Flashbyte: CAPTCHA: Are You Gort or Gnut?

PCMag reports on December 3, 2014 that Google has eliminate CAPTCHA, replacing it with a simple yes/no check box to the question "Are You a Robot?"  CAPTCHA is a "challenge response" test designed to detect spammers and other non-human computer automated (robotic) programs from clogging online ques.  An example would be a robotic program trying to purchase concert tickets for a ticket scalper.

This solution seems so simple it poses the question "why did it take so long" to figure it out.

So are you Gort or Gnut?  Yes ____  No _____

(Disclosure:  The author has stock in Google, but did not use a robotic program to purchase it (although the author's broker certainly may have used a computer in the transaction).)

Bitcoin and FBAR

Bitcoin may seem a bit exotic for most of us. Bitcoin is an electronic currency often associated with speculators and users interested in disguising their payment exchanged for illicit goods but it is used in legitimate commerce as faster, cheaper way to make payments across borders, skipping over currency conversions and exchange rates through commercial banks.  As such, Bitcoin represents something that we may see as increasingly useful for legitimate purposes, even in personal transactions.

The IRS seems to think Bitcoin warrants serious consideration, particularly in its efforts to track offshore funds held by U.S. taxpayers.  Now, Bloomberg BNA reports:

Taxpayers may soon have to report bitcoin and other virtual currency accounts held in foreign exchanges to the IRS as the agency's focus on foreign assets sharpens, experts tell Bloomberg BNA. They say there is a strong possibility that bitcoin accounts could fall within the scope of assets individual taxpayers must reveal to the IRS on the Report of Foreign Bank and Financial Accounts (FBAR). Eventually, experts say, it is even possible that the foreign exchanges themselves may be considered foreign financial institutions that have to report the accounts to the IRS under the Foreign Account Tax Compliance Act.

FBAR and FATCA are major efforts to track accounts across borders.  Also associated with this effort is FATFA, the Financial Action Task Force on money laundering.  The United States actually lags behind much of the rest of the world in the effort to gain more transparency with respect to financial accounts and transactions.  This is partly due to the strongly imbedded American legal principle of client confidentiality.  International pressure gradually is forcing change here.

The IRS considerations are a part of this broader effort.  For more information, see:

IRS News Release 2014-68 06/02/2014.


Final Regulations Expand on FBAR Reporting for Trusts,
Charles Rubin and Jenna Rubin
Estate Planners Alert Newsletter (RIA)

FBAR and FATCA Compliance in the Age of Digital Currencies, Rajiv Prasad, J.D., LL.M., Los Angeles, Published 05/01/2014.

 

FlashByte: Getting Mircosoft 360 Into Your Life

I have written before about the changes at Microsoft since Satya Nadella took over as CEO (Changing of the Guard (Have Things Changed?).   Under Nadella, Microsoft has moved rather rapidly to reshape its relationship to mobile computing.  Earlier Microsoft announced that its most popular software (Word, Excel, etc.) now would be available as free applications for mobile platforms.  This placed Microsoft software products on many mobile devices and helped to stem migration away from Microsoft desktop software for businesses and individuals who wanted integration across desktop and mobile computing platforms.  At the same time, Microsoft has continued to improve the desktop products used by many businesses.

Now comes the announcement that mobile users will get free basic access to Microsoft 360. (Microsoft will continue to charge a subscription fee to access advanced features.) Microsoft 360 essentially is a hub through which desktop and mobile applications can share work product back and forth.  This announcement is a big step toward capturing more users on iPhones and iPads. It also is another strategic move to make Microsoft a meaningful player in computing beyond the desktop.

Microsoft products are still a fundamental part of computing in both the office and home.  While software from others plays some role, Microsoft has continues to dominate operating systems on desktops and continues refine its software suite.  Its current versions of Outlook, Word and Excel are very functional and will become much more important now that they can be used more effectively on all mobile computing devices.

Ultimately, this announcement is going to drive other companies toward greater and better integration of software.  For consumers faced the dilemma of different software in the office, at home and on mobile devices, this strengthens Microsoft's hand in trying provide one application platform that will cover the full spectrum.

(Disclosure:  The author owns stock in Microsoft, but way, way, way, way fewer shares than Steve Ballmer.)