Leveraging Tax Reform in Client Conversations

1st Global
October 16, 2018

1st Global advisor Jody Padar, The Radical CPA, sat down with Mark Koziel, executive vice president – firm services for AICPA, at the AICPA Engage conference in Las Vegas to discuss the opportunity the Tax Cuts and Jobs Act presents for developing client relationships.

“What a great opportunity in this current year to have CPAs talk to their clients differently about tax,” Koziel said.

He said many firms are asking what the tax bill means for their clients. However, Koziel noted that it took 16 years to hash out the effects of the last major change to the tax code, when Section 469 on passive activity loss limitations was updated in 1986, so he anticipates it will take several years to fully understand the implications of the latest tax reform.

“Now we’re saying to our clients, ‘You know what, client, we need to work differently together. We are not a one-instance-in-time relationship, at least for the next five years, who knows for how long after. So let’s talk about how we can be involved in your life planning that is gonna be affected as these tax changes continue indefinitely over the next number of years,’” Koziel said.