FINANCIAL PLANNERS AND INSURANCE AGENTS ARE THE MAIN TWO.
Bad Insurance Agent
- They are very restricted in the products they offer.
- They sell the same products again and again even though there are better products to fulfill their clients needs.
- They don’t disclose the restrictions the products have.
Bad Financial Advisor
- If they try to sell you a Section 79 plan as a wealth building tool.
- Most financial advisors are restricted by the types of investment products they can offer to clients. Many of them aren’t able to offer Retirement Life products. The majority of them aren’t able to offer guaranteed return income for Life Insurance products.
- Lack of disclosure is a very big problem nowadays. Anyone who doesn’t disclose the clients limitations is a bad advisor.
BUYER BEWARE AND BE AWARE
The IRS has Turned your Accountant into their Policeman
Every business owner thinks he pays too much in taxes, and in reality, most actually do. These days your accountant has to “play it safe”. This is not reducing your tax bill.
Many times a tax preparer’s work on a typical return is subject to ‘+interpretations+’ of the tax code. New legislation may force preparers who hope to lower a client’s tax bill to be less aggressive with respect to these interpretations, or else they may risk substantially increased penalties.
Furthermore, if a tax preparer’s client insists on an aggressive deduction, the preparer may include a form explaining the circumstances. This could eliminate the potential preparer penalty, but it is a certain red flag for the IRS.
This should anger taxpayers who feel strongly about particular deductions. What’s more, these penalties do not apply to taxpayers preparing their own returns. This could prompt a taxpayer to tell a preparer: “who needs you; I’ll do it myself”. The remainder of this article explains why your accountant is reluctant to be aggressive anymore, and is less likely to give you the benefit of the doubt on tax deductions.
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