Blog Archives - Page 50 of 51

The CAN-SPAM Act and Compliance Challenges for Startups

July 5, 2026September 30, 2013 by Brotman Law

As our techno-centric culture increasing depends on email as a form of communication, an increasing amount of regulatory attention has been devoted to policing unsolicited bulk electronic communication, much of it unwanted, also known as “SPAM.” Although bulk mail has been in existence for decades, mass electronic messages are extremely inexpensive to produce and distributed, especially when programmers use cookies[1] or other “trolling” features to obtain them. While direct email marketing (along with search engine marketing) is widely considered as the next evolution for early-stage companies looking to raise awareness of their product/service, SPAM is viewed as a considerable annoyance by the general public. Users are often inundated with unsolicited messages and have to waste a lot of precious time sorting through a sea of junk mail, often risking the possibility that legitimate or important email messages will be lost while deleting unwanted mail messages from their inboxes.[2] In addition, a vast majority of the messages received are for products of suspect legality, scams, chain letters, and often pornographic material.[3]

Key Takeaways

As our techno-centric culture increasing depends on email as a form of communication, an increasing amount of regulatory attention has been devoted to policing unsolicited bulk electronic communication, much of it unwanted, also known as “SPAM.
In response to increasing public outrage, in December of 2003, Congress enacted the “Controlling the Assault of Non-Solicited Pornography and Marketing Act,” otherwise known as CAN-SPAM.
Enforcement action may be brought by citizens in federal court and also may be initiated by the Federal Trade Commission on a civil or criminal scale, depending on the provision violated.

Jurisdictional Issues for Startups

July 5, 2026September 30, 2013 by Brotman Law

Jurisdiction

Key Takeaways

The first major potential pitfall that startups face when operating through an Internet presence is the question of jurisdiction.
As a result, startups weary of subjecting themselves to jurisdiction in foreign venues should take active measures to minimize their contacts there.
There are also other means that companies may take to curtail their liability.

Issues for Startups – Privacy, Privacy Protection, and Data Security

July 5, 2026September 30, 2013 by Brotman Law

An increasing number of legal challenges for startups that utilize the Internet, are in the area of informational privacy protection. To date, there is no single piece of legislation or bill of rights which provides comprehensive regulation of the collection, storage, transmission or use of personal information.[1] Personal information is defined as data that is used to identify, contact, or locate a person, including name, address, telephone number, or email address. [2] Currently, protection of consumer privacy over the Internet is a piecemeal collection of various state and federal statutes. However, as users and regulators become increasingly savvy about the methods of data collection and its uses, that legislation slowly creates a framework that becomes of increasing importance to small businesses and startups that utilize the internet. The Federal Trade Commission has been particularly active in recent years in assessing the threats posed by online data collection and issuing several reports on the subject.[3] In particular, Congress has already taken action with respect to data collection obtained from minors.[4] Failure to take privacy issues into consideration may subject companies to federal or state action, in addition to consumer class action suits. Because enforcement actions are on the rise, startup companies must exercise particular vigilance in this area to protect themselves and the privacy of their users.

Key Takeaways

An increasing number of legal challenges for startups that utilize the Internet, are in the area of informational privacy protection.
Before addressing what startups can do to minimize the risk of privacy related adverse action, it is necessary to briefly address what informational privacy means.
Although there are many important things for company management to consider when formulating their internal privacy policies, the elements of what should be included have been outlined by the Federal Trade Commission in their Fair Informational Practices.

Privacy Issues that Arise for Startups Doing Business in or with the Residents of California

July 5, 2026September 30, 2013 by Brotman Law

As in many other areas of law, the State of California has been on the front line of bringing about aggressive changes in the laws concerning protection for online consumers. The economic power and size of California, in addition to being the primary locus for much of the startup activity in the technological world, means that the cost of doing business for many companies includes compliance with California privacy law. Many elements of privacy protection, which are merely recommended by the Federal Trade Commission and other regulatory bodies, are required by statute in California. A prime example is the Online Privacy Protection Act. Technology law scholars, Richard Raysman and Peter Brown, note that the law “requires that any collection of personally identifiable information from California residents through a Web site or online service for commercial purposes be done pursuant to a conspicuously posted privacy policy.” [1] Federal law creates no such requirement for disclosure.

Key Takeaways

Go to Brotman Tax Resolution Services
Go to The Brotman Virtual Law Office
Go to Resource Blog Homepage

CAN-SPAM

July 5, 2026September 30, 2013 by Brotman Law

Because of public vehemence toward SPAM communication, small businesses and startup must exercise extreme caution when engaging in electronic marketing or any other communication that is not specifically solicited by the user. Failure to do so, in addition to regulatory and civil penalties, can expose a new business to significant damage to their goodwill, which depending on the nature of the business could be fatal to an early-stage company. However, early stage companies can avoid violation of the CAN-SPAM act by engaging in good business practices related to electronic communications. Messages that are advertisements or that otherwise solicit business should identify themselves as an advertisement. The Federal Trade Commission has not issued guidelines on how to achieve disclosure, given the variance in messages and their layout it might be difficult to do so, but communicating in a manner that is clear to the recipient will generally comply with the requirements of the statute.[13] In addition, the message must provide to the recipient the identity of its sender, including critical contact information, such as physical address or registered post-office box and some other means of communication with the sender, such as telephone number or reply email address.

Key Takeaways

Because of public vehemence toward SPAM communication, small businesses and startup must exercise extreme caution when engaging in electronic marketing or any other communication that is not specifically solicited by the user.
Companies should also ensure compliance with the notice and opt-out provision guidance of the Federal Trade Commission.

Issues for Startups – Privacy, Privacy Protection, and Data Security

July 5, 2026September 30, 2013 by Brotman Law

Another key issue for startups when it comes to data security is ensuring compliance the Federal Trade Commission “disposal rule.” Originally implemented as a means as for combating identify theft of information stored on large corporate servers, the Disposal Rule is part of the Fair and Accurate Credit Transactions Act of 2003. In a nutshell, companies are required to implement certain safeguards when destroying electronic files so that these files cannot be read or reconstructed by unauthorized users. As it would pertain to startups, any customers lists, credit reporting data, medical information, and any sensitive financial information or confidential customer communications (relating to online communications companies) should be appropriately safeguarded and disposed of in a prudent fashion.[21]

Key Takeaways

Another key issue for startups when it comes to data security is ensuring compliance the Federal Trade Commission “disposal rule.
Two of the other key areas startup companies should be vigilant in dealing with privacy issues, and where most occur, are with employees/independent contractors and outside vendors.
When dealing with third parties, startups should be especially prudent in the area of privacy protection.

IRS Wage and Income Transcripts: See Every W-2 and 1099 the IRS Has

July 5, 2026September 30, 2013 by Brotman Law

A wage and income transcript is the IRS’s record of every W-2, 1099, 1098, and 5498 filed under your Social Security number — it’s how you reconstruct a lost W-2, verify what employers and banks reported about you, and see exactly what the IRS will match your return against. You can pull it free in minutes through your IRS individual online account, by mail, or with Form 4506-T; online transcripts cover the current year and roughly the past decade. Identifying details are partially masked for identity protection, but the dollar amounts are complete.

By Sam Brotman, JD, LLM, MBA · Last updated July 2026

The five IRS transcript types — and which one you actually need

Wage and income transcript — the information returns above. Use it to reconstruct income for unfiled years or check what the IRS’s matching program sees.
Tax return transcript — most line items from the return as you filed it. What lenders usually want.
Tax account transcript — the IRS’s running ledger: assessments, penalties, payments, and the transaction codes that show what the IRS is doing with your account. We cover it in our account transcript guide.
Record of account — return transcript and account transcript combined.
Verification of non-filing letter — proof the IRS has no return on file for a year.

For anything involving back taxes, the wage-and-income and account transcripts together are the diagnostic X-ray: what was reported, what was assessed, what’s been paid, and how much collection time remains.

IRS Transcripts – Wage and Income Transcripts

These types of IRS transcripts are a record of all of the wage and income data provided to the IRS by 3rd party providers including your employer, banks, financial institutions, brokerage houses, other government agencies, corporations, casinos, and a few others. All W2s, W2-Gs, 1099s, 1098s, 5498s, K1s, and other records of income on file for your social security number will be listed. Wage and income transcripts are most beneficial when preparing past returns because they are a quick and easy listing of income that you may have earned for that tax year. However, wage and income IRS transcripts should be checked for potential errors and compared with the information that you have in your records. 3rd parties can and frequently do make mistakes. Also, equally important, is to check your wage and income transcript for instances of identity theft. Wage and income transcripts are also an excellent provide insight into what information the IRS has on file for you. Although hopefully you will be able to prevent adverse collection activity before it occurs after reading this book, wage and income transcripts can give some idea of what they may come after (and how quickly they will be able to find it) if collection activity does occur.

Key Takeaways

It is also important to note that wage and income IRS transcripts are not always complete for the current year, as the IRS is still receiving and processing information from 3rd parties.
Return transcripts are itemized line by line records of your individual income tax return (Form 1040, 1040a, 1040ez) as it was filed and processed by the IRS. When the IRS receives a tax return, it breaks it down into bits of data that it can more easily use.

IRS Transcripts – Part One – IRS Account Transcripts

July 5, 2026September 30, 2013 by Brotman Law

To assist taxpayers and practitioners, the IRS will provide taxpayers with transcripts of the information that the IRS has on file. There are three main types of IRS transcripts that taxpayers should be aware of before checking their account. These are IRS account transcripts, IRS return transcripts, and IRS wage and income transcripts.

Key Takeaways

To assist taxpayers and practitioners, the IRS will provide taxpayers with transcripts of the information that the IRS has on file. There are three main types of IRS transcripts that taxpayers should be aware of before checking their account.
The most important transcript for checking activity on your account for any given year.
IRS account transcripts should be reviewed thoroughly to ensure that all information is correct on your account. The first thing that you should check for is to make sure that your return appears on this transcript as being filed.

Checklist For Choosing a Tax Preparer

July 5, 2026September 30, 2013 by Brotman Law

I have prepared a list of tips to help you chose a tax preparer and to make sure they are doing the job that you hired them for.

Key Takeaways

I have prepared a list of tips to help you chose a tax preparer and to make sure they are doing the job that you hired them for.
– Do check credentials, ask for references, and read online reviews. In the age of the internet, it is increasingly easy to research an individual’s reputation well in advance of meeting them.
– Do not listen to promises about someone being able to “save you thousands in tax” based on a few simple deductions to your return.

What if I Cannot Pay an IRS Balance Due?

July 5, 2026September 30, 2013 by Brotman Law

In the tax world, to quote Benjamin Franklin, an ounce of prevention is worth a pound of cure. Almost all taxpayers can engage in some level of tax planning to their benefit prior to a return being filed. As a practitioner, I like to perform a mid-year check with my clients to review their current tax situations and to make sure they are on track with where we have identified they need to be. Although particularly helpful with self-employed individuals and those with small businesses, to ensure that they are making proper tax deposits, it can also be helpful for W2 employees who want to adjust their withholdings during the course of the year. In addition, I would recommend checking in with a tax professional to understand the tax consequences of any major life events. Getting married, having a child, changing jobs, getting a raise, buying a house, moving, caring for another individual, and a variety of other changes can all impact your future tax situation. It is always better to be able to be aware that you may have a balance due at the earliest possible juncture in order to try and minimize your liability.

Key Takeaways

In the tax world, to quote Benjamin Franklin, an ounce of prevention is worth a pound of cure. Almost all taxpayers can engage in some level of tax planning to their benefit prior to a return being filed.
If tax planning cannot mitigate the liability, usually it is best to file the return as soon as you can.
Although filing a return may put the IRS on notice of the liability sooner, filing the return has two principal advantages.