Qui Tam and Tax Whistleblowers
In today’s society, one of the biggest concerns that every business or individual wants to avoid are lawsuits. Under the False Claims Act (FCA), there is a liability to businesses or individuals who commit fraudulent behavior that impact governmental programs. Most cases resulting from the FCA are in regards to health care, housing and mortgage frauds.
Unfortunately for businesses, there is a higher risk of involvement in a lawsuit due to the Qui Tam provisions of the FCA. The Qui Tam provisions allows informants or “whistle blowers” to bring forth a lawsuit against the business or individual on behalf of the government. Qualified informants must be directly involved and knowledgeable of the fraudulent behavior conducted and must not be from a secondary source. The incentive for informants to come forward is that they will receive a portion of the funds recovered from a successful settlement or judgment (generally 15 to 30 percent of the recovery).
There has been an increasing popularity in Qui Tam cases since 2009. Prior to 2009, Qui Tam cases averaged 300-400 cases per year. For years after 2009, the average rose to more than 600 new Qui Tam cases per year, with 2013 and 2014 exceeding 700. Read more
Rainmaking: Follow-Thru Strategies, Part I
Several months ago in this blog series, I talked about direct and indirect marketing strategies involved in the Rainmaking process. Direct strategies are those in which you purposefully put yourself either in the room with someone (a meeting, lunch, coffee, etc.) or on the phone (a prospect call, etc.) Direct strategies also include public speaking, presenting technical information live or via webinars. Indirect strategies are those where people can find out about you at their leisure. It is often via your on-line persona – your company website or bio page, blogging, social media, etc. It’s important that the messages between your direct and indirect strategies are consistent. The third prong of the marketing strategies (and perhaps the most important) is the follow-thru.
Why the Follow Thru?
Entire books have been dedicated to this topic. Why? Because it is an area in which so many people fail. They do well in identifying their target market. They determine where to find them and even put themselves in the room with the “right” people. They have great conversations at networking group meetings. Or great conversations with prospects. They collect business cards from the “right” people. They even go so far as to agree to follow up with another meeting. And then what? They go back to the office the next day and don’t do the follow up. They get busy. They answer emails and voicemails. A client project looms and must be completed by noon. An employee comes in with an issue. Or worse – calls in sick! They are, of course, all very legitimate things. And they can easily derail all the good work that was done in the past 48 hours.
Just Do It.
So, how do we commit to the follow up and do a better job? My recommendation is to schedule time to do it, and add it to the “to do” list. If you include follow up on your calendar you are much more likely to get it done. Schedule just 30 minutes. The trick is to schedule that follow up time at the same time you schedule the original networking event. If you have a standing “2nd Thursday” networking event once a month that automatically populates in your calendar, schedule a related follow up time slot for that event for every second Friday. Once the placeholder is on your calendar, you are less likely to schedule something else into it. And make sure you do the follow up within a reasonable timeframe. What is reasonable? In my opinion, 24 - 48 hours. You may be thinking: Why can’t you follow up within a week? Well, it’s better than not following up at all. But the longer you wait the less likely you actually will, and the less likely the person with whom you are following up will want to interact. If it took you a week to get back to them, they know where they fall in the list of importance. Conversely, if you follow up within 24 hours, the person will feel like you really connected and be more apt to reconnect back with you. Think about it - how does it make you feel when someone connects with you right away?
Stay tuned to our next blog – still on this topic – but more directed at HOW to follow up and some great examples you can use to initiate that follow-up discussion.
Rainmaking – Celebrate Successes Digital Goods & Multi-State Tax Issues
Welcome back to our series about how state tax legislation applies to a wide variety of technology industry niches! Today’s focus is digital goods; keep reading to find out what multi-state tax issues this type of merchandise faces when it comes to nexus, state tax legislation, etc.
An Overview of Digital Goods
What are digital goods? Webopedia provides a helpful definition: "Digital goods is a general term used to describe any goods that are stored, delivered and used in an electronic format. Digital goods are shipped electronically to the consumer through e-mail or download from the Internet. Usually when you purchase digital goods online, after payment has been received the merchant will provide you with your digital item as an e-mail attachment or they may provide you with a secure link where you can download the item.
Examples of digital goods include e-books, music files, software, digital images, website templates, manuals in electronic format and any item that can be electronically stored in a file or multiple files."Read more
Focus on South Carolina
South Carolina has been gaining a lot of attention recently due to its presidential election primaries. But there are other aspects of the state that are interesting as well. The “Palmetto” State is known for its shoreline of beaches and islands, in addition to its rich history of plantations and involvement in the Civil War. Its warm weather and green surroundings are not the only things encouraging more people to migrate to the state. The beautiful town of Kiawah Island is a personal annual family vacation spot of mine as well.
Business Climate
South Carolina is a beneficiary of foreign direct investment that boosts its job growth. The State has attracted marquee companies to invest manufacturing facilities in South Carolina through its ability to provide suitable locations, existing infrastructure and a skilled workforce.
The State employs a technical college system and the Apprenticeship Carolina program, which allows students and young adults to apprentice with participating companies across a diverse array of industries ranging from advanced manufacturing to hospitality and health care. A few of the companies that have invested in the state within the last decade are: Boeing, BMW, Volvo Cars and Daimler Vans.Read more
Rainmaking - Be a Joiner!
It will come as no surprise to most of you that I am involved in many different networking groups. Even if you don’t really know me, you can quickly peruse my website and see that I belong to the National Association of Women Business Owners (“NAWBO”) - I’m the current President of the Silicon Valley chapter; Accounting and Financial Women’s Alliance (“AFWA”) – I served as the National President; ProVisors and Vistage, among others. I’m not just a dues paying member, I truly get involved in the organization, often at the Board level. Why? I believe that committing to an organization is about surrounding ourselves with other smart people who have similar purposes. And through those networking efforts, we make friends, business colleagues, and hopefully ultimately generate some business. I also believe that we can’t expect to get business immediately from being part of networking groups. Sure – it happens sometimes. But, as with so many things in life that are worth having, it’s about building a relationship first, and then being patient enough to ask for the work later.
Identify Your Target Market
In my recurring webinar series, “Jumpstart Your Rainmaking”, there’s a section on identifying your target market and then determining where to find them. The latter is important because if we know where they hang out (either physically or virtually – maybe via social media), we can put ourselves in the same room with the people who are in our target market. It is then up to us to dazzle them with our charms! As we work through that section of the training, I’ve realized that this is often the hardest part for people to get their arms around – figuring out WHERE the target market is. But it doesn’t have to be that hard, as long as you’ve defined your target market.
Where Are They?
For example, let’s say you are a CPA who wants to focus on medium sized closely held businesses in the construction industry. So, you might research organizations such as Chambers of Commerce, or community groups like the Rotary. Those organizations include many small to medium sized businesses. Or, go online and check out industry groups – either nationally or locally based. There may also be gender based industry groups that feel like a fit. Trust me – there’s a dues based organization for almost everything! And they are always looking for new members. Active members build good groups. And the more you can volunteer, perhaps by serving on the board or on a committee, the more exposure you will get to the influential members of the organization, and the more likely you’ll be to turn your networking time and money into success.
The "Right" Group!
That said, I also encourage people to attend as a guest (perhaps a few times) before signing on as a member. You want to make sure it’s the right fit. As I mentioned earlier, it’s an investment – referrals likely won’t occur overnight. So you need to be willing to investment the time. Make sure you like the people. Does the board seem competent? Are they friendly and welcoming? At events, are people smiling and having fun? Do they invite visitors into conversations, rather than being “cliquey”?
If you do your homework and experiment with a few groups before committing to your 2 or 3 “regular” groups that meet monthly (or even weekly), you’ll find a group that fits and that is likely to become a place for lead generation – once you take the time to build the relationships. You might even recruit some friends to join your new group as well. Remember the old adage: the more you put in, the more you receive. I wish you happy joining and happy networking.
Monika Miles is President of Miles Consulting Group, a firm specializing in multi-state tax consulting for middle market businesses. Clients include technology, manufacturing, software and SaaS based companies doing businesses across state lines. Miles Consulting Group assists them in determining the sales tax and income tax ramifications of creating a taxable presence in a state and how to address these issues with the various states. When she’s not assisting clients with multi-state tax issues, she passionately shares Rainmaker strategies with other professional services firms. Click here for more information.
Rainmaking – Celebrate Successes SaaS Companies & Multi-State Tax Issues
Have you been following our series that chronicles how state tax legislation applies to various technology industry niches? So far we’ve covered medical device companies and software companies; today the topic is Software as a Service (or SaaS) companies.What multi-state tax issues do they face when it comes to nexus, sales and use tax, state tax legislation and more? Keep reading to find out.
An Overview of SaaS Companies
SaaS is defined as, "A way of delivering applications over the Internet - as a service. Instead of installing and maintaining software, you simply access it via the Internet, freeing yourself from complex software and hardware management."Read more
Understanding Voluntary Disclosure
State taxes can be daunting. There are so many ways companies can trip into nexus creating activities in multiple states and suddenly find themselves in a compliance nightmare. I see this situation often in my practice. Many of my clients are in the technology industry. Silicon Valley moves at an alarming speed (well, except for Highway 101 – but that’s another story!), and companies move people and product into multiple states just as quickly – sometimes without even realizing the ramifications. State taxes – including sales tax and income tax are often an afterthought, but then come back and rear their heads when a company is getting its next round of funding or needs a financial statement audit. It is at this point that people usually take notice of the state tax situation. Why? Here’s a scenario:Read more
Rainmaking – Celebrate Successes Software Companies & Multi-State Tax Issues
A couple of weeks ago we started a series about the nuances of state taxes as they apply to various technology industry niches. Today we continue by focusing on software companies and multi-state tax issues they face including nexus, sales and use tax, state tax legislation and more.
An Overview of Software Companies
Software companies make up a significant part of the technology sector. Software refers to, “The programs used to direct the operation of a computer, as well as documentation giving instructions on how to use them.” The software industry has certainly changed over the years – from the days of companies selling software on disks or other media, to today’s digital downloads of software, and even software as a service (SaaS), which is becoming very prevalent.Read more
Focus on Montana
This month we continue our focus on another majestic state, Montana. The state is rich in natural resources and beautiful landscapes. The majority of this state has not been industrialized and remains close to nature. Montana is the 4th largest state (land size), yet it is one of the least populated states in the country. The state has a lot more to offer than just its beautiful scenery. When you finish reading this blog, you might think about living in Montana.
Business Climate
According to the 2014 census, its population of 1.024 million people is the 5th smallest in the nation and is less than Rhode Island’s (1.055 million). On the other hand, Montana is abundant in land and natural resources, befitting of its nickname, the “Treasure State.” The majority of its land is dedicated to farmland and agriculture. It is the 3rd largest producer of wheat in the US generating approximately 11% of the total wheat production in the country. In addition to crops and livestock, Montana also offers mining as one of its key industries.Read more
Rainmaking - Celebrate Successes
I don’t know about you, but I love to celebrate special occasions. Birthdays, anniversaries and holidays are all good excuses for me to buy gifts for people, go out for a nice dinner, and/or share a good bottle of wine or bubbly. (Life’s too short to drink bad wine, after all!) I’m also a big believer in celebrating successes outside of those kinds of events. You got a good review or promotion at work? Cheers.
What does that have to do with Rainmaking? A lot! Rainmaking, in theory, and the way I share my knowledge around it, is about continually building relationships with people. In turn, those relationships, cultivated with people who can drive business to you by either being in your target market or knowing people who are (i.e.; your referral partners) will ultimately turn into revenues. It’s not easy to build relationships that lead to money at your door. People have to know you, like you, trust you and have faith that you will do a great job for them or their clients before they’ll shower you with money! (Or even sprinkle a little your way.) So, when your hard work around building relationships leads you to a sale or other success in your marketing effort – celebrate it! And reward yourself.
My Jumpstart Your Rainmaking series includes a system which helps track “touches” – the activities you do during the month to interact with people. Those touches will ultimately lead to revenue events down the road. Maybe not each one, but many of them. I track the ones that do turn into revenue during the year. And every time one of them turns into a project for me, I celebrate it. A new client is something to be celebrated. We work hard to gain a new client. So, let’s celebrate it and be grateful. Otherwise, it’s really just a job. We’re in the people business – so let the universe know (in a small way, of course) that you’re grateful for the new work. Thank those that helped you to land the deal. Thank the new client for trusting you with their project. Thank your co-workers that helped lend their energy. And then, give yourself a pat on the back for all of your own efforts. And if landing the client helped you hit a big milestone, really celebrate!
How? In your goalsetting for your revenues this year, think about setting a few milestone goals, that, if you hit them, will involve gifts for you. For instance, you might reward yourself for the first project of the year that brings in at least $10,000. Take yourself out to dinner. If your first quarter goal was to sell 5 new projects – buy yourself some new (fabulously expensive) shoes if you hit 6 instead. Sure, it’s a mental game. But it’s also a trigger. Every time you wear those shoes, you might think about making that sale – and how good it felt! Obviously this is a self-motivational thing – and each of us gets motivated in different ways. So, it doesn’t have to be shoes or dinners. But think about something that would be a nice reward for you after an accomplishment. And allow yourself to celebrate the successes so that you can remember how good it feels – on those days that you may not be able to close that deal that you wanted.
I’ve got to run. I’m having a fabulous dinner in Las Vegas tonight – to celebrate a recent victory in my business! Cheers!
