One Startup That Focuses on Channel Development for IT Companies

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• One Startup That Focuses on Channel Development for IT Companies
• Why Google Is Taking a $9.5 Billion Hit on Selling Motorola to Lenovo
• 10 Best WordPress Plugins for eCommerce
• Microsoft Changes Name of SkyDrive to OneDrive
• Enter the Brother “Back to Business” Contest For $500 Prize

One Startup That Focuses on Channel Development for IT Companies Posted: 30 Jan 2014 04:00 PM PST By the year 2010, Clark Richter, the founder of Fossa LLC, had spent over 15 years in sales management and marketing roles at IT companies like Check Point Software, Citrix Systems and Websense. He found it frustrating that there were very few reliable, comprehensive and updated information sources focusing on the IT channel partner market. Professionals like him had to depend on multiple tools and information databases coupled with extensive primary research to zero in on the right channel partner. Traditional databases were out-dated, used out-dated classification systems and profiled companies incorporated years ago with perhaps different business models. The IT industry had transformed significantly over the past two decades but these databases hadn't kept up with the changes in the industry. Sales intelligence tools at that point had good data on end users but there was a gap in the market for data specifically on channel companies (i.e. resellers, service providers, system integrators, etc.) Although emerging vendors such as Rain King and DiscoverOrg did provide up-to-date and relevant contact lists and profiles for IT companies, their focus was on IT buyers at Fortune 2000 companies. On the other hand, broader databases like InsideView, NetProspex, and Jigsaw/Salesforce were crowd-sourced, with a lot of contacts but very few details. The Birth of Fossa So, to plug these gaps in the market and to make the life of sales and marketing professionals like him easier, Clark worked toward building a comprehensive and up-to-date database of IT channel companies with relevant terminology and vendor relationships. After working on it for two years, he resigned from his job and launched Channel Navigator in February 2012. A demo is provided in the video below: Clark founded Fossa LLC with an aim to save customers time and money in executing their channel strategy by providing up-to-date, relevant business profiles, and contacts for IT channel companies. Its database covers 25,000 companies, 80% of which have less than 20 employees. A majority of its customers are channel sales and marketing organizations that subscribe to its database and online tools. Some of its customers are early stage companies that do not have a channel team yet but want the data. Companies selling SMB solutions, security, cloud services and solutions targeted at managed service providers are its top IT industry target segments. Specialization in the channel and a smaller or niche target segment allows Fossa to provide superior quality data. Its databases are researched and updated manually after verifying the contacts and company information. Since it deals with only 25,000 companies rather than 40 million, is easier to verify and update the data and be more precise. Participation in trade shows and Clark's relationships in the channel helped in gaining initial traction. Currently, the company has close to 35 active customers, including Alcatel-Lucent, McAfee, Discoverorg, VAR Staffing, Shuttle and Meru Networks. It was on track to achieve revenue of $100,000 in 2013. The IT channel space is constantly changing – vendor relationships, employee turnover and industry buzz words evolve constantly. Therefore exists a constant need for updated information that will enrich a company's CRM and help make the sales process more efficient. Research firm Gartner, in its latest IT spending outlook, projects worldwide IT spending to grow 3.1% from 2013 to reach $3.8 trillion in 2014. Companies like Fossa LLC can help IT vendors tap efficiently into this $3.8 trillion market. Tuning In Photo via Shutterstock The post One Startup That Focuses on Channel Development for IT Companies appeared first on Small Business Trends.

Why Google Is Taking a $9.5 Billion Hit on Selling Motorola to Lenovo Posted: 30 Jan 2014 01:30 PM PST Less than 2 years ago, Google caused a lot of puzzled looks when it bought Motorola, the mobile device hardware manufacturer. It didn’t seem like an obvious fit. And the even more head-scratching news is that Google is now selling Motorola to Lenovo for almost $10 billion less than what it paid. Google purchased Motorola in 2012 for $12.5 billion and is now selling it for $2.91 billion. But as you look closer, it may be a better deal for Google than it seems — and a good deal for Lenovo. As part of the deal, Google will retain ownership of Motorola Mobility’s patent portfolio. Lenovo will be granted a license to these patents and other intellectual property still owned by Google after the sale. Why It’s Good for Lenovo Lenovo will get 2,000 patent assets and the Motorola Mobility brand and trademark portfolio, said Google and Lenovo in a joint statement. The acquisition of Motorola Mobility expands Lenovo’s mobile profile. The company will now own the Motorola Moto G, Moto X, and Ultra DROID series of smartphones. Lenovo will also take control of Motorola’s “product roadmap” in the future. By acquiring Motorola Mobility, Lenovo enters the North and Latin American smartphone markets wit a strong brand. Both companies claim Motorola Mobility is the third largest company in those markets already. Lenovo hopes Motorola will help the company establish itself in the Western European smartphone market too. In a prepared statement, Lenovo chairman and CEO Yang Yuanqing said: “The acquisition of such an iconic brand, innovative product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones.” Why It’s Good for Google For Google this means a boost in the number of phones using the company’s Android operating system on the market. Google CEO Larry Page says selling Motorola to Lenovo allows his company to focus on developing the Android mobile operating system. And as Quartz observes: “It might seem like Google is taking a $10 billion bath on the sale of Motorola to Lenovo. But Motorola has already helped Google save what could amount to billions of dollars on its taxes, which softens the blow. And there's another way to look at this: Google has created a competitor to Samsung that is headed by an ex-Googler (for now) that will now go to a company, Lenovo, that has proved itself quite capable of succeeding in the low-margin hardware business.” Image: Wikipedia The post Why Google Is Taking a $9.5 Billion Hit on Selling Motorola to Lenovo appeared first on Small Business Trends.

10 Best WordPress Plugins for eCommerce Posted: 30 Jan 2014 11:00 AM PST The WordPress platform makes it easy to set up an online store, either as your primary business or to complement your physical small business. In addition to thousands of templates, there is a massive library of plugins designed to simplify and automate your online sales. Below are ten of the best WordPress plugins for eCommerce that you can use to enhance your website and create a smooth, hassle-free online shopping experience for your customers. WordPress Plugins for eCommerce WP e-Commerce A popular and long-standing plugin that was one of the first eCommerce options offered by WordPress, WP e-Commerce comes with a wide variety of functions and features. The fully-featured free download works great out of the box and comes with flexible coupon codes, discounts and free shipping options, cross-page promotion, a New Products widget single-page checkout, integration with popular e-commerce payment and third-party platforms and much more. You can also purchase add-ons and upgrades to customize this plugin and add even more functionality, like extra payment gateways, slider carousels and additional shipping options. WooCommerce A fully functional free plugin with a vast library of premium upgrades available, WooCommerce is easy to use for both vendors and customers. Free features for this plugin include complex coupon campaigns, product and inventory management, order management, sales reports, a customer account area, control over shipping and tax charges and more. Jigoshop With detailed reporting, widgets and shortcodes, one-page checkout, inventory tracking, product imports/exports, related product displays and more, Jigoshop has everything you need to run an eCommerce store. It's free, with a nice library of free extensions, and you can also purchase premium themes and extensions for added functionality. eShop More than half a million people have downloaded the free eShop plugin, an easy-to-install shopping cart that is fully compatible with WordPress and can create product pages from WordPress pages, posts or custom posts. Features include customer accounts, multiple options for products, selling downloadable content, sales data, sales tax, stock control, discount options and more. Quick Shop A super-simple, "fast and dirty" eCommerce plugin with a surprising level of functionality, Quick Shop comes with built-in support for PayPal and email, and uses WordPress sidebar widgets to continuously show shoppers what's in their carts. With this plugin, you can add products instantly with a TinyMCE button, create drop-down lists with product options and more. Cart66 This plugin offers a professional, paid version at $25 per month and a slimmer, free version called Cart66 Lite. Billing itself as the only WordPress eCommerce solution with PCI compliance built in, the Cart66 professional version includes everything you need to run a clean, richly featured WordPress store with no additional plugins or add-ons. With the free version, you get basic eCommerce features that include promotions, tax and shipping charge control, order management, support for multiple currencies, customizable reports and more. You can use either version to sell products from any page or post on your WordPress site. Shopp This popular premium plugin works out of the box with any WordPress theme and comes packed with features. Shopp is built to work with WordPress and includes things like short codes, dashboard widgets for quick views of sales and product histories and theme widgets that let you easily drop products and elements into pages. Additional features include standard eCommerce tools plus multiple product/variation images, multi-category inventory management, promotional tools, native and plugin support for a wide variety of payment gateways, email notifications, a shipping calculator and more. Ecwid A free, full-featured shopping cart, Ecwid is incredibly user-friendly and can be set up in five minutes or less. You can add this plugin to your WordPress site or your Facebook page, and even set it up for use on mobile devices – and the mirror function lets you manage the cart on many sites from one central dashboard. In addition to free plans with all the standard eCommerce features, Ecwid offers premium plans starting at $15 a month that come with volume discounts, coupon codes, inventory management and more. Easy Digital Downloads If your eCommerce store sells digital content like eBooks, audio, video or images, Easy Digital Downloads is the best WordPress solution. It's also the cheapest at the low price of free. Features of this simple, powerful plugin include discount codes, sales reports, user purchase history, file download logs, a wide selection of payment gateways and more. There are also nearly 200 extensions to improve the functionality of your download storefront. WPdeposit Offering a unique alternative to traditional eCommerce plugins, WPdeposit lets you set up a credit system, similar to stock image marketplaces like Shutterstock and iStockPhoto. With WPdeposit, shoppers buy prepaid credits, which they can use to make purchases on your site. The plugin supports multiple gateways, with the option to add your own. Widgets and shortcodes show users their balances on your site, and add-ons let users subscribe to or advertise on your site in exchange for credits. eCommerce Photo via Shutterstock The post 10 Best WordPress Plugins for eCommerce appeared first on Small Business Trends.

Microsoft Changes Name of SkyDrive to OneDrive Posted: 30 Jan 2014 08:00 AM PST Microsoft has announced the name change of its cloud service from SkyDrive to OneDrive. Ryan Gavin, General Manager of Consumer Apps & Services, made the announcement recently on the new OneDrive Blog. “Why OneDrive? We know that increasingly you will have many devices in your life, but you really want only one place for your most important stuff. One place for all of your photos and videos. One place for all of your documents. One place that is seamlessly connected across all the devices you use. You want OneDrive for everything in your life.” Everybody knows though why it’s OneDrive. The company was forced to alter the name of its cloud storage service after a trademark case with UK television broadcaster BSkyB. Up until a few years ago, BSkyB was in the cloud storage business themselves, and they sued Microsoft over the SkyDrive name (in particular, the “sky” part of the name), claiming trademark infringement. BSkyB won that case and Microsoft decided to rebrand the service, rather than go through lengthy legal appeals. A special arrangement with BSkyB involving Microsoft’s XBox One may have factored into their considerations too. UK owners of XBox One can access Sky’s channels via the game’s console, and there may be further tie-ins planned for the future. It’s not clear whether there will be any significant service changes coming with the name change. Microsoft also hasn’t announced exactly when the name change will occur. This isn’t the first time Microsoft has run afoul of trademark infringement challenges. Its Windows 8 system was originally called Metro, and had to be rebranded after a dispute by the German company Metro AG. And who knows? Maybe OneDrive will have to be changed again if anyone objects to the use of the word “one.” Gizmodo has made a list of possible companies who may object to Microsoft’s rebranding. BSkyB has also not been afraid to defend its trademark before in another case. Back in 2012, Livescribe was forced to change the name of their Sky Wifi Smartpen after the broadcasting company complained. Since OneDrive is not yet available, you can register your interest on the OneDrive webpage, and you will be notified when all systems are go. In the meantime, SkyDrive will continue to work as usual. The post Microsoft Changes Name of SkyDrive to OneDrive appeared first on Small Business Trends.

Enter the Brother “Back to Business” Contest For $500 Prize Posted: 30 Jan 2014 05:00 AM PST There’s a contest going on at our sister site BizSugar.com that we’re excited to tell you about. Now you can showcase your creativity and promote your business all at the same time. And you’ll get a chance to win one of three great prizes. Brother, manufacturers of printers and related business products, has a free Web tool that can help you use your creativity to design the perfect attention-grabbing, business and marketing materials for your company. All it takes is Internet access and a bit of imagination. You’ll be printing up your new designs and turning the heads of customers. Now, here’s the really exciting part! We’d like you to try the Brother CreativeCenter — a totally free web-based design portal — to add some oomph to your business cards, calendars, posters, brochures and mailers. And we’re offering a whopper of an incentive. Enter the Brother “Back to Business” Contest on BizSugar and not only create beautiful promotional material about your business and show it off to the world, but you’ll also have the chance to win one of three prize packages worth over $500 each. Here’s How to Get Started: Read the contest rules. Then use the Brother CreativeCenter online tool to create a document, then load it to the BizSugar site using the contest entry form. It’s that easy! Winners will be chosen by the BizSugar Moderator team and staff. We ran a similar contest last year around this time, so you can see the submissions from 2013 as well as this year’s content submissions. Get started NOW! The post Enter the Brother “Back to Business” Contest For $500 Prize appeared first on Small Business Trends.

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Dip Into a New Pool of Talent by Employing Seniors

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• Dip Into a New Pool of Talent by Employing Seniors
• ThinkHR Acquires HR That Works to Expand Employee Management Services
• Speedzone Performance: Owner’s Passion and $700 Loan Leads to a Business
• Twitter Plans eCommerce Function, May Use Payment Startup Stripe
• How to Avoid IRS Trouble Due to Identity Theft

Dip Into a New Pool of Talent by Employing Seniors Posted: 29 Jan 2014 04:00 PM PST Are you racking your brains looking for a way to hire employees on a tight budget? Perhaps you've even put out want ads for jobs but haven't found any candidates with the right experience and attitude. Maybe the problem is that you're overlooking a huge pool of potential employees: Seniors. (Seriously, we need to come up with a better name for this generation of Americans.) A study (PDF) from the University of Michigan found that these days, more "mature" Americans are taking "partial retirement." Already 20 percent of workers aged 65 to 67 and 15 percent of those aged 60 to 62 are partially retired. Partial retirement itself is a relatively new trend. In 1960, the study reports, only about 5 percent of workers in the 65 to 67 age range were partially retired and among people age 60 to 62, the concept was virtually nonexistent. What's Behind the Growth of Partial Retirement? The study points to several factors. During tough economic times, older workers are more likely to be laid off or choose to exit the work force. However, many either can't afford to take full retirement, or don't want to because they enjoy working. As a result, more and more workers over 60 are taking what the study calls "bridge jobs" – lower-paying jobs intended to tide them over until full retirement as opposed to continuing in, or searching for, "career jobs." The growth of partial retirement is good news for small business owners, as it's creating a new pool of potential workers who have lots of experience but are willing to work for less. The Pros and Cons of Employing Seniors Below are some of the issues mentioned in a survey (PDF) of hiring managers by the Society for Human Resource Management (SHRM). Pro: Seniors Tend to Be Good With People Often, they want to keep working because they enjoy socializing and don't want to be isolated at home. This makes them natural "relators" who are likely to be patient and friendly. This type of person can be great as a retail employee, customer service rep, greeter (think Wal-Mart) or in another type of role that involves lots of hand-holding. Pro: Seniors Have Valuable Experience You Couldn't Afford to Hire Full-Time I recently needed new carpet in my home and was trying to match old carpet installed 10 years ago. A senior (partially retired) salesman at the company I worked with was able to identify the brand and find a near-perfect match in a matter of minutes due to his decades of industry knowledge. He was also more efficient than many younger, less experienced people might have been. Pro: Seniors Can Share Their Knowledge with Junior Employees Having a senior mentor train younger employees is a great way to bring them up to speed on your industry. Pro: Seniors Possess Useful Networks Seniors who have spent a long time in the workforce typically have networks of contacts that can be useful to your business. Pro: Seniors Have More Dedication Because their children are grown and they may be widows or widowers, seniors are likely to have more dedication to your business than employees who are juggling marriage, children and family life with the demands of their jobs. Con: Possibly Less Tech Savvy Seniors are likely to be less tech-savvy than younger generations who've grown up with technology. That said, they are typically very willing to learn, and with a majority of people over 65 now online according to Pew data, they have at least some familiarity with social media, email and other essential tools. Con: Potential Physical Limitations Seniors will most likely have physical limitations that younger employees won't. So if the job requires a lot of walking, standing, lifting or other physical labor, it's probably not ideal for an older individual. The good news is, as part-timers, they won't need to be on your company's health insurance so their health issues won't raise your rates. How Can You Find Qualified Seniors? Tap into senior-related resources in your community, let your connections know you're looking for senior employees, or advertise on senior job boards such as Senior Job Bank or Workforce 50. Employee Photo via Shutterstock The post Dip Into a New Pool of Talent by Employing Seniors appeared first on Small Business Trends.

ThinkHR Acquires HR That Works to Expand Employee Management Services Posted: 29 Jan 2014 01:30 PM PST ThinkHR has acquired HR That Works. The cloud-based human resource companies both describe the move as a merger. In an official announcement, ThinkHR touts resources both offer for small and large businesses wishing to hire the best employees. But the companies say they also offer resources to improve productivity and reduce workplace conflicts. Each company says it provides its own specialty  services to businesses that can’t dedicate, but need, a full-time HR person. ThinkHR CEO Pete Yozzo said in a prepared statement that combining his company with HR That Works provides a single source for businesses in need of human resource services. He adds: “With HRTW's risk management expertise and legal perspective, its best-in-class platform will be an excellent complement to our existing platform and team of HR professionals and content contributors. This acquisition is another example of how ThinkHR is always looking for ways to deliver more value to our customers, creating an experience that is as simple and easy to use as it is elegant.” In the deal, HR That Works Founder Steve Phin will join the team at ThinkHR as its vice president of Strategic Solutions. Phin started HR That Works in 2001. The purpose was to provide services to employers and insurance brokers managing human capital risks not insurable through traditional programs. Today, the company has grown to offer a wide array of Web-based HR services to businesses. The company’s website says these include a database of HR-related videos, assistance with training of employees, employee performance and retention, leadership webinars and advice on ever-changing compliance issues. ThinkHR say they feature live assistance that connects businesses with an HR professional who can work with them to resolve employee issues quickly. The company posts on its site that it has compiled a database of answers to common HR questions its members can access as needed. ThinkHR notes in its release: “This strategic merger will enable ThinkHR to expand its expertise into the property and casualty market and broaden its online resource library with video content and additional valuable reference material.” The post ThinkHR Acquires HR That Works to Expand Employee Management Services appeared first on Small Business Trends.

Speedzone Performance: Owner’s Passion and $700 Loan Leads to a Business Posted: 29 Jan 2014 11:00 AM PST Sponsored Post Speedzone Performance focuses on a part of the automotive industry most car buyers and owners probably never even think about. Founder Vishal Mathur says he has a passion for high quality aftermarket auto parts (parts built by companies other than a car’s original manufacturer) sourced specifically from companies in the U.S. or vetted Japanese partners. And this means parts he sells often cost a bit more. Mathur says the reason he tries to trace the origins of his parts so carefully is that he wants to be able to stand behind what he sells. And he wants to know that his suppliers will do the same. As it happens, this isn’t something Mathur dreamed up to put into a marketing message or so he could charge a little more for his parts on eBay. In fact, he says, it’s the reason he started his business in the first place, 15 years ago and right out of college: “I know what it’s like to be on the other side of the counter.” First of all, Mathur didn’t have any experience as an auto mechanic or in selling auto parts before starting his business. Instead, he graduated college with a degree in business administration and a minor in marketing. Today, Mathur’s business not only sells automotive parts but also does race car fabrication, including building custom racing engines. They do custom auto work, too. That includes transforming, say, a 1991 Nissan or other vehicle into a 1000 horsepower track car for “weekend warriors” and other race enthusiasts. They also build roll cages and do other specialty work. All of this happens at the company’s 2,500 square foot auto body shop in Kissimmee, FL. So how did a guy with no particular background as a mechanic or in the auto parts industry get involved in this business? Well, even if Mathur didn’t know all that much about fixing up or modifying cars, he did have entrepreneurship in his blood. Mathur’s father had, for years, owned and operated a bookstore. So in addition to his education, he had learned a lot about running a business…and about spotting an opportunity. While incapacitated for a short while with a hand injury, Mathur used the time to read auto magazines from his parents’ store. He intended to modify his existing car and spent a lot of time at a local auto paint shop drinking in all he could learn about the process. When a local auto parts dealer refused to stand behind some faulty parts he’d bought or even go to bat for him with the manufacturer, Mathur decided he could do better. With a $700 business loan from his parents and use of their business license and a room behind the store, Mathur started selling auto parts. When he enlisted the help of some part-time workers from a local car club, the group began doing modifications on each others’ cars in the parking area out back. Before long, local code enforcement required him to move to a facility that allowed more automotive work. Mathur brought in a lift and other necessary equipment and continued to build his business. Today, Mathur has six employees, including certified mechanics. He also operates a website SpeedzoneWeb.com where he offers auto parts for sale. However, he admits the site is a much smaller part of his business and serves mainly to promote his physical location. Mathur says online sales of auto parts is dominated by sellers marketing mass produced parts from China, Malaysia and other overseas sources. Their emphasis is on low prices Speedzone Performance cannot meet due to its sourcing standards. Instead, Mathur will deal only with primarily domestic and some Japanese manufacturers who he has researched thoroughly or been referred to by other trusted industry sources. Mathur estimates only about 30 percent of the auto part industry focuses on this approach, avoiding mass produced lower quality parts. The next step is the research and development and then manufacture of his company’s own brand of parts, something already done by others in the industry, he says. * * * * * iCIMS, a leading provider of talent acquisition solutions for growing businesses, is proud to be the official sponsor of Small Business Trend's first inaugural "Small Biz Spotlight" of Speedzone Performance. Like iCIMS, Speedzone Performance has become a leader in their industry by providing the highest quality products and superior service to their customers. iCIMS is delighted to have the opportunity to support the passionate drive and entrepreneurial spirit of companies like Speedzone Performance through the sponsorship of the "Small Biz Spotlight." (Visit the “Small Biz Spotlight” series archives and stay tuned for more small business stories there.)  Image: speedzoneweb.com The post Speedzone Performance: Owner’s Passion and $700 Loan Leads to a Business appeared first on Small Business Trends.

Twitter Plans eCommerce Function, May Use Payment Startup Stripe Posted: 29 Jan 2014 08:00 AM PST It’s being reported that Twitter is planning to launch an eCommerce feature. The service could be patterned roughly on Square Market and would integrate the technology of a startup payment solution called Stripe. Twitter chairman Jack Dorsey is also the CEO at Square.  But TechCrunch reports the newly proposed Twitter eCommerce feature does not sound as if it would be any real competition for the credit card reader. Stripe Founders Patrick and John Collison’s hometown paper recently reported that the two are deep in negotiations with Twitter over the deal – but the pair are not keen on selling their company. Another company being considered, according to Techcrunch, is Paypal. So What is Stripe? Stripe is a payment system which enables you to collect credit card information from your customers on your website. But no information is stored on your servers – everything is sent to Stripe for processing. That way, you don’t have to worry about encrypting credit card or other information on your servers. For this service, Stripe charges 2.9% and 30 cents per transaction. Below is a short video description of how Stripe works: Stripe also raised $80 million in funding recently to expand its services, putting the total valuation of the company at $1.75 billion. Up to this point, Twitter has made several efforts to monetize their platform. They have included “hashtag commerce” with Chirpify, promoted tweets, targeted tweets, and purchase hashtags and credit card syncing, with American Express. But now Twitter seems to be on the cusp of developing a standalone storefront platform where brands can sell to Twitter users, with hopefully Stripe covering the back end, processing the payments. However, even if Twitter’s eCommerce efforts do come to fruition, advertising may be the main source of revenue for Twitter for some time to come. Twitter’s main rival, Facebook, has gone down the eCommerce route themselves. Despite their considerable online clout and financial resources, the revenues from their eCommerce efforts only amounts to 11% of their total revenues. Images: Stripe The post Twitter Plans eCommerce Function, May Use Payment Startup Stripe appeared first on Small Business Trends.

How to Avoid IRS Trouble Due to Identity Theft Posted: 29 Jan 2014 05:00 AM PST In September 21, 2012, an Arizona woman was sentenced to 3 years in prison for identity theft, and ordered to pay nearly $400,000 in restitution.  She had used stolen identities to file 180 tax returns.   She tried to hide her tracks by filing the tax returns electronically using the unsecured wireless networks of her neighbors.  Then she recruited her friends and had the refunds (in the form of prepaid debit cards) sent to their addresses. And that, my friends, is the anatomy of an identity theft. The above example was provided in testimony by an IRS official before the House Oversight and Government Reform Committee. As you complete your tax returns this tax season, identity theft may be the last thing on your mind — but you should be aware of the potential risks. It’s bad enough if someone steals your identity or your business’s identity, and racks up charges on your credit cards or takes out loans in your name.  But you could find yourself in a pickle with the IRS, too, potentially incurring unnecessary tax liability. Then you’d have a tax mess to clean up, including  extra expenses to pay an attorney to represent your interests. You see, income you didn’t earn could be reported to the IRS.  Who’s going to pay the taxes on that income you never received, but the fraudster got? Or a second (incorrect) tax return could be filed for you and your business.  If you are due a tax refund, it could be delayed or never get to you, because it ends up somewhere else. And if you and your family receive any Federal benefits, those could be reduced, because another government agency may get information from the IRS suggesting your income went up (when it really didn’t). The IRS says it has 3,000 employees working on identity theft cases. It’s easy to hate the IRS, but the agency is required to be a watchdog of taxpayer funds.  If refunds are paid out in error due to fraud, ultimately those are losses the American taxpayer may have to eat.  So if the IRS can cut down on losses from identity theft, it benefits everyone (except the criminals!). Steps to Take If You Suspect Identity Fraud Take these steps to protect yourself and your business from identity theft — before or after the fact: Protect and Avoid Perform a credit check on yourself and your business at least once a year to see if unauthorized loans or credit cards have been taken out. Protect your financial information, especially your social security number or EIN number.  Don’t give it out over the phone or in an email unless you are absolutely sure there’s a legitimate reason. Protect your computers and mobile devices (personal and company-issued) from phishing and malware. Otherwise, your financial information could end up in the wrong hands. Scrutinize and Report Scrutinize every 1099, W-2 or other information filing you receive from third parties.  Don’t just file them away or hand them to your tax preparer. Don’t recognize the payer?  It could be a sign of fraud.  For example, here at Small Business Trends a few years ago, we received a false 1099 — and narrowly avoided another fraud situation.  You see, fraud has been dogging affiliate marketing.  Fraudsters will set up affiliate accounts (from offshore) under the name of legitimate websites in the U.S., and siphon off the income.  The company having the  affiliate program reports the income to the IRS under the victim-business’s name. Then you as the website owner get a 1099 reporting income you never received – ugh! If you receive a tax form from anyone you don’t recognize, immediately write to the payer, via certified mail.  Tell the payer you believe you were a victim of identity fraud and did not receive the income attributed to you.  Ask them to investigate and correct their records.  Also, consider attaching an explanation to your tax return as to why you did not include the “income” on your return. Call the IRS identity theft hotline at  800-908-4490, extension 245.  The IRS says it will take steps to “secure your tax account and match your SSN or ITIN.”  The IRS has been piloting a program to match taxpayers with their tax ID numbers, to tackle fraud. Fill out the IRS Identity Theft Affidavit, Form 14039 (PDF). Report the fraud to the FTC’s identity fraud hotline: 877-438-4338 Report it to local police. Report it to the 3 main credit reporting agencies: Equifax – 800-525-6285 Experian – 888-397-3742 TransUnion – 800-680-7289 For your business, add to that list Dun and Bradstreet.  The iUpdate feature allows you to update information about your business credit. Talk with your attorney and/or tax preparer – before reporting to anyone.   They can advise you on what to do and how to communicate so that you are perceived as blameless as possible (how we communicate in legal situations can avoid unnecessary grief later). The IRS offers additional tips here. Fraud Photo via Shutterstock The post How to Avoid IRS Trouble Due to Identity Theft appeared first on Small Business Trends.

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