BLACK BART

No, it's not just you.

Guy shows up today with a 1095-A after I threw away my accumulated 10 or 20 pound stack of O-facts last month (I just thought I was through with that junk). Oh well, it's a (sort of) short form (8962) that Turbo didn't get -- now if only he was a millennial instead of 57.  But I guess we're still in practice (at least 'til we kick the bucket).

Got it!  Nobody's gettin' the last word in on you.

3 hours ago, Medlin Software said:

...ask the software vendor for...vendor code...just under the year at the bottom of each form...

Gosh, these things are fraught with peril, aren't they? 

See, I was only just worrying if they had sense enough to know black from red (since they need a voucher to dope out what's written on a check and I also read where the Treasury Inspector General recently chastised them for using the word "password" as a password.).  Now I've gotta worry about whether they've ever heard of a vendor code (congratulations in advance anyway though - you'll probably be the first to notify them of its existence).

I'll take that as a "yes".

On ‎1‎/‎21‎/‎2020 at 1:55 PM, Jack from Ohio said:

Income opportunity????

22 hours ago, BulldogTom said:

...next year the result is not what they wanted, I have an unhappy client.   In order to make this work, I need to know everything that might go into the client's return, including what they might change from the prior year into the new year.   I have a hard enough time trying to keep my regular clients (you know, the guy who told me he was going to semi-retire this year and then had the best year his sole proprietorship ever had!) who I know happy.   Bringing in a client based on projecting their next year return is just not enough reward for the hassle.   So yeah, I am not really interested...

Here's the most likely outcome.

Does anyone here know if black and white paper W3 and W-2 forms are still acceptable by IRS for the 2019s due now and the 2020s due next year?.  I know the 1099s have to be "red" scannable  forms but the W-2s were made eligible to be printed on regular paper a few years ago.

Just had my first two W-4 inquiries in yesterday and, as expected, employer told them "We're  only allowed to answer two or three questions about that; your tax advisor will have to do the rest".  Talk about a cliche that's been beaten to death.

What does everybody charge for 1099s/W-2s/941s/940s/unemployment/state w/h, all reconciliations, so on and so forth?  Done in a fit of rage after chasing down SSNs and a mare's nest of forms and numbers that were lost, misplaced, or eaten by cannibals, I sent somebody a bill saying "Year-end taxes-$800" without bothering to itemize it.  They might leave over it, but have you ever lumped it all in one pot?  (Should cost at least $500 under normal circumstances).

P.S. If you intend to criticize, be gentle (it's been a bad week).

On ‎1‎/‎12‎/‎2020 at 9:27 PM, Jack from Ohio said:

Put me in the "Boy that cried wolf," and Chicken Little "The sky is falling" group. I have heard this kind of "Panic modeling" so many times, it bores me, and is quite annoying.  Think "Y2K."

Ain't it the truth? Unfortunately I've already bought two Win tens and hate both of the damn things.  Wish we could waterboard Gates (or something comparable)..

Well Jack, I guess in light of Abby's link re Win 7, you can rely on the old standard: "Do what you want to do and the hell with everybody else!

P.S. to Randall,

Too; look at the bright side.  You can probably afford a shave and a haircut and Mr. DePietro obviously can't (isn't Forbes the outfit that peddles financial advice?).

11 hours ago, Edsel said:

..."Black Bart also lives in a rural area - would love to hear what he thinks."...

Thanks for the invite, Ed (also, I'm going to have the above quote framed for display if you don't mind).

Actually, since I've been both employer (although a tad smaller than Walmart) and employee, I have mixed emotions about the debate.  We're a small town (6,000 population) and my clientele now is mostly 55 or older including several who work at WMT.  Most are good middle-class  people - careful, thrifty, stable adults who help themselves (and others if need be). They live in decent houses (mostly frame-some brick).  They drive decent (but not new) cars.  Although they take advantage of a good bargain, they aren't self-indulgent and are not on food stamps.  Most are women making about $15-17K and hubby makes 25-30 elsewhere (that's okay here - probably not in others' worlds).  In other words, they'll do.  It's the younger cart-pushers that I see raising all the hell about how they're mistreated. But...I have hopes; managers generally figure out sooner or later who's a worker and who's not (I don't know if they'll get a raise or not).

11 hours ago, Edsel said:

...For what it's worth, just yesterday I advised one of my larger clients to do just the reverse - to begin a payroll because they are issuing 1099s for subcontractors who are not legitimate.

For others, I don't know what to advise.  I did the same as you on your client above at the beginning of 2018.  Mine had to close and take bankruptcy six months ago.

Has anybody ever noticed that when the owner dies and the kids take over; as a general rule everything goes to pot?  The biz gets split up, screwed up, or sold!

On ‎1‎/‎2‎/‎2020 at 8:17 AM, Randall said:

I don't want to look.  They all probably make more than me.

 

There's a well-known saying here in Arkansas that applies to surveys of any kind:  "Thank God for Mississippi!"

And furthermore...: If the employee's too stupid to figure it out AND the employer's not supposed to be allowed into the fray at all under any circumstances AND I (for sure) don't want to do it THEN who the heck will be filling it out?  If it's you, then it's practically a given that the employee is going to ask the employer for help first.  So, when the employer comes to you with it and asks what to do about it - Am I to understand that you're going to tell him to send the employee to you AND you (the tax expert in question) are going to tell the employee that he must fill it out because you are obligated NOT to give him any "tax or legal advice" (plus he owes you 50 bucks)? Won't he/she think you're nuts? How are you going to help him without helping him? 

Just thought of some sweet revenge: I'm going to tell them to call the IRS toll-free number for advice and there'll be a short () wait on hold.  Should be quite a bit of fun when they finally get through.

23 hours ago, Medlin Software said:

...To me, "laws don't apply to me attitude" needs to be corrected...

Yes, and I "hope there will be peace in the world" but I'm not holding my breath (and Johnny Cash was till wearing black {until all wrongs in the world were "righted"} when he died).  I'm not saying your outlook is wrong; but rather that I believe S-Corp owners' salary underpayment is much more widespread than commonly assumed.  And I don't think Roberts' $30K example is rare, nor do I think it's justified - it's my thinking that an affected party/parties have a very strong lobby in Congress.

One school of thought:

https://www.accupay.com/_paydays/2012/May/S%20Corp%20Pays%20Zero%20Salary%20to%20Owner_050312.pdf

One other item of interest: For years I've been reading/hearing that IRS "aggressively" audits S-Corps for these underpayments, but I've rarely seen it actually happen.  Others?

Meanwhile, back in the real world (and it won't cost you a thousand dollars or hours of figuring); many, many S-Corp owners pay themselves about $200 to $300 per week (to, of course, avoid SE tax) and I know of one CPA who paid himself exactly nothing.  As he used to say, "I'm putting everything back into the company and the economy."  I think most figure the audit odds are low and a token gesture will provide a fig leaf for IRS if it ever comes up. 

On 12/25/2019 at 6:34 PM, Edsel said:

...Best wishes for your success, Medlin - you are a great contributor, and I wish you no bumps in the road...

Medlin,

I think Edsel's quote is how most of us feel about you -- you know many things and many of us are glad you're here to interpret them for us.  But for many of us, I don't believe your plan/plans will work out.

For example:

While most large companies will simply turn over the problems to a large CPA firm, the majority of businesses are small.  Many of their employees WILL ask their employer what to hold out.  Practically nobody is going to pay you $50 to fill out something they've never heard of and probably care less about.  Employers (and employees) are rushed anyway and they won't take somebody out of service for half an hour to go over it, plus they're unaware/uncaring about who is practicing unlicensed tax. I wouldn't be surprised to see this substitute W-4: a cafe ticket with the following scrawled on it - JOE BLOW 444-55-6666 "HOLD  OUT 10% FOR TAXES." 

But, anyway I expect to see the whole mess scrapped next year.  Even IRS employees probably already hate it & the 1,001 crazy questions they'll have to try and answer.

Well, is it okay if I'd prefer the previously check-sized W-4 instead of the new "simplified" five-page form?  Getting the average fast-food employee to fill out the new W-4 correctly is going to be about as likely as their getting a fast-food order right (maybe 50%).  And then we get to follow it up with the following red-tape special:  Yes, yes; it's just wonderful! 

How to Use the Tax Withholding Assistant

Open the Tax Withholding Assistant and follow these steps to calculate your employees’ tax withholding for 2020. Be sure that your employee has given you a completed Form W-4. The Assistant can accommodate both the 2020 Form W-4 and Forms W-4 from prior years.

You will want to save a separate copy of the spreadsheet for each employee.

Indicate how frequently you pay your employee.

Specify which version of Form W-4 applies to the employee.

Enter the requested information from your employee’s Form W-4.

Save a copy of the spreadsheet with the employee’s name in the file name.

Each pay period, open each employee’s Tax Withholding Assistant spreadsheet and enter the wage or salary amount for that period. The spreadsheet will then display the correct amount of federal income tax to withhold.

Anybody seen one of these yet or is there even going to be one?  I ordered and received a few blank 1099-M, W-2s (and others) this week to hand out to a few freebie DIY'ers (church treasurers, etc.), but there weren't any of these booklets like last year.  With the revised W-4 situation, I wouldn't be surprised if we have to print them out ourselves.

19 hours ago, TAXMAN said:

...If I  really wanted your stuff I will find a way to get it...

Could be, but I think you'd find it more than a handful.

On ‎12‎/‎13‎/‎2019 at 2:48 PM, Roberts said:

I've been thinking more and more about this stuff. Electronic data theft I'm not overly worried about.

What type of liability does a preparer have if their physical files and paperwork are broken into and or stolen? Everything I see online is about electronic data but that's not what worries me. The CPA in the office next to mine has a massive room for of physical files and he doesn't even own a scanner.

I'm just the opposite.  We live in back here and I've got a .25 auto, .32 auto, 2 .38s & 1 .357 mag. revolvers, + a 20 ga. shotgun scattered around, so if they they back a truck through the front door (like in the movies) and snatch all the computers off the desks, we'll hear them and stop it.   

Although my computers and ATX are encrypted - the electronic side worries me.   A lady on this board a few years ago complained that somebody (don't remember if she used ATX or who) had swiped many of her previous year rollovers, filed first (before clients did), and she was trying to get help.  She called EF center; they brushed her off saying "they didn't handle that kind of problem".  Then she tried IRS CID and they too gave her the run-around.  As you know, local police are useless re computer info theft.  Anyhow, to sum up, nobody could/would help and she was on her own.  Seems like she limited the damage somewhat through the software company.  But anyway, how is it possible to block this?

Thanks much, Gail.  Education is never a waste.

3 hours ago, JohnH said:

True, data is data.  But I've never seen a scratch wipe out 10 years of paper data.  On the other hand, the password protection for paper data is seriously deficient. 

John, you've got to stop using those silver discs for sanding wheels on your electric drill/screwdriver.  By the way, where'd you get the adaptor for the big hole in the center (I have not been able to find one).

About the deficiency of password protection, start using the PC pronouns for openers; you know: xe, xur, sie, hir - stuff like that.  A sane hacker who doesn't speak Chinese-flavored Lithuanian would be expecting your birthday, anniversary, dog's name, etc.  

23 hours ago, cbslee said:

It might be a "Trojan" from the Ukraine ?

However my WAG is that the outdated reference books that ATX used to send to it's users has been replaced with outdated reference materials in "ebook" form. 

Now you've got me wondering - I didn't get the E-BOOKS & BUNS thing, but what the heck is "WAG"?