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Medlin Software, Dennis

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Everything posted by Medlin Software, Dennis

  1. 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.
  2. 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).
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. Easy if no significant assets or if solid end of life transfer terms in place.
  8. 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.
  9. 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.
  10. 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).
  11. 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.
  12. "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.
  13. "Probably a lot more to this story." The temp officer (at least in action) employee was naive (at best). Their testimony was 100% incriminating, tough to believe they even had representation. Oddly, I often get flamed when I point out how anyone who is part of the payroll process needs protection from this very issue. Even those who have no signatory power/responsibility. A payroll keypuncher who could have seen no withheld items were ever paid, those who login only to make deposits, etc., can all be named in a suit, and at best will have to pay to defend. I carry insurance for frivolous suits, even though I am not liable at all, defense is expensive. I bet all here do the same.
  14. A fair chance there was insignificant taxable profit, which is the only part which may be taxable. Remember, the contributions are not double taxed, they were taxed when earned, so they can be withdrawn at any time.
  15. Unless we change our legal system, it is what it has to be. Defending against even the most frivolous of suit can put a business out of business (with no risk to the plaintiff other than expenses, especially if they find contingency representation, since there is zero penalty for losing). Much worse are those who use "review" sites to try to intimidate or to use as a protection racket. I get nastygrams almost daily from those complaining saying they expect me to keep them from harming themselves (in some manner, such as sending their data online for safety without consent, hacking into their computer to keep them from doing something or fixing what they did, etc.). Maybe the worst is from those who pay the license, then expect me to handhold them through every payroll, teaching them payroll processing along the way. Such is life, being reachable to consumers I suppose, but said life has to be worth living, so one must do what can be done to insulate.
  16. Although e-record access is common and usually fast, I would try to find an attorney with an office in the same city as the county/parish/district seat where the real property is or where the probate will be filed. They will be familiar with local rules and will be able to get things done without issues, and likely have someone visiting the records counter daily.
  17. Thanks for the direct link. What I had was something from a newsletter where I can only post a snip. In my naiver days, I would sign reports for others (friends I was doing payroll checks, reports, and creating the checks. I stopped once I wised up. I won't even do payroll for friends, but I will teach them how. Anyone about my age or olde will likely "catch" the name of Mertz. The court definitely said "Nertz to Mertz".
  18. I used the state bar to get a list of locals who were probate specialists. Also reviewed their discipline records.
  19. Even with the FTC requirement, one can still self-manage. MFA is not required, there are other options. But, when the data is not in your direct control (online), things like MFA become reasonable if the software creating said data does not "do" something else, such as self-managed encryption. The other issues. Computers and software are now appliances. They are expected to do all for you with a button push. Learning how to use computers and software is not something people expect to have to do. Thus, a huge part of programming is preventing human actions from causing issues - rather than the user having any responsibility. So a company which stores your data online is not going to want to let you self-manage since they will not want to deal with customers who have forgotten their security code, login, etc. This is where MFA makes it easier for the vendor (with only a tiny fraction of security) since all you need is access to a device or email account (which even a new scammer can get/spoof easier than the public believes). Then, we deal with those we elect who want to "do" something to prove their worth, such as the myriads of local "protection" laws, which do not even make sense (such as requiring data to be kept in the control of the owner, within the local jurisdiction, so no online storage/backup is practical). Here is another wasteful aspect of MFA. I am using a very popular process to share access with a trusted person, to manage our company web site. It has an MFA aspect, which is a mobile app, and I can see the mobile app creates a MFA code even when not asked for. Not sure if it is constant, or only when I open the new password app on my phone, but maybe once every month I need the MFA code, but it generates and times out what appears to be constantly. How secure it that? How wasteful in resources? One may also want to look at the laws for access. IIRC, face lock does not require a warrant, but a pin type code needs to be compelled by warrant. I use both, but my ultimate protection is a boot/IOS code, which is complicated, cannot be brute forced, and no known (to me) hacks when coupled with BootLocker. MFA has and continues to be less worthy.
  20. While not likely an issue among this group, it is a topic I deal with daily. Who signs what and the ramifications. For me, the usual issue is when an employer hires out payroll, but they use a gray processor (the processor is a calculator/print service and signs nothing). I remind the employer even if they hire out to someone who overtly takes on liability, the employer cannot buy out of the liability chain, and the gray provider has likely insulated themself from any liability. Thus, all employers and signatory persons need to get and maintain payroll knowledge. Personally, I remind those I speak with to not sign or be a signatory on company accounts unless they also control the reporting of items they are signatory for, as signatory power means they will get named and may be held liable for failures. This ruling may be a case that makes responsibility not temporary. What employee keeps insurance for this? I have company liability for my errors (as an owner), but I wonder if the above case, the employee is out of pocket for defense and loss.
  21. Maryland Foreign Estate Tax? I see something a law firm posted about how to avoid, but nothing about whether the bite can be mitigated after the fact (deducted or basis change). I did not look hard.
  22. "Once you have that CPA after your name, you are supposed to know everything." WAY too much expectation. If you know how to get the current answer and have sense enough to see if it makes sense, you have earned your letters. I ponder taking the only somewhat recognized payroll pro cert, but I have seen the sample questions, and while a good gatekeeping tool for those who want such a thing, it does not mean - to me - a holder can handle a payroll on their own. I actually signed up this year, but because I am my own employer, I have to do something (step/steps unknown at present) so I can say I have the experience needed (I am effectively challenging, I want to do it with no actual study). But their process somehow failed to send me the requirements to certify myself, and even a direct email did not get it going, so I am not liking their process (which devalues it in my mind). I am considered an "expert" in their online group board, I guess whoever monitors that has determined I give reasonable help/suggestions... Back to the OP, I would assume to start the NCUA knows their stuff, and they have dealt with this before and have many other members already doing what they suggest/require. If it is possible to see public books of another member (maybe your own CU if you are a member of a CU) that may help with real world view. The NCUA is a likely powerful governing body, so taking them on likely will be expensive, if not detrimental, to the CU.
  23. Definitely true to have some sort of app level protection if there is an online aspect. If all data is local, then requiring extra auth (beyond license check to see if you are paid) is overkill - assuming you self-protect for compliance. Meaning if the data is in your control, but the vendor required some secondary process to access their "software", then that secondary process adds nothing and does not ensure compliance. The data sitting on your computer is not protected unless it is scrambled and secured by the app, or you have done whole computer protection.
  24. For compliance, you do not need to protect each set of data individually. The things I suggest on my web site are compliant and can be self-managed. They are also good enough for all to use, going beyond the requirements (because of not using sleep mode). A username and password for an app is NOT compliant as it is only one part. If you use the methods I suggest, you will be compliant, and not need to have a password per app (unless you want to). be aware, if your app stored non encrypted data online, you may want/need to take additional steps.
  25. I would spend the time to make internal note outlining the situation, what you did on termination, and what possible complications (and if known, solutions) for the future. All while fresh, in case something comes back a couple years later.
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