Identification theft Archives

Internet Ad Revenue Breaks Record. Are You a Spectator or a Player?

When I was 13 (1970), my stepfather took me and a friend to the Olympic Auditorium to see one of my favorite wrestling heroes, Rocky Johnson. I thought this guy was so cool, and I thoroughly enjoyed his coolness in wrestling. My stepfather on the other hand, laughed at me when I got upset because Rocky’s nemesis, Freddie Blassie, would bite him on the forehead when the ref turned his back. It pissed me off to see my hero lose the match through unfairness. So, my stepfather took me to the live match in downtown Los Angeles to show me that it was all fake.

He was right, but I was still entertained. Not by the wrestlers, but by the adult people in the audience. Even though they could see the fake punches and kicks, they were into it as if they were in the ring. What a hoot! But as history was being made in the ring, the audience did not (and probably could not) become a part of it.

Such is the case of the Internet which is changing the way we do business every day. In the AP article, US Internet Ad Revenue Hits Record in 2010 by Barbara Ortutay, the author reports another record set by those who advertise on the Internet. Now, remember, these are Internet companies who are paying hard dollars to get to you through your computer. It does not count those of us who do not advertise but, reach our target audience by serving them, and contributing to the dissemination of knowledge.

The question is, are you participating in Internet history, or are you watching it pass you by? Just think of how much you rely on Google and Opentable, not to mention apps like Yelp and Groupon. What are you doing in your business life to contribute to history? Just like when George C Scott said to the West Point graduates. “Thirty years from now, when you’re sitting around your fireside with your grandson on your knee and he asks you, ‘What did you do in the great World War II,’ you won’t have to say, ‘Well… I shoveled shit in Louisiana.'”

It doesn’t cost anything to start a blog. It doesn’t cost anything to feed the machine. I tell my clients (even those in the entertainment industry), today is the best time to promote yourself in the history of the United States. It takes three things:

Creativity
Persistence
Ignorance of the fear of failing

Check out some of our other articles that may help you. Life is too short to sit back when you can make a difference in your business and personal life, and the lives of others. Don’t be one of those who dwell on the days of shovelling shit, when you could be one who contributed to feeding the masses.

The IRS Loves Us! They Really Love Us! Read Their Warnings on Tax Scams

I have had some great experiences dealing with the IRS, especially when a client was present. One time I walked in with a client who was the daughter of a well-known actor. She actually resembled her father, too. The first thing the IRS appeals agent said was, “I have been a fan of your father for years!” I knew we had just won our case. In fact, within ten minutes we had agreed with the IRS agent on excellent terms.

Then my client start talking, and talking, and talking….I kicked her under

the table. Luckily, this stopped the vocal hemoraging before any real damage was done.

Even though the IRS is our adversary many times, they also put out some items trying to protect the taxpayer from unscrupulous people. The IRS 2010 Dirty Tax Scams listed areas where taxpayers can be screwed by someone other than the IRS. It actually is very informative:

Return Preparer Fraud: Unfortunately some tax preparers skim off their client’s refunds. Other preparers tell clients that they can get big refunds, and end up preparing a bad return that creates problems down the line. Check out your tax preparer. I have corrected many.
Hiding Income Offshore: This is a no-brain-er. Don’t play games. I turned down a client who wanted me to prepare financial statements for a questionable offshore insurance vehicle.
Phising: Anytime you get an email, phone call, or letter from the IRS, do not disclose any information no matter how threatening they sound. Call a professional to check it out. The IRS never calls for information like a credit card to pay taxes over the phone. Ask their permission to record the conversation and see how fast they hang up.
Filing False and Misleading Forms: The low income earned income tax credit is a favorite by schemers. The IRS is having a hard time tracking them down. Also, phony forms 1099 (OID).
Non-taxable Social Security and withholdings: I have not pesonally seen this.
Abuse of Charitable Organizations and Deductions: As a co-founder of FOLA (Foundation of Local Arts), I can tell you the IRS makes you jump through a lot of hoops for your 501(c) (3) letter. If you plan to star an organization, find a good tax lawyer.
Frivolous Arguments: Don’t listen to scheming ideas and constitutional arguments. Remember, taxes pay the courts. They are certainly not going to buy your argument that Congress does not have the right to tax.
Abusive Retirement Plans: Don’t over contribute to your IRAs, and have a pension professional help set one up for you.
Disguised Corporate Ownership: Nevada corporation and you live in LA? Sure, the California Franchise Tax Board is looking for you. The IRS wonders why, too.
Zero Wages: This is a new one to me. Using forms to correct W-2s and 1099s as a way of hiding income.
Misuse of Trusts: Private Annuity Trusts, and foreign trusts to deduct private expenses are fertile ground for the IRS.
Fuel Tax Credit Scams: If you run a business with vehicles, look out. Claiming an unreasonable amount will put you on the radar.

So, the IRS does have some value other than take your money. Tax scams will always be here, so arm yourself with professionals and don’t do anything without consulting us.

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IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the U.S. Department of the Treasury and Internal Revenue Service, we inform you that any tax advice contained in this e-mail (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (a) avoiding penalties under the Internal Revenue Code or state tax authority, or (b) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

Small Business: A Plumber Should Never Be Caught With His Pants Down

I remember when my stepfather struggled to pay his small business plumbing company material bill. In most cases, cash was short in his business. But the one thing I remembered was my mother protecting their credit rating. She did it as a matter of principle, but in the end, it helped his small business get out of some tough spots.

A pretty good article Good Credit Rating can Pay off for Small Firms in Many Ways by Cyndia Zwahlen popped up in the L A Times, recently. She preached the benefits of a small business of keeping their good credit rating. Oh sure, a good credit rating works wonders for getting a loan, but there was more according to her.

Better payment terms for vendors: If you are a new small business, or engaging a new vendor, your bad credit rating can place you in an undesirable catagory. I remember when I transferred between schools when I was 10. I was a good student, but the new school didn’t know it. So, they place me in the “lower” math class. I had to fight for good grades and recognition to get to the advanced class. The same goes for your credit history. You might be the most timely customer the vendor has seen, but your credit history tells another story. Don’t be caught in the “lower” credit rating. A good credit score can add to your bottom line with better terms.
Safety credit line: The article emphasizes the strategy of getting a credit line when you don’t need it. If your credit is good, the rate and points could be lower. Thus, when an economic downturn hits, you have a safety net to bridge your small business.
Buying another small business: The article does not mention this, but if your business is growing and you are trying to acquire a new business on installments, a bad business credit score can work against you in the negotiations. The higher the risk you are, the more uneasy the seller will be willing to come down to your price.

Small businesses must be good stewards of their money and credit. The good will they can produce can help in acquiring new clients, or servicing the clients they currently own.

Empower Your List(Or How to keep the mud out of your face when you’re spinning your wheels)

Have you ever asked, “What did I accomplished today?”

I came across an article, How to do more in less time. The article had some good advice for small business owners on how to be productive. These tips could be valuable, but the starting point, like in all projects is to have an attainable goal. I have found that a small business owner can accomplish a lot if he/she just make a list the night before of what they want to accomplish. Now, in some small businesses, that may not be too easy if the business is ver volital. For example, if you provide a service, your client’s schedules can alter your own schedule. That is ok, you are the business owner, remember? Put it on the list. Are you going to do some social networking pushing your small business? Put it on the list? Are you cutting payroll? Put it on the list. Then, reorganize your list by priority.

The secret is to create a list of attainable goals and cross them out as you do them. At the end of the day, you will feel more like a small business owner, and not a small business slave, because you will have taken charge of your own time.

Don’t waste time on a business social network, but enter it on the list. Choose something concise that you would like to do on your social network(like write an article). In doing this, you have a deliverable that will benefit your small business down the line.

In my small business (CPA firm), I have been writing these articles for about nine months. I list this chore twice a week, no excuses, no inefficiencies. I just get it done. I don’t have an ROI because that is irrelevant. I provide information and build relationships. That is all part of being in a small business. If I did not list it, then the relationships would never be built or nourished. Small businesses, even e-businesses are built on relationships, and we all know that if you don’t have time for your relationships(even the important ones), you will not have any relationships.

Lastly, as a small business owner, you must know that your list must progress to higher levels. For example, later this month, we will be launching our monthly blog videos under our new banner THE LA CPA. It will be similar to these articles, but will have a visual and audio component. The result will be to more information, better information, in less time for our readers.

So, as a small business owner, or any kind of business person, create your list, execute your list, and then evolve your list. You will find more control of your time and life.

Strategy: Local Connections? Then Why Do We Need The Web?

Just as Dorothy said, “There is no place like home.” But Dorothy didn’t have a facebook account. So, is that still true? Do we have to nurture local relationships in order to conduct our personal and business strategies, or can we just “talk” on the social networks?

I came across this local arts article that argued that every part of the world, and in our cities, have their own art personality. The article pointed out that with cover bands and reality TV, we can pretty much watch and hear the same thing regardless of which part of the country we are in.

The article makes a point, but only on the surface. For example, I co-founded a local non-profit in Manhattan Beach, CA, that promotes local arts, music, dance, and literature back in 2009. The strategy is showing promise as we exhibit local artists and their wares. But, the interesting thing is the local connections have been made both on the web, and the old fashioned way. Patch.com has promoted our events, in addition to the local newspaper, The Beach Reporter. Our organization is using the web as a new way to connect with the locals, yet it is nourished through personal contact. The resulting strategy has been a technology handshake. Businesses, especially businesses located in the cities, need this combination strategy if you plan to pursue something other that e-commerce.

For example, if you do not use the web, you will lose the ability to capture clients in the the long tail (see my previous article). I landed a Los Angeles client because her mother in Canada found me through Google. Our relationship has developed to where I am her business confidant in a new business venture. Likewise, if you just take in clients off the web and do not meet anyone, you will not nurture relationships and strategic alliances in your own neighborhood. I am in daily contact with business strategic alliances that I know from different areas of my life. When people know you, they have a better chance of trusting you.

With all of this said, though, you must strategize. Where are you now, where do you want to be, and how are you going to get there? Then do it. Strategy that is just academic, does nothing but kill time. You must put shoe leather on it, but use both conventional and web-based connections in order to have two shoes.

The strategy has to be a two-pronged approach in the current age.

Business Security Leaks: Here’s Another Hole in the Dam to Plug

We only have ten fingers, so how can we keep plugging potential security leaks in business and personal information? See the Phone security article that speaks about the police’s right to search your phone. That doesn’t bother me, as a CPA, unless it is illegal to write business articles. What bothers me is first, we had the lost laptop scare, then the forgotten thumb-drive, now the lost phone. All of which can compromise proprietary and personal information.

But let me tell you how carelessness can make you lose your lunch. 25 years ago, I was assigned as the business manager to a top entertainment executive. He was a volitle man and told me why he left one of the big CPA firms for us. His story started with an IRS audit in which a CPA of the big accounting firm representing him. The night of the audit, the client received a phone call from a stranger saying that the stranger had found some tax files in a phone booth. As you might have guessed, the big firm CPA stopped to make a phone call (before cell phones) after meeting with the IRS, and left his client’s tax files in the phone booth.

“Slip of mind” stories are somewhat common in the business world, but the gravity of the situation depends on the quantity and access to the information.

Now here is a 21st century FICTIONAL story on how something like this could have serious consequences. Let’s say a person uses their Ipad to conduct business that deals with personal financial information. The Ipad, the apps, all are used in this person’s business. That day, he leaves the Ipadat a restaurant. The Ipad is never to be seen again. All of the information will be at risk of being compromised.

And what about the text messages? The police, and anyone else, can read your undeleted text messages that may contain financial information.

One thing that I do with my clients is use multiple platforms. For example, if I open up an online bank account, I e-mail them the link to the bank. I do not include the email or user number. Next, I text message the user and password without any indication what they are for. I ask them to erase everything they receive from me as an extra precaution.

Another strategy our CPA firm practices is to process information in a paperless environment. This way, there is no loss of paper. Your paperless files must be secure, though. In regards to your business, you may consider going the “paperless route.” It could save you a lot of problems.

So security breaches can be made by your CPA, attorney, doctor, bookkeeper, financial advisor. Be aware of that when you look to engage one of these professionals.

FTC Helps in fighting back identity Fraud

You may have noticed, but the Federal Trade Commission is trying to help consumers fight identity fraud.Their literature outlines three phases of protection:Deter, Detect, and Defend.

Deter Fraud from happening to you:

Shred financial documents and personal information. (Just think, that old tax return thrown in the trash can linger at the dump for a very long time.)
Protect your social security number: Do not carry your card; never write it on a check; don’t give it over the phone to unknown callers.
Do not give out personal information on the phone, internet, or mail unless it is a secured site. (The bottom of secured pages used in money transactions have a seal linked to a web site that certifies that the site is secure.)
Never click on links sent in unsolicited e-mails, but type in the address.
Don’t use obvious passwords like: birthdate, maiden name, last four of social.
Keep you personal information in a secure place, especially if you have roommates, domestic help, and parties.

Detect Fraud when it happens:

Periodically run a free credit report
Review your credit card and bank statements each month.
Register for online banking. You can set up alerts that e-mail you when certain events happen in addition to letting you know your balance at all times.

Defend yourself when Fraud happens to you:

If your identity is compromised, place a “Fraud Alert” on your credit reports, and review carefully.
Close accounts tampered.
File a police report. Law enforcement officers may help with creditors who may want proof of the crime.
Report theft to FTC. Ftc.gov/idtheft

Common Thefts that lead to Identity Fraud:

Dumpster Diving: Rummaging through trash
Skimming: Stolen credit/debit card numbers using a special device when processing your card.
Phishing: Information sent by the thief masquerading as a bank or financial institution.
Change of Address: Diverts your mail with a change of address form.
Stealing

Consumer Fraud–Identity Theft Protection Tips

Small safeguards can save you consumer fraud giant headaches. Many safeguards are common sense, but in today’s information age, sometimes the sence isn’t so common.

Do not readily give out personal information. For example, some restaurants request a credit card number over the phone when making reservations. Do not give it, and go to another restaurant. Your protection is only as good as their security. Even if the restaurant’s employees are trustworthy, credit card information could be left unattended for the others to view.
Be careful of copied documents or identifications. Years ago, I was asked to prove my residence in a city three different ways for my son’s baseball all-star qualification. One identification they were requesting was a copy of a driver’s license. Parents were unaware that a driver’s license number and birthdate are invaluable data for bank accounts and other privacy circumstances. If you must provide a copy of such, black out the sensitive information. The document you may be handing over may pass through many hands.
Restrict access to your personal information. Passwords on computers are essential. Access to your computer can provide information to undesirable eyes
Do not let anyone cash your checks without a phone call from the bank. Visit your bank and arrange to block the cashing of all checks unless they phone your cell phone. This procedure has prevented the fraudulent check cashing four times in five years for me. The last time, a bank called me for check cashing by a client who did not write the check. Individuals produce fraudulent checks and cash them at your bank.
Do not return calls to suspicious area codes. Scammers text messages, or leave phone messages with some urgent message. They entice you to call a number that is to the Caribbean (e.g., “809” area code) and keep you on the line as long as possible. That can bring charges up to $25 per minute. I have also heard of some scams that transfer your call around the world amounting to hundreds of dollars on your bill. Be careful. Here are some other area codes.

Country Code

Bahamas 242
Barbados 246
Antigua 268
Cayman Islands 345
Monsterrat 664
St. Lucia 758
Puerto Rico 787
St. Kitts/Nevis 869
Jamaica 876
Bermuda 441
N. Commonwealth 670
Trinidad &Dominica 767
Tobago 868