do you trust your sensors?

Sensors. They are everywhere.

A sensor is a device, module, machine, or subsystem that detects events or changes in its environment and sends the information to other electronics.

A few months ago, I bought a new car. It has sensors for everything. They would beep at me constantly about the fact that there was a car behind me, in front of me, next to me or that I was driving on the line or barely outside the lines of the road so it wanted to take control of the steering wheel. I'm sorry, but I want to drive my car. I turned most of them off.

Also, sometimes the sensor would think I was crossing a line and needed to be corrected, when in reality, I was entering an exit ramp on the interstate or I was crossing a line to avoid an object in the road. Human judgment v. electronic sensor - who will win?

It seems to me that people have forgotten that sensors are simply electronic devices and don't we all know what can happen to electronic devices? They can fail. They can make wrong decisions. They can need rebooted to work properly. Yet, we seem open to trusting electronic devices more and more. Worse yet, we are trusting electronic devices to speak to each other and then make correct decisions.

What does this have to do with state taxes? As always, I'm glad you asked.

Tax laws or interpretation and application of tax laws are constantly changing. Thus, every company needs a sensor or some type of system to warn them about the change or the business could inadvertently increase their tax liability or miss out on a refund opportunity.

The question is - what should that sensor or warning system be? Can you trust it? Is it providing you with knowledge and judgment based on experience or simply spreading fear when no real risk exists?

When tax laws change, it seems like every firm is providing guidance. Some do it in an informative manner. Some do it in a "act now or you will miss out" manner. Or they act like the new proposed (potential) change is so dramatic even when the change may never get enacted just to get your attention.

Now with the advent of AI, even if you just use the Google AI search feature, you can get a lot of information about tax law changes (if you know the right question to ask / prompt). However, those "answers" may or may not be correct. In our world of faster and faster, will we really care if those "answers" are correct? Or will we just run with it and move on thinking the "answer" has got to be accurate enough?

So now that we have the One Big Beautiful Bill Act (OBBBA), and state income tax changes are imminent (or at least expected to occur at some point), don't panic. Don't have FOMO. Be informed. Use your tools and sensors correctly. Trust. Verify. Act with purpose. Some changes will apply to you. Some won't.