Newsletter from
Steve Richardson & Company, Certified Public Accountants
June 6, 2024
Urgent! I do not like that word at all.
To Our Clients and Friends:
“Urgent” is a word that I rarely use, but in this situation, it is merited.
In the recent past, I have written newsletters about the problems and issues with the US Mail and the theft of checks being sent through the mail. This problem is reaching epidemic proportions. One of the biggest and fastest growing issues in the US banking system is check fraud and theft.
Our clients have experienced check theft firsthand. Yesterday, Todd showed me a large estimated tax check that was taken out of an envelope addressed to the IRS and cashed by a fictional person. A few months ago, a client sent in a church tithe check by US Mail for $40,000 that was stolen. The church’s name was washed off; the check was cashed by a criminal. Fortunately, the church had a hidden camera that proved helpful in recovery and prosecution.
But they wash off the name!
Current chemical technology allows a check thief to wash off the name to whom the check was written and write in any name they choose. The technology is so good that it does not fade the ink on the check itself, only the ballpoint pen.
These are not isolated incidents.
Our clients have had hundreds of thousands of dollars of checks stolen. So far, the banks are making these stolen checks good. The largest bank expense in recent years is the cost of stolen checks. This is a very big deal.
What Should You Do?
Never send money to any tax authority by US Mail. This is the most common target of check thieves. Almost every tax authority has an electronic method that will allow you to make secure tax payments online. When we do tax returns, we have the option on the federal tax return to pay any federal taxes due by allowing the IRS to direct draft your bank account. It is safe and secure. It may sound a little scary, and it took a while for the IRS to win me over. Additionally, the IRS has an excellent method that will allow you to make estimated tax payments in the same way.
Most states have similar capabilities. Not all states allow estimated tax payments as part of the tax return processing, but all the states that I am familiar with have a method of allowing online tax payments. Alabama, for example, has their own tax site, www.myalabamataxes.alabama.gov. It’s not a bad site. It could be better, but it is safe!
It’s Not Just Taxes
When and where possible, instead of sending checks, use available electronic payment methods. There are many such methods, some customized for personal transactions, others for business transactions. Interestingly, the legendary accountant’s “paper trail” is better with electronic payments than with traditional checks.
Do Not Use the US Mail Unless You Have No Choice
Three years ago, I received a package of tax data by US Mail that took two years to arrive. It aggravated both me and my client. That was three years ago. In 2024, late arriving or lost packages in the US Mail are a daily occurrence. By late arriving, I mean months or years late. Do not use US Mail unless you have no choice. There are certain IRS addresses that have only PO Boxes. With PO Boxes, you have no choice but to use US Mail. If you have a choice, don’t.
The Need to Send Documents is Rapidly Diminishing
Most of our client documents arrive by electronic means. Our firm has multiple secure portals that will allow you to upload documents. Converting your documents to PDF format will allow you to email these documents to us. There are many ways to send documents without using US Mail or using no common carrier at all such as Zip.files.
There Are Reliable Common Carriers When You Must Send Documents
UPS and FedEx are well-known common carriers that do a good job of making on-time deliveries. They are not alone.
Thank you for your attention to this important matter. Please feel free to reach out if you have any questions or need assistance with setting up electronic payments.
Sincerely,
Steve Richardson
Certified Public Accountant