Certified
Public Accountant
455 E. Pikes Peak Avenue Suite 308
Colorado Springs, CO 80903-3674
(719) 477-1246 (800) 337-5004
Fax (719) 477-0034
|
|
|
|
To see the Federal Tax Changes for 2006Click on the "Federal Changes" toolbar on the leftSome other items of interest: GET YOUR FREE CREDIT REPORT NOW! IT’S THE LAW! "FREE" CREDIT REPORTS MUST BE MADE AVAILABLE ANNUALLY TO ALL CONSUMERS. Any consumer can request their FREE credit report once each year from each of the three credit reporting agencies, Equifax, Experian, and TransUnion. The operative word is FREE. The Fair and Accurate Credit Transactions Act of 2003 ("FACTA") requires each of the nationwide credit reporting bureaus to provide consumers, upon request, a free copy of their credit report every twelve (12) months. The Federal Trade Commission’s (FTC) Bureau of Consumer Protection says, "This new legal right gives consumers an important tool for protecting their identity and keeping track of their credit. A credit report contains consumers’ identification information; payment history with different creditors; a list of inquiries made by various financial institutions; and information on the public record such as foreclosures or bankruptcies." Frequent monitoring of your credit report is one of the more effective ways to protect yourself against identity theft by identifying early any fraudulent credit activity shown on your credit report. You MUST use the FTC website, www.annualcreditreport.com, to be able to obtain your free credit report online. This is the ONLY website through which you are legally entitled to obtain a free annual credit report online. You may choose to order free credit reports from all three nationwide consumer credit reporting agencies at the same time, or stagger your requests over the course of the year. You can then obtain a new free credit report after 12 months. You can also request your free credit report through a toll-free telephone number, (877) 322-8228, or you can mail a request in writing to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Important! If you go directly through the credit bureaus’ websites or request a credit report directly from them, you will have to pay a fee to obtain your report. The FTC has issued a new brochure, "Your Access to Free Credit Reports," that explains why it is important to monitor your credit history, how to request a report, and how to dispute any errors. Go to www.ftc.gov/bcp/conline/pubs/credit/freereports.htm for a copy of this brochure.
CHECK 21 – THE FUTURE IS NOW HERE What is Check 21? The Check Clearing for the 21st Century Act was signed on October 28, 2003, as a "means of improving the efficiency of the nation’s check payment system by eliminating the need to physically transport paper checks between banks." This legislation was effective October 28, 2004. What does Check 21 do? Starting on that date, banks are allowed to replace original paper checks with "substitute checks" that are made from digital images of the originals. Banks can send these check images electronically, rather than relying on physical transportation. BEWARE! As a result of this change, checks you issue will be processed against your account much sooner than pre-October 28, 2004, so "float" time will be severely reduced from days to hours and more bounced check fees will be assessed. What is a substitute check? A bank creates a substitute check and it is a paper reproduction of a digital image of an original check, including an image of the front and back of the original check. Once a check is converted into a substitute check, the law "requires" that any bank or person must accept the substitute check as if it were the original check. What happens to my original check? The processing bank will destroy your original check as soon as the digital image is created. There is no requirement for any retention period for your original check. What if I do not like Check 21 and want to "opt out"? Sorry. No one can opt out of Check 21. It will apply to all financial institutions and to all of their customers, meaning YOU. Will all of my checks be converted into substitute checks? No. Some vendors may choose to turn your paper check into an electronic transmission to a bank. When this happens, the bank does not receive your paper check, only an electronic transmission, so the bank cannot create a substitute check. Instances where this can occur are: Accounts Receivable Conversion (ARC). This is where you pay your utility bill, make a payment on a credit card, a department store bill, etc. The company converts your check into an electronic transaction which will then show up on your bank statement as an electronic debit. No cancelled check will be returned to you and the company to whom you submitted your original check is required to destroy that check within 14 days, but they must keep an image of your original check for two (2) years. Point of Purchase (POP). Some stores, such as American Furniture Warehouse, already use this process. You write a check for an over-the-counter purchase, the cashier swipes the check through a machine that captures the account information and your account is immediately electronically charged for the payment. Your check has been processed and is then returned to you by the cashier, and again only an electronic debit will show up on your bank statement. Your signature is typically required on a register receipt and the merchant must keep that receipt for two (2) years. IMPORTANT! You now MUST review your bank statement in detail and more quickly than before since you will have only 40 days from the date your statement was mailed to dispute a posting to your account.
|
Copyright © 1999-2010
Sanders and Associates
|
