April 4, 2016
Why you should slightly UNDER withold your taxes
Too many people take pleasure in getting a large tax refund. While I am aware that they are then more likely to do something useful with the large sum than if they were to get a slightly larger paycheck each month, tax scams are rising rapidly where scammers get your info (including Social Security numbers) and then collect your refund. It can take a lot of time and effort to resolve this problem. As reported in the April 4 Wall Street Journal, "An email scam targeting companies is putting huge amounts of individuals' tax information into the hands of criminals, potentially wreaking havoc on the victims' lives for years." The phisher impersonates "a company's high-ranking executive from a phony email address that" fools staff in HR or payroll to forward W-2 or other tax information! Personally I think the employee who fell for this phishing should be fired! Stolen info is sold on websites to criminals who then "file fraudulent tax returns and collect the refunds." WSJ article by Robin Sidel. If you under withhold and have to pay taxes, there is no refund to steal. Just set aside the amount you will owe in an online savings account.