Tax Scams to Watch For The IRS wants you to beware of the following scams.
The IRS will NOT … • Suspend or cancel your Social Security number over the phone or in an email • Demand a specific payment method • Ask for payment over the phone •Demand tax payment without giving you the chance to question or appeal the amounts in question
T his winter, the stock market entered mainstream conversation when a group of investors on Reddit began battling hedge funds over GameStop stock. The story was a roller-coaster ride, and it’s one reason why I advocate for long-term investing instead of pointing my clients toward “hot” stocks. While you may hear the success stories of a few day traders, what you do not hear is the silence when they crash and burn. What is long-term investing? Long-term investing is not an “invest it and forget it” strategy — it is based on a broader investment strategy that you monitor periodically. When you choose a long-term strategy, you are allowing the market to work for you rather than trying to second-guess it. How much you need to save and invest depends on the answers to questions like, "How do I want to live? Where do I want to live? How do I want to spend my days? What is my current and future earning potential?" The answer to these questions is your starting point and sets the foundation for reaching your lifestyle goals. There are hazards to short-term investing.
• Threaten your pending arrest by local police, immigration officers, or other law enforcement • Revoke your driver’s license, business license, or immigration status
If someone calls or emails you using these types of demands, it is a SCAM. Do not give these con artists any personal information and hang up or delete. Remember, the IRS will initially contact you by mail on any tax matters you need to address.
The short-term approach requires continuously monitoring and timing the market. That can be stressful, and it is unquestionably time-consuming. Whether you are a short-term or long-term investor, it takes time to research the companies you will invest in and determine which ones are in the best position for growth — even if you are using a market momentum strategy. Short-term strategies require second-guessing a company’s potential, market trends, and data, which makes this strategy a higher risk. It’s more like gambling than investing. It can be exciting when you guess correctly and quite painful when you are wrong. Long-term investing is the smart way. Key advantages of a long-term investment strategy are the power of compounding returns and the ability to leverage dividends to enhance investment value and create a future source of income for retirement. While past performance of the market is not a guarantee of future returns, the long-term approach seems to weather the volatility of the market better other strategies. To be a successful, you need to be patient, flexible, and open-minded. Take your time choosing quality stocks you know, you understand, and that have a strong competitive advantage. When you invest, think of it as if you were purchasing the whole company. Make certain it is something you believe in. Use price-to-earnings (P/E) ratios wisely to determine if a stock is appropriately priced, but don’t get too hung up on it and miss out on great investment opportunities. Ultimately, fear and greed are the enemies of a successful investment plan, so remember to keep those emotions in check. When is the best time to start? If you have disposable income (and hopefully an emergency fund), the best time to invest is NOW! The sooner you start, the sooner you can take advantage of the compounding effects of the market. It is also essential to review your portfolio periodically (i.e., quarterly, semi-annually, or annually) to make appropriate adjustments based on your personal investment strategy. If you have questions about how to get started or how to create a personal investment strategy, reach out to me at 920-939-2011 (Appleton) or 678-880-4269 (Northeast Georgia).
3 DLJTAXSERVICES.COM • DLJWEALTHSERVICES.COM Advisory services are provided by DLJ Wealth Services, LLC. DLJ Wealth Services, LLC is a registered investment advisor. Tax advice is provided through DLJ Tax Services, LLC, a separate legal entity, but both companies are owned by Deb Matz. DLJ Wealth Services, LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. How to Track Your Refund To check the status of your refund, visit IRS.gov/refund and click on the “Check My Refund Status” button. Make sure you have your Social Security number, filing status, and the amount of your refund on hand. IRS phone representatives will not have any additional information as the website is where the latest information will be posted. The 2021 Standard Mileage Rate • Business mileage rate is 56 cents per mile. • Medical and military moving mileage rate is 16 cents per mile. • Charitable purpose mileage is 14 cents per mile.
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