Harness

"To find out the median net worth of Americans at every age, Harness, a firm that matches financial advisors with clients, used household wealth data from the Federal Reserve's 2022 Survey of Consumer Finances and developed a proprietary classification of ages and ranges of net worth." ⬇️ Get the full story from Business Insider https://lnkd.in/eQhwTYWE

"It is hard to recall a time of more tax-related policy drivers being up in the air,” says David Snider, founder and CEO of the tax services firm Harness, pointing to recent leadership shake-ups at the IRS and the calls for a criminal investigation into firms with ties to Trump’s pick to run the agency. “The result is a high degree of uncertainty on tax policy in 2026, the level of tax enforcement, and IRS service levels.” ⬇️ Read the full story in Inc. Magazine https://lnkd.in/eJqPbYuk

This week, we cover Rep. Jeff Van Drew’s proposal to raise the SALT cap to $30,000, AICPA’s support for uniform nonresident state tax rules (excluding athletes and entertainers), and their push to simplify GST exemption regulations. We also highlight a report showing that financial illiteracy cost Americans $243 billion in 2024, as well as news that President Trump has blocked a 2026 IRS crypto reporting rule. We hope you’re enjoying a well-deserved break before extension season and tax planning ramp up!

Happy Tax Day! We made it. If you’ve been following along since Day 1 of this series, you’ve hopefully seen that tax planning isn’t just about checking a box once a year. It’s about building clarity, avoiding costly surprises, and making smarter financial decisions, year-round. But for today, here’s what matters most: ✅ If you haven’t filed yet: You still have until midnight tonight. Need more time? File Form 4868 to get a 6-month extension. But remember, your payment is still due today to avoid penalties. ✅ If you already filed: Take 10 minutes to check that everything was received. Log into your IRS Online Account to confirm submission, check payment status, and save your records. ✅ If you’re expecting a refund: Most are processed within 21 days. You can track it at irs.gov/wheres-my-refund. ✅ If this season was stressful: Don’t let it be this way again next year. A year-round tax advisor can help you stay organized, reduce your tax bill, and plan ahead with confidence. Thank you for following along with this series. Whether you learned something new, avoided a penalty, or just felt a little more in control this season, I hope it helped. If you're ready to take the next step, Harness can connect you with a year-round tax advisor who fits your goals, your income, and your life. Until next year.

Our final Tax Advisor Weekly before Tax Day covers TCJA extensions, buyout offers for IRS employees, growing concerns around DAFs, and more. New editions published every Friday. Subscribe today.

“Don’t let the income-tax tail wag the total-spending dog.” Retiring to a no-income-tax state sounds smart, but it may not actually save you money. Today’s article in The Wall Street Journal article by Debbie Carlson explains why: Tax rates matter. But so do cost of living, real estate prices, and unexpected expenses. 🔹 Property taxes – Texas has no income tax but some of the highest property taxes in the country 🔹 Insurance – Florida’s average home insurance is $5,340—more than twice the national average 🔹 Sales tax – States without income tax often have higher sales taxes 🔹 Retirement income – Some states tax Social Security and IRA withdrawals, others don’t 🔹 Estate taxes – Oregon taxes estates above $1M—far below the federal exemption The article describes one couple that moved from Indiana to Florida to be closer to family and avoid income tax. But between insurance, HOA fees, and storm damage, they ended up spending more than they saved. One spouse even returned to work. Before making any big move, model your full financial picture, not just your state income tax. A year-round tax advisor can help you plan with clarity and avoid surprises. This is Day 44 of my 50 Tax Tips in 50 Days series. One practical insight every day until April 15th.

On our most recent CEO.com podcast episode, David Snider discusses common tax mistakes entrepreneurs make and the importance of proactive tax planning. Don't wait until the last minute—get valuable advice on optimizing your tax strategy year-round. Learn more from Harness at www.harnesswealth.com. Catch the full episode at www.ceo.com/podcast or on YouTube.

“Where’s my refund?” It’s one of the most common questions this time of year, with Tax Day just over one week away. If you’ve already filed and are waiting for your refund, here’s what the IRS says to keep in mind: - Most refunds are issued in less than 21 days. But delays can happen if there are errors, identity verification issues, or missing forms. - You can track your refund on irs.gov/wheres-my-refund. You’ll need your Social Security number, filing status, and exact refund amount. - Filing early doesn’t always mean getting your refund faster. - Direct deposit is typically faster than a paper check. - Refunds from amended returns can take longer, sometimes up to 16 weeks, per the IRS. If it’s been more than 21 days and your return hasn’t been flagged, consider calling the IRS at 800-829-1954. 📌 This is Day 41 of my 50 Tax Tips in 50 Days series. One practical insight every day until April 15th. Follow along to stay tax-savvy through the final stretch.

Yesterday’s The Wall Street Journal headline said it clearly: “Why Cutting Corners on Your Taxes This Year Is a Bad Idea.” In the piece, Laura Saunders outlines why—despite recent staffing cuts—the IRS still has powerful systems in place to flag discrepancies and enforce penalties. Some key takeaways: - The IRS receives more than 250 million W-2s and 5.4 billion 1099s each year. - It uses automated matching tools to flag omissions or inconsistencies—often months after filing. - In cases where no return is filed, the IRS can generate a substitute return based on known income, which typically excludes deductions or credits the taxpayer may have qualified for. CPA Dan Herron, quoted in the article, noted a growing curiosity about what counts as deductible: “Clients are putting more emphasis on pushing the envelope, because they see what’s going on at the IRS.” The penalties for underreporting or missing key details can add up quickly: - 7% interest on unpaid taxes - 5% per month penalty for late filing (up to 25%) - 0.5% per month for late payment - 20% accuracy-related penalty - 75% civil fraud penalty in rare cases—with no statute of limitations While the number of audits may be down, the IRS is still actively identifying discrepancies and applying penalties using both automated and manual systems. If you’re navigating a complex return or unsure what might trigger scrutiny, a year-round tax advisor can help ensure everything is reported accurately. 📌 This is Day 40 of my 50 Tax Tips in 50 Days series. One practical insight every day until April 15th. See you again tomorrow.

In this week's newsletter, we highlight guidance on navigating property tax scenarios during business mergers and expansions, the importance of C-suite awareness regarding transfer pricing implications, and the latest on BOI reporting requirements for foreign companies despite the temporary elimination for domestic entities. We also cover the IRS Criminal Investigation unit's enhanced use of banking data in financial crime detection, and a proposed 5 percent payroll tax in Washington state that could significantly impact businesses.