Proposed tax regs require more detailed record keeping – Harris N. “Hershey” Rosen

by Harris N. “Hershey” Rosen, contributing writer, RI author

This week President Biden issued new regulations designed to tighten up on the equitable payment of taxes by those making over $400,000, individuals and businesses alike. In this presentation, he said that he would be interested in asking for just for two pieces of information from the banks of these people: the amounts that come into their bank accounts – and what amounts go out of their bank accounts. All so “”the wealthy can no longer hide what they’re making and they can finally begin to pay their fair share of what they owe”.

The President says that this “isn’t about raising their taxes. It’s about the super-wealthy finally beginning to pay what they owe — what the existing tax code calls for — just like hardworking Americans do all over this country every Tax Day. 55 of the most profitable corporations in America paid zero in federal income taxes on what amounted to $40 billion in profit. Not a penny. That’s not right. And my economic plan will change that. Not punish anybody, just make them pay their fair share.”

So – while the president insists this dramatic change in tax code will not fall on anyone making less than $400,000, many small businesses have income and tax areas well over the $400K demarcation.

What does this have to do with organizing information – and record keeping?

It has everything to do with record keeping. You will want every scrap of paper and deduction calculated, categorized and safe.

In my book, I address the need to maintain accurate Tax Record information.

You will want to have areas for income taxes in a separate and safe area. This goes from property taxes to tax returns, income and expenses.

My book reviews all the items and records you should keep – ostensibly forever – also the items you need to keep in detail from year to year. Once you get your systems in place, they will serve you well as tax records will be a key tool for new detailed tax collection practices.

On page 62 in my book… I talk about the most basic systems – such as where do you keep each year’s completed tax forms – are there here and there – or are they both electronically stored in properly labeled files and in paper form in file boxes or file cabinets? Does your loved one know how to find both them and all the supporting documents behind them? Also…

“Do you keep track of your income and expenses for tax or budgetary purposes? Let your loved ones know your record keeping and information gathering procedures and where they are located. Online? Ledger system? OK – shoe box? My book will help you get out of the shoe box and develop orderly systems.”

The federal budget proposed also calls for doubling the IRS workforce and to focus on more detailed tax reviews and that will wind its way down to more than the $400,000 target threshold.

While all of this is a very serious topic, solutions will lighten that task – and always remember to keep your sense of humor. Throughout my book I have scattered some cartoons – here’s one:

Buy My Book – “Why? Because I Love You”

Please visit my website at: https://whybecauseiloveyou.com/

You can order my book, here: https://www.amazon.com/WHY-Because-Love-You-Youll-ebook/dp/B086LMS4SG

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Read more columns by Hershey, here: https://rinewstoday.com/hershey-rosen/

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Harris “Hershey” Rosen, is the author of WHY? Because I Love You, a book that says it like it is – “What you need to know when I die”. His book details methods to organize your important personal and family information for those who are left behind.

A graduate of Harvard, Hershey Rosen has focused on controlling chaos since 1954. He was a Financial Control Officer in the U.S. Army, where he received a Letter of Commendation for improvement to its worldwide accounting system. Next, on to satisfying everyone’s sweet tooth, he ran a candy company for 40 years, developing a system for locating ANY item housed in five factories, covering 600,000 square feet.

Following “retirement,” Hershey went on to become a mediator and settled over 200 disputes for the state of Rhode Island and The Community Mediation Center of Rhode Island. He was also asked to team-teach management courses at the University of Rhode Island, where he enthusiastically challenged the text book with real-life experiences, to the delight and edification of the students.

Always passionate about assisting others, Hershey has been a director or trustee of numerous boards and organizations. He has written Creating A Guide So Your Loved Ones Can Go On Living! to help others protect their spouses (and families) from the intense stress that will occur if one does not share financial information and knowledge critical to a functioning home. He then wrote My Family Record Book, expanding on the information in his first book, and finally, in 2020, WHY? Because I Love You was published.

Hershey, who lives in Providence, Rhode Island, can now relax (ha!) with his beloved wife, Myrna, and enjoy visits with their combined five children and ten grandchildren.