Here we are on the doorstep of April. If at this point you haven’t started to think about taxes, it is probably too late to get things done by the April 15 deadline. That doesn’t mean we should just push discussion about them off to the side, though, for a return is still something you are going to have to complete.

If you find yourself in this situation, the first step should be to get an extension. It is not something you have to work hard to achieve and is a reprieve that moves your filing deadline six months to October 15. Please note, though, it gives you extra time to file but does not give extra time to pay taxes owed. That means interest and penalties on what is owed can still start to accrue on April 15.

So if you expect to owe money to the IRS once your tax return is completed – getting this done as early as possible is in your best interests.

Many people end up putting off finishing their tax return because they are missing some documents. It could have been two months ago at this point when one thought “I’ll get going as soon as (this form) comes in.” Then it never did, so you never got started, and suddenly it’s April.

There are many reasons why you may not have received a form, and it can be as simple as it got lost in the mail.  It is a classic punchline excuse, but that doesn’t mean it never actually happens. The easiest way to fix this could be to find the missing form online. If it’s a W2, many payroll providers will have a portal where an employee can get information and forms. Many other types of companies – banks, student loan providers, mortgage providers, etc. – likely have this information available online, as well. You can go from not having the information to being all set in minutes this way.

If you can’t do that, though, you should make a phone call to the issuer of the form. I know this is no one’s preferred mode of communication any longer, but the sooner you get it done, the quicker you can start moving on. You don’t want to wait until some forms start being filed away and company efforts move into other realms as tax season comes to a close.

Not that people are looking forward to that or anything.

Warmly,

Josh Bousquet
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Every year the IRS releases its Dirty Dozen of tax scams to highlight the latest ways that scammers are out to obtain taxpayers’ information and/or money. Many of these are similar year after year, but the tactics are ever evolving so that there are always new things to be aware of. As with much of the world, a lot of what is currently new involves AI.

The problem with AI can be that it actually can “think” around how you interact with it. So with a voice-mimicked call, it possibly can answer any questions you have for it. And where AI is drawing information from much of what is available in the world, it could give answers that may appear legitimate if you try to look things up after a call.

Another tactic that plays well with this is becoming more and more prevalent is spoofing caller IDs. A big fight-back tactic against telephone scams used to be to look up where the number where the call is coming from to see if it is legitimate. Some scammers are now able to spoof caller IDs so that searching it will return information that appears to be kosher. Searching these numbers is still a good idea, but it should no longer be the only step taken to determine authenticity when a suspicious call is received.

When fighting back against these scams, many tried and true things remain atop the list of how to keep yourself safe. First, the IRS will essentially always contact you by mail first. If the first time you hear about a tax issue is by any means other than a mailed notice, you should immediately be wary. Next, don’t be afraid to take your time. If you have any concept of how the IRS operates, it is not the quickest of institutions. You are never going to hear about something for the first time where you must make an immediate payment or risk terrible consequences. Taking some time to contact the IRS yourself and determine whether something you’re hearing is legitimate is worth it.

​Finally, a reminder that scams don’t always start in trying to get a payment from you. Especially during this time of year, you may hear from groups or individuals that promise they can help you take advantage of a tax provision or credit that you were not aware of. And of course, you aren’t aware of all tax rules (that’s our job!) but that doesn’t mean every one you hear of is legitimate. As always, stick with those you trust for guidance. Ask a tax professional you have worked with before about any claims you have heard, and hey, maybe there is something more that you could be using to get a larger return, but get it done the right way.

Warmly,

Josh Bousquet
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