For week of June 27, 2005, Issue #218

 

Featured Articles:

1.  How to Save on Taxes While Saving at the Pump

2.  Fraud Footnotes: Don't Let it Happen to You

3.  Tech Tip Weekly: Melissa's Long Gone, But Lesson's Remain; A Legacy

 

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1.  How to Save on Taxes While Saving at the Pump

 

While high gasoline prices have most everyone scrambling to cut costs, did you know that there is a way to cut your monthly gas bills and get a $2,000 tax break too?

 

The answer is in "hybrid" vehicles.  Hybrids look much like a normal car and even SUV's now, but they combine a small gasoline engine with an electric motor.  They run on the electric motor much of the time, with the gas engine kicking in automatically when needed.  You don't have to plug them in at night to recharge batteries - the electric power is generated when you brake, or by the gas engine.  Hybrid cars deliver above-average gas mileage.  Some claims range as high as 50 to 60 miles per gallon.

 

If you buy a qualified hybrid, you can claim a deduction of up to $2,000 against your taxes.  The IRS has certified a number of models for the tax break - the 2005 Honda Insight, Civic Hybrid, accord Hybrid, Toyota Prius, Ford Escape Hybrid, and the 2006 Lexus RX 400h.  Some of these models also qualified in earlier years.  You must buy the vehicle new to qualify for the deduction.

 

If you buy an all-electric vehicle, you may qualify for a tax credit instead of a deduction.  The credit is up to 10 percent of the costs.  There are also credits for the manufacture and use of biodiesel and alcohol-based fuels.  The rules for these credits are somewhat specialized, so contact our office if you think you may qualify.

 

Finally, if you bought a qualified hybrid in previous years and didn't claim the deduction, don't give up.  There may still be time to file an amended return and claim your tax break.  Call us for more information or any assistance you may need.

 

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2.  Fraud Footnotes: Don't Let it Happen to You; Continued

 

In an ideal 'internet control' world, a company would employ a group of closely monitored employees with rigidly enforced, properly assigned and segregated duties.  In the 'real world', however, many organizations simply do not have the resources to maintain such an environment.  The same employee who makes deposits also writes checks and reconciles the bank accounts.

 

This lack of internal controls may not necessarily lead to embezzlement, but it does provide the employee with not only the opportunity to steal but also the chance to cover it up.

 

A small business is a lot less likely to have the time or money for employee background checks, screenings, thus increasing the risk that the new employee may have a criminal past. 

 

According to a recent estimate, nearly one third of the American work force has stolen on the job.

 

Are you willing to roll the dice and merely hope that your bookkeeper, controller or anyone who handles cash is trustworthy?

 

Continuing with more on small business internal controls next week.

 

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3.  Tech Tip Weekly: Melissa's Long Gone, But Lessons Remain; A Legacy

 

More than six years ago, Melissa used what are considered today as common techniques.  An infected Windows system would send out e-mails to the first 50 entries in the computer's Microsoft Outlook address book.  Attached to the e-mail was a Word document, originally titled 'list.doc' that contained the Melissa virus and a list of pornographic web sites.  Under certain circumstances, the program would grab a different file from the victim's computer and insert the virus into it.

 

Melissa can provide clues today as to the significance of, for example, the Cabir virus for cell phones, which spread quickly through Bluetooth.  This being one of the first mobile-phone viruses to successfully spread from one handset to others; Cabir, like Melissa, may be a blueprint for other virus writers using Bluetooth wireless technology.

 

And more on Melissa's legacy next week.

 

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