Identity Theft: Dirty Dozen Tax Scams 2016
Identity Theft: Tax Scams
With tax season upon us, the IRS has issued warnings that scam artists are on the prowl and they could be after you. They have again issued their list of the “Dirty Dozen” Tax Scams, this time identity theft tops the list. You can read about 2015’s number one, phone scams, in our post from last year. While identity theft can happen at any time of the year, many criminals take advantage of tax season to get their victims.
Tax-related identity theft happens when someone uses your social security number and personal information to file a tax return and claim a fraudulent refund. Although identity theft doesn’t only happen with regard to tax information, the IRS is often the first to notify victims that their identity has been stolen when they receive two distinct tax returns using the same social security number.
In past three years Criminal Investigation (CI) helped convict about 2,000 identity thieves. According to the IRS Newswire, the IRS started 776 identity theft related investigations, resulting in 774 sentencings through CI enforcement efforts. The average sentences for these crimes was 38 months in jail with the longest sentence being over 27 years.
What the IRS is Doing to Help Protect You
The new measures attack tax-related identity theft from multiple sides. Many changes will be invisible to you but invaluable to the IRS, states and tax industry in protecting you. Here are some important changes you may see.
- New Security Requirements
- There are new security requirements when you’re preparing your taxes online, especially when you sign in to your tax software account.
- Additional Information
- Some state returns may ask for additional identity information, such as your driver’s license number, to make sure it’s really you.
- Additional Reviews
- The IRS will still process nine out of 10 federal refunds within 21 days. States have their own refund processing timeframes that will vary, and some states may make additional reviews to ensure refunds are being issued properly.
You can learn more about the new IRS identity security changes here and by watching the video below.
https://www.youtube.com/watch?v=NdnUy53s2TY
How to Protect Yourself
- Only give out your social security number when necessary. Never give it over the phone or via email. The IRS will not ask you for your social security number over the phone or in an email so any email claiming to be from them is fake.
“We urge people to use caution when viewing e-mails, receiving telephone calls or getting advice on tax issues because scams can take on many sophisticated forms. Keep your personal information secure by protecting your computers and only giving out your Social Security numbers when absolutely necessary.” -IRS Commissioner John Koskinen
- Always use security software with firewall and anti-virus protections. Make sure the security software is always turned on and can automatically update.
- Encrypt sensitive files such as tax records you store on your computer.
- Use strong passwords.
- Learn to recognize and avoid phishing emails. For more info on phishing check out our post Phishing: IRS Scams 2015
- Do not click on links or download attachments from unknown or suspicious emails.
- Protect your personal data. Make sure your tax records are secure and don’t regularly carry around your social security card.
https://www.youtube.com/watch?v=fLPQTkmnEvg
If you think your identity has been stolen go to identitytheft.gov for help.
The Business Model Canvas
The Business Model Canvas
Now that we’ve spoken about the Business Idea Canvas, our next tool in line is the Business Model Canvas. This revolutionary tool is a simple, yet powerful method for setting structure to your business idea/new product/new branch of your existing business in order to understand your “business model.”
Well, that’s a catchy, often over used term, but what is a business model? Investopedia defines it as:
“The plan implemented by a company to generate revenue and make a profit from operations. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs.”
In short, your business model is the way you make money over and above what you have to spend to do it. And the business model canvas is a clearly organized and comprehensive way to sum that up.
Here’s a picture of a standard business model canvas template and a short explanation of each section:
- Customer Segments: Who are your customers? What do they think? See? Feel? Do?
- Value Propositions: What are you offering your customers? Why do customers want to buy/use it?
- Channels: How are these propositions promoted, sold and delivered?
- Customer Relationships: How do you interact with the customer through their ‘journey’?
- Revenue Streams: How does the business make money from the value propositions?
- Key Activities: What uniquely strategic things does the business have to do to deliver its proposition?
- Key Resources: What unique strategic assets must the business have to compete?
- Key Partnerships: Who is essential to work with to make this happen?
- Cost Structure: What are the business’ major cost drivers? How are they linked to revenue?
As you fill this out, scratch it up, run it by others and reiterate, you’ll start to really discover the core of your business–it’s business model. It will give legs to a new idea, keep direction for your company and help you as a manager to focus on the key components, the heart and soul, of what your company has to offer and what it needs to do to keep growing.
We hope this tool helps you to continue your success!
2016: A Year of Innovation
2016: A Year of Innovation
Innovation is quite the buzzword these days–and with good reason. In this fast changing, digital era, creative change is constantly happening in the business world. For some, being innovative or creative in a business environment may come easily, but what if you feel like you’re more of the “put your head down and get it done” kind of person?
Here’s what Jeffery Dyer, Hal Gregersen and Clayton Christensen have to say. As a result of an extensive study of some of the most innovative entrepreneurs in recent years they share:
“Our research led us to identify five ‘discovery skills’ that distinguish the most creative executives: associating, questioning, observing, experimenting, and networking. We found that innovative entrepreneurs (who are also CEOs) spend 50% more time on these discovery activities than do CEOs with no track record for innovation. Together, these skills make up what we call the innovator’s DNA. And the good news is, if you’re not born with it, you can cultivate it.”
Following is a brief description of these five skills.
Associating
This skill involves drawing connections between seemingly unrelated entities to uncover new ways of approaching a problem. Connections between different industries, the arts, science or even nature can uncover better ways of doing business.
Questioning
Can you imagine if Henry Ford never questioned the standard car assembly method? It’s highly doubtful Ford would have become the production powerhouse that it is today. Great innovators ask Why? Why not? and How can we make this better?
Observing
It’s key for every business owner to be on the job site, to see the final product and to speak with all levels of employees. But not only do great innovators watch their own way of doing business, but they discover new methods by observing success strategies of other companies using the associating skill discusses above.
Experimenting
This is the step after observation and results in intense learning. “Like scientists, innovative entrepreneurs actively try out new ideas by creating prototypes and launching pilots. (As Edison said, “I haven’t failed. I’ve simply found 10,000 ways that do not work.”) The world is their laboratory. Unlike observers, who intensely watch the world, experimenters construct interactive experiences and try to provoke unorthodox responses to see what insights emerge.”
Networking
This isn’t networking in the traditional sense, “unlike most executives—who network to access resources, to sell themselves or their companies, or to boost their careers— innovative entrepreneurs go out of their way to meet people with different kinds of ideas and perspectives to extend their own knowledge domains.” Networking in this sense is an incomparable method to foster innovation.
So as we approach this new year, let’s working on these five key skills of innovation: associating, questioning, observing, experimenting and networking. If we do, we can be at the forefront of change and make 2016 a year of innovation. Happy New Year!
Interest Rate Changes: What an Entrepreneur Needs to Know
Interest Rate Changes: What an Entrepreneur Needs to Know
We’ve all seen the headlines popping up on our news feeds, in the paper and in friendly conversations. But why should I care about the Fed changing it’s key interest rate? Well, here’s a brief overview of the implications of interest rate changes on your small business.
First off, the Fed’s decision to raise rates is a good sign. The Fed will only do this when it strongly believes the economy is very healthy and growing well. In fact, that’s one of the biggest reasons they raise rates. If the economy is expanding too fast, there is a high risk of inflation and thus the Fed decides to slow the economy; interest rate changes make that happen in two main ways.
Business Borrowing Costs
As key interest rates are moved up, loans become more expensive and investment capital requires a higher return. This means that businesses tend not to expand as much when rates are higher. Higher interest payments thin margins and can affect profits, thus reducing a businesses ability to re-invest.
Customer Disposable Income
On the consumer side, higher interest rates discourage borrowing and tend to lower customer’s “disposable income.” They borrow less on credit cards, spend more on increased car loans and mortgages and are more likely to save due to higher rates of return in interest earning accounts.
So, here are some recommendations on how to navigate this change in the business environment:
- Have a product or service that people want and spend some valuable time improving your value add
- Make a decent profit by keeping your expenses under control
- Manage your cash flow so you don’t have to borrow at a higher interest rate
- Although it might seem to make sense to borrow money now while interest rates are still low, keep in mind that most loans available to business owners have a variable, not a fixed, interest rate. This means that when the Fed hikes interest rates, the rates on your loan could go up as well.
Overall, interest rate changes can work out to having little more than small implications on your business but it is important to consider the possible effects. Keep running a good operation and offering great products and services and your business will keep growing strong.
10 Ways Successful People Stay Calm
10 Ways Successful People Stay Calm
Success Magazine recently published an article by writer Travis Bradberry detailing the 10 ways successful people stay calm. Since staying calm under pressure is highly important for success in your field, we thought we’d highlight a few of our favorite tips here on the GQ Law blog.
Bradberry writes “The ability to manage your emotions and remain calm under pressure has a direct link to your performance.” TalentSmart conducted a study with more than a million people. Ninety percent of the highest performers out of the million people were good at managing their emotions under stress, they could remain calm and keep control even when stress was high.
A Yale study found that prolonged stress essentially leads to the shrinking of an area in the brain responsible for self-control. That said, stress is also necessary. We need to feel stress so that we take action, moderate levels of stress actually lead us to our best performance. To summarize, long periods of high stress are bad, moderate stress that doesn’t stick around is good.
So, what are we supposed to do about stress? How do we keep our stress levels in the “perfect stress” zone, not too high, not to prolonged?
10 Ways to Stay Calm and Manage Stress
- Have and Attitude of Gratitude: Take time to think about what you’re thankful for. It will improve your overall mood. One of our staff members at GQ Law keeps a gratitude journal, they write at least one thing they are thankful for in the journal each day.
- Avoid asking “What if?” : “What if?” brings on a lot of stress and worry. Things can go many different ways but trying to walk down each possible road is unnecessary and super stressful.
- Stay Positive: Throughout the day take moments to consciously turn your thoughts to something positive. Think about your day so far and find one positive thing that happened. Some days that might just be that you got a couple green lights on the way in to work or a smile from a stranger while waiting for your lunch, other days you’ll be able to draw up a nice long list.
- Disconnect: You read that right and yes, we know its difficult. Disconnecting from technology can be magical! Try it. Turn off your phone, take a break from work, go on vacation and don’t check any emails. Even a short, true, break from technology can work wonders.
- Limit Caffeine: Drinking caffeine releases adrenaline, the stuff in your body that brings on your “fight or flight” response. When caffeine puts your body in an extra aroused state of stress you’re more likely to let your emotions take over your behavior. The cherry on top of the caffeine-makes-stress cake is that stress coming from caffeine is constant and takes quite a while to work its way out of your body. Just say no!
Click on over to success.com to get 6-10 of this awesome list. You won’t regret it.
Tax Tips: Giving Gifts to Charity
Tax Tips: Gifts to Charity
Tax Tips for Charitable Giving
- You must itemize your deductions in order to claim donations to charity.
- Give to qualified charities: You cannot deduct donations to charities not found on the IRS Select Check tool. Check it out here before you donate. You can deduct gifts to churches, synagogues, temples, mosques and government agencies, even if the Select Check tool does not list them.
- Keep records: You must have a bank record or written statement from the charity in order to deduct gift money on your tax return. Gifts of money include those made by cash, check, credit card, electronic funds transfer (direct draw from your bank account) or payroll deduction (taken directly from your paycheck). Bank records that qualify as proof of your donation include cancelled checks and bank or credit card statements. For payroll deductions, be sure to keep a copy of your W-2 or any other form your employer provides as proof of your donations. You also need an additional form for each deductable donation of $250 or more. This holds true whether the $250 donation is money or property.
- Household goods: Household goods donated to charity, including furniture, furnishings, electronics, appliances and linens, have to be in good-used condition to claim them as a deduction on your taxes.
- Do it before the year ends: You can deduct any charitable gift charged to a credit card before the end of the year, even if you do not pay off that charge until the following year. Checks must be mailed, but not cashed, in 2015 to count for this year.
To read more and get the complete list of IRS tips for deducting gifts to charity click here. Also be sure to check out their other tax tips throughout the website.
The Profit Cycle
The Profit Cycle
As a small business owner, investing in your people can sometimes seem far away from the bottom line. In this cycle, shared by Bob Nilsen, former President of Burger King and current CEO of Cafe Rio, the payoff of investment in employee training, morale and well-being is clear. Here’s a quick summary:
1. Invest in your people, helping them become trained and happy
2. Your people will treat your customers well
3. Satisfied customers generate sales
4. Sales generate profits
5. Profits can the be reinvested into your people, your customers, sales generating activities and profit generating activities–and thus success
This never ending, virtuous profit cycle is one that takes sacrifice. It’s hard to delay putting cash into advertising, websites or capital investments. But, this cycle has a powerful, compounding effect that in the long-run is much more meaningful, profitable and effective. Let’s put it to work today!
Putting the Thanks into Thanksgiving
Putting the Thanks into Thanksgiving
As an American National holiday, Thanksgiving has root in the 1620’s beginning as a celebration in gratitude for a much needed harvest in combination with gratitude for much needed and recently acquired freedoms. Thanksgiving is meant to commemorate a life of opportunity and abundance. But, in reality, does thanks seem to be the focus of the day? Oftentimes Thanksgiving ends up being more about turkey, pie and side dishes—this year, let’s take on the “THANKS-giving challenge” and put the thanks back into Thanksgiving.
Step one:
- Pick a person you’d like to come closer to—a significant other, friend, child, co-worker, anyone
Step two:
- Take 30 seconds daily for a time period of your choice—weeks, months, a year, etc.—and record something specific that you appreciate about this person
Step three:
- Share the results with the person you chose in step one
Darren Hardy, publisher of SUCCESS Magazine, shares about his experience in doing this activity with his wife:
“When I gave it [the journal] to her the following Thanksgiving, she cried, calling it the best gift she’d ever received. (Even better than the BMW I’d given her for her birthday!) The funny thing was that the person most affected by this gift was me. All that journaling forced me to focus on my wife’s positive aspects. I was consciously looking for all the things she was doing “right.” That heartfelt focus overwhelmed anything I might have otherwise complained about. I fell deeply in love with her all over again (maybe even more than ever, as I was seeing subtleties in her nature and behavior instead of her more obvious qualities). My appreciation, gratitude, and intention to find the best in her was something I held in my heart and eyes each day.”
We promise similar outcomes for you and the person you choose. So let’s take the challenge to put the thanks back into Thanksgiving and become grateful, appreciative people. We look forward to hearing the results.
Happy Thanksgiving and THANK YOU for being our friends and associates!
Thanksgiving: A Great Time for Estate Planning
Thanksgiving: Time for Estate Planning
With Thanksgiving and other end of the year holidays just around the corner, its prime time to get family together and prime time to get your family talking about estate planning. Yes, yes, we know that conversations about estate planning can be awkward but we know that the longterm benefit of having these talks far outweighs the uncomfortable feelings in the moment.
Many people like to keep things close to the vest and don’t share their wishes and pertinent financial information with close family members. While we respect individual feelings and beliefs about what should and should not be shared, the harsh reality of sudden accident or illness cannot be ignored. It can quickly become too late to share your wishes.
A recent article on TheStreet.com recounts the story of Margaret Padock, a Twin Cities market leader for U.S. Bank’s The Private Client Reserve. “Some 15 years ago, she watched her 53-year-old mother struggle with early onset dementia. She would get lost driving to familiar places and forget to bathe or wash her clothes. Then she lost her job as a result and was even scammed out of her life savings by a caller who’d told her she won the Mexican lottery and only had to wire $30,000 to pay off the taxes on her “winnings.” By the time Paddock and her family thought to address estate planning, she says it was far too late and — thanks to an early misdiagnosis — her mother was not able to make many of those estate planning decisions for herself.”
American families are growing more and more geographically distant so the time spent physically together around Thanksgiving and the holidays is ideal to talk about plans, wishes, etc. Its a great way to address things with everybody in the same room.
Here are some tips for a successful estate planning conversation:
-Treat it like a family meeting
-Keeping cell phones and other distractions out of the room
-Make sure everyone, even those family members who didn’t make it to dinner this year, are included. Include out-of-towners via phone or Skype.
-It is unlikely that you’ll be able to cover everything you want to talk about in one meeting. Keep it short and know that you’ll need follow up meetings in the future.
If you would rather keep the spirit light around the holidays and don’t feel that those family gatherings would be an appropriate time to bring up estate planning, its important that you make another time to talk about it. Make estate planning a priority in your family.
Read the full article over on TheStreet.com then make your appointment to come see Gary and his team at GQ Law in San Diego to get your estate planning taken care of.
Small Business Saturday
Small Business Saturday Tips
We all know the drill, it starts Thursday with the food. We stuff ourselves with turkey, stuffing, mashed potatoes, rolls, pie…the list goes on. Yum! We rest it off (or walk it off hitting the early bird sales) then hit the ground running Friday and shop ’til we drop. Black Friday is known for offering some of the best prices of the year on a variety of items. You can get everything from TVs to shoes to DVDs on sale. Then comes the somewhat lesser known festivity, Small Business Saturday.
With all the big box stores setting their prices at rock bottom on Friday, how can us smaller businesses compete? Meet Small business Saturday! While its very unlikely that small businesses can match or compete with big box Black Friday sale prices, we can offer more than human trampling, fighting over children’s toys and mad chaos. We can offer what we always do, good quality products, fair prices and excellent customer service. We can even throw in a sale or two!
According to a recent Accenture survey, forty percent of Americans plan to spend more on holiday shopping this year than they did in 2014. This is good news for retailers of all sizes! With consumers out there wanting and willing to spend more money, Small Business Saturday is the prime time for small businesses to shine.
Here are a few tips to make sure you get the attention you deserve this Small Business Saturday, November 28th.
- Host a special event: Get customers in the door or to your website. Once they’re there entertain them- offer discounts, snacks, promotions, etc.
- Get Contact Info: Run a raffle or other prize drawing promotion, its a great way to get contact info. A couple weeks after the event, follow up by sending a thank you email to participants and extending another offer, coupon or invitation.
- Make sure you’re updated online: In order to get found online you need to be up to date and fresh. Consider a full review of your website. Update old information and get some new, fresh content out.
- Support other small businesses: Team up! Promote each other on social media. Host an event together. Point shoppers to other small businesses. Share the small business love!
- Hashtag: Use #SmallBizSat #ShopSmall and #SmallBusinessSaturday. Encourage customers to Tweet, post and share about it too. Last year more than 126,000 Tweets were sent in support of the initiative, 10 percent more than in 2013.
For more ideas on how you can take advantage of #SmallBusinessSaturday check out this entrepreneur.com article.
To get your business listed on the American Express Small Business Saturday site, get support and request free promotional materials click here.