Medlin Software, Dennis

mmm yuck. I get asked to discuss vehicle use as well. (Umpire avocation.) Some say a (magical) person told them all miles to and from games is deductible. They also say all clothes and gear are as well. Both are incorrect if one wants to be accurate. For us umpires types (not all details are included for length, I suspect you all understand) unless we are very careful, and have another job location, we are merely commuting to and from games. Not all gear is deductible either, such as socks can be worn for other uses, even though the ones we prefer for games are $20 or more... same for wicking undershirts we like to wear. Now the $400 plus lid I put my melon in is deductible (and the best I can buy at any price) since I cannot really wear it for other uses, and I replace it after every good hit. I only have the one melon... We spend a large amount of "training" time on this issue, over a pittance of taxable income... I break even at best, given proper deductions, and I take a large number of games. Well, I actually lose, as my SWMBO of 31 years and counting gets my gross umpire pay, and I have to pay my expenses myself! It is still a great deal for me, since I get to work some great games at great parks, sometimes with one of our sons, and run around like I was still young. I have promised SWMBO to stop if I am "that guy" who cannot get where I need to be, or age 70, whichever comes first , or if I get hit in the melon and have any concussion symptoms. (Thank you for this forum. it is a nice break from my day gig, which is crazy for the next few weeks. It is my "April 15" and "October 15" rolled into a few days. Not even my dogs will come into my office this week.)

Cannot stress enough not to feed power back. It can kill someone. If power outages are annoying, then an auto switch generator is the way to go. If not annoying enough to spend on automatic transfer and permanent generator, then a portable is fine. Even for a week in '86, I was able to run a donut shop on one small generator. Home is just as easy, when you realize how little really needs power at a single time. The real secret is to have a generator in advance, and to test it once a quarter. Hard to get a generator when many are looking at the same time. A $300-$400 portable generator and about $50 in two good extension cords will run almost any household enough to keep lit, warm, and fed - including any home medical needs. A decent permanent gen is probably $5k without installation. The 8 to 12k installed sounds about right, new or old. Just paying an electrician to permit (getting permit, getting inspection) is at least five hours of their time... For that amount, my outages would have to be several times a year for weeks at a time, which would likely only be in a rural place I could not live in since it probably would not have high speed internet at a price I could stomach.

Tom, I get it. I might even be inclined to do what you are doing, provided I had some written documentation allowing me to do so (a notarized letter from the owner/employer might do it). The end result is probably the same, the road to get there is where it gets sticky, and if called on to prove out, will get stickier. All "defense" is a loss since defense is rarely free or reimbursed. I am just too far along in career and life to take the same chances as when younger/newer. A nod from an owner/employer they want me to withhold or do something which I cannot back up via the regulations, without documentation stating I was forced to do so against my advice, and I am not doing it. Notice 2008-1 (IRS) was clear about what needed to be done, and why, and it does not say to alter a paycheck, to withhold taxes, or to alter a 940 or 941. It only covers including the amount in certain places on a W2. I could avoid answering a large number similar emails each year if there were updated instructions from the IRS (to me, 208-1 is clear, but not all agree). Unfortunately, there is no reason for the IRS to do so. The common question I get is "someone" told my customer it has to be wages, and has to show up on a 941 and 940, and that the 941 forms MUST equal the W3 (which are all incorrect as best I can tell, and I am willing to be shown anything to the contrary, since I cannot find such information myself). Smart? Well if you consider the school of hard knocks, plus knowing how to use a search engine, as smart, sure, I can usually find what I am looking for even if not what I was expecting to find. The real smart part, as I have learned along the way, is first realizing I could be wrong, and then to remain open to that possibility. After several years of my position on the shareholder insurance, no one has been able to show me anything contrary, but I am still looking and asking... I did not even want to add the ability to handle the shareholder insurance when 2008-1 came out, since it is something which cannot be tracked through a paycheck. But, too many customers are 2% shareholders, so I had no choice. I tried to find logic to allow it to be part of a paycheck, and am still looking. I really do not like untraceable "adjustments" - since I will eventually take the heat when a customer asks why a W2 has an amount which was not part of paychecks when they forget the reason themselves, and insist they did not make the adjustment.

Not my fight... see my reference to arguing in a post from yesterday. But, I cannot resist... your software provider is acting incorrectly. Adding the amount to a paycheck is done to allow the software provider to create a proper W2 without having to program the proper way. But, the problem is, it causes inaccurate paychecks and paycheck records. At best, they jump through some programming hoops to show the "amount" as income, and somehow not tax it for any purpose. Those hoops are much more complicated than allowing a dollar entry which only affects the W2. For me, we allow the amount to be set on the employee's record, and read the record when creating the W2. That way, no one has to FUDGE a paycheck. Unless the software provider is also providing tax advice, and taking on the liability for their advice, their advice has no more value than something :the internet says". I suspect the advice holds as much water as calling the IRS and getting advice from whomever answers the phone. (The "whomever answers the phone" is something I have come up against several times in several scenarios.) To end with a positive, one state WH office had posted tables, but no calculations for 2017. Useless for most. I asked what was up, and they not only replied, they updated their web site withing minutes. Sometimes you can reach someone who can do something, and even better, has the common sense to take the action. They could not post the calculations, but added a statement that using the 2016 calculations was fine for a short time, since any change was minimal. (The problem is there appears to be no change at the no allowance level - the raw rates - but something is definitely funky about the allowance columns.)

P.S. With payroll, no good deed goes unpunished. Increase WH to save the employee from penalties? The employee may make their own deposit, then gripe at you for what you did. Also sets you up for personal liability since you exercised personal control over the WH amount, instead of blindly following the W4 and Pub 15 instructions/calculations. Adding exposure for doing more or less than required is not wise.

Careful. (Sorry, I was just reading a list of common payroll issues, which triggered the ones I deal with almost daily.) You should not change withholding from what is calculated using the parameters of the most recent valid W4 form. Nor should you be showing the 2% shareholder insurance on a paycheck. The reporting of the 2% shareholder insurance is directed for ONLY the W2 form. There is no directions (which I have ever seen) saying to alter a paycheck or a 941. Now, many will argue the 941 MUST be altered so the 941 totals match the W3, but that is false. 941's do not have to match the W3... they can, and usually will, but it is not required, with some of the exceptions listed in the instructions. When they do not match, the only requirement is to keep documentation showing why they do not match. The IRS bulletin requiring the W2 adjustment for shareholder insurance says nothing about altering paychecks or 941 forms, or 940 forms. Keep in mind, the reason for reporting shareholder insurance on the W2 is to try to catch double dipping. Nothing more, nothing less. Many ignore my advice, as well as the actual reporting directions, so I have "given up" the "fight", but my information is still correct until proven otherwise. The other OFTEN missed complication for shareholder insurance is ACA. Many fail to heed the rule that the owner/employee must have coverage through a qualified ACA group plan when anyone other than the owner/employee (a few rare exceptions, such as for a spouse) is being provided or compensated for health coverage. Not ACA compliant? The health insurance payments are simply taxable income to all. Not ACA compliant means no shareholder reporting is allowed. ACA compliant group plan can still be confusing as the company is still paying for the owner insurance through the compliant group plan, but many say it still must be reported via the shareholder W2 changes required by the old IRS bulletin. (Probably not harmful to do so.) Having two "rules" interact this way is not unusual, but certainly is complicated. One other item I too often see is an owner/employee who fails the reasonable compensation issue, such as paying themselves randomly, quarterly, or annually. Employees, even owner/employees, must be paid at least as often as the state requires, and a reasonable amount for the time worked. Some states have no frequency rules, but I used to recommend paying at least monthly, to avoid the IRS claiming tax shifting. I have given up on this one as well, since the odds of getting caught are not great, and those that do get caught do not share the news.

I'd say when you are done, be done, no matter what. No communication at all. Jack's advice to return all data is great (keep a copy in case you are dragged to court or something along those lines). No response from you means no added fuel. (Hard learned lesson.) I learned long ago, never to wrestle with a pig. You get dirty, and besides, the pig likes it. George Bernard Shaw Read more at: https://www.brainyquote.com/quotes/quotes/g/georgebern137450.html "I learned long ago, never to wrestle with a pig. You get dirty, and besides, the pig likes it." George Bernard Shaw

I gave up on the batteries. Seemed like they were always worn out when needed. Generator for me... One cord to power office items, one to swap among refrigerators and heater. Also had an outage yesterday. Was the kind when you know it is not quick since it did not try to self reset. Had the gen up in minutes, although I need to clean the garage so the cords are neater... and with the gen. (Have a rolling storage crate I picked up which will now hold all.) For me, I have enough backups I do not worry about what I might lose when the power goes out. At most, a few minutes of work to redo, but usually none to redo (save often)

The part that raises my attention is "getting the computer back" and getting something from opening your browser. Why was your browser set to a bad default/home page? That is something the security people should have checked, and should be monitoring. Home page hijack is not a new issue... I am not saying the security folks you are using are bad, but that this should have been caught in advance. Ask them how it happened and how they will prevent it in the future.

Add external backups. One to keep in your desk, one to keep at home, one to keep in another secure location. More in separate locations as needed for your comfort level. And just as important, do a test disaster recovery at least once a year to make sure you really can restore from a backup, even on a new computer. This includes not only restoring from your backup, but reinstalling needed software. If you do not test the process, you will undoubtedly find gaps in the needed information/knowledge. Do not rely on a computer "expert" for this process. It MUST be you. YOU are the only one who really knows what you will need. Example. Customer had a computer failure. Sent drive off to a high dollar recovery service. Waited. Got a drive back with whatever was able to be recovered. There were no instructions showing how to use what was recovered, so the person, so far, has not been able to make proper use of the recovered information. Could be what was needed was not actually recovered at all. A large amount of time and money spent with no results. The time and expense was well over what it would have cost to hire someone to recreate the missing data. Only YOU can prevent data loss...

8809 is clear it does not extend the date to recipients, so unless there is another form...

I get asked to create Apple compatible software. Same deal. If your client wants to pay for your time and materials to become competent in that area, great, but I bet your time is worth too much with the income generation you already do, and your leisure time value. I have yet to get any takers for even .001 of what it would cost to develop an Apple version of our software...

The only protection is the grey matter you have. No software can protect you. Period. Software can make a little easier should you forget safe practices, but software fails miserably at guessing at future threats, and fails often in accuracy. The worst part is "security" software makes some feel protected and they do things they should not. This is coupled with "security" software falsely flagging safe items as unsafe, making the user disable the "security" software, which proves the futility of relying on software for security. If we would go back to reading emails in text only, and not html, email would be incredibly safer. Attachments you were expecting should be saved, scanned (if you believe in such actions), then opened.

Personally: Install files can be digitally signed, or not signed. It is, in theory, a way to show the file was not altered from upload. Signing used to prevent an on screen message saying the file could not be identified, now a message is shown either way. Since MANY do not want to pay for the digital certificate, many files, and safe ones, are not signed, making the "security" of a signed file moot. Since the old certificate system is known to be suspect, dual signing a file is not a good option. Nefarious folks can get a digital certificate too, so the signing is not all that valuable. Also, the signing code was changed to something more secure. If using an old browser, the old browser cannot recognize the current certificate, causing more messages. For business purposes, one should not be using an old OS or browser, but it happens. Some simply do not feel staying current by spending a few hundred dollars is worth it. I even hear from business people saying they cannot afford a new computer every three or four years. Then, there are the "security" programs which take money to protect the user from themselves. They fail miserably, with a large number of false positives, to a point where one has to know how to disable the "security" to install programs they want to. If the "security" program has to be disabled, it is not worth using. (The culprit is not catching known issues, it is when the "security" program is set to guess at some problem which has never existed. Guessing wrong actually makes the "security" vendor more money, since it appears they are doing something to keep you safe. In other words, the "security" vendors have a negative incentive to be accurate.) So, our files are not nefarious, and are digitally signed. Using Virustotal, they are shown as clean as well, other the random false positive of a few really sloppy "security" software vendors. Virustotal is a great resource, since it checks a file against ~60 "security" vendors. There are folks who never update their "security" software, so while the "security" vendor's current status is clean, the old non updated program shows an issue. I get a call that our software is dangerous. There are "security" programs which will download a file, then delete it, without forcing the user to make a choice, or even warn them. I then get a call saying our download does not work. With XP and Vista, and.or a non current browser, our file does not appear to be signed, since the old OS/browser cannot read the new safer signature, which is another call. From the OP "identity is unknown and it may harm your computer", the implication is the file is not signed at all, or the OP is using an outdated OS or browser. It also does not imply the OP cannot ignore or skip past the warning, since it says "may". That is typical of an unsigned file, or an old OS/browser. If they did have some sort of certificate issue, then there likely would be more reports of an issue. I can only guess, since I am not ATX, nor have I seen an image of the actual message.

Post an image of the error message. Could be ab over zealous "security" software setting. Could be the setup file is not signed by the creator, and the message is simply a warning. "Security" programs have a financial interest in reminding you they are "saving" you from harm. They have no incentive to actually be accurate. If you are the one initiating the installation, from a vendor you trust, turn off the security software and install.

If intent is not the issue, and that may be true, will the employer pay if disabled, unemployed, killed? Is the employee going to earn enough to buy their own coverage? The OP implies the person is on the clock for 3 hours on the road, picking up others. Is the employee being paid for this time? Covered by insurance for this time? What if there is an accident and one of the passengers or another party is hurt? Who pays? It may all sound and be good until something goes awry. That is why I put it on the employee to make the decision. Maybe they need the income. If so, they really must consider the costs of taking the work, the costs their employer is not going to cover under the veil of IC. Employee should get a business license, EIN, insurance, etc., and really act like they are in business if they choose to accept the offer as presented. This is coming from experience nearly 40 years ago, taking a "job" as an "IC", Rented vehicles, transported my "coworkers", operated dangerous machinery at third party locations, and was somehow lucky enough to figure out it was a mistake before something went awry. Cash seemed good, but so much went out before I could eat, I was not only at risk, I was woefully underpaid when counting what I could really spend.

Employee in law and fact. The problem is the employee wants the job/money, so they will likely go along. WC is probably the biggest cost savings for a construction employer gaming the system. Employee loses out if they get hurt on the job. Even if they later prove they are an employee, it takes time. Allows employer to undercut not only expense, but pricing. What the employee may not want to ponder is if their employer is comfortable breaking the law in payment, what other areas are going to be shoddy? (I was on the "employee" side in my young naive days, in a dangerous job.)

Just thinking out loud... Having one password to access all other passwords makes the others moot. Might as well just use the same one over and over, since all it takes is for the one to get compromised to gain access to all others. Probably why two factor auth is preferred as a "real" security step. Would I be comfortable with a list of passwords in a spreadsheet? No, not unless in some sort of trusted online storage, accessible only with two factor auth.

It is the IRS's sandbox... so legislative or procedural, the software vendors have to do what the IRS says. The IRS is probably more concerned with having proper returns, and proper refunds, more than security. Security may help in that endeavor, as will having W-2 forms in hand before the returns are processed. Passwords are a silly "solution" since they are easily broken, if access to the data is gained.

I have not seen such a requirement, but that does not mean one exists (on paper or defacto). Every taxing agency can impose their will on their subjects. One tax agency can absolutely wag the tail of all others, since software is usually not written for one tax agency. There certainly may be a locality which essentially requires a password, forcing a software vendor to do so for all, or create a special version.

I root for the team that is much harder to get to than the ball clubs... I was glad to see the last batter swing it. My last TV gig, the cleanup batter took three strikes with the bases loaded, and wanted to argue with me. "They give you a bat for a reason" was what I was thinking. Not that I am perfect by far...

BB, I almost dropped my snack when I got to the bottom of your message! Thanks Not my place to say yes or no. I am but another minion who has to follow the rules set forth by others, to the best of my ability at each moment. I had not seen any confirmation of truncation being allowed on a W2, so I went looking. Still have not found confirmation, but that if it does come to be, it will likely be optional. That made me think what my preference would be, which is not to truncate for the reasons already covered. I also found the (to me) disturbing incorrect information being touted by those claiming to know. The pondering on this issue is probably wasted time in this group, as most here are probably efiling, so the "W2" information from one of your clients could be carved on a coconut, and you could possibly be somewhat comfortable preparing the return. I was just talking to someone who asked why we do not print, in black and white, a 1099 misc. The reason is the IRS has no specs for doing so, since they clearly state their copy must be on a red drop out ink form. Does that mean they will reject a black and white form? Hardly. As long as it scans, no human will ever give it thought. But, I am not comfortable preparing one in black in white, no matter what "other programs" do. P.S. This is a publicly viewable and searchable forum... Some members are also my customer, and customers of all members have the ability to search and find our posts using any search engine.

Wasn't the idea for this at least in part a reaction to the increasing number of fraudulent returns being filed? There were several states who started moving up deadlines, now the IRS/SSA has joined in.. Change is never easy, but this is probably a good for all concerned. Might reduce the number of rejected efile's, as well as cut down some fraud. Maybe states will not have to turn off/delay tax processing this year because of high fraud concerns. To me, this is a reasonable change, as it just makes sense the employer report, submitted under penalty of perjury, should be in hand before the return (and possible refund) is processed. Yep, I have sent at least two reminders to our customers, and will probably send a couple more before Jan 31 - change is never easy. Penalty? The penalties were increased (according to the W2 instructions). Failure to file correct information returns by the due date. If you fail to file a correct Form W-2 by the due date and cannot show reasonable cause, you may be subject to a penalty as provided under section 6721. The penalty applies if you: Fail to file timely, Fail to include all information required to be shown on Form W-2, Include incorrect information on Form W-2, File on paper forms when you are required to e-file, Report an incorrect TIN, Fail to report a TIN, or Fail to file paper Forms W-2 that are machine readable. The amount of the penalty is based on when you file the correct Form W-2. Penalties are indexed for inflation. The penalty amounts shown below apply for tax years beginning in 2016. The penalty is: $50 per Form W-2 if you correctly file within 30 days of the due date (for example, by February 28 if the due date is January 31); the maximum penalty is $532,000 per year ($186,000 for small businesses, defined in Small businesses). $100 per Form W-2 if you correctly file more than 30 days after the due date but by August 1; the maximum penalty is $1,596,500 per year ($532,000 for small businesses). $260 per Form W-2 if you file after August 1, do not file corrections, or do not file required Forms W-2; the maximum penalty is $3,193,000 per year ($1,064,000 for small businesses). If you do not file corrections and you do not meet any of the exceptions to the penalty, the penalty is $260 per information return. The maximum penalty is $3,193,000 per year ($1,064,000 for small businesses). Exceptions to the penalty. The following are exceptions to the failure to file correct information returns penalty. CAUTION ! CAUTION ! 1. The penalty will not apply to any failure that you can show was due to reasonable cause and not to willful neglect. In general, you must be able to show that your failure was due to an event beyond your control or due to significant mitigating factors. You also must be able to show that you acted in a responsible manner and took steps to avoid the failure. 2. An inconsequential error or omission is not considered a failure to include correct information. An inconsequential error or omission does not prevent or hinder the SSA/IRS from processing the Form W-2, from correlating the information required to be shown on the form with the information shown on the payee's tax return, or from otherwise putting the form to its intended use. Errors and omissions that are never inconsequential are those relating to: A TIN, A payee's surname, and Any money amounts. 3. De minimis rule for corrections. Even though you cannot show reasonable cause, the penalty for failure to file correct Forms W-2 will not apply to a certain number of returns if you: Filed those Forms W-2 on or before the required filing date, Either failed to include all of the information required on the form or included incorrect information, and Filed corrections of these forms by August 1. If you meet all of the de minimis rule conditions, the penalty for filing incorrect information returns (including Form W-2) will not apply to the greater of 10 information returns (including Form W-2) or one-half of 1% of the total number of information returns (including Form W-2) that you are required to file for the calendar year. 4. Forms W-2 with incorrect dollar amounts may fall under a safe harbor for certain de minimis errors. The safe harbor applies if no single amount in error differs from the correct amount by more than $100 and no single amount reported for tax withheld differs from the correct amount by more than $25. If the safe harbor applies, you will not have to correct the Form W-2 and it will be treated as having been filed with all of the correct required information. However, the safe harbor does not apply if the payee elects to have you issue a corrected return. Small businesses. For purposes of the lower maximum penalties shown in Failure to file correct information returns by the due date, you are a small business if your average annual gross receipts for the 3 most recent tax years (or for the period that you were in existence, if shorter) ending before the calendar year in which the Forms W-2 were due are $5 million or less. Intentional disregard of filing requirements. If any failure to timely file a correct Form W-2 is due to intentional disregard of the filing or correct information requirements, the penalty is at least $530 per Form W-2 with no maximum penal

Note: I am extra sensitive to bad information. I hear from employers and others who believe what they have heard, and complain our software does not comply. I then have to be the nit picker who points out the actual rules, which often gets a reply of "so what, X says"... An example is a state where a tax agency has made a request for certain information on a W-2 in box 20, using the word "please", not "required". First problem is the item is not required to be in any particular box, the actual law is the item can appear in "any available" box (yes, that's right, could be in box 1 and still comply). I consider some will believe it is required, and sometimes go along (assuming it is not prohibited) to prevent me from being having to educate all who question the issue. In this case, that is not even an option because what they would "please" like in box 20 will not fit, unless in a 2 or 4 point font, making the request pointless (to make it easier for the employee and preparer to not miss something).

Your link also does not say it will apply to W-2 forms. It says "most likely", and is then badly worded to say "effective". This is exactly how myths get perpetuated, by taking things out of context. A quick search finds many who opine it is already allowed, which is factually incorrect. I doubt a W-2 is the way many SSN's are compromised. The onus is still on the employee to handle "their business", such as not losing their W-2 or SS card, and reviewing their SS and credit report on a regular basis. Even if the SSA/IRS decide to change the W-2 requirements, truncation will not be required, and comes with pitfalls for the employer (and preparer), possibly expensive pitfalls.