Does my registered agent need to know about Form 5472?
My registered agent only handles state compliance stuff. Do they need to be involved in my federal tax filing at all? Or is Form 5472 completely separate?
MFJ with NRA Spouse Qualification (Ep. 58)
I need help with my filing status: MFJ with NRA Spouse Qualification. What are the rules and how do I determine what applies to my situation?
Should I elect corporate treatment for my LLC to avoid the CRA double tax?
My accountant told me I should file Form 8832 to elect corporate taxation for my single-member LLC so that the CRA and IRS treat it the same way. He says this avoids the hybrid mismatch problem. But won't that mean my LLC has to pay U.S. corporate tax now? And what about the Form 5472 requirement? I need to understand the trade-offs before making this irreversible decision.
I received a Form 1042-S showing U.S. tax was withheld on my income. How do I get a refund?
I'm a UK resident and I received dividends from a U.S. company. They withheld 30% but I think the U.S.-UK treaty rate is only 15% for dividends. I got a Form 1042-S showing the withholding. How do I claim a refund for the excess withholding? Do I need to file a U.S. tax return? I don't have any other U.S. income.
I'm selling a property through my LLC — does the buyer withhold on the LLC or on me personally?
Quick question. I'm a Mexican citizen selling a house in San Diego that's titled in my Wyoming single-member LLC. The buyer's escrow company is asking for my personal ITIN to process FIRPTA withholding. But the LLC has its own EIN. Which number do they use? And is the withholding calculated on the LLC's sale price or something else? I'm worried about giving my personal tax info to the escrow company. Can the LLC handle this?
Same-Sex Spouse Filing Status (Ep. 59)
I need help with my filing status: Same-Sex Spouse Filing Status. What are the rules and how do I determine what applies to my situation?
What is the SDN list and do I need to screen my LLC's clients against it?
I run a foreign-owned LLC that provides consulting services to small businesses. A colleague mentioned the 'SDN list' and said I could get in trouble if one of my clients is on it. I thought only banks had to check this list. My LLC is not a bank or financial company. Do I really need to screen every client against the OFAC SDN list? How would I even do that? My clients are mostly small businesses in Latin America and I do not have a compliance department.
MFS Introduction (Ep. 67)
I need help with my filing status: MFS Introduction. What are the rules and how do I determine what applies to my situation?
When is crypto income treated as capital gains vs. ordinary income for a foreign LLC owner?
I'm confused about the difference between capital gains and ordinary income for crypto. My LLC has several types of crypto income: trading profits, staking rewards, mining income, and airdrop tokens. I've seen people say trading is capital gains and mining is ordinary income, but then others say it depends on whether you're a trader or an investor. As a foreign owner, does the distinction even matter? Or am I taxed the same way regardless?
How do tax treaties reduce withholding on royalty income from my foreign-owned LLC?
My U.S. LLC licenses software and earns royalty payments from U.S. companies. As a nonresident alien from Japan, I am subject to the 30% withholding on these royalties. I believe the U.S.-Japan tax treaty may offer a reduced rate. What royalty withholding rate does the treaty provide, and how do I claim it?
Can a tourist form a U.S. LLC?
I am visiting the U.S. as a tourist on a B-2 visa and I want to form an LLC while I am here. I have heard that anyone can form an LLC in the U.S. regardless of citizenship. Is this true, and can I do it during my tourist visit? What steps would I need to take, and will forming an LLC while on a tourist visa cause any immigration problems or create tax obligations?
Does Washington State's B&O tax apply to my foreign-owned LLC registered there?
I formed my LLC in Washington State because I have a friend there who helps me with my business. I'm from Australia and I provide marketing consulting services to clients worldwide. My LLC made about $150,000 last year. I just learned about the Business & Occupation (B&O) tax. Is this something I need to worry about even though I have no Washington clients? Does registering in Washington alone create a B&O tax obligation?
How do I calculate FDII for my U.S. corporation that has both domestic and foreign customers?
My U.S. C-corp has $10 million in total revenue — $6 million from foreign customers and $4 million from domestic customers. Our total deductions are $7 million, and we have about $2 million in depreciable tangible assets. Can you walk me through the FDII calculation step by step? I want to understand how much of a tax benefit I'm looking at.
I use Upwork and Fiverr through my foreign-owned LLC — what are my U.S. tax obligations?
I'm a web developer from Ukraine working through my Wyoming LLC on Upwork and Fiverr. I earn about $85,000/year from U.S. and international clients through these platforms. All work is done remotely from Kyiv. Upwork asked for a W-8BEN-E which I submitted. Fiverr doesn't seem to have asked for anything yet. I'm receiving payments to my LLC's Mercury bank account. Do I owe U.S. income tax on freelance platform income? Are Upwork and Fiverr required to report my income to the IRS? And what's the difference between being treated as a contractor versus a business on these platforms?
When to Choose MFS Filing Status (Ep. 68)
I need help with my filing status: When to Choose MFS Filing Status. What are the rules and how do I determine what applies to my situation?
MFS Pros and Cons (Ep. 69)
I need help with my filing status: MFS Pros and Cons. What are the rules and how do I determine what applies to my situation?
MFS Calculation with Medical Bills (Ep. 70)
I need help with my filing status: MFS Calculation with Medical Bills. What are the rules and how do I determine what applies to my situation?
Head of Household for NRA: Quick Decision Guide (Ep. 79)
I need help with my filing status: Head of Household for NRA: Quick Decision Guide. What are the rules and how do I determine what applies to my situation?
Is there a free way to check if my EIN is still active?
I formed an LLC 3 years ago and never used it. I want to start using it now but I'm not sure if the EIN is still valid. How can I check without paying someone?
Head of Household Decision Tree (Ep. 78)
I need help with my filing status: Head of Household Decision Tree. What are the rules and how do I determine what applies to my situation?
I missed the April 15 deadline for Form 5472. What do I do now?
I completely forgot about filing Form 5472 and the deadline passed two weeks ago. Am I automatically getting the $25,000 penalty? Is there any way to reduce or avoid it?
QSS: Rent from Family Members (Ep. 77)
I need help with my filing status: QSS: Rent from Family Members. What are the rules and how do I determine what applies to my situation?
Wyoming vs Delaware LLC — does it matter for Form 5472?
I'm about to form my LLC and can't decide between Wyoming and Delaware. From a Form 5472 perspective, does it make any difference which state I choose?
How are treaty benefits applied to interest income earned by my foreign-owned LLC?
My U.S. LLC holds a promissory note and receives interest payments from a U.S. borrower. As a nonresident alien owner, the interest payments are subject to withholding. I want to understand how my tax treaty can reduce the withholding on interest income. Are there different rules for portfolio interest versus other types of interest?
How do tax treaties affect withholding on dividends from my U.S. LLC?
My U.S. LLC elected to be taxed as a corporation and now pays dividends to me as the sole foreign shareholder. The default 30% withholding is being applied. I am a resident of the Netherlands and I believe there is a tax treaty that could help. What dividend withholding rate does the U.S.-Netherlands treaty provide? How do I claim the reduced rate?
QSS: Child Survivor Benefits Rules (Ep. 76)
I need help with my filing status: QSS: Child Survivor Benefits Rules. What are the rules and how do I determine what applies to my situation?
How should a UAE solo consultant or creator think about corporate tax if they still trade in a personal name?
I do not want the old Dubai marketing answer. Please explain when the natural-person rules actually matter, why business turnover matters more than people expect, and how someone should separate consulting revenue from wages, investment income or other personal receipts.
QSS Eligibility: Cost of Home Calculation (Ep. 75)
I need help with my filing status: QSS Eligibility: Cost of Home Calculation. What are the rules and how do I determine what applies to my situation?
QSS Eligibility: 50% Cost of Home Rule (Ep. 74)
I need help with my filing status: QSS Eligibility: 50% Cost of Home Rule. What are the rules and how do I determine what applies to my situation?
Can I dissolve my LLC to avoid future Form 5472 filings?
I'm not using my LLC anymore and the annual filing requirement is a hassle. If I dissolve the LLC, do I still need to file Form 5472 for the final year? What's the process?