WEBVTT NOTE This file was generated by Descript 00:00:08.209 --> 00:00:11.840 Speaker: Welcome to Real Estate is Taxing, where we talk about all things real estate 00:00:11.870 --> 00:00:16.869 tax and break down complex concepts into understandable, entertaining tax topics. 00:00:17.440 --> 00:00:21.259 My name is Natalie Kalady, I'm your host, and I am so excited 00:00:21.259 --> 00:00:22.670 that you've decided to join me. 00:00:23.748 --> 00:00:24.138 Microphone (Shure MV7): Hello. 00:00:24.138 --> 00:00:25.248 Hello everyone. 00:00:25.248 --> 00:00:27.408 Welcome to today's episode. 00:00:27.908 --> 00:00:30.668 I would like to start by taking you guys with me. 00:00:31.058 --> 00:00:32.198 On a little journey. 00:00:33.188 --> 00:00:34.238 Into Facebook. 00:00:34.788 --> 00:00:38.208 I've been in a Facebook group before for tax professionals. 00:00:38.658 --> 00:00:40.878 Where in response to a question. 00:00:41.478 --> 00:00:45.708 A another tax professional will provide something from the IRS website. 00:00:46.208 --> 00:00:50.888 Or I have been in Facebook groups for real estate investors. 00:00:51.428 --> 00:00:54.428 Where someone will ask a tax question that is. 00:00:54.818 --> 00:00:56.528 Incredibly complicated. 00:00:57.248 --> 00:01:01.658 Only to be met with multiple responses of how easy this is and 00:01:01.658 --> 00:01:02.888 it walks you right through it. 00:01:03.308 --> 00:01:04.808 In an IRS publication. 00:01:05.308 --> 00:01:08.998 Well, these are both some type of guidance. 00:01:09.598 --> 00:01:10.588 Neither of these. 00:01:11.008 --> 00:01:12.118 Our authority. 00:01:12.928 --> 00:01:15.058 So in today's episode. 00:01:15.568 --> 00:01:17.968 I'm going to walk you guys through. 00:01:18.718 --> 00:01:23.818 What the various levels of authority are when it comes to taxes. 00:01:24.418 --> 00:01:26.338 And what you can rely on. 00:01:27.268 --> 00:01:30.568 When you're looking at all of these different forms of information. 00:01:30.868 --> 00:01:33.418 It's kind of like a game of rock, paper, scissors. 00:01:33.478 --> 00:01:35.878 There's always something that trumps something else. 00:01:36.428 --> 00:01:39.908 So just because it might be easier to find a rock. 00:01:40.358 --> 00:01:42.488 Doesn't mean it's going to be paper. 00:01:43.808 --> 00:01:46.808 Microphone (Shure MV7)-3: So now that we've established that there is very much 00:01:46.808 --> 00:01:49.478 a hierarchy when it comes to guidance. 00:01:50.078 --> 00:01:51.728 Let's start at the top. 00:01:52.228 --> 00:01:55.618 When it comes to who creates these tax laws? 00:01:56.188 --> 00:01:59.098 It's the same people who create all of our laws. 00:01:59.128 --> 00:02:01.948 This all has to come from Congress. 00:02:02.548 --> 00:02:06.748 The IRS is not who writes or creates tax laws. 00:02:07.248 --> 00:02:10.398 All of the tax laws are combined. 00:02:10.908 --> 00:02:13.848 Into what we call the internal revenue code. 00:02:14.388 --> 00:02:15.408 The IRC. 00:02:15.908 --> 00:02:21.008 When you see part of the internal revenue code sighted, it's going to 00:02:21.008 --> 00:02:24.128 start with two little squiggly SS. 00:02:24.488 --> 00:02:27.698 This is typically called a section mark or silk Crow mark. 00:02:27.968 --> 00:02:30.458 So it looks like two overlapped squiggly SS. 00:02:30.878 --> 00:02:33.548 And then it'll have a code section and some subsections. 00:02:33.548 --> 00:02:38.198 So it might be Silkroad, mark squigglies, 4 69. 00:02:38.738 --> 00:02:39.518 E three. 00:02:40.118 --> 00:02:43.718 Whatever those section is, and that's going to be. 00:02:44.138 --> 00:02:47.468 Your top, most authority on a tax matter. 00:02:48.038 --> 00:02:49.988 Is that literal code? 00:02:51.348 --> 00:02:51.948 Now. 00:02:52.728 --> 00:02:57.708 I don't know if you've ever tried to just read through laws as they're 00:02:57.708 --> 00:03:00.408 written, but it's not very intuitive. 00:03:00.948 --> 00:03:02.298 And it's a learned skill. 00:03:02.928 --> 00:03:08.848 So even though the internal revenue code is your top source for proof. 00:03:09.788 --> 00:03:11.888 It's hard to interpret and read. 00:03:12.428 --> 00:03:15.938 And just apply to any normal day-to-day situation. 00:03:16.478 --> 00:03:19.268 That's why we then have these lower sources. 00:03:19.628 --> 00:03:22.568 Of guidance that while they're less authoritative. 00:03:23.438 --> 00:03:27.158 Break things down, farther and farther into everyday English. 00:03:27.928 --> 00:03:30.988 Microphone (Shure MV7)-5: The first source of this interpretation is going 00:03:30.988 --> 00:03:33.778 to be the U S treasury regulations. 00:03:34.318 --> 00:03:40.378 This is where the treasury department and the IRS goes in and they provide guidance. 00:03:40.798 --> 00:03:45.478 For this new legislation or for things that are passed in the tax code. 00:03:46.078 --> 00:03:49.528 They're typically published in the federal register. 00:03:50.008 --> 00:03:54.628 And opened up for public input first as a proposed regulation. 00:03:55.028 --> 00:03:56.468 And then eventually. 00:03:56.768 --> 00:04:01.568 They will lead to a final regulation or sometimes a temporary regulation. 00:04:01.868 --> 00:04:04.448 And then they republish that as well. 00:04:05.058 --> 00:04:08.838 Treasury regulation is still considered authoritative. 00:04:08.838 --> 00:04:12.198 When it comes to something you can use to form a tax position. 00:04:13.098 --> 00:04:17.988 When you see a treasury regulation, it's going to look really similar to a 00:04:17.988 --> 00:04:23.358 citation from the internal revenue code, but it'll typically have a one dot. 00:04:23.658 --> 00:04:24.948 And then a code section. 00:04:25.428 --> 00:04:28.218 So instead of the double squiggle yes. 00:04:28.278 --> 00:04:29.388 That Silkroad symbol. 00:04:29.478 --> 00:04:30.048 And then. 00:04:30.798 --> 00:04:33.198 Code section 4 69 E three. 00:04:33.918 --> 00:04:38.058 It would be something like one dot 4 69. 00:04:38.598 --> 00:04:39.468 B seven. 00:04:40.368 --> 00:04:43.128 Microphone (Shure MV7)-6: These treasury regulations are going to give you 00:04:43.128 --> 00:04:49.698 a good place to read more expanded information on that code section. 00:04:50.238 --> 00:04:55.488 And they typically have several examples that walk through applications 00:04:55.488 --> 00:04:57.858 of that tax code section as well. 00:04:58.358 --> 00:05:01.058 when I'm saying whether something is authority or not, 00:05:01.058 --> 00:05:02.648 or if it can be relied upon. 00:05:03.578 --> 00:05:08.648 Anything you're putting on a tax return is a position you are taking a stance 00:05:08.648 --> 00:05:10.628 that you are allowed to do something. 00:05:11.408 --> 00:05:15.998 And something that is authority is what you are basing that position on. 00:05:16.808 --> 00:05:21.848 So once we get past the internal revenue code, the treasury regulations that 00:05:21.848 --> 00:05:26.108 further expand on it, give some examples, explain it a little more clearly. 00:05:26.738 --> 00:05:30.098 We then have a lot of different courts. 00:05:30.458 --> 00:05:32.438 That we can use for some guidance. 00:05:32.948 --> 00:05:38.048 So historical authority from different court rulings, judicial authority. 00:05:38.468 --> 00:05:41.798 Gives us multiple areas that we can see. 00:05:42.158 --> 00:05:46.238 How the courts have interpreted these laws historically. 00:05:46.808 --> 00:05:52.298 And depending on how similar the facts are and if it is in the same circuit. 00:05:52.598 --> 00:05:57.218 We can have different levels of reliability of the, those decisions. 00:05:57.718 --> 00:06:01.108 Obviously the highest court we have is the Supreme court. 00:06:01.588 --> 00:06:06.178 But more often what you're typically going to seek guidance come from. 00:06:06.538 --> 00:06:08.788 We'll be the U S tax court. 00:06:09.158 --> 00:06:13.988 you'll also see quite a bit come through in some district courts, but 00:06:13.988 --> 00:06:16.028 also through the court of appeals. 00:06:16.458 --> 00:06:19.938 So being able to look back at these court cases. 00:06:20.478 --> 00:06:24.618 And correctly apply facts and circumstances. 00:06:25.098 --> 00:06:32.208 And the specifics of the case that led that court to rule one way or another, 00:06:32.238 --> 00:06:35.418 what facts they specifically focused on. 00:06:35.778 --> 00:06:40.638 What code sections, they referenced back to what earlier cases they 00:06:40.638 --> 00:06:47.208 referenced back to is going to help you substantiate and really define 00:06:47.208 --> 00:06:49.698 your position on something tax wise. 00:06:50.208 --> 00:06:56.028 Because it is based on judicial history, it is based on something that has been 00:06:56.028 --> 00:06:58.818 looked at and interpreted by the courts. 00:06:59.238 --> 00:07:02.028 And you have some guidance on how they feel about it. 00:07:02.428 --> 00:07:05.008 Once we've looked at all of these options. 00:07:05.668 --> 00:07:10.468 Now we're down to the area where the IRS really comes into play. 00:07:11.108 --> 00:07:12.608 And I've seen more than once. 00:07:12.998 --> 00:07:16.358 Where someone will post an internal revenue code section. 00:07:16.568 --> 00:07:19.508 Defining a matter and someone's rebuttal. 00:07:20.108 --> 00:07:24.338 Is like the IRS FAQ or the IRS publication on it. 00:07:25.058 --> 00:07:28.028 Again, it's a rock paper scissors scenario here. 00:07:28.418 --> 00:07:30.968 And if the internal revenue code is paper. 00:07:31.328 --> 00:07:33.338 An IRS publication is a rock. 00:07:33.818 --> 00:07:38.618 So you could not use it to argue against the highest guidance. 00:07:39.218 --> 00:07:41.228 It's an interpretation of that. 00:07:41.528 --> 00:07:44.828 And it's pretty well watered down at that point. 00:07:45.328 --> 00:07:46.678 When you consider. 00:07:47.178 --> 00:07:51.558 That the us tax code is over 70,000 pages. 00:07:52.408 --> 00:07:55.858 There's obviously a dwindling down of the information. 00:07:55.888 --> 00:07:57.988 This is its purpose is to summarize. 00:07:58.468 --> 00:08:01.078 So taking the spark notes version of something. 00:08:01.438 --> 00:08:05.638 And using it to argue a very specific sentence from the actual book. 00:08:06.148 --> 00:08:07.048 Doesn't work. 00:08:07.408 --> 00:08:09.268 It doesn't work here either. 00:08:09.768 --> 00:08:14.268 Once we get into the layers of what the IRS provides. 00:08:14.808 --> 00:08:16.998 And their levels of authority. 00:08:17.868 --> 00:08:20.118 At the top, we have revenue rulings. 00:08:20.688 --> 00:08:25.488 These are an official IRS interpretation of an internal revenue code. 00:08:25.818 --> 00:08:28.338 And these we can use as authority. 00:08:29.298 --> 00:08:32.808 Below that is a rev proc revenue procedure. 00:08:33.198 --> 00:08:35.658 And this is also an interpretation. 00:08:36.018 --> 00:08:40.488 But this is more on the how to, so this is how to comply with that law. 00:08:40.818 --> 00:08:43.338 And you can also use this as authority. 00:08:43.758 --> 00:08:45.198 So these are your two. 00:08:45.528 --> 00:08:51.318 Highest and best uses of IRS guidance that can still be relied upon. 00:08:51.818 --> 00:08:53.198 Once we get below that. 00:08:53.648 --> 00:08:56.228 We start to get a little hazier. 00:08:56.728 --> 00:09:00.118 The IRS can also issue private letter rulings. 00:09:00.928 --> 00:09:06.388 And this is basically a written statement by the IRS to interpret a facts and 00:09:06.388 --> 00:09:09.178 circumstances of the law ahead of time. 00:09:09.928 --> 00:09:13.738 As it relates to a specific taxpayer it's something, a specific 00:09:13.768 --> 00:09:16.378 taxpayer submits to have done. 00:09:16.978 --> 00:09:21.268 And it is not something that you can rely on as authority. 00:09:21.718 --> 00:09:23.518 For any other person. 00:09:24.068 --> 00:09:25.898 they are made public after. 00:09:26.888 --> 00:09:28.118 Everything was issued. 00:09:29.048 --> 00:09:31.448 But it's just for informative purposes. 00:09:31.448 --> 00:09:35.648 It's not something you can base your own position on your tax return about. 00:09:36.188 --> 00:09:40.808 So even if you find a private letter ruling online, that is the exact same 00:09:40.808 --> 00:09:43.418 circumstances as your tax situation. 00:09:43.748 --> 00:09:46.658 You can not rely on that for authority. 00:09:47.638 --> 00:09:49.498 Microphone (Shure MV7)-7: In kind of the same bucket. 00:09:49.888 --> 00:09:52.798 We also have technical advice memorandums. 00:09:53.188 --> 00:09:59.068 So these are provided by the office of chief counsel and it's of request or 00:09:59.068 --> 00:10:06.058 based on a request from an IRS director or something related to appeals in response 00:10:06.058 --> 00:10:10.828 to a specific technical issue where their deans to be more in depth guidance. 00:10:11.368 --> 00:10:14.128 So a very similar thing here. 00:10:14.458 --> 00:10:16.378 it's just overall guidance. 00:10:16.708 --> 00:10:21.328 So any of the items in this category, Like your private letter 00:10:21.328 --> 00:10:25.438 rulings, your technical advice, memos, your chief counsel memos. 00:10:25.948 --> 00:10:29.128 These can't be leaned on as substantial authority. 00:10:29.968 --> 00:10:35.488 They're more just provided to give you insight to certain issues and they might 00:10:35.638 --> 00:10:40.918 reference back to items or court cases that could be substantial authority. 00:10:41.278 --> 00:10:42.958 So there are a great starting point. 00:10:43.468 --> 00:10:47.968 But you can't hang your hat on one of these IRS positions. 00:10:48.418 --> 00:10:52.228 It's not going to be authoritative for the position you are 00:10:52.228 --> 00:10:54.388 taking on your tax return. 00:10:54.888 --> 00:10:59.088 Then at the very, very, very bottom of the list. 00:10:59.988 --> 00:11:02.868 Is what we see most often referenced. 00:11:03.798 --> 00:11:07.068 This area is going to be IRS forms. 00:11:07.158 --> 00:11:08.628 The form instructions. 00:11:09.048 --> 00:11:10.578 IRS publications. 00:11:10.848 --> 00:11:12.228 The FAQ's. 00:11:12.708 --> 00:11:16.488 Information that is provided on the IRS website. 00:11:16.998 --> 00:11:26.238 So any of this is only for guidance and it should not be your sole piece. 00:11:27.048 --> 00:11:28.158 Of information. 00:11:28.848 --> 00:11:36.528 Any of these items are a clarifying simplified spark notes version. 00:11:37.098 --> 00:11:43.878 Of multiple levels of specific law and higher interpretation and court cases. 00:11:44.388 --> 00:11:46.788 And once it is all pulled together. 00:11:47.358 --> 00:11:48.768 Into the recap. 00:11:49.398 --> 00:11:51.738 That's what the sources are. 00:11:52.608 --> 00:11:58.338 So IRS publications are something that get referenced incredibly often 00:11:58.878 --> 00:12:01.128 and they are a great starting point. 00:12:01.668 --> 00:12:05.808 Or a great place to understand the basics of something. 00:12:05.808 --> 00:12:10.098 If it is a cut and dry, very standard scenario. 00:12:10.738 --> 00:12:16.528 It will not have coverage of every nuance of that tax code section. 00:12:17.068 --> 00:12:19.618 It won't even cover most of them. 00:12:20.278 --> 00:12:24.508 It's going to break out the simplest forms of each of these things. 00:12:24.958 --> 00:12:29.458 And it's going to highlight the steps to find out how to apply it. 00:12:30.028 --> 00:12:34.468 And often there will be worksheets or graphics and things to really help 00:12:34.468 --> 00:12:36.928 someone who is not a legal expert. 00:12:37.528 --> 00:12:38.548 Figure out. 00:12:39.148 --> 00:12:40.258 The general. 00:12:40.918 --> 00:12:45.268 Intention of this code, what you generally can and can't do. 00:12:46.028 --> 00:12:52.688 So, well, IRS publications are fantastic and they are a great place to understand 00:12:52.748 --> 00:12:57.578 the big picture of what you're facing or a great starting place for your information. 00:12:58.058 --> 00:13:00.638 It is not substantial authority. 00:13:01.388 --> 00:13:08.468 So if you are audited, And there have been multiple things, multiple situations 00:13:08.468 --> 00:13:12.638 I've come across where something in the tax code versus what's in the 00:13:12.638 --> 00:13:16.568 publication or what is on an IRS form. 00:13:16.568 --> 00:13:17.978 Instruction are different. 00:13:18.488 --> 00:13:22.298 Where something is outdated or where it oversimplified something. 00:13:23.168 --> 00:13:27.008 And if you say under audit that, well, I did it because 00:13:27.038 --> 00:13:28.808 this publication said I could. 00:13:29.528 --> 00:13:31.508 That's not going to be. 00:13:31.958 --> 00:13:36.608 Authority, you can base your position on, so that can be disallowed. 00:13:37.208 --> 00:13:38.648 Because again. 00:13:39.008 --> 00:13:41.468 These publications are really just. 00:13:42.128 --> 00:13:46.898 The super simplified interpretation of the actual law. 00:13:47.738 --> 00:13:50.708 And so it's not your encompassing guide. 00:13:52.338 --> 00:13:55.398 Microphone (Shure MV7)-8: If you are a tax professional, listening to this. 00:13:55.968 --> 00:14:00.798 And you weren't aware at all of these various levels of authority. 00:14:01.578 --> 00:14:02.538 No shame. 00:14:03.228 --> 00:14:09.528 It is not common at all for this to be taught or emphasized at a lot of firms. 00:14:10.068 --> 00:14:14.508 And if you are a solo practitioner, you're someone who went out on your own. 00:14:14.868 --> 00:14:16.668 And you're new in the industry. 00:14:17.388 --> 00:14:20.118 You wouldn't know this without someone telling you. 00:14:20.178 --> 00:14:24.828 So consider this your starting point that if going to the IRS website or 00:14:24.828 --> 00:14:29.838 going to publications to find your answers is your current standard. 00:14:30.588 --> 00:14:34.428 That that is not what you can actually base the tax returns on. 00:14:34.998 --> 00:14:40.758 And do you need to start being able to trace your way up the fact sheet going 00:14:40.758 --> 00:14:46.098 from those publications up into some of the court cases that interpret something. 00:14:46.398 --> 00:14:51.468 Reading the treasury regulations and even going to the actual tax 00:14:51.468 --> 00:14:57.708 code, because those are going to be your substantial authority pieces. 00:14:58.398 --> 00:15:00.198 You need to be able to say. 00:15:00.738 --> 00:15:02.778 If a client's return is questioned. 00:15:03.318 --> 00:15:05.088 We took this position. 00:15:05.478 --> 00:15:10.368 I felt I could do this because of this code section says this, this and 00:15:10.368 --> 00:15:15.588 this, and in a similar court case, this court felt this way about it. 00:15:15.858 --> 00:15:17.298 Another case felt this. 00:15:17.778 --> 00:15:19.488 And this is all of my proof. 00:15:19.988 --> 00:15:26.048 Well, the publications and IRS website are great for simplified quick reference. 00:15:26.548 --> 00:15:32.038 I understand that a lot of tax prepares focus on getting through a lot of tax 00:15:32.038 --> 00:15:38.218 returns during season, but this is the downside to that volume model. 00:15:38.938 --> 00:15:43.018 Is that you don't have time to do actual research without 00:15:43.018 --> 00:15:44.488 going deeper than the summary. 00:15:44.938 --> 00:15:46.828 And summaries are just that. 00:15:46.828 --> 00:15:49.708 And they easily miss unique situations. 00:15:50.548 --> 00:15:53.458 And you're always going to run into unique situations. 00:15:53.958 --> 00:15:55.788 We've worked our way from the top down. 00:15:56.088 --> 00:16:00.678 Congress makes the laws, those laws are in the internal revenue code. 00:16:00.708 --> 00:16:04.488 That is your holy grail of tax guidance. 00:16:04.998 --> 00:16:08.058 From there, we have the treasury regulations. 00:16:08.118 --> 00:16:11.148 This is where the treasury department and IRS directly 00:16:11.148 --> 00:16:13.938 interprets that code expands on. 00:16:13.938 --> 00:16:15.528 It gives you examples. 00:16:15.858 --> 00:16:19.278 That is a fantastic place to get more guidance. 00:16:19.788 --> 00:16:25.308 We go down into court cases and how courts have looked at these issues historically. 00:16:25.938 --> 00:16:30.438 And then we go into that IRS simplified information. 00:16:30.958 --> 00:16:35.308 that is very broad and can't be relied on for proof. 00:16:35.638 --> 00:16:38.608 But we'll help guide you through how to handle things. 00:16:39.398 --> 00:16:41.918 basically the spark notes version. 00:16:42.308 --> 00:16:44.198 Of that classic novel. 00:16:44.588 --> 00:16:47.108 So it is helpful and it gets you through the class. 00:16:47.348 --> 00:16:50.918 But you are missing a lot of the important information. 00:16:51.418 --> 00:16:54.268 At the very, very, very bottom that I shouldn't even 00:16:54.268 --> 00:16:55.828 have to mention, but I will. 00:16:56.668 --> 00:16:58.318 It's going to be things. 00:16:58.858 --> 00:16:59.428 Like. 00:17:00.188 --> 00:17:04.658 Blogs, YouTube videos, social media posts. 00:17:05.318 --> 00:17:10.058 Even CE classes, if you're a tax professional and you take a CE class to 00:17:10.058 --> 00:17:12.098 get your continuing education credits. 00:17:12.668 --> 00:17:14.168 That's not authority. 00:17:14.978 --> 00:17:16.478 It's a great way to learn. 00:17:17.048 --> 00:17:21.158 But I have come across plenty of classes with mistakes in them. 00:17:21.788 --> 00:17:27.668 So you are best served to find classes that have actual citations in them. 00:17:28.238 --> 00:17:31.898 Or where the instructor provides a good supplement with citations, because 00:17:31.898 --> 00:17:33.548 that's what you need to rely on. 00:17:34.298 --> 00:17:40.088 So if you come across, an article from, even if it's an accounting publication, 00:17:40.088 --> 00:17:44.408 or if you're an investor listening to this, and there's something posted on 00:17:44.408 --> 00:17:48.758 an investor website related to taxes, even if it is published by someone 00:17:48.758 --> 00:17:52.808 you would consider to be reputable, you can't lean on that at all. 00:17:53.308 --> 00:17:54.868 So a great starting point. 00:17:55.078 --> 00:17:59.878 If you come across a video, Where they say something interesting 00:18:00.268 --> 00:18:03.298 or it's something that tax wise you're like, oh, I didn't know. 00:18:03.298 --> 00:18:04.258 I could do that. 00:18:04.978 --> 00:18:05.848 Wonderful. 00:18:06.298 --> 00:18:09.448 It's whole purpose should be to spark that piece of interest. 00:18:09.808 --> 00:18:14.728 And then you have to go find the actual sources that either prove or 00:18:14.728 --> 00:18:17.008 disprove what that person is saying. 00:18:17.488 --> 00:18:19.588 Remember that everyone making content. 00:18:20.128 --> 00:18:21.298 Has a motive. 00:18:21.588 --> 00:18:26.328 It's not always to put out the most clear, concise and accurate information. 00:18:26.868 --> 00:18:31.098 Sometimes it's to put out the most exciting 3%, even if it 00:18:31.098 --> 00:18:32.508 might be a little misleading. 00:18:32.898 --> 00:18:34.758 Because you're more likely to click on it. 00:18:35.688 --> 00:18:39.468 So those things should only be your starting point to lead you 00:18:39.468 --> 00:18:44.808 back up these levels of actual authority for tax matters. 00:18:45.798 --> 00:18:50.568 And I will end this episode with just a note to tax professionals 00:18:50.568 --> 00:18:52.308 who might still be listening. 00:18:52.848 --> 00:18:55.068 That if you have a client come in. 00:18:55.638 --> 00:18:59.418 And they send you one of those videos or they bring in an article. 00:18:59.868 --> 00:19:02.628 Or they open their phone and show you a tick talk. 00:19:03.348 --> 00:19:06.918 I know a lot of professionals who blame everything on that. 00:19:07.418 --> 00:19:09.068 Bad social media advice. 00:19:09.338 --> 00:19:11.498 They heard this crazy thing on Tik TOK. 00:19:12.098 --> 00:19:15.368 They need to stop Googling things and looking on the internet. 00:19:15.548 --> 00:19:17.588 They're just finding stuff on Instagram. 00:19:18.428 --> 00:19:21.938 And while some of that might be justified. 00:19:22.718 --> 00:19:25.898 Most of that bad information stems from something. 00:19:26.508 --> 00:19:28.608 So even if what they've shown you. 00:19:29.028 --> 00:19:31.038 Sounds so obscure. 00:19:31.368 --> 00:19:33.528 That you want to just dismiss it. 00:19:34.068 --> 00:19:38.118 There's a good chance that there's some amount of truth in that tax 00:19:38.118 --> 00:19:42.438 strategy or that creative thing, or whatever was said in that video. 00:19:43.068 --> 00:19:46.878 The idea of why they could do that came from somewhere. 00:19:47.358 --> 00:19:49.548 So try to find out what that is. 00:19:49.848 --> 00:19:51.888 It might be something you don't know. 00:19:52.338 --> 00:19:55.788 Or it might be something where, what the video is saying, isn't quite right. 00:19:56.118 --> 00:19:58.308 But what it really means is this. 00:19:58.758 --> 00:20:03.678 And they could maybe use this tax strategy if they also did a, B and C. 00:20:04.248 --> 00:20:08.118 So just my final note, if you're a tax professional, don't be 00:20:08.118 --> 00:20:10.398 so quick to dismiss things. 00:20:10.398 --> 00:20:12.138 Clients find on social media. 00:20:12.648 --> 00:20:15.108 It all comes with some little tidbit of truth. 00:20:15.378 --> 00:20:19.608 And I think it is our job to hunt it and figure out what that is 00:20:19.728 --> 00:20:21.438 so we can best help our clients. 00:20:21.938 --> 00:20:24.908 As always, I hope you guys found this helpful. 00:20:25.418 --> 00:20:31.118 If you can think of a nother tax professional who could benefit from 00:20:31.118 --> 00:20:35.258 this episode, someone who is new in their career, maybe, and they're 00:20:35.258 --> 00:20:36.998 trying to learn how to better research. 00:20:37.448 --> 00:20:38.888 Please share this with them. 00:20:39.218 --> 00:20:41.468 If you liked it, please subscribe. 00:20:41.498 --> 00:20:45.188 Give it a thumbs up, share it with people you think would also enjoy it. 00:20:45.698 --> 00:20:47.168 And as always. 00:20:47.738 --> 00:20:49.538 I will talk to you guys next week. 00:20:50.378 --> 00:20:52.618 Mhm.