Austin American-Statesman Sunday, March 1, 2020 E5 PERSONAL FINANCE EXTRA

IRS taking aim at wealthy Is it really retirement if who don’t file returns you still have to work?

division. The Internal Revenue Service By Jeff Opdyk said it’s going after some of Rate.com the “most egregious” cases and assigning highly trained Most Americans don’t enforcement officers to talk have enough money saved Susan Tompor directly to the taxpayer and to retire on, and Social open discussions about various Security isn’t sufficient all options for how to pay the bill. by itself. he IRS is taking Kea said in some cases appoint- Where do you find your- T to the streets to ments may be made in advance self in relation to these track down high- to meet with the taxpayer. figures? income earners who aren’t “These visits are primar- —The U.S. Bureau of filing federal income tax ily aimed at informing these Labor Statistics reports that returns or paying taxes. taxpayers of their filing and households headed by those A new step in an ongoing paying obligations and bringing over 65 spend, on average, effort involves making roughly these taxpayers into compli- about $46,000 a year, or as well as socializing with What you earn will 800 face-to-face visits in ance,” according to an IRS news about $3,833 a month. co-workers and customers. depend on the skills you pos- the next two months to high- release. —The average couple Unlike generations past, sess and the time you devote income individuals who haven’t The IRS noted that the earns combined Social however, today’s retir- to winning new gigs. There filed tax returns in 2018 or assigned revenue officers are Security benefits of $2,400 ees live in the internet age, are structural engineers on previous years. The Internal civil enforcement officers who a month, or about $28,800 which offers abundant Upwork, for instance, earn- Revenue Service estimates that are charged with resolving these annually. opportunities to create ing $80 to $175 an hour. Over billions are being lost in tax types of compliance issues. That’s a monthly short- income from side hustles on Guru, a roofing company dollars, due to high-income Part of that process includes fall of, call it $1,450 before that aren’t dependent on is paying $500 to $1,000 non-filers. Thousands of other determining the reasons for the figuring in taxes, which age or location. for help creating a Keynote visits across the country are taxpayer’s noncompliance. pushes our needs up to Some of those jobs gen- presentation. expected throughout the year. Kea said the IRS revenue offi- about $1,650. erate but a modicum of Not every job requires The goal is to engage with cers do not have the authority In theory, that shortfall is income. Others offer the engineering or deep com- delinquent, non-filers who to make arrests. That authority why you have a nest egg. But possibility of meaningful puter knowledge. Upwork, have not responded to multiple is reserved for special agents reality has a way of mucking paychecks in retirement. at the moment, lists more IRS notices. The move would of IRS Criminal Investigation up theories. Many of these jobs are than 20 jobs for travel writ- be before the IRS would place a Division. The average retire- based on skills gathered ers — everything from an legal claim against property to In some cases, he said, a refer- ment nest egg for over a career or built up over “adventure travel writer” secure payment of a tax debt. ral to IRS criminal investigation Americans in their 60s is years, and decades of pursu- to “creative travel article The unscheduled, unan- division might be appropriate, $117,000, according to the ing hobbies. needed on elephant tour- nounced visits are reportedly but that would depend upon the Transamerica Center for Websites such as Upwork, ism.” The pay: anywhere across the country and not facts and circumstances of the Retirement Studies. Draw Fivver, Freelancer and Guru from a set price of about $40 focused on any specific geo- case. down $1,450 a month and allow freelancers to build a per article, to $20 to $45 per graphic area. As part of its latest effort, the your nest egg is an empty profile and compete for hour for an ongoing blogger. Those being targeted are IRS said it is increasing its use shell in less than seven years. thousands of assignments Don’t care about travel? reported to have annual incomes of data analytics, research and Even worse, 13% of in areas including web Jobs exist for cover letter in excess of $100,000 during new compliance strategies, to Americans over 60 have development, all manner of writers, ghostwriters, press a tax year and did not file a tax reach taxpayers and tax return no savings for retire- writing, architectural draw- release writers, copy edi- return with the IRS. Those who preparers who have not filed ment, according to Federal ing, chemical engineering, tors, resume writers. And would get a face-to-face visit federal tax returns. Reserve data crunched by language translation, cus- on and on. Again, the pay also have avoided earlier cor- The IRS is also using a system Statista and Forbes. tomer service support, and spans from a few dollars per respondence from the IRS to to hold an individual’s income In both cases, earning on and on. assignment to ongoing gigs straighten out the delinquency. tax refund when their account additional income is the Once you start an account that pay well above mini- The taxpayer may have failed has at least one unfiled tax answer, aside from down- at any of these sites, you can mum wage. to file one or more of their tax return within five years sur- grading your lifestyle. scroll through hundreds However you approach returns. rounding that return. You can, of course, tap of jobs posted in your cat- it, the 21st century has “These visits should not come If someone has an outstanding into the traditional job egory and submit proposals made earning an income as a surprise, will not come as federal tax debt, the IRS said, a market — typically low- for any that match your in retirement easier a surprise, to the taxpayer,” visiting officer will request pay- skill, low-income service skills. Or you can consider than ever. It just takes said Hank Kea, director of field ment but then provide a range sector work. For many and accept jobs proposed logging in and finding the collection operations for the IRS of options, including writing a retirees, that’s fine, so they to you by those in need of best fit for what you’re good small business/self employed check to the U.S. Treasury. can enjoy the daily routine your skills. at.

Ask the Fool Setting Expectations What kind of long-term return Qshould I expect in stocks? — T.D., Lafayette, Indiana Fool’s School 2020. The limit is $6,000 for both My Dumbest Investment The Motley Fool Take You can’t know the exact 2019 and 2020, with an extra Areturn you’ll get over any $1,000 allowed for those 50 and Good Story, Verizon Dividends particular period, but the market’s Tax-Shrinking Tips older. Learn more about retirement past performance can guide your Tax season is here. These tips accounts at fool.com/retirement. Bad Ending Are Calling expectations: Over the 30, 50 and can save you some dollars and • Take required minimum distributions (RMDs) on time. My dumbest investment was buy- As the largest wireless carrier in the 100 years ending in December hassles: ing about $25,000 of Titan Medical United States, Verizon Communica- 2019, the S&P 500 posted a • Be organized. Maintaining Once you hit age 72 (or if you for around $4 per share — on the tions (NYSE: VZ) offers a safe and compounded average annual gain a folder throughout the year for turned 70 1/2 before 2020), you advice of my golf buddies. They stable dividend funded in part by (with dividends reinvested) of receipts and other tax-related will need to take annual RMDs were convincing, and I believed nearly 95 million monthly cellphone between 10% and 11%. If you documents can make preparing from most retirement accounts them. I bought it on a whim — and bills. While Verizon isn’t a growth (though not Roth IRAs, unless invested in the S&P 500 over the your return easier. now it’s hovering around $0.50 per stock (operating revenue grew just you inherited them). Don’t be share. — E.G., online 0.8% last year), it steadily increases past 10 to 20 years, though, your • Be neat and thorough — late, because the penalty is huge its dividend every year and produces average return is likely to have and report all your income. The Fool Responds: The stock You don’t want to trigger — 50% of the amount you should has fallen even further since you strong free cash flow (around $17 been between 6% and 15%. an audit. When you get a have withdrawn. wrote to us. billion in 2019) to cover the payout. So hope for great results, but That’s a testament to Verizon’s scale: 1099 form, the IRS gets a copy of • Consider filing your return It’s easy to think of investing in be prepared for lackluster ones. The wireless industry is notoriously it, too, and it will be expecting you electronically, using tax software. stocks as a game and a gamble, but (To arrive at a “real” return, capital intensive, yet Big Red is still to report that income. It can speed up processing, and can remember that these are usually our subtract the rate of inflation, able to invest heavily in 5G technol- • Use tax-advantaged retire- also help you identify tax breaks hard-earned dollars we’re invest- which has historically averaged ing with. You spent $25,000 on a ogy while having plenty of cash left ment accounts. Contributions to while minimizing math errors. around 3% annually. That might “whim,” based solely on someone’s over with which to pay investors. traditional IRAs and 401(k)s • Be late filing your return if you Competition will remain intense turn a 10% “nominal” gain into story. That’s always risky. will reduce your taxable have to. Just file for an extension — particularly if T-Mobile US a 7% real one.) Companies such as this one income, shrinking your tax bill. on time, using Form 4868 from and Sprint are able to close their Those returns reflect invest- attract investors with compelling (Contributions to Roth accounts IRS.gov. But you still must pay stories. Titan Medical, for example, proposed $26 billion merger, as the ments in most of the overall stock don’t do that, but they offer all of what you think you’ll owe is “focused on computer-assisted combined company would represent market, not in various individual a stronger threat. But Verizon has tax-free withdrawals later.) The by April 15 — or you may get robotic surgical technologies for stocks. Individual companies been defending its position for quite deadline for IRA contributions is hit with both interest charges and application in MIS” (minimally can deliver results that are much a while; the company recently posted the tax deadline of the following penalties for “failure to pay.” invasive surgery). That alone might better or worse. You can hope to its highest number of fourth-quarter year. So it’s actually not too late • Consider hiring a tax pro. get investors excited, thinking of beat the market’s average return successful companies in that arena wireless additions in six years. Its to make a 2019 IRA contribution Good ones can help you strategize by carefully selecting individual such as Intuitive Surgical, which has total debt load is high at $111.5 — you can do it until April 15, and save money. billion (as of Dec. 31, 2019), but stocks or mutual funds, but it’s seen its shares more than quintuple in value over the past decade. But while Verizon plans to deleverage over best for most of us to simply time while remaining committed match the market’s return via a Intuitive has years of rising revenue Name That Company and earnings, Titan does not. to its dividend. low-fee index fund. Your first warning was its share In the event of an economic down- *** price: Stocks trading for less than turn, cellphone bills and other basic I trace my roots back to the utilities remain a top priority in con- How come good news 1866 founding of the Anglo- about $5 per share are penny stocks from one company causes — notoriously risky and volatile. sumers’ household budgets relative to Q discretionary items, reducing the risk its stock to rise, while good Swiss Condensed Milk Company If you look for articles on the com- and the development in 1867 of pany with Google, you’ll see that to Verizon’s dividend. That dividend news from another one leads recently yielded a hefty 4.2%, making to no change? — S.L., Butler, a baby food made with flour and it’s running low on cash and might have to put itself up for sale. (The Verizon a top pick for patient inves- Pennsylvania milk. I grew over the years and Motley Fool owns shares of and has tors seeking income. (The Motley It depends on what inves- added offerings such as chocolate. recommended Intuitive Surgical.) Fool has recommended Verizon.) Ators have been expecting — In 1938, I introduced a popular because often, expectations are instant coffee, followed by instant tea LAST WEEK’S TRIVIA ANSWER already built into the price. in 1948. Today, based in Switzerland, I I trace my roots back to San Francisco in 2004, when two former If investors are expecting a PayPal employees raised $1 million to start a service where friends 10% rise in earnings and that’s sport a market value that recently topped could exchange reviews of businesses. Restaurants are my biggest what they get, there may be little $320 billion. The brands I own or am category, but “home and local services” and shopping are each nearly change. If they’re expecting licensed to sell include Gerber, , as big. Today, with a market value recently topping $2 billion, I sport more than 200 million reviews and have partnered with GrubHub to 10% and the company reports , , , KitKat, deliver food to customers. My shares soared 64% on the day I went a 30% increase, the stock will Coffee-Mate, , , , public in 2012, but then they fell back to Earth. They were recently up likely jump. Not all news is about 40% since their debut. Who am I? (Answer: Yelp) really news. Stouffer’s, DiGiorno, , , Dreyer’s and Haagen-Dazs. Who am I? Want to Invest? Email us at [email protected], and we’ll send Want more information about stocks? you some tips to start investing. Sorry, we can’t provide individual Send us an email to [email protected]. Think you know the answer? We’ll announce it in next week’s edition. financial advice. © 2020 THE MOTLEY FOOL/DIST. BY ANDREWS MCMEEL SYNDICATION 2/27