5 ms·

Just to be the devil's advocate, what happens if this company goes bust and your tax money is stuck in their account and inaccessible? The IRS isn't going to a

by tdicola 11y ago

Just to be the devil's advocate, what happens if this company goes bust and your tax money is stuck in their account and inaccessible? The IRS isn't going to accept some sob story about not having access to funds... I'd be very leery about putting an intermediary between my sole source of income and myself. Is there insurance? How do you know they're trustworthy?

tommynicholas 11y ago
The accounts are FDIC insured and held in an accredited bank according to the website. $250k of insurance per account.
- tdicola 11y ago
  Ok but who owns the account and how do you know they're trustworthy? I could open a bank account anywhere and ask you to start depositing your income there. You have to trust that I'll give it back to you though--FDIC won't apply.
  - tommynicholas 11y ago
    Each account is a separate, FDIC insured account held with Lincoln Savings Bank. Your account is your account, there is no money pooling done. Painless 1099 is a front end to that account to let you do various things automatically and easily. Does that make sense? I suppose technically just like your accountant could steal your money because they have access to your accounts there's some risk but not really.
    - tdicola 11y ago
      Perfect, thanks for clarifying! Yeah it wasn't really obvious if this is an account Painless 1099 owns or the user owns. Thanks!
      - acallwood 11y ago
        Hi gents - a little late to the party here, but yeah, tommynicholas is absolutely right here. We help you open an account with our bank (Lincoln Savings Bank) and your money goes into an account in your name at LSB. If anything were to happen (heaven forbid) this cash is secure and guaranteed. If anything, you could make a solid case about a bank going out of business before anything. But all jokes aside, before building anything, security of funds is something we made sure our users feel really good about and we found a great partner to make sure your accounts and deposits are insured!

by tdicola 11y ago

tommynicholas 11y ago

The accounts are FDIC insured and held in an accredited bank according to the website. $250k of insurance per account.

tdicola 11y ago
Ok but who owns the account and how do you know they're trustworthy? I could open a bank account anywhere and ask you to start depositing your income there. You have to trust that I'll give it back to you though--FDIC won't apply.
- tommynicholas 11y ago
  Each account is a separate, FDIC insured account held with Lincoln Savings Bank. Your account is your account, there is no money pooling done. Painless 1099 is a front end to that account to let you do various things automatically and easily. Does that make sense? I suppose technically just like your accountant could steal your money because they have access to your accounts there's some risk but not really.
  - tdicola 11y ago
    Perfect, thanks for clarifying! Yeah it wasn't really obvious if this is an account Painless 1099 owns or the user owns. Thanks!
    - acallwood 11y ago
      Hi gents - a little late to the party here, but yeah, tommynicholas is absolutely right here. We help you open an account with our bank (Lincoln Savings Bank) and your money goes into an account in your name at LSB. If anything were to happen (heaven forbid) this cash is secure and guaranteed. If anything, you could make a solid case about a bank going out of business before anything. But all jokes aside, before building anything, security of funds is something we made sure our users feel really good about and we found a great partner to make sure your accounts and deposits are insured!