1.  Personal Use of a Business Cell Phone Could Trigger Unintended Tax Consequences

 

Many employers provide BlackBerries, cell phones and laptops to their employees.  Because the devices are portable, employees often take them home.  Some employers hold their employees to a strict "no personal use" policy of company cell phones and other electronic equipment.  Most employers don't.  They may want to re-evaluate their policies in light of the reportedly keen IRS interest in personal use of employer-provided cell phones, BlackBerries and laptops.

 

According to some reports, the IRS is starting to take the position that employer-provided cell phones and other portable electronic divides are working condition fringe benefits.  Personal use should be taxed to the employee as compensation with the employer responsible for federal withholding.

 

When people think of working condition fringe benefits, cell phones don't usually pop into their minds first.  More traditional fringe benefits, such as company cars, do.  If an employer provides a company car to a salesperson and she is allowed to use the car for personal purposes, the employer must include the value of this non-cash fringe benefit in her wage as part of compensation.  Technically, the same treatment could apply to employer-provided cell phones, Blackberries and laptops if employers permit personal use.

 

The issue may be magnified for non-profits.  If the IRS determines that a benefit, such as a cell phone or BlackBerry, is an excess benefit provided to a key employee, the non-profit could get hit with some hefty penalties.

 

Businesses and non-profits concerned about potential problems should immediately review their official policy about personal use of employer-provided cell phones, BlackBerries and laptops.  If they don't have a policy, it may be time to implement one.

 

Permitting employees to use cell phones and other portable electronic devices for personal use is probably the most common employer policy.  More likely than not, it's an unofficial policy.  Its continuing viability likely will be determined by what the IRS does over the coming months.  If the IRS is really committed to going after personal use of cell phones, BlackBerries and laptops, employers will have to make some changes.

 

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2.  Focus on Fraud:  Corporate & Identity Theft, Part 9 - Notes

 

Identity Crime Entrenched – Databases (continued)

 

CREDIT AGENCY DATABASES

 

TransUnion, Equifax, and Experian credit agencies each keep their own databases

 

GOVERNMENT DATABASES

 

After HIPPA, the next two databases that are most comprehensive are Social Security Administration and US Internal Revenue Service

 

US Selective Service database on US males

 

All of the driver license databases

 

Department of Homeland Security travelers database monitoring individuals into/out of and traveling within the US

 

And on and on and on

 

These are gold mines for identity theft, terrorists’ networks

 

Reminder:  Computers do not steal identities

 

Three layers of protection for –

 

            People who maintain confidentiality of personal information, but process it too

 

            Methods to secure theses work processes

 

            Computer and network security

 

 

Part 10 – Notes . . . next week Identity Crime Escalating

 

 

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3.  Tech Tip Weekly: Avoiding Evil Add-ons and Hijackers

Microsoft designed Internet Explorer to let programmers add extra features through add-ons. By installing an add-on program -- toolbars, stock tickers, and program launchers, for instance -- users could wring a little more work out of Internet Explorer. Similarly, many sites use ActiveX -- a fancy word for little programs that add animation and other flashy tricks to a Web site.

Unfortunately, programmers began creating add-ons and ActiveX programs that can harm users. Some of these can spy on your activities, bombard your screen with additional ads, redirect your home page to another site. Worst yet, some renegade add-ons can install themselves as soon as you visit a Web site -- without asking your permission.

For instance, some sites send a barrage of pop-up windows to MS Internet Explorer. As you struggle to close them all, you may accidentally click an OK button, allowing the site to install its evil add-on.

MS Windows XP's Service Pack 2 packs some new guns to combat these troublemakers. First, if a site tries to sneak a program onto your computer, MS Internet Explorer quickly blocks it, sending a warning across the top of MS Internet Explorer's screen. Clicking the warning reveals your options, which are basically to allow the download or software install, or to get more information about it.

Be forewarned.

 

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