Current Events in January 2011

Granted, it's been just a couple of days, but it looks like Wall Street is on its way to pretty good year in 2011 even though other aspects of the slowly recovering economy are still struggling.

The housing market continues to be weighed down by an increase in foreclosures and rising interest rates. 

This is the time of year when the Street’s top stock pickers offer up their best recommendations for the year ahead. The obvious question you have to ask yourself is should I follow their advice?

After all, they’re getting paid a small fortune by these huge investment banks to know which way the market is likely to go, right?

You’d think so, but if history is any indicator, you would be just as successful if you picked your own stocks or even took the ones they said you shouldn’t. We’ll have more on that later.

Barron's picks

First, let’s take a look at the stocks that Wall Street literary iconic weekly newspaper Barron’s has put together in what it says are the top ten stocks for the year presented by ten stock pickers.

It’s interesting to see that they seem to be following a common theme in that the biggest potential returns will be in tech and financial stocks.

1. Bank of America. Read Reeve’s writing for InvestorPlace.com said he believes the worst is over for Bank of America and he expects less government meddling as financials stand on their own again.
2. CNOOC Limited is a Chinese energy company.  As a Chinese national, Asia expert Robert Hsu also writing for InvestorPlace.com says the prospect of booming energy demand in the region coupled with commodity inflation makes CNOOC the best stock to buy in 2011. Crude oil has already shown signs of a steady upward climb in recent weeks, up about 12 percent from its November lows.
3. Cognizant Technology Solutions was selected by regular MarketWatch columnist and investment expert Jon Markman who is focusing on tech in 2011. According to Markman, as competitors in every sector set aggressive growth plans or cost cutting measures to keep an earnings edge, one resource all corporations will need is an efficient data and networking system. That’s Cognizant’s specialty.
4. Evercore Partners. Hilary Kramer has dedicated an entire newsletter to what she calls “game changer” stocks, picks that redefine an industry or ride a fundamental shift in the economy to big profits. She says that’s Evercore in spades. According to Kramer, after a 2010 that saw cash-rich companies test the waters again in the M&A arena, this will be a big year of buyouts that reshape Wall Street — and subsequently, huge commissions for capital markets powerhouse and merger advisor Evercore.
5. Microsoft.  James Altucher, a renowned financial journalist and author of “Trade Like Warren Buffett,” is banking on this tech giant in 2011. He says Microsoft is flush with cash, buying back stock and has a P/E of about 8 when you back out the cash. To top it all off, Microsoft  is seeing booming sales from the Kinect and has a lot of potential when it comes to Windows sales in emerging markets.
6. Mindspeed Technologies. Bargain stock picker Nancy Zambell is another big believer in technology stocks which is why she’s picking this semiconductor stock. It profits from chips used in a variety of consumer and corporate electronics. According to Zambell, North American semiconductor sales were up 148 percent year-over-year in the third quarter of 2010.
7. Otelco. This is a regional telecom that income investor Neil George likes. He says this quiet Alabama company has consistently growing revenue, fiscal discipline and a 9 percent dividend yield — focusing on getting the job done. Like most well-run local phone and internet providers, Otelco isn’t flashy — what sets it apart is the company’s high efficiency and profitability.
8. Visa. Financial analyst Charles Sizemore is big on Visa. But unlike other financial-related picks on this list, the stock’s strength comes from its rather mundane business of data processing. You see, this Visa is an ATM and debit card behemoth — not a lender or credit card loan servicer. It gets paid for each swipe of a card bearing a Visa logo. As emerging markets continue to move away from hard currency and the U.S. and Europe go virtually cashless, there will be even more swipes (and profits) in 2011.
9. Zalicus. Michael Murphy has made a career out of bold biotech picks that explode. At under $2 a  share, Zalicus is at the top of Murphy’s list. He warns that you may have to wait for the second half of the year for most of the gains, but contends Zalicus is what some call an oxymoron: A low-risk development-stage biotech. At least, that’s what he’s hoping for. If the company’s flagship medication Exalgo never pans out, there could be some serious downside. On the other hand, if ZLCS performs as expected or sees a buyout, than this could be just the latest in Murphy’s long line of successful biotech picks.
10. Zions Bancorp. If you believe the Buffett-ism about buying when everyone else is selling, you’ll find no better stock to test this theory than ZION.  Anthony Mirhaydari, editor of The Edge investment newsletter, has his sights set on this regional financial that is at the epicenter of the housing collapse in Nevada, Arizona and California. Even a modest recovery on the foreclosure front could send this financial pick soaring.

Now let’s be clear here. This list is by no means a balanced portfolio.  Nor is it necessarily where your money should be.  But even if some of these stocks dive, the message is clear, at least according to these experts, biggest areas of opportunity in 2011 seem to be tech, finance, energy, and health.

Contrarian

On the other hand if you look at history and how past stock pickers have fared the way Brett Arends of the Wall Street Journal did, then you may want to look elsewhere for your investments.

Arends asked Thomson Reuters for the 10 stocks that analysts rated most highly a year ago and the names ranged from a chemical company, FMC, and printer R.R. Donnelley and Sons to tobacco company Lorillard. Now, how did they do you wonder?

Actually, not too bad. Together they had a 24 percent return. But then he asked Thomson Reuters to send him the names of the 10 stocks that Wall Street analysts liked the least a year ago.  Guess what? They did even better, 32 percent.

On a roll now, Arends decided to go one better. He decided to look at the results for the previous year, 2009. Again, Thomson Reuters gave him the 10 stocks that analysts recommended most highly at the start of that year, and the 10 they rated the lowest.

If you'd bought the analysts' favorite stocks at the start of the year, you'd have made a 22 percent profit. But if you bought the ones they hated says Arends, you would have made an incredible 70 percent profit.

So when you talk to your financial advisor or online broker and he or she starts to give you their best picks for the year, you might also want to ask them what stocks they dislike the most as well.

Depressed older adults with mild cognitive impairment in areas such as language, memory and executive functioning showed improvements  when they were treated with the dementia medication donepezil.

“Cognitive impairment is a core feature of depression in older adults and may foreshadow the development of dementia,” says Charles Reynolds, the study’s lead author and a professor of geriatric psychiatry at the University of Pittsburgh. “While treatment of depression usually benefits associated cognitive impairment, it does not completely regulate cognitive impairment and may not delay the progression to dementia.

Even in remission, older adults with past depression may still show residual cognitive difficulties, such as slowing of information processing speed and impairments in executive or language function. "Our study showed that by adding donepezil, cognition can be improved beyond that which is seen simply with the treatment of depression itself,” Reynolds said.

Med vs. placebo

For the study -- which is published in the current issue of the Archives of General Psychiatry -- researchers compared 130 depressed adults over the age of 65, with 67 receiving donepezil, marketed under the trade name Aricept and 63 receiving a placebo.

The participants were followed for two years while researchers explored the effects of donepezil and placebo on five areas of neuropsychological functioning, including speed of information processing, memory, language, visuospatial functioning, and executive functioning, or brain processes that are responsible for planning and abstract thinking.

Surprises

The researchers noted two unexpected findings: Donepezil seemed to delay the progression of mild cognitive impairment to frank dementia; and the use of the drug was associated with somewhat higher recurrence rates of clinical depression episodes.

“So, there was both a benefit and a risk to adding donepezil to antidepressant pharmacotherapy in older adults," according to Reynlods. "Fortunately, the majority of recurrent depressive episodes could be treated to remission.”

Adding donepezil to maintenance antidepressant medication appears to be useful to the care of older, depressed patients with mild cognitive impairment but does not benefit those with normal cognition. The researchers stress that clinicians should watch for early signs of any depressive relapse and treat as needed.

Researchers from the University of Toronto, Washington University in St. Louis, University of North Carolina at Chapel Hill, and the University of Virginia contributed to the study, which was supported in part by the National Institutes of Health.

Medicine. Cheeseburgers. The speed limit. There are many things in this world that doubling up on is a bad idea.

However, when it comes to varicella, or chicken pox, vaccine, researchers at Yale School of Medicine have found two doses are better than one.

In fact, the odds of developing chicken pox were 95 percent lower in children who had received two doses of the vaccine compared with those who had received only one dose.

Published in the February 1 issue of Journal of Infectious Diseases, the study was led by Eugene D. Shapiro, M.D., professor in the Department of Pediatrics at Yale and his colleagues at Yale and Columbia universities.

Dosage dispute

The Centers for Disease Control and Prevention (CDC) began recommending a single dose of chicken pox vaccine for children ages 1 to 13 in 1995. The chicken pox rate fell drastically and studies showed the effectiveness of one dose was 86 percent.

But there was still a high rate of breakthrough illness in immunized children.

The CDC then changed the immunization policy for chicken pox in 2006, adding a second dose for children ages 4 to 6.

In this study, Shapiro and his team showed the effectiveness of two doses is 98.3 percent.

Past studies have suggested that two doses of varicella vaccine are linked to higher antibody levels than one dose, but this is the first study to assess the clinical effectiveness of two doses of the vaccine in the general population.

The case for double doses

In a survey of Connecticut children, Shapiro and his team discovered 71 cases of chicken pox in children ages four and older. None of these children had received two doses of vaccine; 66 (93 percent) had received one dose and five (7 percent) had received no vaccine.

"We weren't surprised to find that two doses of varicella vaccine are highly effective and are more likely to prevent varicella than a singe dose," said Shapiro. "The findings confirm that, at least in the short term, the policy of routinely administering two rather than one dose of varicella vaccine is sensible."

Shapiro said the findings also might inspire other countries that are routinely immunizing children against chicken pox to consider changing to a two-dose regimen.

Because it has only been four years since the CDC policy change, Shapiro also recommends there be continued monitoring of the effectiveness of two doses to assure that its high degree of effectiveness is sustained.

Each year the Internal Revenue Service (IRS) pulls out thousands of tax returns because something just doesn't quite add up.

Sometimes the IRS will just inform the taxpayer that he or she made a mistake and owe more -- or less -- money. In other cases, the return is subjected to a full-blown audit. That can be a nerve-wracking experience, and an expensive one too. It's best to avoid them, if at all possible.

Unfortunately for the taxpayer, audits are becoming more common. The IRS recently reported that its audits were up 11 percent for the year.

It's during hard times that taxpayers sometimes feel the pinch and are more likely to cut corners and try to pay a little less than they owe. Likewise, as tax revenue goes down, the government will look for more income by increasing audits.

Tax attorneys like Edward Gonzalez, who practices in the Washington, DC, area, say it's never a good idea to try to slide one by the tax man. The small savings on taxes just isn't worth the risk of triggering an audit.

He offers five pieces of advice for staying in the IRS' good graces and avoiding an audit:

1. When it comes to your taxes, honesty really is the best policy.

Report all income, even when you don't get a 1099 or W-2. Deposit all cash, religiously, into the business account. Don't take cash, bypass depositing it into an account, and use it to pay expenses. If the agent sees a lot of this, it'll make the case easier for unreported income. Remember: The burden of proof is on the taxpayer. Ignorance and sloppiness are not an adequate defense. Regarding deductions, don't try to reach. Always ask yourself: Is this a defensible position? Am I clearly entitled to the deduction?

2. Beware of "constructive dividends."

This is a favorite of the IRS, according to Gonzalez. Small business owners often use the corporate account to pay for personal goods or services, such as a car used for the personal errands of the owner, non-business meals, vacations, home improvements, and so on. IRS and the state tax agents know it, and look for it. If it's personal, report it in your personal income tax return or reimburse the company and make sure to give it only the correct tax treatment as compensation, or dividend, in consultation with your accountant. This is often one of the charges in a tax criminal case.

3. Use a reputable tax preparer.

Tax is very complicated. Furthermore, the law changes every year. The person preparing your return should have credentials (education and experience). Mistakes, including math errors, in one part of the tax return increase the odds that the whole return will be audited. Don't pick someone because she promises to get you the biggest refund or the lowest tax bill. That's a red flag signaling a fraudster. You don't want to be questioned by the IRS when it investigates this scammer's entire client list.

4. Keep good records.

Of course this is something you should have done throughout the year, but you can still heed this advice for the coming year. Keep your receipts, especially for expenses you deduct. You will be asked for them during an audit. Remember: To deduct actual mileage you must keep a "contemporaneous" log, i.e. at the time of the trip, not a reconstruction weeks afterward. Likewise, you want to have invoices for any payments you make.

Otherwise, on audit, how do you prove the deduction you took for office supplies wasn't just money you pocketed? Bring the paid bills from Staples. Meticulously deposit all your income into an account and pay your bills out of that account or designated credit cards. If you're self-employed, or have a side-line business in addition to your employment, do not commingle income and expenses of your business with your personal. Keep and use separate accounts, ATM cards, and credit cards for your personal transactions and your business transactions.

"One of the biggest problems we face as tax practitioners working with small businesses is the lack of good record-keeping," Gonzalez said. Just keeping "books" makes such a difference for business planning and profits, as well as defending an IRS audit.

5.  Keep regular books if you have a business.

It's good business practice, too, to keep books during the year. Many get into tax trouble because they didn't pay estimated taxes during the year and so don't have the cash (or available credit) to pay when they file the tax return for the year. Had they paid estimated taxes during the year, this would have been avoided. From a business point of view, they would also had a better idea of profitability had they taken into account tax "accrual" expenses building up during the year. So many contractors under-bid because they don't take taxes into account, and end up subsidizing the buyer with the tax liability they will later face!

Read more about income tax

Apple is facing two class-action lawsuits alleging that its iPhone and iPad tablet transmit private user information to advertising networks, without first obtaining permission from affected consumers.

The suits, both filed in California, contend that iPhones and iPads use so-called Unique Device Identifiers (UDIDs) to transmit consumer data to advertisers. UDIDs are 40-digit strings used to identify particular devices. Unlike cookies, UDIDs cannot be deleted or modified by users.

According to the suits, UDIDs are used to record which applications (or “apps”) are downloaded, as well as the length and frequency with which they are used.

Jonathan Lalo, a Los Angeles County resident who is one of the suits' lead plaintiffs, “did not expect, receive notice of, or consent to Defendants' tracking of his iPhone app use and did not want Defendants to engage in such activity,” according to his complaint.

Along with Apple itself, the suits target the makers of several popular apps, including The Weather Channel; Dictionary.com; Pandora, an internet radio service provider; textPlus 4, a messaging app; and the creators of the games Talking Tom Cat, Paper Toss, Pumpkin Maker and Pimple Popper Lite.

Age, gender, location transmitted, plaintiffs say

The suits contend that Apple and the subject app developers were selling users' age, gender and location to advertisers. Additionally, Lalo's suit says, “some apps are also selling additional information to ad networks, including users’ ... income, ethnicity, sexual orientation and political views.”

The suits follow a report by The Wall Street Journal chronicling privacy breaches by Apple and Android devices. That report, published December 17, found that “56 [of 101 apps examined] transmitted the phone's unique device ID to other companies without users' awareness or consent. Forty-seven apps transmitted the phone's location in some way. Five sent age, gender and other personal details to outsiders.”

The Journal found that iPhone apps transmitted more data than Android apps, although it cautioned that the relatively small sample size might not accurately reflect “the hundreds of thousands of apps available.”

Lalo's attorney, KamberLaw partner Dave Stampley, told CNN that he “think[s] it was through the Journal” that Lalo discovered that his privacy rights had been violated.

Not the first, won't be the last

Privacy concerns are paramount in the digital age, and suits like Lalo's are likely to multiply as consumers struggle to maintain some modicum of confidentiality while still taking advantage of social networking and online interaction.

High-profile allegations within the past year alone include that Gmail uses private e-mail messages to tailor ads to users' interests; that the Google toolbar sends Google “the address of every web page viewed by the user, along with information that identified the individual user”; and, in striking similarity to the claims made in Lalo's suit, that Facebook applications send personal information to advertisers.

“In the world of mobile, there is no anonymity,” Michael Becker, of the trade group Mobile Marketing Association, told the Journal. These days, Becker said, a phone is “always with us. It's always on.”

The plaintiffs in both suits seek to represent a nationwide class of affected consumers. The suits seek monetary damages, as well as an injunction preventing further data transmission and the deletion of data already sent.

The 2011 Consumer Electronics Show (CES) opens today and the electronics editors at Consumer Reports (CR) have identified five product categories they're eager to see at this year's show.

"CES 2011 is less about revolution than evolution," said Paul Reynolds, Electronics Editor at Consumer Reports.  "We likely won't see any groundbreaking new product categories, but we'll see some significant leaps in some key technologies such as computers, smartphones, and 3-D TV."

Consumer Reports has identified the following five product areas that will have an impact this year on consumers.

• TABLET COMPUTERS. Though other tablets started to appear in the marketplace toward the end of 2010, CR found most were disappointing compared with the Apple iPad. The magazine expects the iPad will get some real competition from tablets introduced this year at the show. For example, the Toshiba Tablet will offer many features that the current iPad doesn't, including a camera, a memory-card slot, and support for Flash video.
• PASSIVE TECHNOLOGY FOR 3-D TV. Another one of Consumer Reports' anticipated product categories is 3-D TVs made for viewing with light, inexpensive passive glasses, as opposed to the bulky and costly active-shutter glasses they've needed until now. Vizio, LG, and other manufacturers will be showing these TVs.
• NEW COLOR TECHNOLOGY FOR E-BOOK READERS. Though e-readers -- which played a large role at last year's CES -- probably won't be as thick on the ground this year, the editors are interested in seeing the latest versions of e-book readers that use technologies, such as Mirasol, that will eat up less battery power than existing color LCD e-book readers.
• 4G PHONES. Consumer Reports expects Verizon, along with other carriers and manufacturers, will announce many new 4G phones, using faster networks than most current cell phones use. Sprint and HTC announced the EVO Shift 4G and Samsung is expected to announce a 4G phone.
• CAR CONNECTIVITY. CR will also be looking at innovative car connectivity solutions, including ones that implement 4G, from manufacturers such as Ford and Audi.

Brain scans of children with attention-deficit hyperactivity disorder (ADHD) have shown for the first time why people affected by the condition sometimes have such a hard time  concentrating.

The study, funded by the Wellcome Trust, may explain why parents often say that their child can maintain concentration when doing something that interests them, but struggles with boring tasks.

Dr. Elizabeth Liddle, first author of the study, says the findings help explain one of the interesting characteristics of ADHD -- that children with the condition appear able to control themselves much better when motivated to do so.

"The common complaint about children with ADHD is that 'he can concentrate and control himself fine when he wants to', so some people just think the child is being naughty when he misbehaves. We have shown that this may be a very real difficulty for them," said Liddle.

ADHD is the most common mental health disorder in childhood, affecting around two million kids in the United States.

Children with ADHD are excessively restless, impulsive and distractible, and experience difficulties at home and in school.

Although no cure exists for the condition, symptoms can be reduced by medication and/or behavioral therapy. The drug methylphenidate (more often known by the brand name Ritalin) is commonly used to treat the condition.

Game playing

For the study, Liddle and the other researchers from the Motivation, Inhibition and Development in ADHD Study (MIDAS) group at the University of Nottingham in the United Kingdom used a “Whack-a-Mole” style game to find evidence that children with ADHD require either much greater incentives -- or their usual stimulant medication -- to focus on a task.

When the incentive was low, the children with ADHD failed to "switch off" brain regions involved in mind-wandering.

When the incentive was high, however, or they were taking their medication, their brain activity was indistinguishable from a typically-developing non-ADHD child.

Previous studies have shown children with ADHD have difficulty in "switching-off" the default mode network (DMN) in their brains. This network is usually active when we are doing nothing, giving rise to spontaneous thoughts or 'daydreams', but is suppressed when we are focused on the task before us.

In children with ADHD, however, it is thought that the DMN may be insufficiently suppressed on “boring” tasks that require focused attention.

Brain scan comparisons

The MIDAS group researchers compared brain scans of eighteen children with ADHD, aged between nine and fifteen years old, against scans of a similar group of children without the condition, as both groups took part in a task designed to test how well they were able to control their behavior.

The children with ADHD were tested when they were taking their methylphenidate and when they were off their medication.

While lying in an MRI scanner, which can be used to measure activity in the brain, the children played a computer game in which green aliens were randomly interspersed with less frequent black aliens, each appearing for a short interval.

Their task was to “catch” as many green aliens as possible, while avoiding catching black aliens. For each slow or missed response, they would lose one point; they would gain one point for each timely response.

To study the effect of incentives, the reward for avoiding catching the black alien was then increased to five points, with a five-point penalty incurred for catching the wrong alien.

By studying the brain scans, the researchers were able to show that typically developing children switched off their DMN network whenever they saw an item requiring their attention.

However, unless the incentive was high, or they had taken their medication, the children with ADHD would fail to switch off the DMN and would perform poorly.

This effect of incentives was not seen in children without ADHD -- activity in their DMN was switched off by items requiring their attention regardless of the incentive on offer.

Exciting results

"The results are exciting because for the first time we are beginning to understand how in children with ADHD incentives and stimulant medication work in a similar way to alter patterns of brain activity and enable them to concentrate and focus better,” said Professor Chris Hollis, who led the study.

Hollis said the findings also explain why children with ADHD often have such varied and inconstant performances, depending on the particular task in which they’re involved.

"Using brain imaging, we have been able to see inside the children's heads and observe what it is about ADHD that is stopping them concentrating," added Dr. Martin Batty, co-author of the study. "Most people are able to control their 'daydreaming' state and focus on the task at hand. This is not the case with children with ADHD. If a task is not sufficiently interesting, they cannot switch off their background brain activity and they are easily distracted. Making a task more interesting – or providing methylphenidate – turns down the volume and allows them to concentrate."

The findings are published in the Journal of Child Psychology and Psychiatry.

Automobile safety advocates for years have been pushing for "black boxes" in cars – event data recorders (EDR) that would collect information that would help engineers ascertain the cause of highway accidents and spot design shortcomings and mechanical failures.

But although many cars already gather a great deal of data, there is still no federal requirement mandating that auto manufacturers install the recorders in all of their vehicles. The National Highway Traffic Safety Administration (NHTSA) has issued regulations for EDRs that manufacturers must follow if they decide to install the devices but those regulations. Those regulations take effect in 2012, a year later than originally scheduled, but don't mandate the installation of EDRs in every car.

Why not?

The problem has nothing to do with mechanical or engineering difficulties. Rather, it's turned into an intellectual property and privacy issue. No one can agree on who should own – and have access to – the data gathered by the devices.

• The automakers say the data should be theirs, so that they can identify and correct shortcomings in the design and durability of their vehicles.
• Safety regulators say they should have unfettered access to the data so that they can spot those same shortcomings and order recalls.
• Law enforcement and insurance companies say they should have access to the data so they can determine not only what caused an accident but who, if anyone, was at fault.
• Personal injury and product liability lawyers say they should have access to the data so they can sue manufacturers, drivers and anyone else implicated by the EDR's data.

Toyota did little to build public support for manufacturers when it reportedly used EDR data from 2,000 cars involved in unintended acceleration incidents. The company then proclaimed proudly that in none of the cases was the car's electronic throttle found to be at fault.

Critics said that Toyota should not be permitted to get away with quoting the results without opening all of the data to inspection by others.

Engineers frustrated

All of this frustrates engineers no end. Perry J. Zucker, a Philadelphia consulting engineer who has testified widely in court cases and before legislative and regulatory bodies, argues that the various camps are trying to use the EDRs in ways that were never intended.

"The EDR is intended to be used for diagnosing vehicle-related issues, including the performance of brakes and such safety equipment as airbags during the time period just prior to and during a crash event," Zucker told ConsumerAffairs.com.

Attempts to compare the EDR to an airplane's "black box" are misleading and have contributed to the lengthy controversy that has stalled widespread adoption and standardization of the devices, he said.

It is "the furthest thing from the truth" to portray the EDRs as comparable to the highly sophisticated data collection systems used in modern aircraft, Zucker said.

While the EDRs might contribute some information about a specific auto accident, information such as impact data, skid marks and resting positions of the vehicles are essential and will remain so, whether or not the issues regarding EDRs can be worked out, he said.

Privacy issues

While the issue is sometimes painted as safety-conscious consumers versus the all-powerful automobile industry, consumers are hardly united in their desire for the devices and many have written regulators and Congressional representatives objecting to requiring the devices in all cars. Joining in the criticism are some privacy advocates who claim the devices would allow government to spy on citizens.

Privacy objections come all parts of the political spectrum.

"Consumers, not the government, should decide if they want their cars to collect such data, and if they want to share it with others," said Jim Harper, director of information policy studies at the conservative Cato Institute, writing in the American Spectator in December 2010.

"There is no question that aggregated EDR data can provide important safety benefits. If traffic accidents and deaths can be averted by improving automobile safety, these safety advances should be pursued. But they should be pursued in a way that unites the interests of drivers with the interests of the community." Harper said.

In the absence of federal action, 12 states have stepped in to regulate who owns the EDR data and to regulate access to it.

As this graph prepared by Zucker illustrates, all of the states except California and Connecticut have decreed that the EDR data belongs to the vehicle owner. All of them restrict access to the data without a court order and all but Connecticut and Oregon restrict insurers' access to the data.

* Source: Senate Commerce Committee Staff (+) Florida State Senate 10/09

(1) specify the vehicle owner as the owner of EDR data; (2) restrict access to EDR data, unless procured via a warrant or court order; (3) restrict insurers’ access to, and use of, EDRs; (4) require manufacturers or dealers to provide notice or make certain disclosures to consumers about EDRs, consistent with federal law. Copyright 2011 Offices of Perry J. Zucker

Florida does not specifically address EDRs but has a computer trespass statute that some analysts say could cover EDRs but Florida law does not address who owns the data or has access to it.

Is there an EDR in your car? There probably is. Most vehicles that have an airbag have an EDR as part of the computer system that controls airbag deployment. But for now, there's no standardized methodology for knowing what information is being collected or how to access it. Whether this is good or bad depends on how you view the controversy over who should own and have access to such data.

Spies welcome

Some consumers welcome devices that provide limited information to third parties.

General Motors' popular OnStar system is popular with motorists who want to security of knowing that they can summon help in the event of an accident or illness. OnStar uses a GPS system to provide subscribers' exact location to emergency personnel if they are injured in a crash or become ill.

Some insurance companies offer discounts to drivers who agree to install a devices that monitors your driving habits.

And many rental car companies have installed devices that monitor the location of each of their vehicles; some also monitor speed and other variables. Some have the ability to shut your rental car down if the system detects that you are speeding or driving into Mexico or Canada if you have not purchased insurance that covers you and the car in a foreign country.

As it moved to extend current tax rates at the end of the year, Congress made a few other changes to the federal tax law. Some of those changes might affect your 2010 tax return, although most have impact over the next two years.

One significant change for 2010 has to do with IRA distributions. If you are over age 70 and a half, you must withdraw some funds from your IRA each year. With the extension of the tax rates for two years, Congress also extended a provision allowing you to make the minimum IRA withdrawal, up to $100,000, and donate it to a charity, thus neutralizing the taxable event.

And because Congress was so late in passing this law, lawmakers are allowing taxpayers to make that distribution in January 2011 and still count it as a 2010 withdrawal.

Other aspects of the new law also impact 2010 tax filers. The tuition and fees deduction, the $250 teacher supply deduction, and the deduction for sales tax in lieu of income tax for itemized deductions were extended to include 2010 taxes. However, the special real estate tax deduction for taxpayers who do not itemize was not extended.

Bonus depreciation

For business filers, bonus depreciation on new business assets, purchased between January 1 and September 8, 2010, is allowed at 50 percent. The percentage rises to a full 100 percent for assets purchased between September 9, 2010 and December 31, 2011.

One of the biggest bonuses in the new tax bill is for taxpayers who face what's called the Alternative Minimum Tax (AMT). Congress devised the AMT years ago to make sure very wealthy and sophisticated taxpayers paid at least some taxes.

The problem developed when the brackets weren't adjusted and millions of middle class taxpayers, because of inflation, got pulled into paying the higher level of taxes. The "patch" Congress put in place to help resolve this problem expired in this tax year, but Congress has extended it for about 20 million middle class taxpayers. Otherwise, they could have faced thousands of dollars more in taxes for 2010.

Looking ahead to 2011

Most of the 2010 Tax Relief Act will have impact in 2011. While it doesn't affect your 2010 return, knowing about the changes may help you better prepare for the 2011 tax filing season.

In 2011, personal exemptions and standard deductions will rise and tax brackets will widen due to inflation. These inflation adjustments relate to eight tax provisions that were either modified or extended by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that became law on Dec. 17.

New dollar amounts affecting 2011 returns, filed by most taxpayers in early 2012, include the following:

• The value of each personal and dependent exemption, available to most taxpayers, is $3,700, up $50 from 2010.

• The new standard deduction is $11,600 for married couples filing a joint return, up $200, $5,800 for singles and married individuals filing separately, up $100, and $8,500 for heads of household, also up $100. The additional standard deduction for blind people and senior citizens is $1,150 for married individuals, up $50, and $1,450 for singles and heads of household, also up $50. Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.

• Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $69,000, up from $68,000 in 2010.

• The maximum earned income tax credit (EITC) for low- and moderate- income workers and working families rises to $5,751, up from $5,666 in 2010. The maximum income limit for the EITC rises to $49,078, up from $48,362 in 2010.The credit varies by family size, filing status and other factors, with the maximum credit going to joint filers with three or more qualifying children.

• The modified adjusted gross income threshold at which the lifetime learning credit begins to phase out is $102,000 for joint filers, up from $100,000, and $51,000 for singles and heads of household, up from $50,000.

Several tax benefits are unchanged in 2011. For example, the monthly limit on the value of qualified transportation benefits (parking, transit passes, etc.) provided by an employer to its employees, remains at $230. Details on these inflation adjustments can be found in Revenue Procedure 2011-12.

By law, the dollar amounts for a variety of tax provisions, affecting virtually every taxpayer, must be revised each year to keep pace with inflation.

Read more about income tax

A Minnesota court has reinstated a nearly decade-old class action suit claiming that the manufacturer of Marlboro Lights misled consumers by claiming that light cigarettes were healthier than the standard variety.

The ruling by the Minnesota Court of Appeals reverses a 2004 decision from the district court denying class certification for the suit against Philip Morris. In that decision, the court said that it would be necessary to determine why each class member smoked light rather than standard cigarettes, making the case inappropriate for class treatment.

But the appeals court disagreed, ruling that, since the central issue in the case is false advertising, the class members' individual reasons for smoking light cigarettes are largely irrelevant.

“As we understand it, appellants' theory of damages is that, no matter what individual factors may have been involved in a class member's decision to purchase Lights, all consumers of Lights were led by false advertising to believe that Lights were healthier than regular cigarettes when they were not,” the judges wrote in their 45-page opinion.

Ruling could lead to more litigation

An attorney for the plaintiffs said class certification is crucial to the case's survival.

“An individual consumer cannot take on, alone, a Philip Morris,” attorney Kay Nord Hunt told the Minneapolis Star Tribune. “So I think it’s very important to the Minnesota consumers ... that they can proceed as a class.”

The court's theory -- that a case centered around false advertising does not require an investigation of each consumer's decision to buy light cigarettes -- could open the door to similar cases, if it holds. Perhaps for that reason, Murray Garnick, a spokesman for Philip Morris parent company Altria, was adamant that the ruling was wrong on the merits and contrary to precedent.

“We believe it is inappropriate to give class-action status to smokers’ claims because they raise numerous individual issues that can only be resolved based on the factual circumstances of each individual smoker,” Garnick told the Star Tribune. “Today’s ruling is contrary to every federal court decision on whether cases such as these should be certified [as a class action] and the overwhelming majority of state court decisions on the issue.”

Philip Morris said it is considering its options for an appeal.

False beliefs about “light cigarettes” continue to hold

The case highlights the misleading nature of so-called “Light” cigarettes. A recent survey found that 44 percent of smokers smoked “light” or “ultra-light” cigarettes, with one quarter of them saying they did so because they believed “light” cigarettes are less harmful and/or easier to quit than regular cigarettes.

New federal regulations, which took effect in July, prohibit manufacturers from using labels like “light,” “mild,” or “low.” Because of that law, “Marlboro Lights” are now branded as “Marlboro Gold.”

A federal judge has struck down a New York City ordinance requiring retailers to display graphic warnings about the dangers of smoking, ruling that such matters are exclusively within the domain of the federal government.

In 2009, the New York City Board of Health enacted a regulation requiring retailers to display posters featuring horrifying photographs illustrating the physical toll that smoking takes on a body. The posters feature the standard tobacco-related warnings -- smoking “causes lung cancer” or “causes tooth decay” -- but also include large, detailed photos of, for example, a blackened lung or a rotted tooth.

In June, the nation's three biggest tobacco companies -- Philip Morris, R. J. Reynolds, and Lorillard -- announced that they would challenge the law in federal court. The companies claimed that the city regulation is preempted by federal statutes, and that the law violates the First Amendment, since it forces retailers to display the posters, even if they disagree with their message.

“The mandated signs crowd out other advertisements and otherwise dominate the point of sale in many smaller establishments, to the exclusion of merchandise or other messages chosen by the store owners,” the companies said in their suit.

Judge sympathetic but says law preempted

U.S. District Judge Jed Rakoff, of the Southern District of New York, agreed with the companies' preemption argument. He ruled that the Labeling Act, a federal statute, controls smoking-related warnings and preempts any state or municipal laws that attempt to usurp that authority. The Labeling Act is responsible for the now-famous Surgeon General's warnings that appear on the side of cigarette packages.

Since Judge Rakoff decided that the preemption argument was correct, he did not go on to examine the First Amendment claim.

In his ruling, Judge Rakoff seemed sympathetic to the law, noting that “within New York City, roughly 7,500 people die from smoking annually -- more than from AIDS, homicide and suicide combined.” However, he wrote that “even merchants of morbidity are entitled to the full protection of the law, for our sake as well as theirs.”

"We are pleased that the Court recognized that only the federal government has the power to control the content of cigarette warnings," said Murray Garnick, Altria Client Services senior vice president and associate general counsel, speaking on behalf of Philip Morris USA.

"This lawsuit is not about communicating the health effects of cigarettes, which Philip Morris USA does in a number of ways, including on its Web site. Rather we brought this litigation because the city’s resolution violates Congress’ mandate giving the power to regulate content of cigarette advertising and promotion to the federal government, subject to constitutional limitations," Garnick said.

City considering options for appeal

Nicholas Ciappetta, an attorney for the city, told the Associated Press that the city is “disappointed that this important health initiative was rejected by the court,” and is “studying the decision and considering our legal options.”

New York Mayor Michael Bloomberg has been aggressive in enacting measures designed to curb smoking. In a 2008 Newsweek entry, he called tobacco use a “deadly epidemic” that kills more people than AIDS, malaria, and tuberculosis combined.

In 2003, the city banned smoking in restaurants and bars, and last year proposed a measure that would prohibit smoking in parks, plazas, and on beaches.

Late last month the Environmental Working Group released a study it commissioned, reporting the detection of hexavalent chromium -- a carcinogen when inhaled -- in tap water from 31 of 35 American cities.

The findings set off a scramble among cities around the country to determine if the compound, also known as chromium-6, is in their tap water. For consumers, the only way to learn if your water source has hexavalent chromium is to check with your public water supplier and request a water quality report, said New Jersey Institute of Technology (NJIT) Professor Taha Marhaba, a civil/environmental engineer.

Most municipal or city engineers should be able to provide such a report upon request, he said. Additional information specifically about hexavalent chromium levels may also be available.

"In general, hexavalent chromium can be found in either surface or groundwater sources and its source can be either natural or man-made industrial operations that have used chromium," Marhaba said. "The best way to remove this and other known and un-known contaminants from the water supply to a residence is to install a five-stage reverse osmosis home unit. They cost about $300. If you have your own well, I would advise testing for hexavalent chromium."

Marhaba is a professor and chair of the department of civil and environmental engineering and director of the New Jersey Applied Water Research Center at NJIT. His expertise in water quality most notably has developed what is known as the spectral fluorescent signatures (SFS) technique, which is used to rapidly identify organics in water, organics that could be problematic.

Odorless and tasteless

Chromium is an inorganic metallic element that is odorless and tasteless. It is found naturally in rocks, plants, soil and volcanic dust, humans and animals. The most common forms of chromium in the environment are trivalent (chromium +3), which has relative low toxicity and occurs naturally in many vegetables, fruits, meats, grains and yeast, and hexavalent (chromium +6). Trivalent chromium can be oxidized and dissolved through natural processes, leading to hazardous levels of aqueous hexavalent chromium in surface and groundwater.

The latter, which is more toxic and poses potential health risks to people, has been shown to cause allergic dermatitis in people who over many years use water containing water with a total chromium level in excess of the recommended maximum contaminant level (MCL). It can be found in the compounds salt sodium dichromate, chromium trioxide and various salts of chromate and dichromate.

Hexavalent chromium is used for the production of stainless steel, wood preservation, textile dyes, leather tanning, and as anti-corrosion coatings.

Marhaba noted that the Environmental Protection Agency (EPA) set a Maximum Contaminant Level Goal (MCLG) for total chromium at 0.1 mg/L or 100 parts per billion (ppb). This level was set at a level below which there were no adverse health effects on humans.

The Pension Benefit Guaranty Corporation (PBGC) and Motorola, Inc. -- now known as Motorola Solutions, Inc. -- have cut a deal that will strengthen the company's pension plan.

Under the agreement, Motorola Solutions of Schaumburg, Ill., will contribute $100 million to the Motorola Pension Plan over the next five years. The payment is above and beyond legal requirements. The plan, with 87,000 participants, will continue to operate under the company's sponsorship.

Part of spin-off

Motorola and the agency entered into the agreement as the company was considering a spin-off of its Motorola Mobility business, and the sale of certain assets of its Networks business. The remaining enterprise, known as Motorola Solutions, will continue to sponsor the pension plan.

"One way PBGC protects pensions is to work with companies before they undertake major transactions," said PBGC Director Josh Gotbaum. "We commend Motorola Solutions for approaching us in advance. The result helps both Motorola and its retirees."

The agreement is a product of the PBGC's Early Warning Program, under which the agency monitors companies with underfunded pension plans and negotiates agreements when transactions occur to ensure that workers' pensions are protected.

The PBGC is a federal agency that guarantees payment of private pension benefits when companies and pension plans fail. It protects some 44 million Americans in over 27,500 private defined benefit pension plans.

The PBGC pays benefits using insurance premiums and assets and other recoveries from plans and their sponsors; it receives no taxpayer funds.

Passage of the Food Safety Modernization Act has been something of a soap opera, and the drama may not be over yet, even though the measure was finally approved by the lame duck session of Congress.

As President Obama signed the sweeping overhaul of food safety regulations into law, there were warnings from Republicans that the House they might not approve the money to fund it.

The bill, which easily passed the House in July 2009, languished in the Senate for months, while it slowly attracted food industry support. The legislation was aimed at giving the Food and Drug Administration (FDA) more clout in its efforts to police the food supply.

More power

For example, under current law the FDA lacks the authority to order a recall of tainted food products. In previous high-profile salmonella and E. coli outbreaks, the FDA could only request that the affected companies recall their products.

The measure also gives FDA more resources to inspect food processing facilities. In the House, lawmakers imposed a $500 annual fee on food processing plants to provide the extra resources for the agency.

Give and take

In the Senate, the legislation enjoyed strong industry and bipartisan support until May 2010, when Sen. Diane Feinstein (D-CA) attached an amendment that would have banned bisphenol A (BPA) from food containers. BPA is a chemical used as a hardener in plastics, but studies have linked it to potential reproductive issues in animals, and perhaps humans. Some manufacturers and retailers have voluntarily stopped using it in recent months.

Once Feinstein withdrew her amendment in November, the Senate took up the measure again in its lame duck session, approving it just under the wire.

Question of funding

However, the Senate dropped the House's requirement that industry fund the expansion of FDA authority, and placed it in the appropriations process. That means Congress will have to come up with $1.4 billion over five years.

While that's not exactly large, as agency appropriations go, in the new austerity environment in Washington, it was enough for Republicans, who are taking control of the House, to raise their eyebrows.

Rep. Jack Kingston (R-GA), the likely chairman of the Appropriations subcommittee with FDA jurisdiction, told the Washington Post late last month his committee will look closely at the numbers and might scale them back if lawmakers conclude its "a significant overreach."

"The case for a $1.4 billion expenditure isn't there," he told the Post.

The Mediterranean diet, rich in vegetables, fish, and olive oil and moderate in wine and alcohol, is supposed to be good for your heart. But could it also be good for your brain?

Researchers at Rush University Medical Center say it might. Their study, published in the American Journal of Clinical Nutrition, found the diet to be associated with slower rates of cognitive decline in older adults.

Included in the study were 3,759 older residents of the South side of Chicago who are part of the Chicago Healthy Aging Project, a continuing evaluation of cognitive health in adults over the age of 65.

Cognitive testing

Every three years, the study participants, age 65 and older, underwent a cognitive assessment that tested such things as memory and basic math skills. Participants also filled out a questionnaire on the frequency with which they consumed 139 food items ranging from cereals and olive oil to red meat and alcohol.

The researchers then analyzed how closely each of the study participants adhered to a Mediterranean diet, which includes daily consumption of such foods as fruit, vegetables, legumes, olive oil, fish, potatoes and non-refined cereals, as well as wine.

Slower memory loss

Out of a maximum score of 55, which would indicate complete adherence to the Mediterranean diet, the average study participant scored 28. Those with the higher scores were also the individuals whose cognitive tests showed a slower rate of decline, even when other factors that might account for the result, such as education level, were considered.

The researchers also analyzed how closely study participants adhered to the Healthy Eating Index 2005, which is based on the recommendations from the 2005 Dietary Guidelines for Americans. Higher scores indicating closer adherence to this index, which gives less weight to fish, legumes and moderate alcohol intake, did not correspond with differences in rates of cognitive decline.

Christy Tangney, PhD, lead author of the study and associate professor of clinical nutrition at Rush University, said that the results add to other studies showing that a Mediterranean diet reduces the risk of heart disease, certain cancers and diabetes.

"The more we can incorporate vegetables, olive oil, and fish into our diets and moderate wine consumption, the better for our aging brains and bodies," Tangney said.

When it comes to dieting, a lot of people are patting themselves on the backs when they should be pinching an inch. 

A whopping nine out of ten consumers polled by Consumer Reports Health described their diet as “somewhat,” “very,” or “extremely” healthy.  While everyone seems to talk about healthy eating, the devil is in the sugary drinks, fats, carbs, and take out, says the survey, available online.  

The nationally representative poll is part of an online diet and fitness hub that features newest ratings by Consumer Reports (CR) for treadmills, ellipticals, and heart rate monitors, plus the results of a taste-off comparing prepared diet food made by Jenny Craig and Nutrisystem. The hub also includes six weight loss strategies that might come in handy for all those healthy eaters out there.  

Defining "healthy"

“Americans have a tendency to give themselves high marks for healthy eating, but when we asked how many sugary drinks, fatty foods, and fruits and veggies they consumed, we found that their definition of healthy eating was somewhat questionable,” said Nancy Metcalf, senior program editor, Consumer Reports Health.  “We were surprised to find that very few Americans weigh themselves and count calories, two strategies that can help dieters stay on track.  Americans seem to rely instead on their own internal compasses to slim their girths.”

Survey Highlights

1. Nine out of ten (89.7 percent) people polled by Consumer Reports Health described their diet as “somewhat” (52.6 percent), “very” (31.5 percent), or “extremely” (5.6 percent) healthy. 
2. Forty-three percent of consumers drink at least one soft drink or sugar sweetened coffee or tea every day.
3. A paltry one in four (28 percent) limits sweets and sugars every day and roughly the same number (26 percent) limits fat intake daily.   Nineteen percent carefully limit their carbs every day.
4. About one third (30 percent) of those asked indicated they eat five or more servings of fruits and vegetables every day. When asked why they don’t eat more vegetables, the top reason given was that they were already satisfied with the amount of vegetables they consumed.  The next most commonly cited reason: vegetables are too hard to store or they go bad (29 percent).  Seventeen percent said someone in their household didn’t like vegetables while the same percent said that vegetables take too long to prepare or are too difficult to prepare.  Fourteen percent said they’re too expensive and 13 percent said they don’t like vegetables.
5. The most popular vegetables (ranked by the percentage of people who eat them at least once a week) include: Lettuce or salad greens (78 percent), Tomatoes (71 percent), Carrots (63 percent), Potatoes other than sweet potatoes (61 percent), Broccoli (57 percent), Corn (56 percent), and Peppers (50 percent).
6. The Veggie Wallflower List (ranked by percentage of people who rarely eat them) includes: Parsnips (87 percent), Swiss Chard (86 percent), Bok Choy (82 percent), Turnips and rutabagas (80 percent), Artichokes (78 percent), Eggplant (78 percent), and Okra (77 percent).
7. Seventy-nine percent of people rarely or never count calories while a slim 8 percent do so on a daily basis.  Sixty percent rarely or never weigh themselves while 13 percent do so every single day.
8. Thirty-seven percent of those asked missed the mark when they self-reported their weight.  For example, one out of three people who said they were at a healthy weight actually had BMIs in the overweight (30 percent) or obese range (three percent).  Also, eight percent thought they were overweight or obese when their BMIs suggested they were not.

Keeping the pounds off

Consumer Reports Health notes that when people undertake drastic diet and exercise changes, they’re often unsuccessful. An alternative approach is to start with easier-to-make small changes such as these  six:

1. Stop drinking calories: Numerous studies have left little doubt about the connection between increased consumption of sugar-sweetened drinks and the soaring rates of weight gain and obesity.  Part of the problem is that when people consume energy in beverage form, they don’t get the same fullness they get from solids. And don’t forget those liquid calories from alcohol.
2. Eat more protein: Low-carb, high protein diets have proved surprisingly effective, especially in the short term. And it turns out that people who eat a higher proportion of their calories from protein end up consuming fewer calories overall.
3. Eat more fiber: Fiber is the good guy of food, possibly protecting against colon cancer and heart disease, and it is your weight-control friend.  Fiber slows digestion, helping you feel fuller longer, and displacing other caloric foods. Best of all, it comes in fruits, vegetables, and whole grains that are loaded with beneficial vitamins and minerals.
4. Lead yourself not into temptation: The food industry works hard to create irresistible high calorie foods.  Consumers can’t avoid encountering these foods in their daily lives, but they can keep them out of their homes.
5. Add 2,000 steps a day, which is about 20 to 25 minutes of walking, covers about a mile, and will burn about 100 calories a day.  It can be all at once or spread out through the course of the day.
6. Cut screen time: Sitting burns about as many calories as sleeping. Research has shown that the more screen time people indulge in, the heavier they get.  Activities like standing upright washing dishes, getting dressed, and filing papers can double one’s metabolic rate compared to sitting, so people should look for opportunities to stand up and move around.

 With H&R Block's announcement last month it would not be able to offer refund anticipation loans in the current tax filing season, many hard-pressed taxpayers are searching for alternatives.

While consumer advocates and personal finance experts strongly advise against paying hefty fees to borrow against a tax refund, many consumers do it each year, citing the need for instant cash. With Block out of the picture, what choices do they have?

Wall Street seems to think the business will go to Block's rival, Jackson Hewitt. The same week H&R Block announced its inability to provide the refund anticipation loans, Jackson Hewitt announced an amended contract with its funding source, Republic Bank & Trust Co. As a result, Hewitt will be able to provide refund anticipation loans, or as the company refers to them, "rapid refunds," up to 80 percent of the anticipated refund.

The two announcements last month sent H&R Block shares tumbling and Jackson Hewitt stock soaring as investors assumed a lot of H&R Block business would migrate to Jackson Hewitt.

Refund anticipation loans have become more popular in recent years with consumers who live paycheck to paycheck. The product is actually a short-term loan backed by the expected refund from the IRS. In most cases, the tax preparation fees are also deducted from the amount of the loan.

The Center for Responsible Lending strongly advises against taking out a refund anticipation loan, noting the high interest rates, ranging from about 50 percent to over 500 percent APR. They also only speed up the refund process by as little as one week, compared to what consumers can expect by filing online and having their refunds deposited directly into their banking accounts, the group says.

According to a study by the National Consumer Law Center and the Consumer Federation of America, refund anticipation loans drained the refunds of about 8.4 million taxpayers in 2008, costing them around $738 million in loan fees, plus over $68 million in other related fees.

Lenders souring on these loans

While this kind of loan has long been viewed as bad for consumers but good for tax preparers and lenders, it has fallen out of favor with the latter group. Lenders are displeased with an Internal Revenue Service (IRS) rule change that eliminated a code that told tax preparers whether the taxpayers owed back taxes.

Without that piece of information, tax preparers and lenders providing the refund anticipation loan don't know for sure whether the taxpayers will receive the full refund, or whether part of it will be used to cover the back taxes. That adds an element of risk to a deal that, up until now, had been practically risk-free.

To compensate for this new risk, Hewitt and rival firms still providing refund anticipation loans, will withhold a portion of the loan amount for more than two weeks. That means the taxpayer taking out the refund anticipation loan will not have immediate access to their full refund.

Liberty Tax Service is still offering refund anticipation loans for the current tax season. It says that, after IRS acceptance, a refund anticipation loan is available in as little as one business day. To qualify, the company says the taxpayer must meet "several requirements."

For taxpayers in a hurry, the best, most economical alternative to a refund anticipation loan is e-file from the IRS.  With IRS e-file, taxpayers get refunds in half the time it takes to file a paper tax return and receive a refund check. E-filers who choose direct deposit can receive their refund in as few as 10 days, according to the IRS.

In addition to the error checks built into return preparation software, additional checks are done during the transmission of software enabled e-file returns. These checks reduce the chance a taxpayer will receive an error letter from the IRS.

Read more about income tax

According to the Identity Theft Resource Center (ITRC), there were 662 data breaches in 2010. But those are only the ones we know about. Alas, not all breaches get reported, the group says.

"Other than breaches reported by the media and a few progressive state websites, there is little or no information available on many data breach events, ITRC said in a statement.  "It is clear that without a mandatory national reporting requirement, that many data breaches will continue to be unreported, or under-reported."

Mandatory reporting has had a positive impact on the reported number of medical data breaches.  First published this year, the Department of Health and Human Services (HHS) Breach List has identified 214 breaches to-date. 

Unfortunately, ITRC says the HHS database provides insufficient information for the public to know what types of records were placed at risk.  The HHS breach report does not detail whether names, x-rays or Social Security Numbers (SSN) were included in the exposed data. 

The public has no way of knowing just how minor or serious the data exposure was for any given incident. Media has helped by reporting more details for some breach events.

In addition, state mandated reporting of all breaches - by several state Attorneys Generals - increased public reporting, but only applies if an individual in that state might be affected.  In 2010, New Hampshire listed 96 breaches and Maryland reported 160.  Wisconsin and Vermont have small lists of reported breach events.

Approximately 200 breaches, 29 percent of the 662 total reported by ITRC, were credited to information provided by these "mandatory reporting" states.  The group says this is a clear argument for mandatory reporting to achieve transparency for the public.

Highlights of the ITRC Breach List analysis include:

• Paper breaches account for nearly 20 percent of known breaches and typically go unnoticed until a consumer reports the problem to local media.  There is generally no mandatory reporting requirement for paper breaches.

• Malicious attacks still account for more breaches than human error, with hacking at 17.1 percent and insider theft at 15.4 percent.

• 38.5 percent (255) of listed breaches did not identify the manner in which the information was exposed.  This indicates a clear lack of transparency and full reporting to the public.

• 51 percent of publicly reported breaches indicated the number of records exposed, totaling 16.1 million records.  Note: records can mean credit cards, bank accounts or other information.  It is not representative of the number of people involved. However, nearly half of all breaches did not list number of potentially exposed records. This ingrained inaccuracy in reporting is another argument for mandatory reporting.

• 412 breaches reported exposure of Social Security Numbers, representing 76 percent of known records.

• 170 breaches involved credit or debit cards, representing about 29% of known records.

"The nation needs a centralized, publicly available, data breach reporting site," ITRC said. "It should be comprehensive enough to allow readers to find out what happened, what information was compromised, and why the breach happened.  This would also allow law enforcement to better address this type of crime."