No More Direct File Through IRS

As of this tax season, Internal Revenue Service’s free filing option, Direct File, has officially been discontinued. This program was praised by a number of tax filers and even by the Government Accountability Office in one of its reports, but IRS decided that the program was too costly to continue. In November 2025, a Treasury Department report discussed how Direct File was no longer a priority, and resources should be redirected to expanding the Free File program, which outsources free tax filing options to partner programs.

This is unfortunate, as the platform was reportedly easy to use. It’s interesting that several of the larger tax preparation software companies were opposed to the IRS offering a free option, even though this option was initially only applicable to simple tax returns. It’s safe to say that the bigger tax preparation companies knew that the implementation of a simple and cost effective filing option would eventually mean the loss of many customers over time, specifically since the direct filing capabilities would eventually expand and become more sophisticated and comprehensive over time.

Though Direct File is no more, IRS continues with the Free File program, which is still beneficial for filers with an adjusted gross income of $89,000 or less. For taxpayers over the AGI ceiling, fillable forms are available for free through the IRS website.

While the discontinuance of Direct File is unfortunate, it’s good that there are still a number of affordable digital filing options for taxpayers that need it. You may view the free file partners and fillable forms by clicking on this link. Filing season will begin on January 26, so you have time to review the different platforms and see which one works best for you.

End Of The Year Financial Tips: How To “Winter” Your Finances

During this holiday season, it can be easy to forget that there are financial activities that we can do to set the groundwork for the year ahead. The life we want to live in 2026 is the life we prepare for now, in 2025. For this reason, I highly recommend doing a few winter activities to prepare your finances for the prosperous seasons ahead.

We have to remember that winter is the perfect season for strategizing and preparing. When many activities slow down or close due to the colder weather, we find ourselves indoors, with more time to work on activities we may have neglected when we were outside and living well. So during the winter, we can focus on our financial strategies, keeping in mind that we’re not focusing on speed. Rather, we’re building systems and protocols for financial strength, clarity, and structure.

To start, take a little (or maybe a lot of) time to audit without emotion. We need to take the time to look at our finances clearly, calmly and without shame. Remember, there is NO place for shame in our finances: we only need to focus on making great decisions moment by moment as we go forward. Auditing without emotion can help us identify money leaks, overspending patterns, weak systems and outdated obligations. Clarifying our money status is a beginning step for aligning with wealth.

Next, we need to fortify the essentials. This looks like laying the groundwork, and strengthening current frameworks, that support our financial ecosystem. This can include bolstering our emergency fund, reviewing and updating our insurances and other financial protection mechanisms, ensure that savings is automated, and clarify essential budget categories. Use this time to reinforce these financial containers before adding more money and more systems.

Then, we can turn our attention to reducing energetic drain. Remember that money follows energy. This is a good time to look back at the findings from the audit, and proceed to clean up whatever needs to be discarded. This is the time to cancel subscriptions, eliminate expenses that don’t serve us, cease engaging in any draining habits, and bring closure to any low quality commitments. The less noise we have, the more capacity we create. And capacity is needed before proceeding.

The next step is to clarify our priorities. I am a huge cheerleader for clarity: nothing fantastic can come from murky thoughts, so clarity is key when it comes to money. In the quiet of winter, we can hear our intuition clearly, and, using that intuition, we can align our actions and desires. At this phase, choose only 1 or 2 wealth priorities for the season. Too many priorities creates murkiness: 1 or 2 priorities is perfect for maintaining clarity. This also allows for precision that isn’t available when our energy and attention are split in too many directions.

Our next step is to prepare for spring expansion. While we enjoy and attune to winter’s energy, we also must keep in mind that these steps are our process to walk into spring confidently. Preparing for spring expansion includes steps like mapping out tax positioning in the upcoming year, pondering ideas regarding business structure or upgrades, pinpointing income goals, planning and structuring investment strategies, and identifying systems we will use for ease and expansion. A plain notebook for capturing all of these ideas and plans is all that’s needed to start.

The final step is probably my favorite, which is aligning the energy behind the numbers. This involves learning to regulate our nervous systems, honor our boundaries, and make decisions from clarity. Our mental state is where our financial reality begins, and we cannot create grounded wealth without grounded energy. Spend some time focusing on having the mental attitude of a financially successful person, and continue to align with this energy regularly.

Winter is a season of release and stillness, but it is not the death of our abundance. This season prepares us for sustainable prosperity. In this time, we can architect our next level with intention. We can build a life that our future selves can thrive inside, if we take the time to “winter” our finances.

If you need a quick reset for this winter season – something that will help you tap into the energy of the life you desire to lead – download the free booklet, the Sacred Winter Reset, and consider completing it before the end of the month. You’ll find some great tips in there, that will help tremendously with aligning with the energy of the season.

Thanks for reading and I’ll talk to you all soon!

The Big Tax Update You Haven’t Heard About

Recently, I was catching up on tax updates in the latest issue of Accounting Today, and I came across an article that stopped me in my tracks. Have you all heard about the Internal Revenue Service Math and Taxpayer Help Act (IRS MATH Act, or H.R.998)?

In the midst of the confusion that happened with the federal government shutdown (which I’ve already written about here and here), this bill was quietly passed by Congress and sent to President Trump for his signature. This bill aims to promote more clarity with IRS notices, particularly with math or clerical notices that are sent to taxpayers after filing their returns.

While I’m usually skeptical of any tax legislation that is passed (as we all should be), I think H.R. 998 is an excellent step in the right direction. When I worked for IRS, I spent a large amount of time explaining notices to taxpayers, both as a contact representative and as an auditor and tax specialist. Even with the push for plain English writing (no jargon allowed), taxpayers were still confused about what certain notices meant, as well as the appropriate response after getting those notices.

H. R. 998 outlines a number of requirements for IRS contact with taxpayers via notices. When the IRS issues a notice for a math/clerical error, it must:

  • Deliver the notice to the taxpayer’s last known address.  
  • Provide a clear description of the error including the specific type of error, the applicable Internal Revenue Code section, and the exact line of the tax return it pertains to.
  • Include an itemized computation showing the adjustments required to correct the error.
  • Provide the telephone number for the IRS automated transcript service so taxpayers can follow up.
  • Clearly state the deadline for the taxpayer to request an abatement of any tax assessed because of the error.

Additionally, the bill clarifies the penalty abatement procedure and subsequent notices, letting taxpayers know that they can use their formal, flexible right to request abatement in any case where they believe that the tax calculation is incorrect. Further, the bill instructs the IRS to design and implement a pilot program exploring alternative delivery methods for math/clerical-error notices (such as certified or registered mail).

The beauty of this bill is that if your return triggers a math/clerical error notice from the IRS, you should expect more detailed information in subsequent notices. This will help you – or your tax professional – assess and respond more effectively. This clearer notice and abatement process strengthens taxpayer rights and transparency: it makes it easier to understand where the error lies, how to respond, and what timeframe applies.

I’m curious about how the IRS will implement the pilot program and ensure compliance with the new standards. I’ll be looking out for updates on this program in the future. In any case, I’m excited for how improved IRS communications will impact compliance, and I’m thrilled to see how the tax system is evolving in favor of more clarity for taxpayers.

There’s only one thing missing from this fantastic bill: a presidential signature! This bill passed Senate unanimously on October 20, 2025, and has been sent to the President for his signature. As we wait for the bill to become a law, we can peruse Congress’s website, which lists all of the bills currently in process. If you want to see which tax bills are on the horizon, check out the Ways & Means committee. They write the legislation that ends up as tax law.

There are several other tax updates that I’m excited to share with you all. Look out for those post soon! Take care.

The Shutdown Is Over. What Was The Result?

For those that are unaware, the longest shutdown in US history is officially over. To quickly bring you all up to speed, the US federal government must approve an operating budget annually (usually, it is confirmed before October 1st of every year). However, every once and a while, Congress – the people who vote on the budget – will disagree, and if the budget isn’t approved, then the government will shut down due to a lapse in funding. That’s what happened on October 1, 2025, and this shutdown lasted for 44 days (the previous record holder for longest shutdown was 35 days, back in 2018 – 2019).

Originally, this year’s budget disagreement centered on the expiration of Affordable Care Act (ACA) premium tax credits. These are set to expire on December 31, 2025, and these tax credits are what make it possible for health insurance through the ACA to be affordable. The expiration would mean that insurance costs would skyrocket for those that have insurance through the ACA. These credits are based on household income, and, considering the cost of living for most Americans, the credits are the only thing that have made healthcare insurance affordable and accessible. Many have remarked over how the insurance costs will double for most people that previously qualified for the credits. If the credits aren’t extended, insurance will likely be cost prohibitive for most of the families currently using insurance providers through the ACA Marketplace.

However, this temporary budget was passed without resolving the ACA expiration issue. As a result, the government reopened, and healthcare costs will increase drastically, starting on January 1, 2026. Elected officials who agreed to the temporary budget said that they did so because they were “promised” that the ACA issue will be revisited and resolved at a future date. It appears this whole shutdown was an exercise in futility: a complete disruption of government functions ended on a “promise” that is unlikely to materialize as expected. After getting this temporary solution, we may be facing furloughs again in January, when the current deal expires.

It’s a disappointing situation all the way around: so many people went without their salary, experienced disturbances in their government benefits, and were impacted by government closures, only for the proverbial can to be kicked further down the road. This was an expensive and careless exercise, it it doesn’t seem wise that these officials accepted a “promise” as a fair compromise for the precarious situation millions of Americans experienced this past 44 days. So, while I wish this was the end of the shutdown discussions, I anticipate I will be returning to this topic in a couple of months. Here’s hoping that the next few weeks will be a productive period for Congress, and that they will unite to ensure that Americans can continue to receive affordable healthcare rates.

The Reading List: Making The Most of Government Shutdown 2025

Well, we’re one month into the federal government shutdown, and with no end in sight, I figured I would share one thing that has been keeping me going: BOOKS! I have always loved reading, but I usually don’t have as much time to devote to my books as I prefer. So this break from work has given me plenty of time to catch up on my reading list.

I’m reading and re-reading a few books this month, and trying to take advantage of my significantly freed-up schedule. The books I’ve read so far this month are as follows:

Be Who You Came To Be by Estelle Gillingham, PhD

True Gifts by Jewel Veitch

Chic & Slim Encore by Anne Barone

The Joy of Less by Cary David Richards

As I type this blog post, I’m about halfway done re-reading The 12 Week Year by Brian P. Moran and Michael Lennington. I’m kicking off a 12 Week Year session in November, that will last me until the end of January. I want to test a few theories before sharing them on this blog, and I’ll be using the next 12 weeks for testing and perfecting a system that I’ve been tinkering with for the past few months.

I’m looking forward to sharing my progress as I work through my goals over the 12 week period. I figured this is a good time to start something new, since I used the previous few weeks to rest and relax. Now that I’m rested and feeling motivated, diving into a project that excites me is the perfect distraction from the chaos of federal employment.

For all of those affected by the shutdown, I sincerely hope that you’re taking care of yourselves, resting, and doing things you enjoy. And, I hope you all found time to read books that give you ideas on how to create the lives you desire and deserve.

Three Weeks of Government Shutdown 2025 – What’s Happening Now

Well, here we are 21 days into the shutdown, which ties this shutdown with the one that occurred in 1995-1996. Per the latest reports, there is no end in sight, which means that this is quickly becoming a possible contender for the longest shutdown in US history.

On my end, all has been well. I’m happy that my resources have sustained me thus far, and I”m just waiting patiently as things get sorted out with the federal government. Things may become direr for employees who weren’t able to prepare for the shutdown (thinking specifically of those newer employees, or those that have had recent or drastic changes in their financial circumstances). Please keep those folks uplifted in your thoughts: this may be an especially difficult time for them.

I’ve been employing a lot of selective information consumption at this time. However, some of my favorite sources for shutdown and general government information have been:

  • Federal News Network (enough general information on here to keep most people well informed)
  • NPR (great if I prefer to get my news via radio)
  • Heather Cox Richardson (government explained through a historian’s perspective: refreshing and informative)
  • LinkedIn News (though I often find myself conducting quite a bit of fact-checking to confirm the veracity of the statements I’m reading)

As soon as I have more details, I’ll be sure to share with you all. Until then, I’m standing by and waiting, just like the rest of the federal workforce.

In the meantime, I’ve been resting, traveling a little, and reading a lot. In previous furloughs, I learned that the most important thing I can do is occupy my time with things I enjoy and avoid obsessing about the things I cannot control. That has been instrumental in making sure that I don’t feel anxious or stressed, because worrying changes nothing. As a result, I always end up feeling pretty good about the uncertainty surrounding these closures. I use the time wisely and find ways to make the time off as fun as I can, too.

That’s it for this week in the Government Shutdown. Here’s hoping we’ll have some good news soon!

Shutdown Updates – What’s Happening With The IRS

Well, as this federal government shutdown toils on, many people may have questions regarding their tax obligations. After all, October 15th is the deadline for submitting tax returns after requesting an extension of time to file. What will happen to those returns that are submitted while nearly half of IRS’s employees are furloughed? And, what if you have some other tax questions that you need answered?

If you aren’t aware, IRS had a contingency plan that covered five shutdown days, but with the shutdown extended into its second week, nearly half of the workforce has been furloughed. You can expect that any IRS contact you need to make may be impacted by the reduced workforce. (You can read more about some of the general details here: IRS Shutters ‘Most Operations’, Furloughs Employees as Shutdown Continues). Fortunately, IRS published its contingency plan on its website, which spells out which functions will continue to operate, and which will cease. You can view the contingency plan here.

The functions that will continue during the furlough are:

  • Criminal Investigations (CI) (law enforcement operations, ongoing investigations, and protection of officials)
  • Data and property protection (computer systems management and taxpayer remittances)
  • Limited taxpayer services (disaster relief or safety focused only)
  • Filing season preparation (forms design, IT testing and modernization)
  • Contract oversight (for contacts necessary for life/property safety or exemption functions)

The functions that will cease during the furlough are:

  • Routine taxpayer services (call centers, walk-ins)
  • Non-disaster transcript processing
  • Non-automated collections and legal counsel for non-exempt matters
  • Research, planning and training not related to exempt activities
  • Most administrative and HQ functions not tied to safety or property protection

For those that have tax concerns, you may be wondering what should you do while you wait for IRS to go back to fully operational status. I tried the 1-800 number for IRS earlier today and found that indeed they are receiving calls, but you won’t be able to connect to a live person unless its related to disaster relief or some major safety concern. Also, as I mentioned earlier, the October 15th extension deadline is looming, and this furlough is unlikely to be a valid reason for not submitting your tax returns. So you will want to remit your returns anyway, since the data and property protection teams are still operating during this time (they will receive the documents, but processing wont’ resume until the furlough ends). Unfortunately, if you need a transcript and you’re not living in a disaster area, your request will not be processed during this time (keep this in mind if you were completing a process that requires income verification, like asset purchases).

Please know that in cases of shutdown, there are usually no pauses in automated collection actions: the time frames and system-generated documents generally continue as normal. So if you are currently under a payment plan, the shutdown will not stop or prevent you from having to pay on your balance owed. Also, if you were anticipating a refund, there is a good chance that that too will be automatically (systemically) issued if you were anticipating a direct deposit. I am unsure how this will impact paper checks. Additionally, if you are under criminal investigation (hopefully not!) and were hoping that the furlough meant you’d get a break, I hate to be the one to tell it to you, but the CI team is still hard at work and investigations will continue.

These reduced services can be a bit frustrating, but the shutdown is temporary and will be resolved at some point. Right now is a great time to sort through your documents in anticipation of your next year filing, or you can review some of the changes from the One Big Beautiful Bill Act (if you want me to share my notes in a future post, let me know!) Previously, we heard talks of tax collections being reduced or the IRS being eliminated. But with an estimated 80% or so of government funding coming from the IRS, the chances of a completely dissolved Internal Revenue Service are slim. So if you’re hoping that the temporary government shutdown will lead into a permanent shutdown of Internal Revenue Service, I wouldn’t bet on it. But who knows? Anything is possible.

Do you have any tax questions or are you still wondering what’s next for the federal government? Leave your questions below, and I’ll do my best to answer them!

One Week Into The Government Shutdown: What’s Happening Now

It’s Day 8 of the 2025 Government Shutdown, and it looks like the federal government is no closer to an approved budget than it was last week. I’m guessing that this won’t be resolved within the week; in fact, I think it could be almost November before the funding bill is approved.

I’m writing this post as a furloughed federal employee who has prepared for this sort of thing, and I want to assure you all that I’m doing just fine. The unscheduled time off was perfect: I had just finished helping a friend relocate to her new home, and I was walking nearly 22,000 each day during the move. Additionally, I was helping her after I finished work every day, so I was helping with the move between 7 PM and 3 AM each night, for several days. By the time the shutdown was announced, I was sleep deficient and running on absolute fumes, so having a few days to properly rest and take care of myself was perfect.

Foresight has been a savior during this time. I save my money and live sensibly so that I can weather changes in income, and, given the many shutdown threats I’ve lived through over the past 20(!) years of federal employment, I am NOT surprised that this happened. I was working as a federal employee in 2013, which was when I experienced my first shutdown. My daughter was small and that was the perfect time to do some domestic travel and catch up on the sleep I’d been missing as a long-distance daily commuter. So, being wise, keeping a positive outlook, and using the break to my advantage has been good for me.

For those impacted by the shutdown, I’m sorry for any inconveniences you may have experienced. And for those that are just annoyed with all of this, just know that every federal employee understands and agrees with you. I sincerely hope that this gets resolved soon, so that we can get back to serving the public.

Stay Safe: The Story of a Scam, Part 2

In my last blog post, I shared some of what I’d learned about Lightning Shared Scooter Company (LSSC), a pyramid scheme that stole millions of dollars from investors under the guise of a scooter installation and leasing company. After scrutiny from the FBI and customer complaints in more than 20 US states, LSSC shuttered its doors and vanished into thin air. When the company disappeared, so did many investors’ hard earned money.

In hindsight, I’m sure many of the participants in the scheme can identify multiple red flags that were always present. However, when in the throes of the excitement of generating income quickly, some of the usual caution is often disregarded. Some people who had been part of the company for a few years were earning the equivalent of an average US salary in less than two months’ time, and as a result, they probably didn’t ever stop to ask themselves, “Does any of this make sense?”

I want to be VERY clear: a pyramid scheme can only be effective if it causes participants to doubt their instincts. Even savvy investors can be scammed, as history has proven – time and time again – over the last 50 years. Nothing that I’m sharing should be interpreted as victim blaming, because the key to an effective scheme is sophisticated deceptive practices. NO fraudulent scheme can be effective if it’s obviously scammy, so naturally, victims may not identify the scam immediately. While I suspected the business was a scam as soon as I heard it, it was difficult to identify it as such when there are multiple people earning consistent profits from it over several years.

With that being said, here’s a list of some of the red flags, as well as ways to identify scams and schemes as they are presented to you.

  • Recent launch and request for individual investors instead of using institutional funds. Companies at the size and scale that LSSC claimed it was DO NOT seek random individuals to fund it. Companies that plan to expand and to set up an effective presence in a new country or market will use the banking structures of that country. And yes, crowd sourcing is an option for smaller companies, but even that is generally conducted on a third-party platform that offers some neutrality and security to investors.
  • Promise of a quick return of investment. The old adage, “If it sounds too good to be true . . . ” comes to mind.
  • Usage of a profit model that doesn’t look like any others that you’ve seen or experienced. Most compensation structures have already been created and tested: truly innovative models are as rare as hen’s teeth. If the profit model is new, then you should probably wait a while to see how it works, and if it’s sustainable over the long term. If some of the participants had just waited for a few months or a year, they would have seen that the company’s profit model was fraudulent and could have avoided being fleeced.
  • Complicated pay structures and mechanisms.If you don’t completely understand how and why you’re getting paid, then that could be a reason to pause and do some additional research. You should be clear on how the money gets to you and why you’re getting it.
  • Multiple concurrent activities that are not connected to the company’s mission. These are also known as “distractions”. Hosting dinners, raffling items, logging into a chatroom that requires constant involvement throughout the day, required training hours that don’t actually teach you anything related to the business, multiple unrelated “meetings” per week: all of these things add up to a company that wants you so distracted that you won’t notice that they’re failing to pay you on time . . . again.
  • Conflicting messages regarding pay, participation, etc.,. Once a company flip flops a number of times, you can bet that they’re simply readjusting as they realize that the time for the scam is running out.
  • Insistence upon involvement in activities that have nothing to do with the company’s mission and profit generation. If they want you, as an investor, to do anything other than put in money and read quarterly earning statements, then they are likely trying to distract you. If the company wants you participating in contests for no clear reason other than “community building” AND if the activities being promoted have nothing to do with the income generation of the company, you can better believe that this is part of the deception that makes investors more comfortable with sinking in additional funds.
  • Unclear connection between company activities and company mission and profit generation. Why would a company raffle off house plants, air fryers, and televisions daily, especially if the company doesn’t specialize in selling house plants, air fryers or televisions? Again, another distraction.
  • Structures that claim to be inspired by existing models but have very little actual connection. This is a common tactic that causes the investor to “fill in the blanks” when they should be more skeptical. LSSC claimed to be similar to companies like ride-sharing platforms (think Uber and Lyft), but the scooter operations were more akin to rental car agreements. The company also claimed to be focused on the “sharing economy”, but nothing in the scooter business requires that. This was part of getting the investors to associate the company with trusted models that had proven themselves, even though the company had not actually employed the model that they claimed was their “inspiration”.
  • Cryptocurrency as the sole means of conducting business. Please know that I’m not anti-crypto: I believe any platform or method of acknowledging currency is “valid”, so long as all participants are knowledgeable and agree to use the platform/method as intended. But the focus on recruiting individuals that are unfamiliar with crypto, then insisting that the individuals only operate within cryptocurrency platforms, is a red flag to me. It should be noted that the appeal of cryptocurrency lies in the fact that it exists outside of government regulations. So prosecuting people who have committed criminal acts on crypto platforms is challenging, and oftentimes impossible. Also, the relative anonymity that can be accomplished by using crypto platforms means that identifying culprits is almost always impossible.
  • Poorly constructed training sessions, and training that reads more like indoctrination than specialized education. When a business is newly formed, you can expect that some of the training and other information sessions may be a little disorganized, and trainers may not be able to answer every question that comes from the audience. However, after several years in business, there should be a streamlined, organized and fairly seamless training program in place, with trainers that are well-versed and poised. Also, your spidey senses should go off when training sessions focus heavily on indoctrinating participants as opposed to educating them. What’s the line between indoctrination and education? Even experts debate this, but generally speaking, any statements that push people towards ideologies without critical analysis would fall under the indoctrination umbrella. If you find yourself in a space that presents opinions as “logic”, uses an assortment of formal and informal fallacies to make arguments and utilize shaming and embarrassment tactics to encourage certain behavior, it’s likely that indoctrination – not education – is the goal. When you see poorly constructed training paired with indoctrination, what you’re likely experiencing is a scam.
  • Fanaticism is the main attraction, not the product or service. Going back to the point about indoctrination, one of the outcomes of being brought into a business that operates like a cult is that participants go from interested supporters to fanatics, allowing the business to take over their lives. One of the most peculiar things about the LSSC scam was how much time the business demanded of investors while still calling itself a source for “passive” income. There was nothing passive about the number of discussions, training and meetings that investors were required to attend each week. There was also nothing passive about the activities required by participants to maintain the payment levels that they achieved when they first invested. As a slight aside, it’s worth noting that requiring fanaticism from participants is one of the hallmarks of cults, and, in my opinion, so many things about the LSSC scam read as cult behavior.

Those are the main red flags I identified in the LSSC scam, but I can comfortably state that most scams use a number of the tactics that I mention. I hope that everyone involved with the LSSC scam is made whole, and I hope that anyone that’s questioning an investment opportunity does their research and makes sure that the opportunity is a legitimate one.

That’s all for today. I’ll talk to you all soon!

Stay Safe: The Story of a Scam, Part 1

In the financial world, the only guarantee that exists is that there is always a scam or scheme on the horizon, ready to take advantage of the ambitious but ill-informed masses. Recently, a large group of global investors and entrepreneurs fell victim to a scooter scam to the tune of millions of dollars.

If you have been keeping up with the world of frauds, scams and schemes, you may have heard of the Lightning Shared Scooter Company (L.S.S.C.) The Hong-Kong based company purported to set up scooters in densely populated cities, and investors could pay a flat fee to lease a set of scooters for 3 years. These leases were supposed to fund the initial scooter purchase and subsequent mechanical maintenance. Larger investments created the opportunity for more scooter leases, and more leases meant more money could be made by the investor. The company would maintain the scooters, and the investors made money by “turning on” the scooters every day of the work week (Monday through Friday). The claim was that investors would recover the initial investment within 30 working days (about 6 weeks). After that 6 week period, all subsequent income generated was profit.

This sounds simple enough, but the story quickly fell apart as the company revealed more about what they expected from investors. First of all, the company was compensating investors for “turning on” the scooters, but it didn’t seem logical that, in this age of automation, these devices would need to be manually powered on. The company alternated between claiming that investors didn’t need to bring in additional participants and claiming that the only way to make money was to add new “team” members as quickly as possible. Additionally, the training and investor meetings were extremely disorganized and repeated the same canned, surface-level information in slightly different ways. Investors were expected to attend YouTube “training” sessions that weren’t substantive, but simply a way to continue to spin the illogical compensation structure of the company and leverage the excitement of new investors that were ready to make “easy” money. These “trainings” offered fluffy, poorly constructed arguments in favor of the company, and were little more than a way for the YouTube trainers to quickly become part of the YT Partner program, offering a way to make money beyond LSSC’s scooter scheme.

Another peculiar point about the scam was the method for compensation. The company only paid through cryptocurrency on Coinbase, and they required a complex process for remitting investment funds to start. The company would have different short term investment opportunities for participants, where investors would remit $10,000 or more and, within 2 or 3 days, they could receive from 10% to 25% over their initial investment. LSSC went a step further, and also started making claims that the money received from the company was nontaxable due to the fact that the company was Hong-Kong based, offering awful and oversimplified tax guidance to excited but uneducated investors (at the point where I heard this, I KNEW, for sure, this was a scam and would cause financial ruin for the participants if it continued).

Further, the company’s rapid expansion was supposed to be part of a strategic plan to corner the North American market by “proving” public interest in scooter usage (all while scooters devices have been in use for many years here in the US). Relying on investors’ ignorance of how foreign companies enter new markets, the “logic” presented argued that the fact that investors’ participation would make a stronger claim for LSSC as it navigated the process of setting up US presence. The company attempted to bolster its appearance of legitimacy by offering business registration information and documents on live videos, telling investors (and I paraphrase here, but not much), “If we were crooks, would we register with regulatory agencies?” Personally, the registration documents provided by the company were among some of the flimsiest I’ve ever seen, and didn’t actually confirm the legitimacy of the company, but that should be no surprise, given the way things turned out.

In the end, the company came toppling down in late July 2025. In the weeks leading up to the collapse, the company amped up activity, promising to gift Teslas to some of the lucky investors, planning multiple grand openings of scooter stores in the US, and giving away the equivalents of thousands of dollars in household items to investors each day. After failing to pay investors timely, AND after failing to disperse rewards promised through games and competitions on the company’s BonChat platform (their exclusive communication channel structured similarly to WhatsApp), it became clear that LSSC was what it claimed to be. On the heels of FBI scrutiny, the company closed down and left many people with lightened wallets and shamed faces.

Further, some of the more public members of the organization – who were also investors who lost significant money – have become victims of harassment, despite the fact that they were not the masterminds behind the scheme. Several individuals have been forced to keep a low profile in light of the scandal. It has been rumored that the different higher level individuals that interacted with investors were actually AI generated entities, making it nearly impossible to pinpoint the actual parties responsible for the scam.

In any case, I have a lot of sympathy for the victims, and there were plenty of them: the entry point for investors was fairly low (less that $1000 USD when the company shuttered its doors), making it accessible. And, because the company initially kept its promises to investors, the early investors (some of whom came into the structure when the fees were less than $500 USD) were encouraged and inspired to bring in as many family members and friends as they could. I have several family members who fell victim to the scheme, however, they personally incurred the loss for the individuals that they brought into the company (they made the investment on behalf of the people they brought in, only to be repaid when the participants were beyond the 30 day investment recoup period).

There were many red flags with the scheme, and I will explore ALL of them in my next post. So stay tuned for Part 2 of The Story of a Scam. I’ll talk to you all soon!