Summer 2005
In This Issue:
IDENTITY THEFT
and ACCOUNT FRAUD
What you should know.
According to the Federal Trade Commission (FTC), identity theft is the nation's
fastest growing crime. Close to 10,000,000 cases will be reported in the
coming year. A recent FTC study suggests that as many as 27.3 million people
were victimized during the past five years with a cost to consumers and businesses
of $53 billion last year alone.
Identity theft occurs when someone steals your personal identification and
uses it to establish credit, borrow money, charge items or even commit crimes
in your name. It is common for thieves to set up telephone or utility service
in your name and not pay for it. Some victims have found that identity thieves
applied for loans, apartments, mortgages and even filed for government benefits
including unemployment insurance and tax refunds. Thieves have been know
to print counterfeit checks in a victim's name.
Protecting
yourself.
At home keep personal information safe, especially if you have roommates
or have any work done in your home. Don't keep Personal Identification Numbers
(PINs) near your checkbook, ATM card, or debit card.
Shred any papers with confidential information before you throw them out
- even the junk mail. Anything with an account number can be used in identity
theft. This includes prescreened credit card offers, receipts, canceled checks,
credit union statements, expired charge cards, doctors' bills, and insurance
documents.
Don't give out any confidential information such as your credit card number,
social security number, or PIN number unless you initiated the contact with
a business. Be careful of unexpected emails that look as if they are from
a legitimate company asking you to enter some information at a linked website;
sometimes phony web sites can look real.
Identity Theft and Account Fraud
- Check your bank,
credit union and credit card statements regularly to make sure there is no
unexplained activity.
- Consider canceling
credit cards you haven't used in a long time.
- Keep track of when
your bills usually arrive. If a bill does not arrive on time, call the company
to make sure no changes have been made to your account. Often, identity thieves
will change the address of a bill so that it will take you longer to figure
out the scam.
- Carefully check your
credit reports regularly. Your credit reports are important tools for limiting
the amount of damage a thief can cause.
- When choosing a Personal
Identification Number (PIN) for your ATM or for other purposes, use one that
is hard to guess. Avoid the last four digits of your social security number,
your mother's maiden name, birth dates, names of pets, or even the name of
your hometown baseball team. Try to mix numbers, letter and symbols.
- Use only secured
sites when making online purchases. Secure pages begin with "http."
- Don't print your
social security number on your checks.
Identity
theft and account fraud are serious issues. We at Oliver, Rainey & Wojtek,
L.L.P. believe that the more you understand how they occur, the better you'll
be able to take precautions to protect yourself.
According to the Federal Trade Commission (FTC): If you think your
identity has been stolen, here's what to do NOW:
- Contact the fraud
departments of any one of the three major credit bureaus (listed below) to
place a fraud alert on your credit file. The fraud alert requests creditors
to contact you before opening any new accounts or making any changes to your
existing accounts. As soon as the credit bureau confirms your fraud alert,
the other two credit bureaus will automatically be notified to place fraud
alerts. Once the alert is placed, you may order a free copy of your credit
report from all three major credit bureaus.Close the accounts that you know
or believe have been tampered with or opened fraudulently. Use the ID Theft
Affidavit (provided by the FTC on their website) when disputing new unauthorized
accounts.
- File a police report.
Get a copy of the report to submit to your creditors or others that may require
proof of the crime.
- File your complaint
with the FTC. The FTC maintains a database of identity theft cases used by
law enforcement agencies for investigations. Filing a complaint also helps
learn more about identity theft and the problems victims are having so that
we can better be assisted.
Major Credit Bureaus:
Equifax:
1-800-525-6285 www.equifax.com
Experian: 1-888-EXPERIAN www.experian.com
TransUnion: 1-800-680-7289 www.transunion.com
A succession of sharp
increases in medical insurance has fueled the drive to find new ways to pay
for health care. The Health Savings Account - or HSA - is an innovative
arrangement that could change the way many Americans pay for medical expenses.
An HSA is an account that you can put money into to save for future medical
expenses. There are certain advantages to putting money into these accounts,
including favorable tax treatment.
Advantages of HSA
Security - Your high deductible insurance and HSA protect you against
high or unexpected medical bills.
Affordability - You should be able to lower your health insurance
premiums by switching to health insurance coverage with a higher deductible.
Flexibility - You can use the funds in your account to pay for
current medical expenses, including expenses that your insurance may not
cover, or save the money in your account for future needs such as health
insurance or medical expenses while unemployed; medical expenses after retirement
(before Medicare); out-of-pocket expenses when covered by Medicare; or long-term
care expenses and insurance.
Tax Savings - An HSA provides you triple tax savings: tax deductions
when you contribute to your account; tax-free earnings through investment;
and tax-free withdrawals for qualified medical expenses.
As you can see, HSAs offer
a very flexible option for providing health care coverage. Please call our
office if you would assistance in setting up your Health Savings Account.
What are the qualifications?
You must have coverage under an HSA-qualified "high deductible health plan"
(HDHP) to open and contribute to an HSA. Generally, this is health insurance
that does not cover first dollar medical expenses. Federal law requires that
health insurance deductible be at least $1,000 for individuals and $2,000
for families. Annual out- of- pocket expenses (excluding premiums) can not
be more than $5,100 for individuals and $10,200 for families.
Who can have an HSA?
Any adult can contribute to an HSA if they:
- Have coverage under
an HSA-qualified "high deductible health plan" (HDHP).
- Have no other first-dollar
medical coverage (others types of insurance like specific injury insurance
or accident, disability, dental care, vision care or long-term care insurance
are permitted).
- Are not enrolled
in Medicare.Cannot be claimed as a dependent on someone else's tax return.
Determining your contribution.
Contributions to your HSA can be made by you, your employer or both. However,
the total contributions are limited annually. The limits for 2005 are $2,650
for individuals and $5,250 for families, or the amount of the deductible,
if less and contributions to your HSA can be made until April 15, 2006.
Individuals who are age 55 or older can make an additional "catch-up" contribution
of $600 in 2005. Contributions made can be deducted (even if you do not itemize
deductions) when completing your federal income tax return.
Note: Contributions
to the account must stop once you are enrolled in Medicare. However, you
can keep the money in your account and use it to pay for medical expenses
tax-free.
Should you
be making estimated tax payments?
During the tax
year you must pay-as-you-go a substantial amount of the taxes you'll owe
for that year, or risk being hit with an underpayment penalty. If you're
an employee, your employer can adjust the withholding taxes from each paycheck
so that it covers your total tax bill, even if you have extra income from
moonlighting or investments. But if you're self-employed or retired, you
might need to make estimated tax payments.
To avoid a penalty, the
total of your withholding and estimated tax payments must generally be at
least 90 percent of your tax liability for the year, or 100 percent of your
last year's tax liability. There is no penalty if your underpayment is less
than $1,000. Special rules apply to farmers and fisherman. Higher-income
taxpayers, those with adjusted gross income of $150,000 or more, must increase
their safe harbor percentage to 110%.
You pay your estimated taxes by making four payments, due
April 15, June 15, and September 15 of the current year, and on January 15
of the next year. You can't just wait until the last date to pay what you
owe. When we prepare your return each year, we try to predict your next year's
payment based on the current year.
If your tax situation
changes significantly during the year, please don't hesitate to call us.
The quarterly calculations can be complicated, and we can help you figure
out how much you need to pay at each date.
Free
Credit Reports for Texas began: June
1
A recent amendment to
the federal Fair Credit Reporting Act (FCRA) requires each of the nationwide
consumer reporting companies to provide you with a free copy of your credit
report, at your request, every 12 months. You can order your free credit
report online at www.annualcreditreport.com. The secure website is maintained
by the big three credit reporting bureaus (Experian, Equifax, and TransUnion),
or you can call 877-322-8228.
Staff Updates.....
Jerry
D. Ramirez and Penelope R. Tigue were recently promoted
to staff accountants at Oliver, Rainey & Wojtek. Jerry joined the firm
in 2002 and Penelope in January 2005. They earned their master's degrees
in accounting from Angelo State University in May. They were both the top
accounting graduates at ASU. Jerry graduated summa cum laude and Penelope
magna cum laude.
Bill Taylor
has recently completed a term as Loaned Executive with the San Angelo United
Way. He has passed the torch to Jerry Ramirez who has recently
completed his training and will soon starting work on the 2005 Campaign.
A warm welcome
goes to Kate Kulhmann, who has been helping us out this summer.
We have truly enjoyed having her and wish her the very best as she heads
back to Texas Tech University in the fall where she will continue with her
studies.
Jerry and
Crystal Ramirez were recently blessed with the arrival of their
son, Jacob Denis on July 18. He weighed 7 lbs. 7 oz. and
was 19 ½ inches long. Proud parents and Jacob are doing wonderfully.
Carter Reece
Tankersley was born on January 28 and parents Scott and
Natalie couldn't be prouder. Carter weighed 6 lbs. 3 oz. and was
18 inches long.
We bid farewell
to Cheri Gray. She and her husband Marc have moved to Round
Rock to be near family. Cheri will be commuting to downtown Austin as she
has accepted a position with a local accounting firm. We wish them the best
of luck!
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