Monday, March 12, 2007

Kessler International, the leading forensic accounting, computer forensics and corporate investigations firm, today announced the launch of its powerful new educational Forums on the www.thekesslernotebook.com website.  This valuable new research and information tool allows interested parties to submit inquiries to our experts via our “Ask the Forensic Accounting Expert”, “Ask the Computer Forensics Expert”, “Ask the Brand Protection Specialist”, “Investigative Software, Tools & Equipment”, and “White Collar Crime” sections.

Posted by Blog Admin in • Forensic Accounting • Brand Protection • Corporate Investigations • Computer Forensics
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Wednesday, February 28, 2007

How to Spot a Tax Return Mistake

You must be aware that whoever prepares your tax return, ultimately you are responsible for its contents.  The worst case scenario, if you use a “crooked” tax preparer, is jail time followed by severe financial penalties.  For most of us, though, a mistake on your return means either you owe more, or your refund will be delayed, perhaps indefinitely.  ’Got your attention now? Below are the most common errors committed on tax returns and how to avoid them: 

• It should be the mantra for everyone who prepares or has their tax return prepared- FIRST AND FOREMOST: CHECK THE MATH.  That’s right.  Simple errors in addition and subtraction account for most tax return errors.

• Double-check and then check your return again to ensure that your Social Security number is correct.

• Many of us work two or more jobs.  Check to make certain that your 1099 and W-2s are correct.  If not, have them corrected as soon as possible in order to avoid the IRS receiving conflicting information- a red flag for sure!

• Include your Social Security number on each and every page so that if the IRS deconstructs your return, that it can easily be reassembled.

• If you submit your return by mail, ensure that your Social Security number is on your SIGNED check along with the form number and tax year on the front of the check.

• While on the subject of signage, be sure to sign your return, include your occupation and, if filing jointly, ensure that your spouse includes their information as well.

• Keep copies of all documents sent to the IRS.  Be sure send your return by certified mail with return receipt.

Posted by Blog Admin in • Forensic Accounting
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Monday, February 19, 2007

Tax season is upon us and it appears that it is also open season on innocent taxpayers.  Tax scams and rip-offs are common on the Internet, in print and on the airwaves.
A recent study by a government agency found a disturbingly high percentage of commercial tax preparers made errors amounting up to $2,000 per taxpayer in improper refunds.

Beware “Instant Refund” Loans

You may think that because you’ve seen “their” commercial on TV and because they are a national chain that you are dealing with a reliable firm, but think again.  Quick-refund loans by commercial tax preparation firms are one of the biggest scams going- and completely legal.  The “tax prep” firm offers a short-term loan, often called an “advance” of the amount of the taxpayer’s anticipated return.  The interest on this loan, however often exceeds the amount of the return and then some! Additionally, fees may be gouged, no, charged for this service to persons who are later told they do not qualify for the “advance”.

Taxpayers are often lured by the promise of large refunds that the taxpayer may not be entitled to.  Moreover, some dishonest tax preparers will charge extremely high fees for their “expertise” when they are, in fact, skimming off the taxpayer’s return for themselves. 

Avoid Rip-Offs

How to avoid this scandalous practice?  Prepare or have your return prepared early by a reputable tax preparer (preferably one recommended by friends) and file either by mail or online- yourself.  As soon as you receive your W-2 is the optimum time.  The closer to April 15th one files, the longer the wait for your refund.

Taxpayers must remember that they are responsible for the accuracy of their filed returns, not the preparer, so it is very important to choose your tax preparer wisely.  Also be aware that many commercial tax prep firms hire and train their staff seasonally.  So the person on the other side of the desk may not be much better informed than you about taxation and finance.  Is that who you want preparing your taxes?

Internet Tax & Identity Fraud Phishermen

As many are now aware, Phishing on the Internet is one of the best ways to fall victim to identity theft.  Tax fraud Phishermen pose as major financial institutions, tax return preparers and even the IRS.  Their fictitious emails are intended to trick the unsuspecting into disclosing personal information. A typical “IRS” email will notify a taxpayer of an outstanding refund which they may collect if they provide their Social Security number. The fraud is perpetrated to gain access into the financial accounts of consumers, apply for loans in their names and run up credit card charges to their spending limits. 

Michael G. Kessler, President and CEO of Kessler International, the leading forensic accounting and auditing, computer forensics and corporate investigative strategies firm offers this advice:  “It is very important to know that the IRS does not contact taxpayers via the Internet.  If a taxpayer has concerns as to whether documentation allegedly from the IRS is authentic, they should call 1-800-829-1040 to confirm it.”

Posted by Blog Admin in • Forensic Accounting
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Thursday, February 08, 2007

The phrase “White Collar Crime” has been around so long that few remember when the working world was divided into office workers who wore suits with starched and pressed white shirts, and laborers and tradesmen who favored denim overalls and rumpled blue chambray shirts.  The term was coined during the ‘Great Depression’ of the 1930s by a sociologist, a Dr. Sutherland.  The scientist (betraying his bias) sought to distinguish crimes committed by poor (blue collar), therefore desperate persons, from offenses committed by those enjoying a higher station in life. Although not clearly defined, the term today generally encompasses a variety of nonviolent crimes usually committed in business situations for financial gain.

While White Collar Crime is considered “victimless” it is not without cost.  According to the FBI, White Collar Crime in the United States alone amounts to more than $300 billion annually.

The most common White Collar offenses include: antitrust violations, computer and Internet fraud, credit card fraud, phone and telemarketing fraud, bankruptcy fraud, healthcare fraud, environmental law violations, insurance fraud, mail fraud, government fraud, tax evasion, securities fraud, insider trading, bribery, kickbacks, counterfeiting, money laundering, embezzlement and trade secret theft.

White Collar criminal activity can be the work of one “lone wolf” defendant, or a network of perpetrators, often within an organization. The penalties for white-collar offenses can be restrictive or require imprisonment and include fines, home detention, paying prosecution costs, forfeitures, restitution, and supervised release.

The FBI, the Internal Revenue Service, the Secret Service, U.S. Customs, the Environmental Protection Agency, and the Securities and Exchange Commission, participate in the enforcement of federal white-collar crime legislation. In addition, most states employ their own agencies to enforce white-collar crime laws at the state level.

Often, prior to involving the Federal authorities, business owners or individuals who suspect they are the victims of White Collar Crime, usually contact a Forensic Investigative firm to perform discreet computer forensic and forensic accounting procedures.  Once court-admissible evidence is obtained, the Federal agencies are contacted.

Kessler International is the leading authority on investigating and curtailing White Collar Crime. For nearly 20 years, Team Kessler maintained its global leadership in forensic accounting, computer forensics, and many other practice capabilities.  For more information about Kessler International and the services we provide, contact Michael G. Kessler at 1-800-932-2221 or visit the Kessler International website at www.investigation.com.

See also: Practice Capabilities:
http://www.investigation.com/money_laundering.htm

http://www.investigation.com/trademark_search.htm

http://www.investigation.com/copyshield.htm

http://www.investigation.com/anti_counterfeiting.htm

Posted by Blog Admin in • Forensic Accounting
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Thursday, December 07, 2006

Genuine Forensic Accounting/Computer Forensic Investigators

Popularized by their inclusion in TV crime shows such as “Law and Order” and “CSI”, the forensic accounting and computer forensic fields are becoming cluttered with newbie “litigation specialists” with no background, experience or formal training in these disciplines.  You wouldn’t hire a plumber who wasn’t familiar with the business end of a pipe wrench, would you?  So how do you safeguard yourself and your business from hiring a “specialist” who isn’t?

Kessler International, Inc. is the only name you have to know.  With over thirty-five years’ experience in forensic accounting (that’s more than many firms’ total staff experience combined!), President and CEO, Michael G. Kessler’s expertise is widely acknowledged.  He consults Fortune 500 as well as international companies- and is often retained to train corporate staff in the fine points of his craft.  For a comprehensive list of Kessler International, Inc. services, see:  Practice Capabilities, http://www.investigation.com/pracap.asp. 

Posted by Blog Admin in • Forensic Accounting • Computer Forensics
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