How to Spot Medical Billing Errors in 5 Minutes

How to Spot Medical Billing Errors in 5 Minutes

How Do The Credit Bureaus Know What Data to Put on My Credit Reports?

Credit reports are compiled from data derived from thousands of sources. Proprietary matching logic has been developed by each of the bureaus, so that credit and public record data can be applied correctly to each consumer credit file.

What we know is the matching logic includes name and address information. Because of this you can see how consumers with similar names and addresses could have incorrect information on their files. For example, people with the same name except for the suffix (i.e. Jr. or Sr.) and live in the same household could result in a matching error. John Smith, Jr. and John Smith, Sr. who live at the same address could have the same accounts reported on their credit reports. It is not uncommon for those employed in the credit industry to avoid giving their children names with Jr. and Sr., because of this. The end product could be what’s called a “mixed credit file.”

Credit report errors can occur because of the matching logic and incorrect information reported by data suppliers. You may find incorrect information such as accounts, loans, collections or public records you never had, or incorrect payment history. You definitely want your credit file to accurately represent your credit information. Negative data can harm your credit and prevent you from getting a loan or cost you more to borrow money. 

For these reasons, it is important for you to review your credit report for errors.

What to Do If You Are Missing a W-2

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Make sure you have all the needed documents, including all your Forms W-2, before you file your 2011 tax return. You should receive an IRS Form W-2, Wage and Tax Statement, from each of your employers. Employers have until Jan. 31, 2012 to issue your 2011 Form W-2 earnings statement.
If you haven’t received your W-2, follow these four steps:
1. Contact your employer  If you have not received your W-2, contact your employer to inquire if and when the W-2 was mailed.  If it was mailed, it may have been returned to the employer because of an incorrect or incomplete address.  After contacting the employer, allow a reasonable amount of time for them to resend or issue the W-2.
2. Contact the IRS  If you do not receive your W-2 by Feb. 14, contact the IRS for assistance at 800-829-1040. When you call, you must provide your name, address, Social Security number, phone number and have the following information:
•  Employer’s name, address and phone number
•  Dates of employment
•  An estimate of the wages you earned, the federal income tax withheld, and when you worked for that employer during 2011. The estimate should be based on year-to-date information from your final pay stub or leave-and-earnings statement, if possible.
3. File your return  You still must file your tax return or request an extension to file by April 17, 2012, even if you do not receive your Form W-2. If you have not received your Form W-2 in time to file your return by the due date, and have completed steps 1 and 2, you may use Form 4852, Substitute for Form W-2, Wage and Tax Statement. Attach Form 4852 to the return, estimating income and withholding taxes as accurately as possible.  There may be a delay in any refund due while the information is verified.
4. File a Form 1040X  On occasion, you may receive your missing W-2 after you file your return using Form 4852, and the information may be different from what you reported on your return. If this happens, you must amend your return by filing a Form 1040X, Amended U.S. Individual Income Tax Return.
Form 4852, Form 1040X and instructions are available on this website or by calling 800-TAX-FORM (800-829-3676).

What are Fico Reason Codes ?

Every time your FICO score is calculated a set of codes is generated and delivered with the actual 3 digit number. These codes are the FICO Reason Codes (also known as Score Factors or Adverse Action codes).

These codes explain why a credit report didn’t receive the maximum score. You will normally see 4 of these reasons accompany a score.

The reason codes are two digits with a short definition for display purposes on credit reports. An example of a reason code is “too many accounts with balances” which is code ‘05’. An example of a score and reason codes is:

FICO Score: 500 38 21 18 05
(38) Serious delinquency and derogatory public record or collection filed
(21) Amount past due on accounts
(18) Number of accounts with delinquency
(05) Too many accounts with balances

The first number is the FICO score and the next four are the reason codes. In the example above, the score was 500 and the reasons for this score are (38) poor payment history with an account with late payments of 90 days late or worse and a public record or collection, (21) an amount that hasn’t been paid on time, (18) too many accounts with late payments and (05) too many accounts with amounts owed.

MYTH – These reason codes explain why the score is so low. That’s not true. A FICO score above 800 is also going to have these codes. Remember, they explain why the score wasn’t better, not why it was low.

How to remove the “dispute” status on the credit report

I get asked by many loan officers on how to remove the “dispute” status listed on the credit report.  There are two options.

1 ) The client can call the creditors and ask them to provide them with a letter stating that they are no longer disputing this account and need the dispute status removed.

This is what needs to be said:

I am in the process of getting a home loan and am being turned down due to the fact that the account shows disputed.

I no longer want to dispute this account and would like a letter faxed to me so I may give it to my lender.

2) At Score Well Credit..  we can contact the credit bureaus directly to get the verbiage removed ( approximate time is 45 days to get the verbiage taken off )

By the way…..  do you know of anyone who would benefit from a credit consultation ?

Top Tips Every Taxpayer Should Know about Identity Theft

Identity theft often starts outside of the tax administration system when someone’s personal information is unfortunately stolen or lost. Identity thieves may then use a taxpayer’s identity to fraudulently file a tax return and claim a refund. In other cases, the identity thief uses the taxpayer’s personal information in order to get a job. The legitimate taxpayer may be unaware that anything has happened until they file their return later in the filing season and it is discovered that two returns have been filed using the same Social Security number.

Here are the top 13 things the IRS wants you to know about identity theft so you can avoid becoming the victim of an identity thief.

1. The IRS does not initiate contact with taxpayers by email to request personal or financial information. The IRS does not send emails stating you are being electronically audited or that you are getting a refund.

2. If you receive a scam e-mail claiming to be from the IRS, forward it to the IRS at phishing@irs.gov.

3. Identity thieves get your personal information by many different means, including:

   * Stealing your wallet or purse
   * Posing as someone who needs information about you through a phone call or
      e-mail
   * Looking through your trash for personal information
   * Accessing information you provide to an unsecured Internet site.

4. If you discover a website that claims to be the IRS but does not begin with ‘www.irs.gov,’ forward that link to the IRS at phishing@irs.gov.

5. To learn how to identify a secure website, visit the Federal Trade Commission at www.onguardonline.gov/tools/recognize-secure-site-using-ssl.aspx.

6. If your Social Security number is stolen, another individual may use it to get a job.  That person’s employer may report income earned by them to the IRS using your Social Security number, thus making it appear that you did not report all of your income on your tax return.  When this occurs, you should contact the IRS to show that the income is not yours.  Your record will be updated to reflect only your information.  You will also be asked to submit substantiating documentation to authenticate yourself. That information will be used to minimize this occurrence in future years.

7. Your identity may have been stolen if a letter from the IRS indicates more than one tax return was filed for you or the letter states you received wages from an employer you don’t know.  If you receive such a letter from the IRS, leading you to believe your identity has been stolen, respond immediately to the name, address or phone number on the IRS notice.

8. If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost wallet, questionable credit card activity, or credit report, you need to provide the IRS with proof of your identity.  You should submit a copy of your valid government-issued identification – such as a Social Security card, driver’s license, or passport – along with a copy of a police report and/or a completed IRS Form 14039, Identity Theft Affidavit, which should be faxed to the IRS at 978-684-4542.  Please be sure to write clearly.  As an option, you can also contact the IRS Identity Protection Specialized Unit, toll-free at 800-908-4490.  You should also follow FTC guidance for reporting identity theft at www.ftc.gov/idtheft.

9. Show your Social Security card to your employer when you start a job or to your financial institution for tax reporting purposes.  Do not routinely carry your card or other documents that display your Social Security number.

10. For more information about identity theft – including information about how to report identity theft, phishing and related fraudulent activity – visit the IRS Identity Theft and Your Tax Records Page, which you can find by searching “Identity Theft” on the IRS.gov home page.

11. IRS impersonation schemes flourish during tax season and can take the form of e-mail, phone websites, even tweets.  Scammers may also use a phone or fax to reach their victims.  If you receive a paper letter or notice via mail claiming to be the IRS but you suspect it is a scam, contact the IRS at http://www.irs.gov/contact/index.html to determine if it is a legitimate IRS notice or letter.  If it is a legitimate IRS notice or letter, reply if needed.  If the caller or party that sent the paper letter is not legitimate, contact the Treasury Inspector General for Tax Administration at 1-800-366-4484.  You may also fax the notice/letter you received, plus any related or supporting information, to TIGTA.  Note that this is not a toll-free FAX number 1-202-927-7018.

12. While preparing your tax return for electronic filing, make sure to use a strong password to protect the data file.  Once your return has been e-filed, burn the file to a CD or flash drive and remove the personal information from your hard drive.  Store the CD or flash drive in a safe place, such as a lock box or safe.  If working with an accountant, you should ask them what measures they take to protect your information.

13. If you have information about the identity thief that impacted your personal information negatively, file an online complaint with the Internet Crime Complaint Center (IC3) at www.ic3.gov. The IC3 gives victims of cyber crime a convenient and easy-to-use reporting mechanism that alerts authorities of suspected criminal or civil violations. IC3 sends every complaint to one or more law enforcement or regulatory agencies that have jurisdiction over the matter.

Student Loan Inquiries and Your FICO Score

FICO credit scores do not penalize you for shopping for the best student loan deals.
Student loan inquiries from multiple lenders are assumed to be "rate shopping" rather than multiple debts.

So, be sure to do your rate shopping to find the best deal...your FICO score will be just fine.