Every year the Internal Revenue Service (IRS) releases its list of tax scams, spotlighting the myriad ways that people try to separate you from your money.¹
The “Dirty Dozen”
Identity Theft
Using your personal information, an identity thief can file a fraudulent tax return and claim a refund. If you’ve been a victim of stolen personal information, you can contact the IRS so the agency can protect your tax account.
Phishing
Be wary of fake emails or websites looking to steal your personal information. If you receive a request for information that appears to be from the IRS, contact the IRS directly to verify the request.
Telephone Scams
Scammers will contact you pretending to be from the IRS. They may say that you are due a large refund or owe money (even threatening arrest or revocation of your driver’s license). If you receive such a call, call the IRS and contact the Federal Trade Commission using their “FTC Complaint Assistant” at FTC.gov.
Inflated Refund Claims
Tax preparers promising inflated returns may ask clients to sign a blank return or charge fees based on a percentage of the refund. Beware of phony storefronts or preparers advertising through word-of-mouth to community groups where trust is high.
Return Preparer Fraud
Dishonest preparers may use tax preparation as an excuse to steal your personal information, so only use a preparer who signs the return and has an IRS Preparer Tax Identification Number.
Hiding Income Offshore
The IRS has strengthened its ability to identify offshore holdings, and the failure to report them will be costly.
Impersonation of Charitable Organizations
Fraudulent charities raise money or obtain private information from individuals looking to help. Donate only to recognized charities, and beware of charities whose names sound similar to the well-known ones.
False Income, Expenses or Exemptions
Falsifying your tax return is a high risk, low reward exercise, especially in this age of Big Data.
Frivolous Arguments
Ignore promoters of frivolous arguments that promise you tax relief. Not only are they expected to fail, but you may be subjected to penalties and possible jail time.
Falsely Padding Deductions or Returns
Dishonestly reporting deductions to reduce tax bills or inflate refunds may open you up to penalties and prosecution.
Abusive Tax Structures
If someone is proposing to eliminate or substantially reduce your taxes through complex tax structures, walk away—they may be offering nothing more than illegal tax evasion.
Excessive Claims for Business Tax Credits
This happens when taxpayers or their tax preparers improperly claim the research credit or the fuel tax credit, which is generally limited to off-highway uses, such as farming.
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What type of retirement savings plan does American Family offer to its employees?
American Family offers a 401(k) retirement savings plan to its employees.
Does American Family match employee contributions to the 401(k) plan?
Yes, American Family provides a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.
What is the eligibility requirement for American Family employees to participate in the 401(k) plan?
Employees of American Family are typically eligible to participate in the 401(k) plan after completing a specified period of service.
Can American Family employees choose how to invest their 401(k) contributions?
Yes, American Family employees can choose from a variety of investment options within the 401(k) plan to tailor their investment strategy.
What is the maximum contribution limit for American Family's 401(k) plan?
The maximum contribution limit for American Family's 401(k) plan is determined by IRS regulations, which may change annually.
Does American Family allow for catch-up contributions in the 401(k) plan?
Yes, American Family allows employees aged 50 and older to make catch-up contributions to their 401(k) plan.
How often can American Family employees change their contribution amounts to the 401(k) plan?
American Family employees can typically change their contribution amounts to the 401(k) plan on a quarterly basis or as specified in the plan documents.
Are loans available from the 401(k) plan at American Family?
Yes, American Family's 401(k) plan may allow employees to take loans against their vested balance, subject to specific terms and conditions.
What happens to my 401(k) balance if I leave American Family?
If you leave American Family, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave it in the plan if allowed.
Does American Family offer financial education resources for employees regarding the 401(k) plan?
Yes, American Family provides financial education resources to help employees make informed decisions about their 401(k) savings.