Does your broker or investment plan want you to send them money for taxes?

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Pharaoh

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Does your broker or investment plan want you to send them money for taxes?

Does your questionable broker want you to mail them a tax payment before letting you withdraw? DON'T DO IT!

If (and ONLY if) taxes are owed, the bulk of tax authorities around the world will expect you to send the money to them or expect your broker to send it out of your profits. In the second case, you'll want to close more than enough positions to pay the taxes and leave yourself some cash. I'm always VERY suspicious if a broker wants me to send them money for taxes or asks me to transfer cash to some questionable wallet or account.

A few tips. Tax authorities do not accept gift cards. Tax authorities have transfer instructions on their websites, along with relevant forms you need to fill out to make sure the taxes are credit to you. In the US, the IRS accepts debit and credit cards, but you should only follow the links from inside the IRS website. Tax authorities are very unlikely to accept crypto. If they do, follow the instructions on the tax authority's website.

BEFORE sending 1 cent for taxes to the broker or to some account the broker directs you to use, contact the tax authority of the country you supposedly owe the tax to. Ask them if you owe the tax, and if you do, where are the instructions for filing and sending the money.

Don't know the web address of the Inland Revenue Service in Maldives. I don't know it either, but I just found a quick way to get it along with a long list of links to national tax authorities around the world posted on the US Internal Revenue Service website here:

https://www.irscalculators.com/world-tax-authority-list

So you can send tax money to a broker and hope this is legit, OR you can take a few minutes to look up and ask the agency that you allegedly owe the tax to and be sure if you owe money and how to send it.
 
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