Approximately 7 million people had their identities stolen in 2003.

The cost to reinstate their credit averaged about $1,495 each with approximately 600 hours of time invested to straighten out his/her finances.

For destruction of documents, shredders are becoming one of most popular purchases by home owners as well.

How many of us have gone through hassle of tearing up bank statements or other personal documents into little pieces and tossing them down toilet? Perhaps you have opted to burn these documents in an effort to safeguard your identity. What ever methods you have used, shredding is an easier, effective means to accomplish this goal.

What could happen if you don't shred your employee data before discarding it and some of your employee data falls into wrong hands?

- You could be sued by an employee for actual damages. Or you could be liable for statutory damages of up to $1,000 per employee.

- In event that a large number of employee’s identities have been affected, a class action lawsuit could be launched resulting in you, employer having to pay punitive damages.

- U.S. Government fines of up to $2,500 per violation.

- State Fines -up to $1,000 per violation.

So... doesn't it make sense to purchase a shredder and adhere to requirements of this new law?

The best type of shredder to purchase - one that cross cuts. This type of shredder really destroys a document. Just try piecing one together after it has been through one of these devices.

Identity theft is a growing problem. Don't let your company or household become another statistic.

Revealing a particular flair for red tape, IRS requires you to file an additional form if you are filing Copy A of 1099-MISC by mail. In such a situation, you must file an "Annual Summary and Transmittal of U.S. Information Returns" form. This summary is better known as Form 1096 and you should have already received a copy of it in mail from IRS.

Where To Find These Forms

To surprise of many people, IRS has an excellent website containing information and tax forms. Unfortunately, site is fairly useless when it comes to obtaining tax forms that you can actually file. You cannot download and use any 1099 form from website. If you try to print forms from site and use them, you run into two problems. First, IRS computers will not be able to read forms and will reject them. Second, it is doubtful that you will be printing on multi-layered carbon paper, which means you will have no Copy B of 1099. Obviously, either situation can attract unwanted attention from IRS.

You can order forms from IRS by calling 1-800-tax-form or ordering them off of IRS website [do not download]. The IRS suggests it typically takes at least two weeks for forms to be delivered, but keep in mind that it may take longer. If you need forms sooner, you usually can find them at libraries and post offices.