Tax Refund Scams

By
January 31, 2022
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Tax-related fraud and identity theft have continued to grow, with millions of people becoming targets. Scammers need little more than your Social Security number and other general information to file a fraudulent tax return and hijack your tax refund. Taxpayers typically don’t discover the fraud until they attempt to file their own returns, which is why it's essential to file taxes as soon as possible. At the same time, you may want to confirm the appropriate timing with your tax professional. Although 1099s are due by the end of January, custodians may correct 1099s throughout February. If drastic changes happen to a 1099 after you file your taxes, the change can severely impact the amount you owe.

 

Here are some helpful ways to prevent your SSN from being compromised:

  • If you have been a victim of identity theft, complete  IRS form 14039, identity theft affidavit.
  • Respond immediately to any IRS issued notice once you verify the authenticity of the notice. You can do so by calling the IRS directly at 800-908-4490 or setting up your  online account.
  • Get an Identity Protection PIN: a 6-digit number that prevents someone else from filing a tax return using your Social Security number or individual taxpayer identification number. Only you and the IRS know the IP PIN.

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Jeff Motske, CFP®
May 22, 2018

“I have no interest in learning about finances. My [husband/wife] takes care of that.”

I have heard this statement from many clients throughout my career, and I understand the sentiment that prompts this response. Human nature has shown that when groups of people come together, they divvy up tasks to different individuals based on their strengths or roles in the group. You see this in many different groups, including families. My wife cooks dinner, and I’m great at taking out the garbage. With my siblings, I’m great at being the peacemaker while my sister knows how to shine a light on different perspectives. These established roles help our family units function smoothly and effectively…

Until one of the pieces of our unit is no longer around.

I’ve seen it far too many times. Clients come in distraught and overwhelmed because they’ve lost a loved one who typically acted as the family’s Chief Financial Officer. Sometimes they don’t know if there is a will or where legal documents are saved. Perhaps they are aware of a family safety deposit box, but they’re not sure where it is or how to access it. They aren’t sure about account balances or how to read statements. They may not even have access to critical accounts because the deceased was the one who knew the passwords. Now they are dealing with grief and heartbreak, compounded by confusion as to what the next steps are for maintaining their family’s financial solvency.

This is why I insist that both parties in a marriage are involved in financial planning meetings and decisions. I also recommend, especially for my senior clients, that other family members or loved ones are aware of the basics of their financial plans. It makes things so much simpler if all important documents, including a list of passwords, are stored together. If security is a concern, there are plenty of third party vendors that will virtually store that information for you. In most cases, though, a virtual safekeeper of your important information isn’t ideal. What is really needed is someone who will help guide your loved ones during that difficult time. That’s when a financial advisor can be an invaluable asset. I have had many Trilogy clients express how relieved they are to know that their financial advisor will be around to guide and assist the loved ones after he or she has passed. At Trilogy Financial, we don’t consider it a job. We consider it an honor and a calling.

There is a saying that it takes a village to raise a child. The truth is, it takes a village to care for anyone. Please make sure that your village is prepared and has the proper tools to take care of you. If you’re not sure where to begin, you may want to meet with a financial advisor. Our Trilogy Advisors are not only trained to assist your family on how to prepare for the future, but will also be there to provide support and service during a difficult and overwhelming time.

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David McDonough
January 5, 2021

Awareness is key to change, but you also need action. In fact, you need focused, decisive and immediate action to see change and to get yourself back on the road to financial independence.

There are a lot of decisions to make when forging your way to financial independence, there are also countless paths to each destination and countless solutions to each problem. Most folks are also juggling more than one financial goal: retirement, emergency funds, college education for children. How do you prioritize? How do you find the right solution for retirement or long-term care? All the decisions can be overwhelming, which causes many to check out of their own financial situation. While taking a step back when one feels overwhelmed is a natural response, refraining from taking action can ultimately do more harm than good.

Definitive action can both propel you towards financial independence and protect the traction you’ve already made. The sooner you start investing in your financial future, the more your funds can grow due to compound interest. The longer you wait to address any financial problems, the more these minor issues can snowball into larger issues, which can often be the case with debt. Also, if you haven’t taken decisive action to establish an emergency fund or invest in the proper form of insurance, an unexpected event can derail you further from your route to financial independence.

Our Advisors at Trilogy try to help you take the guesswork out of making a decision. Some of the worst indecision is born from not knowing the results of choosing Option A over Option B. However, our Advisors /Life Planners can run various scenarios for you, showing the consequences of different courses of action – helping you see which decision may be the right one for you. More importantly, they are here to support you through difficult situations, so the rest of your road to financial independence will be smooth sailing.

Get Started on Your Financial Life Plan Today