ClearValue Tax

I expect that the Federal Reserve is not going to cut interest rates at their upcoming meeting in January, January 28th.

And the IRS has been adapting to this modern economy where income is easier to see and to match. And the bottom line is that they, the IRS, wants their money. And if you put yourself in a position for them to come after you, then they're going to come after you and additionally impose penalties.

this further encourages China and Russia, the biggest players, to ddollarize and continue ddollarizing.

That new Fed chair is going to be much more aggressive with the interest rate cuts. At least that's expectation.

The Federal Reserve projected that they're only going to cut interest rates one time this year by 0.25%.

Therefore, the expectation is that this situation that we're in right now, it's not going to get better. It's not going to get worse by year end. This is the environment that we're basically going to be stuck in for the rest of the year.

They expect that the rate of unemployment will end this year, 2026, with an unemployment rate of 4.4%.

Now, if you don't report it, then you're setting yourself up for an IRS notice, and the IRS is going to demand that you pay taxes on the full $6,000, and that's going to come out to something like $1,500 in taxes.

The IRS often is going to get involved because of mismatches and patterns, right? And these are common situations. So, if a third party reported income to you and on your tax return like you don't have the matching amounts, then that's going to be a mismatch and that's going to catch their attention. If you have large deposits that don't fit your reported income, then obviously something's wrong there and they could you're going to be flagged. If you have huge expenses with tiny revenue from your side hustle, then yeah, you're going to be flagged. If you have sudden swings, like one year you have big income and then the next year it drops to close to nothing, like big swings, then yeah, that's going to be picked up. And if you have multiple platforms reporting activity and you just write such a minimal amount or just zero or forget about it, then yeah, that's going to be, you know, detected.

But in practice, if you get cash, then a lot of people with that cash, they make deposits, they make they make payments, they make transfers, etc. And if you're ever going to get audited, then your paper trail is going to be so obvious to an IRS agents and patterns are going to matter. So like if you get paid in cash, if you make a deposit of cash every week or you have consistent payments through apps, then the IRS is going to question it.

If you say it to the IRS, the IRS is not going to care if there was a mailing problem or a communication problem. The IRS is going to say that you should have known about it. It's your responsibility to report it correctly. So, I'm just telling you like that defense is not going to work.

But if they see your income, the size is not going to protect you. So, I want to give you a quick example. So, let's just say that you made $2,200 from a side hustle and the payer sends you a $1099, okay? And your tax return shows zero, like you didn't report it, then the mismatch is going to be clean and obvious. And that's the kind of thing that's going to trigger an IRS letter.

gold thrives in that type of environment. And you have to ask yourself just simply, are we moving towards a more stable world or a more unstable one? You know, I believe that there's going to be more instability and again that's going to be a great setup for gold.

inflation will be subdued. We're going to get higher economic growth and the USA will prosper

do not expect gasoline prices to shoot up or down. Honestly, for the short term, this is going to have minimal impact.