Tax Q&A Community

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Filing StatusAnswered

Married Filing Separately: MFS Tax Calculation with Medical Bills and AGI Changes

I need help with my filing status: Married Filing Separately: MFS Tax Calculation with Medical Bills and AGI Changes. What are the rules and how do I determine what applies to my situation?

C
claireW
732 views1 answers
PayrollAnswered

What are totalization agreements and can they reduce my LLC's payroll tax obligations?

I'm from Germany and I own a U.S. LLC. I'm considering moving to the U.S. temporarily to work in my own business. A friend mentioned totalization agreements could help me avoid paying Social Security taxes in both Germany and the U.S. simultaneously. How do these agreements work? Which countries have them with the U.S.? If I send a German employee to work at my U.S. LLC temporarily, do they pay into the U.S. or German system?

KM
Klaus M.
1,345 views1 answers
State TaxAnswered

Is New Mexico the best state for a foreign-owned LLC? I heard there's no annual report and no fee.

I keep seeing people recommend New Mexico for foreign-owned LLCs because there's supposedly no annual report, no franchise tax, and strong privacy. Is this accurate? I'm from the Philippines and I want to set up a U.S. LLC for my online business. My priority is the lowest possible annual maintenance cost. How does New Mexico compare to Wyoming and Delaware?

MS
Maria S.
1,678 views1 answers
InternationalAnswered

What types of payments count as base erosion payments under BEAT?

We're trying to figure out exactly which payments our U.S. company makes to related foreign entities count as 'base erosion payments' for BEAT purposes. We pay our foreign parent for inventory (COGS), IP royalties, management services, interest on intercompany loans, and reinsurance premiums. Do all of these count? I heard there are important exceptions.

MF
Maria F.
1,123 views1 answers
ComplianceAnswered

What is IRC 482 transfer pricing and can the IRS reallocate income between my foreign company and my U.S. LLC?

I own a software company in Ireland and a separate LLC in Delaware. My Irish company licenses software to the U.S. LLC, which sells it to U.S. customers. My CPA warned me about IRC 482 'transfer pricing' rules and said the IRS could reallocate income between my two entities if the licensing fee isn't at 'arm's length.' What does this mean? How does the IRS decide what's arm's length? And what happens if they disagree with my pricing?

SO
Sean O.
1,345 views1 answers
Filing StatusAnswered

Head of Household Qualifying Person: Special Cases for Kids and Parents

I need help with my filing status: Head of Household Qualifying Person: Special Cases for Kids and Parents. What are the rules and how do I determine what applies to my situation?

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robertL
2,303 views1 answers
CryptoAnswered

Does FATCA (Form 8938) apply to cryptocurrency held on foreign exchanges through my LLC?

I've read about FATCA reporting requirements for foreign financial assets. My foreign-owned LLC has accounts on Binance International and KuCoin (both foreign exchanges). The total crypto value fluctuates between $60,000 and $100,000. Does my LLC need to file Form 8938? I'm confused because FATCA seems to apply to U.S. persons holding foreign financial assets, and I'm not sure if a foreign-owned disregarded entity counts. Also, does crypto even qualify as a "specified foreign financial asset"?

RC
Rafael C.
1,123 views1 answers
InternationalAnswered

What makes someone a 'long-term resident' for exit tax purposes? My green card is exactly 8 years old.

I received my green card in 2018 and I'm considering surrendering it in 2026. That would be exactly 8 years. I've heard the exit tax only applies to 'long-term residents' who have had a green card for 8 out of the last 15 years. Does my situation count? What if I had a year where I was outside the U.S. for most of the year — does that year still count? I own an LLC and I need to know if I'm subject to the exit tax before I start the process.

YN
Yuki N.
1,123 views1 answers
Filing StatusAnswered

Head of Household Qualifying Person: Advanced Rules for Kids and Parents

I need help with my filing status: Head of Household Qualifying Person: Advanced Rules for Kids and Parents. What are the rules and how do I determine what applies to my situation?

A
amyZ
3,024 views1 answers
WithholdingAnswered

What is the Limitation on Benefits (LOB) clause and how does it affect my treaty claim?

I am trying to claim treaty benefits on my Form W-8BEN-E, but I keep encountering references to the Limitation on Benefits clause. The form asks me to certify which LOB provision I satisfy. Can someone explain what LOB is, why it exists, and which test I am most likely to qualify under as a foreign individual owning a U.S. LLC?

HJ
Henrik J.
1,550 views1 answers
InternationalAnswered

EB-5 Immigrant Investor and LLC structuring

I am pursuing an EB-5 immigrant investor visa and plan to invest through a regional center. My attorney mentioned structuring the investment through an LLC. How does the LLC structure work for EB-5 investments, and what are the tax obligations once I receive conditional permanent residency? I want to understand the tax implications from the investment phase through to obtaining my green card.

LW
Lin W.
1,870 views1 answers
InternationalAnswered

ESTA/Visa Waiver and managing your U.S. LLC

I am from a Visa Waiver Program country and I enter the U.S. on ESTA for short business trips. I own a U.S. LLC that operates an e-commerce store. During my ESTA visits, I sometimes handle shipping logistics and meet with suppliers. Is this allowed under ESTA, and what are the tax consequences of performing these activities while in the U.S.? I typically visit for two to three weeks at a time.

TB
Thomas B.
1,650 views1 answers
FirptaAnswered

How does FIRPTA apply to a multi-member LLC taxed as a partnership? Two foreign owners selling property.

My business partner and I (both non-resident aliens from France) own a 50/50 multi-member LLC in Florida that holds a commercial property. We're planning to sell the property next year. I understand FIRPTA applies, but I'm confused about the mechanics. Does the partnership withhold on itself? Does the buyer withhold on the partnership or on us individually? What forms are involved? This seems more complicated than a single-member LLC situation.

PD
Pierre D.
1,290 views1 answers
Filing StatusAnswered

Head of Household: Qualifying Person Rules for Kids and Parents

I need help with my filing status: Head of Household: Qualifying Person Rules for Kids and Parents. What are the rules and how do I determine what applies to my situation?

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ivanK
1,995 views1 answers
InternationalAnswered

Can my foreign LLC hold balances in multiple currencies? How do multi-currency accounts work?

I run a foreign-owned LLC that has clients in the U.S. (paying in USD), Europe (paying in EUR), and Japan (paying in JPY). Currently I'm converting everything to USD when I receive it, which costs me in exchange rate markups. Is there a way for my LLC to hold balances in multiple currencies? I've seen Wise mentioned for multi-currency, but can I legally hold EUR and JPY in a U.S. LLC's account? Are there any tax reporting implications?

YT
Yuki T.
987 views1 answers
EcommerceAnswered

How is affiliate marketing income taxed in my foreign-owned LLC?

I run several niche websites through my foreign-owned Wyoming LLC. My revenue comes from affiliate commissions — Amazon Associates, CJ Affiliate, ShareASale, and some direct brand partnerships. I'm from Thailand and I manage everything from Bangkok. Total affiliate income is about $55,000/year. I receive payments through my LLC's U.S. bank account. Some affiliate networks want a W-9, others accept a W-8BEN-E. Is this affiliate income considered ECI? What forms should I be giving to affiliate networks? And what about the state where my blog readers are located — do I have any obligations there?

PS
Pim S.
1,345 views1 answers
Filing StatusAnswered

Head of Household: Qualifying Person Time Requirements Explained

I need help with my filing status: Head of Household: Qualifying Person Time Requirements Explained. What are the rules and how do I determine what applies to my situation?

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noraS
849 views1 answers
Form Ss4Pending

How long does it actually take to get an EIN by fax?

I faxed my SS-4 three days ago and haven't heard back. Is this normal? The bank is pressuring me to provide my EIN.

JH
jenny_hk
501 views0 answers
Filing StatusAnswered

Head of Household for Non-Resident Aliens: Fast Decision Guide (Part 2)

I need help with my filing status: Head of Household for Non-Resident Aliens: Fast Decision Guide. What are the rules and how do I determine what applies to my situation?

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benF
1,723 views1 answers
InternationalAnswered

Do I owe Australian CGT if I sell my U.S. LLC membership interest?

I've been running my U.S. LLC for three years and I'm considering selling a 50% membership interest to a business partner. The LLC has appreciated significantly in value. Will Australia tax the capital gain on this sale? What about the U.S.? The LLC is not a real property holding company — its value is mainly in software IP and client contracts.

EC
Emma C.
987 views1 answers
Filing StatusAnswered

Head of Household Filing Status: Decision Tree Guide (Part 1)

I need help with my filing status: Head of Household Filing Status: Decision Tree Guide. What are the rules and how do I determine what applies to my situation?

T
tanyaB
485 views1 answers
Form 5472Pending

Has anyone used ForeignLLCTax.com to file their 5472? How was the experience?

I just found out about the $25k penalty for not filing Form 5472 and I'm kind of panicking. Has anyone here used the self-filing tool on this site? Was it straightforward? I'm not great with tax forms.

RM
Rachel M.
651 views0 answers
Filing StatusAnswered

Qualifying Surviving Spouse: Rent from Family Members Rules (Part 6)

I need help with my filing status: Qualifying Surviving Spouse: Rent from Family Members Rules. What are the rules and how do I determine what applies to my situation?

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luisG
2,879 views1 answers
Filing StatusAnswered

Qualifying Surviving Spouse: Child's Survivor Benefits Rules (Part 5)

I need help with my filing status: Qualifying Surviving Spouse: Child's Survivor Benefits Rules. What are the rules and how do I determine what applies to my situation?

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emilyR
2,187 views1 answers
WithholdingAnswered

What is Form 1042-S and how does it affect me as a foreign LLC owner?

I received a Form 1042-S from a U.S. company that paid my foreign-owned LLC last year. I am not sure what this form represents or how to use it when filing my U.S. tax return. Is it similar to a 1099? How do I reconcile the withholding shown on the 1042-S with my actual tax liability?

YT
Yuki T.
2,100 views1 answers
WithholdingAnswered

When do I need to file Form 8833 for my treaty-based tax position?

My tax advisor mentioned that I need to file Form 8833 along with my U.S. tax return because I am claiming a reduced withholding rate under a tax treaty. What exactly triggers this filing requirement? Are there penalties if I forget to file it? I want to understand when this form is mandatory versus optional.

AP
Anna P.
1,650 views1 answers
Filing StatusAnswered

Qualifying Surviving Spouse: Cost of Home Calculation Example (Part 4)

I need help with my filing status: Qualifying Surviving Spouse: Cost of Home Calculation Example. What are the rules and how do I determine what applies to my situation?

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s.kumar
1,071 views1 answers
Form 5472Pending

My accountant charged me $800 for a zero-income Form 5472 filing. Is that normal?

I have a single-member LLC with literally zero transactions. My CPA charged $800 to file Form 5472 + pro forma 1120. That seems really high for what should be a simple return. What do others pay?

CE
confused_expat
336 views0 answers
InternationalAnswered

I'm from Indonesia — how does my U.S. LLC get taxed?

I'm an Indonesian citizen living in Jakarta. I formed a Wyoming LLC for my web development freelancing business serving U.S. startups. I work entirely from Indonesia. What are my IRS and DJP obligations? Indonesia taxes worldwide income and I want to be compliant.

BS
Budi S.
1,234 views1 answers
Filing StatusAnswered

Qualifying Surviving Spouse: Paid More Than 50% Cost of Home (Part 3)

I need help with my filing status: Qualifying Surviving Spouse: Paid More Than 50% Cost of Home. What are the rules and how do I determine what applies to my situation?

J
jparker
828 views1 answers