DSEF & CBBB: Watch Out for Common Tax Scams

DSEF & CBBB: Watch Out for Common Tax Scams

Today’s highlighted blog post from the Council on Better Business Bureaus (CBBB):

Watch Out for Common Tax Scams

By Holly Doering

When I moved to Washington State from Idaho, I spent some time at the public library searching for state income tax forms. There weren’t any. Another patron told me that Washington State doesn’t have an income tax. I didn’t believe it at first, but it turned out to be true.

A friend of mine at the time told me his parents didn’t pay federal income tax, because the IRS was actually illegal according to the U.S. Constitution, and would be out of business soon. This turned out not to be true, and his parents are in big trouble. The “frivolous argument” is actually one of the IRS’s listed “Dirty Dozen Tax Scams” to watch out for. You can learn more about it, and other scams, at the IRS newsroom.

According to IRS Commissioner Doug Shulman, “Tax scams…may look tempting, but these fraudulent deals end up hurting people who participate in them.” The IRS and the Justice Department work together to shut down these illegal operations. Taxpayers who knowingly or unwittingly get involved must repay all taxes due plus interest and penalties.

Around tax time, thousands of emails, faxes, and phone calls begin circulating, claiming to be from the IRS. Know that the official IRS website ends in “.gov” for government only. Any IRS web address that does not begin with http://www.irs.govshould be forwarded to phishing@irs.gov. Also, if you believe your personal information has been stolen and used for tax purposes, you should immediately contact the IRS at 800-908-4490.

Something else to consider: While most tax return preparers are professionals who provide honest and excellent services to their clients, according to the IRS, some “make basic errors or engage in fraud and other illegal activities.” You can always Start with Trust by checking out a company’s track record at www.bbb.org.

To learn more about the Dirty Dozen Tax Scams of 2011, please click HERE.

DSEF and Council on Better Business Bureaus (CBBB) fosters honest and responsive relationships between businesses and consumers—instilling consumer confidence and advancing a trustworthy marketplace for all.

About the Better Business Bureaus
As the leader in advancing marketplace trust, Better Business Bureau is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Every year, more than 87 million consumers rely on BBB Business Reviews® and BBB Wise Giving Reports® to help them find trustworthy businesses and charities across North America. Visitwww.bbb.org/us for more information.

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DSEF & CBBB: Is It a Job or a Scam?

Today’s highlighted blog post from the Council on Better Business Bureaus (CBBB):

Is It a Job or a Scam?

By Carol Odell

Recently a friend called me about an employment ad on craigslist. She is retired and needs to supplement her income and fill some time with a part-time job. Not an unlikely scenario these days with the challenging economy and cost of living.

It’s also not unusual for some of these “employment opportunities” to be scams. My friend was calling about a work at home job where you send money to stuff envelopes for a company — and get paid. The reality is that it costs more money than you are being paid to accomplish the job. Here’s the real kicker, many times the mailings you are preparing are scams that are being mailed to potential victims!

Protect yourself and research the company with your BBB before engaging with the company. Any ethical company will provide information when requested. A company that will not answer basic questions or refuses to communicate any way other than email, may have something to hide.

The Internet Crime Complaint Center (IC3) recently sent out information on another online employment scam. Here is what they sent out:

“The IC3 has recently received over 250 complaints reporting a new twist to the online employment scam. The scam involves individuals who responded to online ads or were contacted via e-mail as a result of their resume being posted on websites. The perpetrator posed as a research company and requested participants to complete a paid survey regarding services provided at wire transfer locations to improve the effectiveness of the company’s money-transfer services.”

Complainants were hired and then mailed a cashier’s check or money order. They were asked to cash a check/money order, keep a portion and wire the remaining amount via wire transfer. Victims are asked to send more information such as transfer number and amount wired, followed up by a questionnaire regarding the wire transfer. If not done, the victims receive threatening emails stating to respond in 24 hours or their information will be sent to FBI and they could face 25 years in jail.

Of course, after all this, the victims learn the checks are counterfeit and most victims now owe the bank more than $2,500.

If you need a job, make sure you are going to make money, not lose it. Paying an upfront fee is a huge red flag.

Do you have other tips?

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Small Steps Can Lead to Big Payoffs

Small Steps Can Lead to Big Payoffs

Like many people in their mid-thirties, I have gone through several major life changing events over the past few years. Building a career, having a child, and purchasing a home are just a few of the exciting events that I have experienced first-hand.

But with these events often come significant financial changes and a whole lot of planning for the future – retirement, children’s education, and aging parents, to name a few. With so much going on and so many things to consider, keeping track of finances can be difficult, even overwhelming.

The recent purchase of a new home gave me a chance to reorganize and re-evaluate my finances and prompted me to track my budget more closely. I started to track my expenses daily and found it to be an eye-opening experience!

Once I was able to see where my money was really going, I was able to plug the leaks and redirect my money to be more in line with my financial goals. Here are some things that I have learned in the process:

Establish a system that works for you. There are several record filing systems and budgeting methods to choose from. If you find one doesn’t work for you, don’t give up! Simply try a new system.
If you overspend, get back on track. Don’t let it give you license to blow your whole budget.
Work a slush fund into your budget. Overspending is bound to happen and it will keep you from needing to tap into your savings.
Plan ahead. One of my budget leaks was unplanned expenses while running errands. Now before heading out the door, I always make sure that I have plenty of drinks, snacks, and activities for my son in order to avoid spontaneous purchases.

You don’t need a big life changing event to reap the benefits of tracking your expenses. If you want to get started with your own budget, but feel overwhelmed or not sure where to begin, it may be helpful to speak with a financial counselor. They can take a look at your situation, help you establish a budget and offer expert advice. Here are some things to look for when choosing a financial counseling agency to work with:

Choose a non-profit agency that is accredited by the Council on Accreditation (COA) or the International Standards Organization (ISO), or is a member of the National Foundation for Credit Counseling (NFCC). Your local credit union may also be able to direct you to a financial counseling agency.
Find out what services are offered. A good organization will have a range of services, such as budget counseling, debt management services, and credit report counseling.
Ask what, if any, fees are involved. Most non-profit financial counseling organizations offer some of their services and educational information for free. If you are interested in Debt Management services, fees should not exceed $50 per month, or so.
Consider the way you would like to receive the services. Counseling may be done in person, or over the phone or internet. Choose a method that will fit your needs.

Taking a few minutes each day to write down my expenses and review my budget keeps me on track to meet my financial goals, both short- and long- term.

Beth Luke (bluke@greenpath.com) is a financial educator for GreenPath Debt Solutions, a non-profit, national leader in financial education and counseling.

Free e-book “Business Owner’s Road Map to Success.” It has over 50 pages of techniques for everything a small business owner needs to master, from business planning and ethical selling to a success mindset. It’s all there and it’s free for you. To get it, just “Like” our Facebook Page here: http://on.fb.me/KsIN6P Pass it on!

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DSEF & CBBB: Take This ID Theft Quiz for National Consumer Protection Week

Today’s highlighted blog post from the Council on Better Business Bureaus (CBBB):

Take This ID Theft Quiz for National Consumer Protection Week

By Holly Doering

Hi everybody, and happy Monday. Depending on where you live, you might be celebrating Frozen Food Day, Mardi Gras, or If Pets Had Thumbs Day (at least according to an Internet list of “wacky holidays.”) But one thing everybody should be celebrating is our 14^th annual National Consumer Protection Week! Running through March 10, this holiday will shine a national spotlight on consumer safety in the U.S.

I thought it would be fun to take a little quiz on identity theft from the Privacy Rights Clearinghouse: Answer to see what your risk is. I myself scored 45—not bad, but I could do better.

___ I receive several offers of pre-approved credit every week. (5 points)

___ I do not shred the pre-approved credit offers I receive (cross-cut shredder preferred) before putting them in the trash. (5 points)

___ I carry my Social Security card in my wallet. (10 points)

___ I use a computer and do not have up-to-date anti-virus, anti-spyware, and firewall protection. (10 points)

___ I do not believe someone would break into my house to steal my personal information. (10 points)

___ I have not ordered a copy of my credit reports for at least 2 years. (20 points)

___ I use an unlocked, open box at work or at my home to drop off my outgoing mail. (10 points)

___ I do not have a P.O. Box or a locked, secured mailbox. (5 points)

___ I carry my military ID in my wallet at all times. (It may display my SSN.) (10 points)

___ I do not shred my banking and credit information, using a cross-cut “confetti” shredder, when I throw it in the trash. (10 points)

___ I throw away old credit and debit cards without shredding or cutting them up. (5 points)

___ I use an ATM machine and do not examine it for signs of tampering. (5 points)

___ I provide my Social Security number (SSN) whenever asked, without asking why it is needed and how it will be safeguarded. (10 points)

___ Add 5 points if you provide it orally without checking to see who might be listening nearby.

___ I respond to unsolicited email messages that appear to be from my bank or credit card company. (10 points)

___ I leave my purse or wallet in my car. (10 points)

___ I have my driver’s license number and/or SSN printed on my personal checks. (10 points)

___ I carry my Medicare card in my wallet at all times. (It displays my SSN.) (10 points)

___ I do not believe that people would root around in my trash looking for credit or financial information or for documents containing my SSN. (10 points)

___ I do not verify that all financial (credit card, debit card, checking) statements are accurate monthly. (10 points)

Ok, now tally up your points. Guess what? Each one of these questions represents a possible avenue for an identity thief. How did you do?

100 + points – Recent surveys* indicate that 8-9 million people are victims of ID theft each year. You are at high risk. We recommend you purchase a cross-cut paper shredder, become more security-aware in document handling, and start to question why people need your personal data.
50-99 points – Your odds of being victimized are about average.
0-49 points – Congratulations. You have a high “IQ.” Keep up the good work and don’t let your guard down now.

Remember, you cannot prevent identity theft. Criminals can commit identity theft relatively easily, but you can reduce your risk of fraud. One of the best things you can do is to check your 3 credit reports at least once a year. If you are a victim of identity theft, you will catch it early by checking your credit reports regularly. Your annual free credit reports are available from (877) 322-8228 or at www.annualcreditreport.com.

Over thirty different agencies are participating in providing great information for consumers this week, including the BBB, so check out National Consumer Protection Week information. Also, sign up for a daily tip from the BBB!

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DSEF & CBBB: Don’t Forget the Credit Card Convenience Fee When Charging Taxes

Today’s highlighted blog post from the Council on Better Business Bureaus (CBBB):

Don’t Forget the Credit Card Convenience Fee When Charging Taxes

BY VERONICA BROWN

If you plan to charge your income taxes to your credit card, remember to factor in the convenience fee, says lifehacker.

Many people often find that they actually owe the government money and will choose to charge it to their credit card. A convenience fee will be added, and it can add up. For instance, a fee of $9.40 will be added to a $400 tax bill, while $117.50 will be charged to a $5,000 tax bill. In addition, if the fee is not paid within the credit card issuer’s grace period, interest will be charged as well.

On the bright side, the IRS does have an installment-payment plan (which requires qualification).

To read the full article, visit http://lifehacker.com/5887248/what-to-know-if-youre-planning-on-charging-your-taxes-on-your-credit-card

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Direct Selling & the National Economy

Direct Selling & the National Economy

By Amy Robinson

In a recent edition of DSA’s weekly publication, InTouch, a number of executives from some of the top companies in the direct sales channel weighed in with their insights and expectations for direct selling in 2012.

It comes as little surprise that each executive expressed great excitement and optimism for what lies ahead in direct selling. Our industry offers an incredible opportunity to men and women of all ages, races and educational backgrounds. Our companies and their distributors participate in countless philanthropic efforts at home and abroad, and many of our companies have received recognition for taking the lead in eco-friendly and environmental awareness initiatives.

It’s easy to recognize how this industry positively impacts the lives of millions around the world, but in many cases that impact isn’t fully represented in the national or global economic picture.

To borrow words from AJ Deeds, President of DSA member Loving Works, LLC: “One of the most significant issues for direct selling companies is that the jobs we create aren’t counted in national employment statistics. One of the underlying barriers to direct sales is that we’re not often acknowledged as a major contributor or even seen as a real player in the economy, and that’s something that needs to change.”

I think it’s safe to say that most every man and woman who works in direct selling has probably pondered a similar thought at some point or another. With a clear focus by lawmakers on creating income opportunities (for example, the American Recovery and Reinvestment Act (2009), the Hiring Incentives to Restore Employment Act (2010), the Education Jobs Act (2010) and the Small Business Jobs Act (2010) – which created a $30 billion fund to provide capital to small banks in order to increase lending to small businesses, just to name a few) why hasn’t much attention been paid to the direct sales channel, which offers nearly 16 million people in the US alone a unique business opportunity and, for many, a much-needed source of income?

Direct selling provides countless college students with extra income to put towards education loan payments. It empowers stay-at-home parents to fulfill a lifelong dream of owning a business while balancing their family obligations. It motivates military spouses to own and operate a successful business even when military obligations require them to move frequently and often on short notice. It enables retirees to earn extra income, and many others the ability to support their families without the stresses of 9-to-5 life.

As AJ said himself: “While we have more success stories than can be counted, we are rarely considered for, much less invited to, the national leadership table. By bringing the stories of our industry forward in 2012 to a national stage, we, the direct sales channel, can represent part of the economic solution.”

It’s unfortunate that an industry that generates more than $28 billion for the U.S. economy each year through sales alone, not to mention other sources of economic impact, isn’t recognized for the potential it holds to solve at least a portion of our country’s unemployment situation. With that in mind, perhaps 2012 is the year where direct sellers everywhere can focus on spreading the word about the opportunities we offer to work toward recognition as an economic force that changes people’s lives.

Amy Robinson is the Direct Selling Association’s Chief Marketing Officer and Senior Vice President.

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DSEF & CBBB: Panera offers Payment Optional Cafes

Today’s highlighted blog post from the Council on Better Business Bureaus (CBBB):

Panera offers Payment Optional Cafes

BY MEAGHAN POWERS

Panera along with other cafes churches and community groups across the country are opening pay-what-you-can cafes. The set-up of the Panera Cares Cafe offers suggested prices on its menu, having the customer pay that amount or as little or as much as they can, according to USA Today.

The Panera Cares Cafe in Dearborn Michigan has been running for a year and its success will keep Panera running its other Panera Cares Cafe locations and launching more in cities across the country. The cafe’s success relies on returning customers and who often come back because they realize it is helping their community. Most cafes break even with about 20% of customers giving more than the suggested price, 60% the suggested and 20% less or none, reports USA Today. To keep from abuse of the system, Panera suggests only one free meal a day, and for people to volunteer if they come many times each week.

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DSEF & Money Wise Women: Using Social Media to Build Your Business

Today’s highlighted post from Money Wi$e Women Get Smart Teleseminar Series (Click here):

Using Social Media to Build Your Business

Do you understand social media and how to use it? Jennifer Fong will discuss the differences between social media for personal and business use, how to get started with social media, and social media tools to consider using for your business.

Jennifer Fong

Jennifer Fong is a social media speaker and consultant who teaches direct selling companies and individual direct sellers how to use social media effectively as a business building tool. A former direct sales company CEO, Jennifer built her company from the ground up, and understands what it takes to build, lead, and train a team, as well as the underlying principles of any direct selling business: network, sell, and recruit. She combines her expertise in direct sales with her passion for social media marketing to provide direct sellers with the knowledge they need to put social media to work for their businesses in a strategic and profitable way.

http://jenfongspeaks.com

DSEF proudly sponsors the free Money Wi$e Women Get Smart Teleseminar Series hosted by Marcia Brixey, Founder and President of Money Wise Women Educational Services and author ofThe Money Therapist: A Woman’s Guide to Creating a Healthy Financial Life. The series covers topics related to business and finances and provides women the opportunity to learn from professional experts in a safe, comfortable environment.

To find out about upcoming teleseminars, visit http://www.moneywisewomengetsmart.com/

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DSEF & CBBB: Pain at the Pump: Gas Climbs to $5 per Gallon

Today’s highlighted blog post from the Council on Better Business Bureaus (CBBB):

Pain at the Pump: Gas Climbs to $5 per Gallon

BY VERONICA BROWN – FEBRUARY 24, 2012

Get ready for gas prices to shoot through the roof. Many Americans may begin to pay $5 per gallon, reports USA Today.

The surge in prices comes from not only rising prices in oil, but also lower refining capacity, tensions in the Middle East, and also the fact that spectators are driving up the price. The price of gas this February is up 42 cents from last year, with a record high of $3.65 per gallon.

On average, gas currently costs $4.20 in California, and $3.91 in New York. These prices are expected to keep climbing. A Washington state refinery that recently suffered damage from a fire could drive up prices in the region even higher this weekend.

In reaction to increased pain at the pump, consumers have begun to cutback on their gas purchases. Consumption fell 1.4 percent through February 17th, amounting to about 18 million barrels a day. This is the lowest since April 1997.

To read the full article, visit http://www.usatoday.com/money/industries/energy/story/2012-02-22/gas-prices-average/53229358/1

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DSEF & CBBB: Help Prevent Your Facebook Account from Being Hacked in 3 Easy Steps

Today’s highlighted blog post from the Council on Better Business Bureaus (CBBB):

Help Prevent Your Facebook Account from Being Hacked in 3 Easy Steps

There are several quick steps you can take to avoid getting your Facebook account hacked. These include:

Make sure that your ‘Secure Browsing’ is enabled – That means your browser uses Https instead of the standard connection. How to change your setting: While on Facebook, look at your URL address in the browser. If you see “http:” instead of “https:” you DO NOT have a secure session. It’s easy to change. Just go to Account (upper right) click Account Settings… Then Security – click Change. Check box (secure browsing), click Save.
Regularly change your password – Get in the routine of changing your password often. Try to use a combinations of upper & lower case numbers/special characters and don’t use any parts of your first or last name.
Enable login notifications – Click on Account Settings … then Security … then enable login notifications. This will cause Facebook to notify you when your account is accessed from a computer or mobile device that you haven’t used before.

And finally, don’t click on suspicious links while browsing Facebook and never give your login info to anyone.