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Medlin Software

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  1. As distasteful as wide net casting collection is, like many things, there are two sides. Low collection rate or not, it makes some business sense to farm out collections for whatever fee they get for assignment, rather than taking a zero. The IRS is a business too... as are all tax agencies. (such as how many are looking at forced taxes, such as retirement deductions, as a profit generator with several companies offering turn key "solutions"). If not liable, and the letter is not backed by a court order, it could be a valid action to ignore it. In some ways, no different than the number of email and mail "junk/fake/fraud invoices" most receive on a regular basis. I try to remember to fall back on not volunteering anything to anyone. I just listened to a VM stating it was a courtesy call before receiving a registered collection letter tomorrow... I bet there is no letter arriving tomorrow.
  2. I was deposed by IRS investigators in a criminal case. The investigators found a copy of my software on a seized computer and asked what my relationship was with the (now in the care of the government via incarceration). Once I explained the connection, I was thanked and left alone. The person was convicted of fraudulent return as they were filing for their clients (recent immigrants) and capturing their refunds, which has been improperly inflated via EITC. The convicted sent me threatening messages, even though I had no information for or against their case, but which the prosecutor likely found "helpful". The OP is a good reminder to research electronic record keeping regulations, and to try to ensure your actions do not give blanket search and seizure rights to the IRS. Not only for your client's protection, but simply to protect your ability to do daily business. As I have likely posted many times, not being able to provide PRINTED records, or simply acting in a way to show your record keeping is electronic, may (definitely in the past, and possibly with current regs unless they have been revised) give the tax agencies any time warrant-less search rights, and requires proactive notification to the IRS if there is any chance required data is unavailable.
  3. Probably just fishing with a wide net. If anything like payroll processing, anyone with the appearance of access to or control of funds will be looked at, and will likely have to defend.
  4. "Fee waiver – If you facilitate the MarylandSaves program for your employees or offer another qualified plan, your annual report filing fee ($300 for most businesses), is waived each year you participate." MD realizes there is a cost to employers, and/or they want to encourage more employers to use the state sponsored plan... I saw a blurb that OR, being the first to implement a similar plan in 2017, has an average employee balance of $750 after 4+ years.
  5. Looks like MD selected a different management group (which likely means a different reporting and deposit method, increasing payroll costs). Each state seems to have a “board” who manages the management firm… With the management firm taking their cut, and the state folks likely getting something, logically, there may be more fees taken, reducing income for the participant. Unless the profit for the managers comes from “volume”.
  6. At present, there are three states using the same back end provider. It is likely the company managing the process lays out the ease of use for the politicians, and the bites to out in their campaign process. I expect more states will follow this turn key setup. If the company ever goes public, it may be a good investment as these things are likely not to go broke. As you can infer, I am not fond of forcing these things on employers. Employees can already do the same on their own if they wish so this seems like a money grab for those selling the service and managing the funds.
  7. The cost for the employer is compliance, reporting, and the inevitable employee wanting you to explain it to them.
  8. The flaw with paper was having to wait for the Covid based credits. The touted form 7200, for the supposed quick advance, failed in my experience. in regular use, mail is fine.
  9. I doubt they would include a payroll form with general tax forms. Likely separate divisions within the walls of IRS. IIRC the 94x efile data structure is xml. Not the best choice unless they planned on a web based input and read, and even then, it wastes bandwidth with the trade off of having field names, start and stop included. XML is a lose for small uses as no one is going to manually create an xml file, where most can create a csv/txt file if they are inclined to.
  10. I have no idea. Some old timers say the incentive is for complication because some of the decision makers are looking to cash in once they get to private practice. Could be no one has incentive to rewrite what surely is outdated code in a dead language. We have no idea of the actual reason, but the optics sure are bad when a simple text style file works so well for SSA and most states.
  11. Not new. A few years back, I had a significant % (far too many to be a coincidence) of customers asking how to reprint 941 forms... most shared the same IRS 941 mailing addresses. Most were not compliant (in keeping paper copies for the required time frame), but reprinting was not an issue since they were from the prior year. Some had used a third party to efile... Abby Normal: "This is all a prelude to forced efiling of all forms. And really, it's about time. Computers have been part of everyday life since the 80s, or almost 40 years. It's long past time to modernize the entire system." Mailing with proof of mailing AND printing and retaining a paper copy, is not an unreasonable process. I don't know of any truly free efiling method for 94x at present. Vendors (such as those who offer to read payroll data from software) who offer to process such filings have a cost of about $5 per form. The IRS is or at least is not at present, setup (willing?) to adapt to an employer, or even programmer, friendly efile system. They would need, IMO, an easy online method for the very small employer, and an easy CSV, TXT, or MMREF type file structure for the rest (instead of what they offer now. The other issue is those who efile in bulk, like a software vendor, have to go through an "approval" process as the IRS wants to put the efiler, even if a software vendor, in the liability chain. There is a way out, but it still takes time. It has been a few years since I dug deep, but I have not seen any update to the electronic record retention regs. They were onerous enough that non one who read them would ever stray from paper. The flaws were essentially, by not keeping paper records, you are giving the IRS free search and seizure ability because you have to positively prove you can recall any required records, which the IRS can test at will, including access to or seizure of your hardware. Also, you have to positively report any possible data loss, so a computer change would likely have to be reported, power outage, etc (unless you re-verified all data each time). Absolutely, no one likely follows said rules, but those in the business, holding records for many clients, would not likely want to expose all client data to warrant-less search. I remain open to new regulations, as I stopped researching this issue as no one was interested in what I found!
  12. Support wise, likely easier to maintain a web based app, once mature. Of course, data entry is slower and there are outages (both ends) to deal with. Plus, not having direct control over data (which also means the user cannot make it disappear). Many prefer desktop for control and speed reasons. Some still don’t have more than bad DSL connections (just setup Starlink here a few minutes ago). Web based does make the user hardware moot, which has advantages. I get many requests from those who do not want web based apps.
  13. FAQ is about all anyone had/has for things like PPP and ERC.
  14. Anything tied to dealing with government compliance can be lifetime employment. ~30 years for me with programming, 45 dealing with payroll (processed my first payroll when I was 15). I plan to work as long as I am able.
  15. So good to hear. It is sometimes hard not to fall into the trap of not focusing on the good.
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