4 Tax Planning Tips and Ways to Avoid Tax Scams (#009)

In this episode, Mike and Ben discuss four tax planning tips and ways to avoid tax scams. The following are notes based upon our discussion.

4 Tax Planning Tips

1. Don’t Wait – Start Organizing Now
   • Use a Simple Tax Folder to organize your information during the year(I purchased this one from Amazon – Tax Folder)
   • Track your financial activity with computer software
     • I use Quicken – Click Here – (I use an older Mac Version)
     • Ben likes Mint – Click Here
     • Or, simply use a spreadsheet program like Excel
     • Use a system, even if it is a manual system
2. Prepare a Life Inventory
   • Click Here – for a copy of my “Life Inventory” Worksheet
3. Prepare a Personal Financial Statement
4. Schedule a Date with your Tax Preparer
   • Be proactive in reviewing your tax estimates throughout the year

Ways to Avoid Tax Scams

1. Fraudulent Phone Calls
   • IRS will contact you by correspondence first
   • IRS will not ask you to use a credit card
   • IRS will not threaten you with an arrest by the local police department
   • Treasury Inspector General’s Hotline 1-800-366-4484 Website http://www.treasury.gov/tigta/
2. Phishing Scams
   • Don’t click on suspicious links
   • Keep your passwords updated
3. ID-Theft and Fraudulent Returns
   • Sign up to receive my ID-Theft First Aid Kit