form 8938 resulted from the Foreign Account Tax Compliance Act, known as “FATCA.” The filing thresholds are much higher for this form than for the FBAR.
Filing Requirements
Jeff states: Taxpayers with an interest in, or signature or other authority over, foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2015 must file FBARs. It is due by June 30 and must be filed electronically through the BSA E-Filing System website.
Gary states: Generally, U.S. citizens, resident aliens and certain non-resident aliens must report specified foreign financial assets on Form 8938 if the aggregate value of those assets exceeds certain thresholds. Reporting thresholds vary based on whether a taxpayer files a joint income tax return or lives abroad. The lowest reporting threshold for Form 8938 is $50,000 but varies by taxpayer.
Jeff states: By law, Americans living abroad, as well as many non-U.S. citizens, must file a U.S. income tax return. In addition, key tax benefits, such as the foreign earned income exclusion, are only available to those who file U.S. returns.
Gary states: The law requires U.S. citizens and resident aliens to report worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to complete and attach Schedule B to their tax return. Part III of Schedule B asks about the existence of foreign accounts, such as bank and securities accounts, and usually requires U.S. citizens to report the country in which each account is located.
Jeff states: Now consider this – about 60,000 U.S. taxpayers have come forward to disclose their previously undisclosed offshore accounts but just last year alone, 300,000 U.S. taxpayers filed Form 8938 disclosing foreign accounts. That would mean that about 240,000 did not previously report their foreign accounts and that under this recent filing of Form 8938 to IRS, they have put the IRS on direct notice of their non-compliance.
Gary asks: Jeff what are the penalties for non-compliance of not reporting foreign income?
Jeff replies: Penalties for non-compliance:
- Civil Fraud – If your failure to file is due to fraud, the penalty is 15% for each month or part of a month that your return is late, up to a maximum of 75%.
- Criminal Fraud – Any person who willfully attempts in any manner to evade or defeat any tax under the Internal Revenue Code or the payment thereof is, in addition to other penalties provided by law, guilty of a felony and, upon conviction thereof, can be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than five years, or both, together with the costs of prosecution (Code Sec. 7201).
Jeff continues: The term “willfully” has been interpreted to require a specific intent to violate the law (U.S. v. Pomponio, 429 U.S. 10 (1976)). The term “willfulness” is defined as the voluntary, intentional violation of a known legal duty (Cheek v. U.S., 498 U.S. 192 (1991)).
Gary asks: Jeff what are the penalties for non-compliance of filing an FBAR?
Jeff replies: Penalties for non-compliance: The penalties for FBAR noncompliance are stiffer than the civil tax penalties ordinarily imposed for delinquent taxes.
- For non-willful violations it is $10,000.00 per account per year going back as far as six years.
- For willful violations the penalties for noncompliance which the government may impose include a fine of not more than $500,000 and imprisonment of not more than five years, for failure to file a report, supply information, and for filing a false or fraudulent report.
Gary states: The U.S. requires foreign financial institutions to report U.S. accountholder to the IRS.
Jeff replies: U.S. taxpayers with foreign accounts should also understand their reporting requirements under the Foreign Account Tax Compliance Act (FATCA). Third-party information reporting from foreign financial institutions or through intergovernmental agreements began in 2015.
Gary asks: Jeff what are the penalties for non-compliance for these foreign banks?
Jeff replies: Penalties for non-compliance: Foreign banks that are not certified by the IRS for reporting U.S. accountholders are subject to a 30% withholding tax on all U.S. sourced investments.
Gary states: The IRS requires disclosure of foreign financial accounts with your Form 1040.
Jeff replies: In addition, under FATCA, certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets. Generally, U.S. citizens, resident aliens and certain non-resident aliens must report specified foreign financial assets on this form if the aggregate value of those assets exceeds certain thresholds. Reporting thresholds vary based on whether a taxpayer files a joint income tax return or lives abroad.
Gary asks: Jeff what are the penalties for non-compliance of filing Form 8938?
Jeff replies: Penalties for non-compliance: Failing to file Form 8938 when required could result in a $10,000 penalty, with an additional penalty up to $50,000 for continued failure to file after IRS notification. A 40% penalty on any understatement of tax attributable to non-disclosed assets can also be imposed.
Gary states: The IRS has special programs for taxpayers to come forward to disclose unreported foreign accounts and unreported foreign income.
Jeff replies: The main program is called the Offshore Voluntary Disclosure Program (OVDP). OVDP offers taxpayers with undisclosed income from offshore accounts an opportunity to get current with their tax returns and information reporting obligations. The program encourages taxpayers to voluntarily disclose foreign accounts now rather than risk detection by the IRS at a later date and face more severe penalties and possible criminal prosecution.
Gary asks: Jeff, When did the IRS first start OVDP?
Jeff replies: OVDP was first started by the IRS in 2009. Since then there have been more than 54,000 voluntary disclosures by taxpayers with undisclosed foreign bank accounts. The IRS has collected more than $8 billion from this initiative.
Gary asks: What advantages does a taxpayer have coming into any of these programs.
Jeff replies: For taxpayers who willfully did not comply with the U.S. tax laws, we recommend going into the 2014 Offshore Voluntary Disclosure Program (OVDP). Under this program, you can get immunity from criminal prosecution and the one-time penalty is 27.5% of the highest aggregate value of your foreign income producing asset holdings.
Jeff continues: For taxpayers who were non-willful, we recommend going into the Streamlined Procedures of OVDP. Under these procedures the penalty rate is 5% and if you are a foreign person, that penalty can be waived. This is a very popular program and we have had much success qualifying taxpayers and demonstrating to the IRS that their non-compliance was not willful. Which is why …
PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Jeffrey Kahn, right here in downtown San Diego or at one of my other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.
Stay tuned as we will be taking some of your questions. You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman on Inside Advantage on ESPN.
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Jeff states: Welcome back. This is Inside Advantage – Your Financial And Tax Radio Show on ESPN and you are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman.
And Gary and I always pleased to make our offers to our listeners where… PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Jeffrey Kahn, right here in downtown San Diego or at one of my other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.
Gary states PLUG: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Gary Sussman. The number to call is 949.536.2030. That is 949.536.2030. Or visit www.yourfinancialstory.com.
Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Adviser. Additional advisory services offered through Trilogy Capital, a Registered Investment Adviser. Trilogy Capital and NPC are separate and unrelated companies.
Jeff states: If you would like to post a question for us to answer, you can go to my website at www.kahntaxlaw.com and click on “Radio Show”. You can then enter your question and maybe it will be selected for our show.
OK Gary, what questions have you pulled for us to answer?
Question from Patrick in Del Mar. My wife and I are looking at Long Term Care Insurance. It just seems so expensive, are there any other choices out there.
Answer: Yes it can be pretty expensive depending on when you get it and how much protection you are looking for. But it can be far more costly to need assisted living care and not have any type of protection. Without knowing your exact circumstance it’s difficult for me to say what is best, but you do have options. If you are very wealthy you can self-insure, just be prepared for the fact that you may need to use upwards of $250,000 of your own money assuming you or your spouse need extensive care. The reality of that may make the sound of paying a few hundred dollars a month more palatable. Alternatively there are hybrid products that may offer the ability to get protection against things like terminal and chronic illness, but if you never need those benefits a death benefit will still go to your beneficiaries. This type of product can combat the argument of potentially paying substantial premiums for a LTC coverage that you only have a 50% probability of ever using.
Question from Tim in Mission Viejo: Can I receive a tax refund if I am currently making payments under an installment agreement or payment plan for a prior year’s federal taxes?
Answer: Generally, no. A condition of your installment agreement is that the IRS will automatically apply any refund due to you against taxes you owe. If your refund exceeds your total balance due on all outstanding liabilities including accruals, you will receive a refund of the amount over and above what you owe. Because your refund is not applied toward your regular monthly payment, you must continue making your installment agreement payments as scheduled and in full until your liability including accrued penalties and interest is paid in full. Regardless whether you are participating in an installment agreement or other payment arrangement with the IRS, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support.
Jeff states: Well we are reaching the end of our show.
Remember you can send us your questions by visiting the kahntaxlaw website at www.kahntaxlaw.com.
Gary states: Have a great day everyone!.
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