Artificial intelligence is making tax scams more sophisticated—and harder to detect. Fraudsters are now using AI to generate realistic emails, mimic voices, and create highly personalized messages that appear legitimate. These tactics increase the likelihood of individuals and businesses falling victim to phishing and financial fraud.

Key takeaway: As scams become more advanced, vigilance is critical. Verify unexpected communications, especially those involving financial or sensitive information, and implement internal safeguards to reduce risk.

Serving as a fiduciary for a 401(k) plan comes with significant responsibility. Plan sponsors are expected to act in the best interest of participants, monitor investments, ensure reasonable fees, and maintain compliance with evolving regulations. Failure to meet these duties can result in legal and financial consequences.

Key takeaway: Proactive oversight and regular plan reviews are essential. Working with knowledgeable advisors can help ensure compliance and mitigate potential liability.

We can help! We're taking on a limited amount of additional 401(k) plan audits this year. If your plan needs an audit for the first time or you are looking for a new audit provider, please reach out to Eric Neuman at eneuman@chortek.com.

Living trusts are often misunderstood. While they can be a valuable estate planning tool, they don’t eliminate taxes, protect assets from creditors in all cases, or replace the need for a comprehensive estate plan. Instead, they primarily help streamline asset distribution and avoid probate.

Key takeaway: A revocable trust can be beneficial—but only as part of a broader, well-structured estate plan tailored to your goals.