What is Inside The Art of Essential Action — Sample Chapter

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In addition to the forward, introduction, and A Word About Taking Action & Effectively Building Wealth, the content inside The Art of Essential Action consists of 10 chapters, Appendices A and B along with a Bonus Section, all of which are designed to get you and others to move forward more efficiently.

For those who are serious about their finances—a new, more efficient way to look at and analyze the financial happenings that occur during the various stages of life can now be proactively analyzed and acted upon so that more can be achieved in less time on a more consistent basis.

Contents

Foreword    6

Introduction   8

A Word About Taking Action & Effectively Building Wealth    12

Chapter 1 Time Management & Action Basics     23

Chapter 2 Procrastination & Wealth Building     37

Chapter 3 Responsibility & Wealth Building     46

Chapter 4 Financially Alert Mind & Wealth Building        54

Chapter 5 Understanding Your Need to Act Consistently    65

Chapter 6 Hot Time Management & Action Topics (understanding compounding, income, tariffs, inflation, how to more efficiently increase your net worth over time, and improving your credit and finance management over your lifetime) 81

Chapter 7 Artificial Intelligence, Fraud, & Wealth Building    109

Chapter 8 Output & Wealth Building 133

Chapter 9 Mental Tools that You Can Use to Manage Your Time Better and Achieve More   145

Chapter 10 Tying it All Together and Using Your Action Mindset that you NOW Have and Must Use to Build Wealth More Efficiently Throughout Your Lifetime    157

Appendix A 

Additional books written by Thomas (TJ) Underwood     181

Appendix B

The 3 Step Structured Approach (A Comprehensive Financial Management System Designed to Inspire Action and Save You Time so that You Can Truly Build Wealth in Any Economy)  184

BONUS SECTION: Investment Simplification & Consistently Building Wealth Over Time   200

In chapter 1 you will learn about time management and action basics so that you can begin to formulate your mind for wealth building and life success, throughout your lifetime.

In chapter 2 you will learn the importance of avoiding procrastination and better understand the need to act in the best manner possible for your own best interests throughout your lifetime.

In chapter 3 you will learn the responsibilities that you were enshrined with at birth, and you will learn the importance of being responsible so that you can increase your net worth—and self-worth.

In chapter 4 you will learn why you must attain a Financially Alert Mind and “not just” attain Financial Literacy, as a Financially Alert Mind allows you to act proactively and in a manner that truly serves your best interests.  A Financially Alert Mind allows you to know in advance what you need to do to comprehensively manage your finances throughout your lifetime.

In chapter 5 you will understand how to use the power of acting consistently throughout your wealth building journey and further increase your understanding of how you can utilize a 3 step approach throughout your lifetime so that you can achieve more.

In chapter 6 you will learn about hot time management and action topics so that you can truly achieve more in less time.  Compounding and understanding the various types of income along with other credit and financial topics that you need to know and act on, will be discussed in great detail.

In chapter 7 you will learn about Artificial Intelligence, Fraud and Scams that you should prepare your heart and mind to avoid, as they are prevalent today—and appear here to stay.

In chapter 8 you will learn how you can increase your output as you take the steps to build your wealth to the level that you desire or need to achieve.  You will learn highly effective ways to manage your energy and achieve more.

In chapter 9 you will learn about empowering Mental Tools that you can use to get a better GRIP on your finances and your financial future.  There are effective mental tools that are available in abundance that can help you build wealth more efficiently, and in this chapter you will learn how to effectively apply some of the most empowering tools available.

In chapter 10 you will learn how to apply and manage all that you have learned in the previous 9 chapters to achieve more throughout your lifetime in a manner that you have never imagined.  You will learn how to use mental tools, action steps, time management and vision that is uniquely your own, in a collaborative manner, so the results that you achieve will have more force.

In Appendix A you will learn about other books created by the author, along with more insight into the author and his writing style.

In Appendix B you will learn in detail about “The 3 Step Structured Approach to Managing Your Finances” that you have learned throughout the book, but will be driven home in a more powerful manner so that you will have no excuse for not improving your net worth significantly and bringing joy into your life on a permanent basis.

Finally, in the Bonus Section you will learn ways to invest in a simplified manner that you can set up immediately and start on your journey to achieving the goals that you desire if you now have the “discretionary income” that is needed.

If you take the steps outlined in this book you can position yourself to have the discretionary income that is needed to reach your various goals that you have.  You can put yourself in position to invest in a simplified manner and use your action mindset that you now have, along with time and space, to achieve your goals at a faster pace.

All the best as you act appropriately and timely pursue wealth building success.

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Read chapter 7, Artificial Intelligence, Fraud & Wealth Building and get a feel for what you can learn and apply today, to get positive momentum going your way…

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Chapter 7 Artificial Intelligence, Fraud & Wealth Building

Learn the importance of effectively using AI and your need to guard against fraud and the unwise use of credit…

Although AI (Artificial Intelligence) is a great time saver and can enhance your results in many endeavors, AI cannot substitute from you applying yourself and using your own intelligence (RI or Real Intelligence) to achieve more.

You want to utilize real intelligence that you have, along with artificial intelligence to build wealth more efficiently and help you improve on other tasks.

It is important that you intelligently pursue your wealth building efforts with what you “have within” so that you can reach the goals that you desire, avoid a financial quagmire, and pursue goals that are higher and not remain where you are–or worst yet fall short of reaching your goals and face consequences that are dire. 

It is important that you come up with a real way that you can more intelligently pursue your goals–starting today!

1) Financial uncertainty by many is understandable in the current environment

Even though uncertainty about your future is expected at this time based on all that is happening, you must also expect success throughout your lifetime, despite the uncertainty that is in the air at this and any other time.  At this time (fall 2025) the atmosphere around the world and particularly in the United States is at a level unseen by many during their lifetime, and for most the atmosphere does not exude positivity. 

With tariffs, tax and spending bills that take away from the least who are in need and move advantages to millionaires and billionaires, the atmosphere is depressing for many.

Despite what is occurring, it is important that you recognize and realize what is outside of your control and what you control so that you can take steps to at a minimum improve your situation at this time and in the coming years–particularly with the uncertainty that is now in the environment.

2) Lack of action by you and others at this or any time is not acceptable if you desire more

The steps that you can take may not be visible to you at this time, however if you take action and sincerely want to learn and apply steps that can lead to you controlling your outcomes as opposed to having your outcomes directed by AI and other disadvantageous means–the solution for you is to take proactive action and control your own life proactively—not reactively–now that is Real Intelligence! 

However, AI has its purpose as it can assist you on many tasks and assignments that you may have on a daily basis.  Whether ChatGPT, Grok, Copilot, Deepseek, Grammarly, Gemini, DeepL or any others, you want to know the advantages and disadvantages while using them as they all have limitations. 

For those who are business owners, AI has the potential to run all areas of your company, can help schedule your day, pull up demographic data in your area, and can craft a personality profile that caters to your type of business–among other abilities!  AI combined with RI can greatly enhance your life and possibly give you a competitive advantage when used appropriately. 

It is important that you realize that adversity or unwanted happenings will occur throughout your life and at varying degrees–and in many cases on multiple fronts, therefore you want to equip your mind with all that you can to better manage the adversity that you will undoubtedly face so that you can still achieve–even if you have to re-strategize along the way to achieve your goals.

3) You possess the ability to transform your current situation into that of lasting success

By possessing in your mind what you have learned, you are now in position to grow and pursue other areas of wealth building that you need to know.  You want to be aware of what you need to do to more efficiently make your dreams come true–and although AI has many benefits, it is Real Intelligence that will better direct you toward making your dreams come true. 

That is not to say that artificial intelligence (AI) should play no role, however you want to use AI and other tools effectively–therefore, you must be more aware of the limitations and potential of technology, as real success begins and ends inside of you! 

Your awareness of the need to pursue your goals more aggressively at this time can help you transform your finances and position you to have the ability to do what you desire at the various stages of your life.  However, it is important that you pursue your goals at your highest level as you possess in your heart and mind the knowledge (or will soon possess) that is necessary to do just that.

Your ability to believe in, educate, and use your own mind throughout your lifetime for the benefit of yourself and your family can lead to you not only pursuing more, but also achieving more–in large part because you made the commitment to open a new door.

Although an economy of uncertainty can occur at any time, you can use Real Intelligence to move forward with more confidence and optimism in spite of the current economy or any economy.  The AI revolution, robots, humanoids, driverless vehicles, drone technology, smart homes, tariffs and the state of leadership worldwide, and particularly in the United States, all signal an uncertain future when looked at objectively.  However, it is up to you to turn what appears to be a turbulent economy for an uncertain period into a successful period for you and your family. 

You must open your own door if you sincerely desire to soar and using Real Intelligence that you possess in your heart and mind, can put you on a path to achieving the type of success that is one of a kind, and prior to you making a “real commitment” in your life, may have been hard to find.

Now is the time that you let joy in, have appreciation for being here, and show gratitude for what you have done and will do so that your heart and mind is at peace, because you control not only AI, but also RI!

That real intelligence includes analyzing your finances in 3 steps (or other ways that you may find effective) that you have learned throughout this book and making improvements as best you can on a continuous basis.  Keep in mind that still requires planning for the long-term, if you are now in position to do so!  It also means having backup plan(s) and the ability to pivot, when necessary, based on economic conditions. 

Although chaos, confusion and lack of action by many is currently flowing in the atmosphere and have some in a state of anxiety, you want to operate internally with confidence and not act from a position of weakness–as you must move to action as if you are running in the Preakness (at a pace that is disciplined and uniquely your own). 

Although Artificial Intelligence can play a major role in human advancement and possibly make many of your daily tasks less taxing, you want to know in definite terms that the Real Intelligence that you possess is far superior, and even in times of uncertainty you can live simply (with less stress) by knowing in clear terms what you need to do and will do, so that you can laugh more, love more and sincerely open a new door!

At the same time, you don’t want to be afraid of AI as it has numerous roles, therefore you can use AI to perform many tasks for you throughout your lifetime.  Even when it comes to building wealth, AI can help you evaluate potential investment returns in say, a target date fund, index fund, ETF fund and other mutual funds and recommend the best pick–for starters.  Furthermore, you want to know that AI has really been around for decades and has really become prominent in the last few years. 

Other major advancements in AI over the past few years include remote patient monitoring advancements, doctor visit preparation by patients asking the right questions and seeking the right answers prior to doctor visits, advanced accessibility options for those who don’t hear or see well, along with major advancements in how entertainment can enter your life–along with countless other capabilities. 

Even with advancements, many AI platforms are notorious for providing unreliable information, therefore it is your responsibility to decipher the quality of the information/answers using RI, along with doing additional research and/or talking with professionals and others who may have more knowledge of the subject matter than you. 

However, the key to success using AI and RI is to control AI and not let AI control you by asking the right question(s) and seeking the right answers (in all facets of your life) –and always realize the limitations while using!  By doing so you are showing Real Intelligence and the success that you desire will be out in front of you and will be yours to GRAB!  You also want to be aware of those who use AI against you to your detriment–as that can prevent you from making your dreams come true. 

Always realize and be cognizant that AI is only as good as the input that is utilized–therefore always keep that in mind as there can be bias and incorrect data outputs when that occurs!

All the best to your real success, as you deserve “nothing that is artificial” as you build wealth, due in large part because you are “willing to apply” your Real Intelligence and give it your absolute best while others rest.

Fraud, Credit Management & Wealth Building

It is important that you are aware of fraud prevention actions that you can make proactively as well as ways that you can avoid the unwise use of credit. 

As you build wealth in the current economy you want to know that even with technology improvements, data breaches occur on a consistent basis, therefore you want to know how to guard against the breaching of your data and do all you can on the front end to prevent data breaches.  Even in the unfortunate times when data breaches occur, you want to be in position to respond more effectively in the event of a data breach that involves “your” identifying information. 

You also want to be aware of credit and finance promotional offers that you may be bombarded with at the various stages of your life as many offer credit to unsuspecting consumers at high rates of interest or terms and conditions that work for their (credit issuer’s) best interest–and not yours.

And just as you must be aware of how you build wealth from an internal point of view, you also need to be aware of fraudsters and scammers who are all around you (external or outside point of view), if you sincerely desire to achieve at a higher level than most. 

As you build wealth, it is important that you guard against fraud in various forms and you must be more aware of unscrupulous creditors and others who are working day and night to entice you into making decisions that “are not good” for you and your family.

Be particularly aware of bank imposters who claim there is an issue with your account who want you to withdraw or move money, those who offer false ticket sales on websites and social media and those who offer “get rich quick” investment scams on websites or over social media. 

By utilizing credit monitoring, freezing of your credit and fraud alerts–you can better protect your finances and achieve more throughout your lifetime.  And even though it may cost you time at the front-end, it will help you avoid or reduce your heartache at the back-end!

Credit monitoring allows you to review the accounts on your credit reports from one or more of the 3 national credit reporting agencies.  You can go to annualcreditreport.com (877-322-8228) to get a free report from each bureau once per year or you can purchase a copy. 

Keep in mind that bank accounts and payday loans that could be opened using your identifying information would not be picked up by most monitoring services.

Whether you utilize free sites or paid sites–in this day and time you want to monitor your accounts, either by self-monitoring or a paid service:

Transunion

PO Box 1000

Chester, PA 19016-1000

1-800-888-4213

www.transunion.com

Equifax 

PO Box 740241

Atlanta, GA 30374-0241

1-866-349-5191

www.equifax.com

Experian

PO Box 2002

Allen, TX 75013-9701

1-866-200-6020

www.experian.com

Freezing your credit allows you to freeze your credit file so that no new credit can be opened in your name “without” the use of a PIN or (Personal Identification Number) that is issued to you when you initiate a freeze. 

The goal of freezing your credit is to prevent potential credit grantors from accessing your credit report without your consent.

You must temporarily lift the freeze for creditors to gain access.  You will in essence have a “delay” in your ability to obtain credit.  If you were looking to buy a house and get a home mortgage–there would be a delay but generally not be of consequence.  By law credit freezes are available at no cost to you, however you must contact each credit bureau individually to implement the freeze. 

Lifting of Freeze–online or by phone the credit reporting agency must do so within 1 hour–by mail 3 business days. 

Implementing a freeze–online or by phone the credit reporting agency has 1 business day after receiving your request–by mail 3 business days. 

NOTE: The IRS also offers an Identity Protection PIN or IP PIN that you can utilize to help safeguard against the fraudulent filing of your taxes. 

If you are now or in the future the victim of a data breach you may want to consider freezing your credit and/or getting an IP PIN (IRS.gov):

Transunion

PO Box 160

Woodlyn, PA 19094

1-800-916-8800

www.transunion.com/credit-freeze

Equifax 

PO Box 105788

Atlanta, GA 30348-5788

1-888-298-0045

www.equifax.com/personal/credit-report-services

Experian

PO Box 9554

Allen, TX 75013-9554

1-888-397-3742

www.experian.com/freeze/center.html

Fraud alerts will allow you to place an “initial” or “extended” fraud alert on your file(s) at no cost.

Upon seeing a fraud alert a business is required to take steps to verify your identity “before” extending new credit.  If you are a victim of ID theft you can extend the alert for up to 7 years!  By contacting one bureau and placing the alert–they will notify the other 2 bureaus. 

You also have the option to put an initial fraud alert on your account that is valid for one year if you desire additional protection on top of monitoring and freezing of your credit:

Transunion

PO Box 2000

Chester, PA 19016-2000

1-800-680-7289

www.transunion.com/fraud-alerts

Equifax 

PO Box 105069

Atlanta, GA 30348-5069

1-800-525-6285

www.equifax.com/personal/credit-report-services/credit-fraud-alerts/

Experian

PO Box 9554

Allen, TX 75013-9554

1-888-397-3742

www.experian.com/fraud/center.html

By utilizing credit monitoring, freezing of your credit and fraud alerts–you can better protect your finances and achieve more in a safer way.  They are cost effective ways that you can use to prevent, respond to, or minimize the effects of fraud in your life. 

Although setting up fraud alerts and freezing your credit will take time, it will be worth every minute if you can prevent unauthorized activity on your financial accounts. 

Credit monitoring (make sure all 3 credit bureaus are being monitored with the service you select) will also take a few minutes a week of your time and it too can be time that is well spent.

You can now set up credit alerts and other alerts with your creditors, bankers and others whom you have a financial relationship with that will provide alerts and monitor your information on the world wide web, including the dark web. 

Other Options:

Contact the FTC and Your State AG’s Office 

If you find information on your credit report that appears fraudulent or you feel information on you have been misused, you can also contact your local law enforcement and the FTC and your states Attorney General’s office.  Be sure to get a copy of the police report as the report can potentially relieve you of the debt obligation created by the fraudster with your creditor(s).

Federal Trade Commission

FTC Consumer Response Center

600 Pennsylvania Avenue, NW

Washington, DC 20580

1-877-IDTHEFT (438-4338)

www.ftc.gov/bcp/edu/microsites/idtheft

The above contact data for the 3 credit bureaus and the FTC are current as of 10/14/2025

If you suspect Investment Fraud:

Call—800-732-0330 SEC Commission or go to www.sec.gov

To obtain background information on a broker or brokerage firm call 800-289-9999 or go to www.finra.org/investors/toolscalculator/brokercheck

On your personal taxes you can help prevent fraud by getting an IP PIN that will help prevent the fraudulent filing of taxes by a fraudster as they will need to know your PIN even if they have your other identifying data. 

You can utilize this approach annually and receive a new IP PIN annually from the IRS.

Credit Solicitations, Fraud & Wealth Building

In the current economy credit offers abound, and if you are new to credit or lack the needed credit management skills, you can find yourself victim to unscrupulous creditors. 

It is not uncommon for college graduates, undergraduates, the elderly, those new to the job market and others to receive offers from various creditors, and many jump at those offers with no real concern for their future obligations (they fail to begin with the end in mind).  Many creditors offer to loan you money or provide actual checks that you can cash immediately that are tempting and could put you on the hook of paying interest at rates over 30%. 

Other offers may appear more reasonable such as 8% or less, however they too can put you in a more dire position if you jump at the offer and you do not have a comprehensive overview of your finances.  Still others will offer you credit cards of varying credit limits–even if you have no need or desire to utilize credit or have a credit file. 

You want to look at the fine print of all offers that you are considering and know the details of your engagement on the front end–not after the fact. 

Does your acceptance of credit offer line up with your goals and do you have mastery over credit so that credit issuers don’t have mastery over (they know you don’t know what you need to know) you, because you lack mastery over credit?

You want to know your APR, Finance Charge, Amount Financed and your Total Payments prior to engagement with creditors, as by knowing that information you can determine how bad (or good) the offer really is.  You also want to have mastery over the “5 Credit Factors” so you can avoid the unwise use of credit and put yourself in a deeper financial hole.

In many instances you have better options, and you want to pursue those options “prior to” making a bad decision or a decision that you will later regret due to lack of preparation, high pressure, lack of knowledge, time limit pressure and other negative occurrences whether created by you or outside forces!

You want to guard against identity theft and other occurrences or potential occurrences of a negative nature in your credit and financial life.

Even the federal government in the United States are taking steps to reduce fraud as they now (2024 and beyond) require many small employers  that are LLC’s or Corporations to provide certain (BOIR) beneficial ownership information reporting, so that illicit pass-through activity and reporting can be better traced.  This report is required by FinCen and the deadline for reporting was January 1, 2025, however there have been delays.

Phone and email fraudsters are out in abundance and their goal is to get you to provide personally identifiable data or get you to click on dangerous links whether text or email.  Other fraudsters and scammers will attempt to gain your trust and get you to provide usernames and passwords so that they can access your data and ultimately breach your accounts.

If you desire a more comprehensive approach in the management and protection of your credit and finances, consider purchasing 1-2-3 Credit & Me and take life changing control of your finances from this day forward in a way that can put you on a path to achieving all of your goals in a more definitive way.

You already know the importance of “looking within yourself” and improving in areas that you are weak in.

You also need to look at the external environment (political, regulatory, economic, societal, technological and legal happenings where you reside) to see moves that you can potentially make that will serve your better interests in the short and long-term.  In the societal realm, you may have unscrupulous players who may be out to scam you out of your hard-earned cash.

In the event that your data is breached and your identifying information is under the care of a company or industry, many will notify you of the breach and often provide free credit monitoring for a year or more if you sign up–and if you find yourself a victim and the service is offered, you want to strongly consider it, particularly if you do not have a paid service at the time of the breach.

If you are elderly, you want to be particularly cautious about financial moves that you anticipate making! 

You don’t have to put yourself in position to be taken advantage of by creditors, lenders, scammers and others–as you deserve a better approach when it comes to the management of your credit and finances, and you now have those approaches at your fingertips, if you are now ready to take action of a proactive nature! 

To help prevent fraud, you want to implement common sense actions that you can take yourself to prevent scams such as:

*Filter unwanted emails to your spam folder and block unwanted calls and texts and do updates and use the latest internet search browser when possible!

*Don’t give in to anyone pressuring or threatening you into giving them your personal information!

*Hang up phone or don’t respond to requests for information or money on contacts (calls, emails, text messages etcetera) that you did not initiate!

*Even if you are contacted by a business that you recognize, don’t give out your personal or financial info to anyone!

*If anyone says you must act immediately, stop and ask–is this how a company that I wish to do business with should act?  If you feel uneasy, there is a good chance that you are right!

*Instead of clicking links in emails and text messages or calling numbers that you did not request, use a company’s real contact information from their “official” website!

*If someone tells you to keep a secret or say something suspicious and you are not comfortable, stop the conversation and discuss what has occurred with a trusted family member or someone else you trust!

*Be sure to consider multi-factor authentication with your banking, investment, retirement and other financial accounts–particularly those with large balances or high credit limits!

*Be on the lookout for those who pretend to be someone you know, offer you a prize or the ability to help you or a family member get out of trouble, pressure you to act before you have had time to think it over, and ask you to pay in a specific manner whether by payment app, wire, gift card or check! 

You want to remain vigilant and be alert for incidents of fraud by reviewing account statements and monitoring free or paid credit reports that are available.  Look for accounts or creditor inquiries that you did not initiate or recognize and make sure all your data in your credit files from all three credit reporting agencies are accurate.

Also be alert for suspicious calls and emails and never give out identifying information unless you initiate the call or email, and you are certain of who you are communicating with!

Always realize that you have rights under the fair credit reporting act (FCRA) which governs the collection and use of information about you by consumer reporting agencies.  You can learn more about your rights under the FCRA by going to:

www.consumer.ftc.gov/sites/default/files/articles/pdf/pdf-0096-fair-credit-reporting-act.pdf

In addition to being alert for fraudsters and scammers, you also want to be aware of marketing activity that may be aimed at you that promotes reward and other credit cards, retail cards, personal loans and other promotions of varying types as they can in many cases lead you astray–and off of your well planned path that you need or plan to take. 

You want to determine as best you can on the front end if the promotion that is offered fits in with your goals–whether they be your short, intermediate, or long-term goals.

Generally, if you have 5 or 6 credit cards that would possibly be sufficient for building and maintaining your credit as long as you are managing them effectively over time on a consistent basis—ultimately it all depends on your goals.  If you have credit card debt and desire to pay the debt off efficiently with lower interest going to the credit issuer, let’s say you have credit card debt of $4,000 and you get a zero percent promotion offer and you generally know that you can qualify based on your credit score–you still want to run the numbers upfront to determine if there is a real benefit for you. 

Can I pay off the $4,000 with the discretionary income that I have available in the 18 month zero percent interest payment promotional period or window and still meet all of my other obligations on a monthly basis? 

To eliminate the debt of $4,000 you would have to pay roughly $220 per month for the next 18 months!

In addition, if you apply for a new card you generally won’t know the credit amount that you would be approved for in advance and you would normally have a 3% or 4% transfer fee, meaning if you were to transfer $4,000 of debt, your new balance with the credit issuer would be $4,120 at a 3% transfer rate or $4,160 at a 4% transfer rate. 

If you were paying interest monthly at 20% on a $4,000 balance prior to the transfer, your monthly interest would be roughly $80 per month–meaning in 2 or 3 months you would have paid more than the transfer fee–giving you a real opportunity to pay off your remaining balance in roughly 18 months at zero percent interest–saving you well over $1,000 whether the transfer fee was 3% or 4%–therefore there is a serious advantage for you to transfer in this scenario if you have the “discretionary income” and credit score that qualifies you for the promotional credit card with a credit limit of $4,000 or higher–and even less–depending on your goals! 

You also must be disciplined and highly motivated to pay off the debt in an efficient manner! 

Once that payoff of $4,000 has ended after 18 months, you could choose to invest that $220 that you have become accustomed to living without for say–10, 20, or 30 years and have a nice windfall in a relatively painless way! 

It is important that you always realize that unscrupulous actors are all around you and particularly as it relates to your finances and the building of wealth, however there is no reason for you to fear your financial future if you get out in front of your finances.  It is your responsibility to put yourself in a winning financial position so that you can’t be easily taken advantage of as it relates to your finances! 

By understanding the life stages of your financial life and looking at your finances in a comprehensive way at the earliest time possible, you can put yourself in position for greater success and better guard against fraudulent actors that will eventually come your way at some point in your life. 

You also want to be aware of the IRS “Dirty Dozen” Scams that are now prevalent.

Many schemes are year-round and threaten your annual tax return.  The scams are evolving and changing from year to year.  For 2025 they include:

1)    Email phishing scams: The IRS continues to see a barrage of email and text scams targeting taxpayers and others.  Taxpayers and tax professionals should be alert to fake communications from entities posing as legitimate organizations in the tax and financial community, including the IRS, state tax agencies and tax software companies.  These messages arrive in the form of unsolicited texts or emails to lure unsuspecting victims into providing valuable personal and financial information that can lead to identity theft. 

There are two main types:

• Phishing: An email sent by fraudsters claiming to come from the IRS. The email lures the victims into the scam with a variety of ruses such as enticing victims with a phony tax refund or threatening them with false legal or criminal charges for tax fraud.
• Smishing: A text or smartphone SMS message where scammers often use alarming language such as, "Your account has now been put on hold," or "Unusual Activity Report," with a bogus "Solutions" link to restore the recipient's account.  The promise of unexpected tax refunds is another potential tactic used by scam artists.

As a reminder, never click on any unsolicited communication claiming to be from the IRS as it may surreptitiously load malware.  This may also be a way for malicious hackers to load ransomware that keeps the legitimate user from accessing their system and files.

The IRS has special information available to help people understand and report email scams.

2)    Bad social media advice: Another growing concern in 2025 continues to involve incorrect tax information on social media that can mislead honest taxpayers with bad advice, potentially leading to identity theft and tax problems.  Social media platforms routinely circulate inaccurate or misleading tax information, including TikTok where people share wildly inaccurate tax advice.  Some involve urging people to misuse common tax documents like Form W-2.

The IRS and CASST warn people not to fall for these scams, and urge them to follow trusted social media advice from the IRS, tax professionals and other reputable sources.  The IRS reminds taxpayers who knowingly file fraudulent tax returns that they could potentially face significant civil and criminal penalties.

3)    IRS Individual Online Account help from scammers: Swindlers can pose as a "helpful" third party and offer to help create a taxpayer's IRS Individual Online Account at IRS.gov.  In reality, no help is needed, and the agency offers tips on how to sign up and avoid scams.  The IRS Individual Online Account provides taxpayers with valuable personal tax information. But watch out: Third parties making these offers will try to steal a taxpayer's personal information and try to submit fraudulent tax returns in the victim's name to get a big refund.

4)    Fake charities: Bogus charities are a perennial problem that can intensify whenever a crisis or natural disaster strikes.  Scammers set up these fake organizations to take advantage of the public's generosity.

They seek money and personal information, which can be used to further exploit victims through identity theft.

Taxpayers who give money or goods to a charity might be able to claim a deduction on their federal tax return if they itemize deductions, but charitable donations only count if they go to a qualified tax-exempt organization recognized by the IRS.

5)    False Fuel Tax Credit claims: A major concern during the past year involved taxpayers who were misled into believing they were eligible for the Fuel Tax Credit.  The credit is meant for off-highway business and farming use and is not available to most taxpayers.  However, unscrupulous tax return preparers and promoters, including people on social media, continue enticing taxpayers into inflating their refunds by erroneously claiming the credit.  The IRS has seen an increase in the promotion of filing certain refundable credits using Form 4136, Credit for Federal Tax Paid on Fuels.  The IRS urges people to get more information and ensure they are properly claiming this credit.

6)    Credits for Sick Leave and Family Leave: This specialized credit is available for self-employed individuals for 2020 and 2021 during the pandemic; the credit is not available for later tax years.  The IRS is seeing repeated instances where taxpayers are using Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, to incorrectly claim a credit based on income earned as an employee and not as a self-employed individual.

7)    Bogus self-employment tax credit: Social media advice continues to circulate about a non-existent “Self-Employment Tax Credit” that’s misleading taxpayers into filing false claims.  Promoters market it as a way for self-employed people and gig workers to get big payments for the COVID-19 pandemic period. Like misleading marketing around the Employee Retention Credit, there is inaccurate information being circulated that suggests many people qualify for the tax credit and payments of up to $32,000 when they do not.

The underlying credit being referred to in social media is not called the “Self-Employment Tax Credit,” it’s a much more limited and technical credit called the Credits for Sick Leave and Family Leave.  Many people simply do not qualify for these credits, and the IRS is closely reviewing claims coming in under this provision, so taxpayers filing claims do so at their own risk.

8)    Improper household employment taxes: Taxpayers “invent” fictional household employees and then file Schedule H (Form 1040), Household Employment Taxes, to claim a refund based on false sick and family medical leave wages they never paid.

9)    The overstated withholding scam: This is a recent scheme circulating on social media encouraging people to fill out Form W-2, Wage and Tax Statement, or other forms like Form 1099-NEC and other 1099s with false income and withholding information.

In this overstated withholding scheme, scam artists suggest people make up large income and withholding amounts as well as the fictional employer supplying those amounts.  Scam artists then instruct people to file the bogus tax return electronically in hopes of getting a substantial refund due to the large amount of fraudulent withholding.

If the IRS cannot verify the wages, income or withholding credits entered on the tax return, the tax refund will be held pending further review.  Taxpayers should always file a complete and accurate tax return. They should only use legitimate information returns, such as an employer issued Form W-2, to complete returns correctly.

There are multiple variations of the overstated withholding credit scheme, including those involving Forms W-2 and W-2G; Forms 1099-R, 1099-NEC, 1099-DIV, 1099-OID and 1099-B; as well as the Alaskan Dividend Fund, Schedule K-1 with Withholding Reported, and Unspecified Source of Withholding Credit Claimed.

10)  Misleading Offers in Compromise: The Offers in Compromise (OIC) program is an important program that helps people settle their federal tax debts when they are unable to pay in full.  But "mills" can aggressively promote Offers in Compromise in misleading ways to people who clearly don't meet the qualifications, frequently costing taxpayers thousands of dollars.  A taxpayer can check their eligibility for free using the IRS Offer in Compromise Pre-Qualifier tool.

11)  Ghost tax return preparers: Most tax preparers provide outstanding professional service.  However, people should be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund.  A major red flag or bad sign is when the tax preparer is unwilling to sign the return.  Avoid these "ghost" preparers, who will prepare a tax return but refuse to sign or include their IRS Preparer Tax Identification Number (PTIN) as required by law.  Taxpayers should never sign a blank or incomplete return. Instead, the IRS reminds taxpayers to turn to a trusted tax professional for help.

12)  New client scams and spear phishing: In 2025, the IRS continues to see the "new client" scam, which involves spear phishing attempts that target tax pros.  Cybercriminals impersonate new, potential clients to trick tax professionals and other businesses into responding to their emails. Once the tax pro responds, the scammer sends a malicious attachment or URL that can compromise the preparer's computer systems and allow the attacker to access sensitive client information.

Phishing is a term given to emails or text messages designed to get users to provide personal information, and spear phishing is a phishing attempt tailored to a specific organization or business.  Tax professionals frequently find themselves a target of this type of scam. 

Spear phishing holds greater potential for harm because a successful spear phishing attack can ultimately steal client data and the tax pro’s identity, allowing the thief to file fraudulent returns using the stolen information.

Businesses and individuals, including tax pros, should always be cautious and look out for any suspicious requests or unusual behavior before sharing any sensitive information or responding to an email.

Warning signs include poorly constructed sentences and unusual word choices.  Be aware that by gaining access to a hacked email account, scammers can locate a genuine email from a previous victim's email account sent to their tax professional.

All the best to using AI to your advantage, avoiding fraud, avoiding being susceptible to non-beneficial marketing techniques, avoiding the unwise use of credit and otherwise turning your finances into a mess.

Conclusion or Key Points

You want to be aware at the earliest point possible of how AI is spreading and prepare for the changes that are underway.  You also want to avoid becoming a victim of fraud in all its various and unscrupulous forms and avoid being manipulated by varying marketing techniques that work against your best interest.

In reality as you pursue your goals, there may be setbacks along the way and that is why you must also properly establish an emergency fund if you have not already done so.

In addition, you must manage your credit optimally and not let your credit manage you (pull you in directions that are not of “your” choosing).  You must further look at ways that you can manage your insurance, investments, taxes, education funding, estate planning/wills and retirement planning in a way that will take you toward your goals in a more effective and efficient manner.

Additionally, you must not be intimidated by Artificial Intelligence as it has played a negative role in the consumer confidence of many and will continue to evolve.  You want to position yourself to be able to take advantage of the advantages of AI (pun intended) and be wary and on alert for the disadvantages that can work against your best interests

All the best to your new level of success… 

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