Yesterday, news broke that a Milwaukee Bucks employee released the W-2 information for the players of the Bucks to a phony e-mail address. This means that someone has access to the identity of multi-millionaires such as Jabari Parker and Giannis Antetokounmpo. Having the basketball stolen from them is nothing new, but their identity is unexpected.
Well, this is nothing new. Identity theft has been the hot button in the tax industry over the past 2 years. Last year, the IRS came out with a statement that their transcript website was hacked and there was the possibility that millions of taxpayers may have been affected. I personally was one of the taxpayers who received a letter notifying me of this. Last year, Katrina Cravy at Fox 6 featured my Dad in a story about ID theft.
Identity theft comes in many different forms. However, from the tax viewpoint there are two main forms. The IRS scam phone calls ( REMEMBER: THE IRS WILL NEVER CALL YOU) and the filing of tax returns under someone else’s social security number. Having access to someone’s social security opens up a lot of possibilities for a thief.
Getting back to the Bucks’ situation, this shows how easy it is for thieves to access important information. An organization such as the Bucks should have top notch security to avoid situations like this. As I mentioned before, it is scary to see it happen to such a large organization.
After hearing horror stories in the past, and stories like this, it is a good time to point out to our clients how we have taken steps to make sure this does not happen to them.
Nowadays, e-mails can easily be intercepted and hacked. That is why Hammernik & Associates has implemented a client portal system. All sensitive client information will be sent through this secure portal. This process ensures that situations like the Bucks’ will not happen at Hammernik & Associates.
However, this story is a reminder to make sure you always take steps to protect your identity. If you do believe your identity has been compromised, be sure to contact our office so that we can help you fill out an Identity Theft Affidavit.
Read the entire Bucks article here: Sources: Bucks players’ financial data compromised in scam
Until Next Time,
Nicholas Hammernik, EA
Milwaukee tax preparation and tax planning
This past weekend I took a trip down to Louisville, KY to experience something that I always have wanted to see…the Kentucky Derby. The stereotypes of the Kentucky Derby are mint julips, big hats, and bright colored clothing….and they are all true. I opted to go with a baby blue colored coat and some coral colored dress pants. Leading up to the trip, I tried to learn as much about horse racing as I could. Now, I am a huge sports fan, but horse racing is not my forte’. Therefore, I opted to place my trust in the “experts” for their opinions on which horse would win.
I ended up placing my money on Gun Runner, who led most of the race, but faded to third place in the end. The winner of the race was the favorite, Nyquist. I did not end up cashing in any winning tickets and a few of my friends only won a couple hundred dollars.
However, let’s go ahead with the scenario that I dreamt up in my head…
“Oh my gosh, I just won $10,000 on this Trifecta bet! What am I going to do with all of this money?!?”
Step #1 : Enjoy the night in Louisville as a high roller.
Step #2: Call Hammernik & Associates to see how this effects my tax situation.
Now, I know in reality that calling up your tax guy is not in the forefront of your mind on a daily basis. However, when any life changing event takes place, or is about to take place, I cannot stress how important it is to give us a call to set up a tax planning meeting.
It is a guarantee that every year we will come across tax returns that could have benefited significantly from some quick tax planning. Don’t let this happen to you this year. If you are getting married, divorced, having a child, switching jobs, getting a raise, taking money out of a retirement account, won a bunch of money, etc. these are all reasons to do some tax planning.
We all make sure to brush our teeth as best as we can the night leading up to our dentist appointment, right? Does that really do anything? No, we are still going to get called out for not brushing enough either way. It’s too late…
The same holds true with your tax return. If you wait to address something that can affect your tax return, it is going to be too late to help.
Brush your teeth throughout the whole year!
So now that I covered everything from horse racing to dental appointments, give us a call to set up your tax planning check-up….before it is too late!
P.S. Kentucky does not have any state tax, so all my dream would have had to worry about would be how much federal and WI taxes to pay.
Until next time,
Nicholas Hammernik, EA
I was browsing through my Twitter feed the other day and came across a tweet from one of my favorite follows, @taxgirl, that was instant click bait. @taxgirl, better known as Kelly Phillips Erb, provides a unique take on the world of tax and how it relates to pop culture. Here is the link to her article, Sister Says Prince Died Without A Will: What It Means And Why You Shouldn’t Let It Happen To You . It would be shocking to think that someone with so much worth would not have a plan in place to pass that worth on.
This article brings up some great points that Dave Biskup touched on in our December 2015 newsletter. Now, we don’t all have the assets that Prince had, but it is important to have a direction for what assets that we do have. Just this week we have been notified that two of our clients have passed away. Death is a subject, especially for me, that is very hard to think about or talk about it. The mindset is to block out any thoughts of death that may circulate in our heads while lying in bed at night. However, death is inevitable. Not having a will is almost a selfish act when you think about it. The time, money and stress it could cause your loved ones is simply not worth not having a plan in place. A couple hundred dollars can save your loved ones from having to deal with any repercussions.
…when a person dies without a will, things become more complicated. Since there’s no named executor, the Register of Wills or probate court will appoint a person to serve as administrator (more or less an executor with a different title). The court doesn’t just pull a name out of a hat: in most states, if an executor isn’t named, any person of interest – including creditors – can apply to serve as administrator. Yes, that means that, in theory, your credit card company or your mortgage broker could end up administering your estate.
Save your loved ones the time and stress involved by having a plan in place.
Our goal at Hammernik & Associates is to provide you with more than just a filled out tax return. We want to make sure that you are set up in the best financial situation in the present and in the future.
We have outlined a “Love Letter To My Family” which outlines steps to make sure everything is properly taken care of with your estate.
As always, if you have any questions regarding this topic, feel free to contact our office!
Until next time,
Nicholas Hammernik, EA