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Medlin Software, Dennis

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Everything posted by Medlin Software, Dennis

  1. There should be a difference in insurance, to get a rider or separate/different policy for pax for hire coverage. I am not sure if I would get into dissecting how IRS comes up with amount per mile, I would just accept it. There is money to be made. When we travel, we use the higher end black type service. We want commercial licensed and insured drivers. I chat with most. Most use a separate card they are paying monthly for. Most will share their monthly nut for car costs (rent/lease and insurance). Most are making a decent living according to them. The most interesting recent was someone who leases a tesla. His big win is on the fuel cost savings, which mirror ours, at 20% or less than gasoline. Plus, the maintenance is much less than his former gas vehicle. He has a close to home free charger he uses off hours and has many he will use during any down time. Even when he pays SC prices, a SC is 50% or less than gas for him (which also mirrors my experience). One of our kids uses uber to get to and from the airport. He prefers to use the EV/green service as the vehicles are a bit better than the rando person using their 5+ year old personal vehicle. More often than not, they are full time drivers.
  2. Another important factor is the amount of the "loan". If it is more than say 35% of the employee's average paycheck, if the employee walks before the 3-year period, the employer may not be able to recapture via payroll and would be wanting to make it wages - at least for "punishment" purposes. (A daily issue on payroll chat groups, how to recoup advances, sign on, moving, etc.) If the OP is from the perspective of a preparer handling a question from a client (the employee), I would not (as preparer) step in the steaming pile. Let the employer handle it, correctly or incorrectly, and go from there. The employee reporting it as wages, when the employer has not, could result in the end of the employment. If the employee wants to work for someone who may be shady, so be it. The main issue is it is taxable period. Trying to make it not is a problem, as it trying to tax shift (if the forgiveness is a wink and nod deal instead of documented).
  3. Tom is right on point. If the interest does not meet "reasonable" tests, it is taxable as wages/income when given (as advances are). There is zero chance this is not "but for employment" and taxable as wages at some point. If it is done correctly, the tax hit can be deferred until forgiven (the only possible benefit I can see). The IRS does not ultimately care about services performed; they use the "but for employment" test. An example is giving money to an employee for some sort of family expense. "But for employment" there would have been no relationship, and it would be unlikely the employer would have paid the family expense. BUT, the OP states both parties know it will be forgiven, some will find it tough to not handle as taxable wages on date of the not really a loan was funded.
  4. Complicated. For accounting/tax, at date of loan becoming junk (uncollectable) may be proper. Your post stating it was an agreed time frame means the amount should likely cause recalculation of wages for RROP (Regular Rate of Pay) purposes to make sure OT and PTO were paid using the correct (RROP) rate, and any difference made up (as well as adding the forgiven amount as current wages). Same as if it were a retention/hire bonus paid 3 years later.
  5. If I receive an email in all caps, it gets skipped until all the (what I see as not shouting) messages get answered. I doubt I am alone in that opinion/method. I have only one customer who uses all caps, and I know who it is and do not save their messages for later as I acknowledge they may have a reason (or broken keyboard). I am also of the opinion some programmers in government somehow can afford to be lazy and do not bother with trim/remove/ucase and other similar commands. The no punctuation, I am used to. I have a relative who is less tech inclined, but uses speech to text, and has not grasped saying things like period and comma, so I have become adept at inferring punctuation.
  6. Many entities "reading" data (such as tax information submissions) will require or change the data to all caps. Could be some sort of "old" preference no one bothers to update, or by an old timer's code which can compress better by reducing the number of characters. Some entities do little or no interpretation of submitted data, as their programmers seem incapable of things like stripping out dashes from human entered FEIN's. MANY tax agency programmers cannot interpret a dot as a decimal in a dollar field. For email and other human read communication, all caps is harder to read for most, and most consider it SHOUTING at the reader. I have a few customers who write in all caps, they also have an automatic signature in their messages stating they use all caps for a reason. In my real worked use, if I get a message in all caps, I reply in the same manner, assuming it is the customer's preference/need. Online forms and software which knows the output needs to be in all caps, will often take what you enter and upcase it, as well as limit not allowed characters completely (with a beep usually).
  7. The one check a year I was making (literally printing on blank stock), I no longer have to. I talked to the person (a service person, inspecting our backflow device annually) and gave them some tips. They now use a postcard mailing service I shared with them (rather than doing it themselves, and the service is cheaper than what they were spending), and they now have CC payments via Costco/Elavon, which has no monthly fee, and competitive rates. Did not even raise process, as they likely spend less overall on handling payments (well, his spouse does, and she is happier!) We talked about him setting up a prepay system too, to avoid having do leave a bill (handwritten on one of those old-time books) and to avoid dealing with collection issues.
  8. "Your sister" I do not get into or offer advice on family member's personal finances. I might recommend a qualified professional if it is a family member I am close to. I was asked for advice by three extended family members in the last two weeks. I likely could REALLY help one, but then again, I would then know too much detail, which would likely hurt the relationship. I also do not loan to family, any money I part with to a family member may be a "loan", but I never expect to get it back, and I absolutely do not want to be involved with their finances lest I get snippy because of what they spend my "loan" on.
  9. The price a merchant pays is negotiable. But the big players all have relatively common rates. Anything not based on interchange + fees means the person using the service is new/low credit, risky business (many chargebacks), or is naive. The other case is pure lazy. Meaning use something really easy for the merchant, bump their prices, and let the consumer pay (paypal, square, etc.) The customer pays the fee. Even rewards (since the merchant pays more to cover the reward). The card issuers are in business to make a profit and are good at it. There is value in not dealing with cash and checks. There is value to the customer to be paying for the "protection" of the card agreement, and when cash or check is not an option, getting a rebate via reward. There is risk to the merchant as contesting a chargeback can cost more than the profit on the transaction. There is value not using checks, since anyone can print a check with your information on it, we can all be Frank Abagnale Jr. if we so desire. Cards often offer additional "insurance" and "benefits" for the user. -- A good example is coming up for me. Booking a trip 18 months out. While I have CFAR coverage, using a charge card provides extra protection and travel insurance, which I then do not have to pay for separately. The company offer a 3.3% discount for cash, but it would cost me more to pay for the travel benefits I get through the card. COVID also showed another benefit. Those who were able to use their CC receipts to prove income and get benefits, versus those who were taking cash and maybe not always reporting their income. Some may prefer to pay by card to make sure the merchant is not skimming cash or claiming no receipt of payment.
  10. Likely the form is acknowledging electronic handling of the check, with the physical check not being saved. I have to wonder if Check-21 makes it presumptive a check can be electronically processed, and such a form not needed. When I use mobile deposit (which is similar to using a physical scan/send machine), the only warning from my bank is to keep the check until the amount is funded. With Check-21, the funding can happen almost instantly, depending on your bank and your agreement with your bank. The business owner is likely/hopefully paying for a competent attorney (not a friend or relative) and has decided it is in their best interest to use the form. What gets me is when someone submits CC information which fails, and gets snippy when, if they do it again, I remind them what they are doing is no different than presenting a bad check, and I am within reason to ask them to pay more, to cover some of the costs of the failed attempts. It is ENTIRELY within the CC user's power to make sure the transaction will go through, even if it requires notifying their card issuer in advance. Every failure costs the merchant their time and processing fees!
  11. I ponder my cost of getting paid at least twice a year. My overall CC expense was 2.55% for 2023, but it takes work to keep it there (online merchant). In person processing, the fee is as low as 1.99% via a processor nearly anyone can use. There is no reason to pay that high of a surcharge for in person swipes. AmEx is the highest, which is why so many do not take it. Discover is next highest. I suspect there may even be cheaper than 1.99 for in person swipes. For me, I get less than 50 checks a year now, compared to all checks 40 years ago. I find 2.55% is fine for me not having to open envelopes, look at the checks for issues, stamp checks, and go to the bank. Those I get now I mobile deposit and I have the funds the same day. If I see a surcharge, I go elsewhere if I can - and ask why they choose it. It is lazy, and sometimes profitable to surcharge. A 3.5% surcharge, if it is their real cost, shows they are not caring what they pay, and are passing along the laziness to their customer (assuming they are not adding to their profit on purpose). Exceptions for a new business with bad or no credit owners, who are stuck with a high cost/no credit merchant account, or one where they roll in the costs of hardware and processing (say a paypal, applepay, or square types). A dentist or other medical pro, I can see a surcharge for CareCredit "cards", as they pay a high fee to take them (what I was alluding to in my earlier reply). But a surcharge from a dentist for any card is a non starter for me.
  12. At risk of derailing, why use a check? A check costs the vet $ to process and is not likely resulting in a discount. Cash is not likely getting a discount either. So why not use a CC with a rebate/miles? I have asked our vet, and they simply and honestly upcharge all to cover their payment intake fees, with no discounts. For vets, they also take a "medical" charge card, which they pay a large fee to accept, which is where I thought I could pry out a discount for "not" using.
  13. I think you may have the answer in the OP. "generate a substantial bill for he" Many admins will look at raising their bill. I have also seen this while JD shopping too (suggest they will do everything possibly allowed, even when not required, to pad their statute-controlled bill). It is relatively easy to do, max statute controlled fees, unless there is some sort of oversight by an interested party, but I suspect complaining would cost the state/heirs too, since filing the return may not be legally wrong. On the other hand, this may be a not always unwise CYA, so this does not come back to cause more expense down the road, as defending the non-filing has a cost, even if proven correct. My thoughts come from handling three estates, and the latter two being complicated/intertwined. The other heirs were fine with me handling things, I found a competent local to the probate court JD firm, and we dealt with complicated real property and heir issues as a "team" (me and the JD firm).
  14. Old man harsh likely, but I will try to be gentle. If the owner did not know enough to monitor or could not monitor (does not really matter actually), they need to hire out their accounting going forward. With this in mind, likely going with a "firm" (vs small shop) for a bit will be better, as a firm likely has access to in house or consulting forensic accounting skills. Maybe they have business insurance (if a covered loss) which can help out with the forensic cost and losses? It may be the fraud was a relatively common fake vendor scheme, so their only immediate issue is cash on hand (real vendors not paid get snippy faster than trust fund agencies). I would also ASAP check payroll accounting for issues (not depositing liabilities). I see many businesses with in-house accounting/payroll processing, but having an outside form for review annually, semi-annual, and even quarterly. Me, for instance, since I am liable to my corp and shareholders, I hire out tax prep, which includes a surface accounting "review" for inconsistencies.
  15. For me, accounting may have many items I track, but for tax prep, I use as few categories as possible. My tax preparer does not see how I track income by type, they just see the total income (for example). Sub totals in accounting is the key. If my preparer does not feel something is correct, then it is corrected in accounting, until each is satisfied. This is true from the "olden times" when I did it all, to now, where I do the accounting, and hire out the tax prep. I keep my depreciation figures, even I have to ask my tax preparer for assistance/confirmation. This way I can show depreciation proportionally every accounting cycle. IOW, my tax preparer gets a very short set of reports from my accounting, refined over the years, showing the bare minimum number of line items so the reports make sense, and so the tax preparer has the figures they need. Of note, we have not had a depreciable item in many years, but the principle of realizing accounting needs are different from tax prep needs remains valid (to me).
  16. NYS is known for taxing first, asking for proof later. Happened to me as well. This should not be news to anyone who has NYS nexus, so logs should be kept. For the employee part, I would tell them to pound sand, since their own state worker/union family does not require hour tracking for salaried employees. It remains tough to prove a negative, so one must look at their own situation and make decisions. Such as those who are inactive members of a corp not wanting to trigger employment and tracking what they actually do in case challenged. Since I am not a believer we still have privacy, I allow google to track me (my phone) at all times. It has been handy for me for several reasons. In the timeline, you can relatively easily search for or see how many times at specific locations, which would likely be a great help for this situation.
  17. For me, those add on items are what keeps me participating. The direct answers, one can find via google-fu, and likely get close via AI search. The human experience and anecdotes are the things of value - to me - in a group, and will often help me see a bigger picture, or a different solution. Sort of like the thread about the non profit with accounting troubles where I could share my multiple experiences with letting the old entity die and not drag down the future. It happens every day in for profit (UI dumping, changing to a new entity to let debt die, etc.) and it can work in other sectors too. Was not really a direct answer to the OP's question, but if workable for their situation, could be a wise move (and maybe the move which benefits the entity the most). Or to ramble on, the same way where any corp officer/director which did not take COVID relief, and does not seek all things to benefit the corp, was derelict in fiduciary duty, and should have been terminated.
  18. In my case, the entity had no substantial assets, so a die/start over had no consequences, and was MUCH cheaper than a cleanup. In another case where I was hands off, the old entity had debt, and the new entity paid the debt as a human kindness, cleared though their attorney to be allowed. In what may be coming in the next few years, an entity will have enough assets to make continuation worth doing. Those who are running it are getting older and less interested, and no one wants to step up as is, but there will either be a new entity, or a similar entity which the assets can be transferred to.
  19. For my usage, I can see where I drift. I am often replying to the email notices, which may be to a post which has already drifted from the OP I have skimmed or forgotten. For me, I will have to stop responding to the email notices (so when I do participate, it will be less timely), and if I want to respond, make sure to use the site only, and reread the OP each time. Candidly, this will likely result in less participation for me as I can be long winded, and expand (or drift) the OP, and at this point in my world, working to maintain an OP, ignoring the email notices, and having something which - to me - is at least somewhat useful in a general chat list, is not productive. Don't assume any other intent, there is no hidden meaning/message/. I am fine with the rules and actions of moderators, I am well past any desire to be one.
  20. Easy if no significant assets or if solid end of life transfer terms in place.
  21. Depending on the legalities, there may be no formal admin or executor. There may be what will often be called a small estate, where the heir(s) can do things without court involvement. Since the OP mentioned an estate attorney, then it would be wait for court doc showing admin or executor powers. Took me about 60 days to get those the last formal estate I was part of.
  22. i have been through this several times, and because of it, I do not get involved in management or reporting any longer, not even the group we are personally involved with (volunteer). My suggestion is to consider setting up a new entity and let the old one die off. With the litigation and other issues which may yet to surface, keep clean of that end. It may well be the old entity has no assets or is allowed to transfer to a successor or similar. My first one was a club which had done events and fundraising since at least the 1930's. Somewhere in the 70's, the members ignored any paperwork and reporting. I came along on the 80's. The issue for me, was the events were causing significant liability to those putting on the event, and I insisted on doing things correctly. That is when the issues were discovered, counsel retained, and the start clean advice was given and taken to heart.
  23. The last line is the key for me. When we are on the road, I have starlink which is business expense (it is the mini, so it also for work at home as a backup). For personal, we have our cable internet at home, and on the road, cellular. If I have to do something work related, say go get supplies (while on the road), I document miles/expense as appropriate. If I needed to forward mail, the costs would be business too, any forwarding costs, the price of the receiving box (say UPS box). Expensed the work related hardware, such as a router which can share Wifi, cell, and starlink, hardware to send starlink up a pole, a separate charger which stays in the MH, battery backup, etc. If I were travelling for business, then I would likely use actual, such as the 5-9mpg for fuel, tolls, parking costs, etc. I would remove any personal items, say an out of the way stop/tour. There are absolutely some who have the million+ MH who spend a large amount of time on the road and make a living documenting their travel. I would have no issue using that MH as a business expense if they can document it (one I can think of has a home they use for domicile, and their travel is for specific locations, to test products, etc., and they no longer MH for personal reasons).
  24. Would this be of little concern these days? Meaning with the card processors creating 1099 reports and it being foolish not to use a rewards card to pay for things, the real chance of on purpose supporting underground economy being nil. The real issue, to me, it the unwavering failure to follow 1099 rules correctly, such as blindly sending them to all, even when clearly not required. I have one customer, every year, who wants me to send them my info (for 1099) before ordering. I refuse each year. I am a corp, and I have nothing which would cost someone more than $600 per year.
  25. "Million $ Motor Home as a business expense" Licensed in MT with an LLC as owner? This is a common scammy thing many RV owners fall for. While there is nothing wrong with the acts separately (at least while MT is "friendly" to such registration), other states look for MT license plates, especially when the person gets sloppy and their trailer. towed car, etc., and maybe even their DL is from a different state. Meaning MT plates on a MH is a red flag and the owner best have all vehicles with MT tags, a MT DL, etc. (and they may still get pulled over for a reg check). I looked at it (nowhere near a 1mil vehicle), as the reg and tax costs are minimal, but licensing and insuring via LLC is sketchy. I keep asking my tribe to take on the feds again and allow me to license (at least until ordered by a court not to) via my tribe in OK (the agreement allowing tribal plates has many gray areas). I would lose as my physical state has a "presence" license requirement, but it would be interesting to me to see if they bothered.
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