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There is a new law in effect that requires
ALL the business owners in the US to register their information with the U.S. Treasury Financial Crimes and Enforcement Network (FINCEN).
If your business was opened before January 1st, 2024, you have until 12/31/2024 to file your BOI Report with FINCEN.
If you opened your business after 01/01/2024 you have 90 days to file a report. The reports are completed online.
This report requires businesses to disclose the owners, partners, managers, and senior officers of their businesses to the U.S. Govt.
If you have a Corp, Inc or LLC, you are likely required to file the BOI report for your entity.
Additionally, any change in ownership, addresses, or other material changes in each entity will have to be reported and updated moving forward.
The goal of this new law is to combat international money laundering, financial fraud, and terrorism.
Willful failure to file this report can result in penalties of $500/Day and up to two years jail time!
Do not delay, contact us today!
Phone (800) 913 – 0809 SMS message (224) 676 – 3577 Email Contact@unitedstatestaxservices.us M-F 9 am – 6 pm Sa-Su and after hours by appointment only
Regards, Ilona Dovidaitiene, EA
Enrolled to practice before the IRS https://www.unitedstatestaxservices.us/post/boi-report-beneficial-ownership-information-reports
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Yes and No
YES
While opening your corporation you completed 2 steps process:
Registration with the state you are doing your business
Registration with the Internal Revenue Service to obtain your Employer Identification Number (EIN), common known as a TAX ID.
So, If you completed both registrations last year, opened a bank account and did not have any activity you are REQUIRED to file business taxes. The reason is, that IRS do not know that you did not have any activity, and they are expecting to receive your return.
If you will not do it you will receive a letter with a penalty, much later. Penalty is $190 per month for not filing on time.
NO.
So, if you completed only first step in your registration and did not apply for your EIN (TAX ID) number last year, you are not obligated to file your business tax return.
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First of all you need to close your bank account, this will confirm that your business does not have any further activity.
When you opened your corporation you completed two steps process, so, you need to do the same steps when you need to close your corporation.
STATE: You need to fill our appropriate forms with the state you are doing business, informing that you are ceasing your business operations. You can do it anytime after you close your bank account. Of course, you need to pay the appropriate fees. Each state may vary. You may also be required to file a final tax return with your state.
IRS: Closing your business with the IRS is a completely different process. You close your business at the time when you file your tax return. General rule is that business taxes are filed for a calendar year, until March 15th of the following year. So, if you are in July, you need to wait until the end of the year and file your Final tax return in January of the next year, until March 15th. This process applies to all situations, even if you ceased your business in February, you would need to wait all year, and in January file your final return. There are no additional fees to close your corporation with the IRS.
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It is possible, depends how much of the Federal taxes you paid from your form W2. Take a look at window number 2, from your form W2. However, at the end of the day, your final tax refund or amount due will depend on filling out your entire tax form and taking everything into consideration. It is difficult to know at first glance.
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YES and NO
General Rule:
If your child received a form W2, and gross/total income (see field number 1 from your form W2), is LESS than $6,350 for 2017, and $12,000 for 2018 your child DO NOT require to file taxes. If income is more that above mentioned amounts, your child is required to file taxes. These amounts can and do change year by year, check with us to see what the current year limitations are.
NO, do not require to file taxes.
If your child received a form W2, gross/total income is not more that $6,350 for 2017, $12,000 for 2018.
Next step, please check field two from your child's form W2 “Federal Income Tax Withheld”. In this field, you can find the amount of tax withheld. If the amount is zero, then your child is not entitled to any refund. If the amount is more than zero, then your child is likely entitled to a refund for that amount.
IF YES, your child earned more than the limitation amounts discussed above, then the child is required to file and pay taxes on their income.
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US is one of a few countries in the world that taxes you on your worldwide income. The rules are complicated and you should check with your tax preparer because every situation can be different. Factors such as citizenship, residency, primary or rental property sales, and foreign tax credits are going to have to be considered when determining if you owe any taxes.
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NO, If you do not have a US SSN (Social Security Number) you can’t receive a Tax ID personally in your name, but you may qualify for an ITIN, an Individual Taxpayer Number
The ITIN is a tax processing number only available for certain nonresident and resident aliens, their spouses, and dependents who cannot get a Social Security Number (SSN).
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YES, but the time of your arrival is important.
Depending on which time you arrived on time. An Individual Taxpayer Number is issued for paying taxes on earnings in the US. US taxes are paid from earnings earned during the calendar year (earnings received during the period from January 1 to December 31). If you received income in the previous calendar year, the Tax Office will issue you an ITIN number.
For example:
John arrived in the US in March and worked for several months. He will be able to apply to the IRS for the ITIN number only next year in January, when it will be time to fill out a tax report.
Saul arrived in the US in December and worked for 5 days. YES, he can apply for an ITIN number in January.
The reason for this ITIN rule is that you need to have earned income and have to submit a tax return in order to justify obtaining an ITIN number.
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YES and NO
YES
If you fill out documents with an agency that does not have a ITIN Acceptance Agent license, you will have to send your original passport to the IRS. You will receive your passport back in 6-8 weeks.
NO
If you complete documents with a licensed office, like ours, you will not need to send your original passport. Your passport will be assessed and certified by a notary at our office and a photo copy will be sent to the IRS for processing. In 6-8 weeks, you will receive your official ITIN number.
Our office is happy to assist you with this, we have all the necessary licenses for this procedure.
You can find our company’s license link directly from on the official IRS licensed ITIN agents website directory.
Our company name in the directory is under T.I.P Inc. and is located in Buffalo Grove, IL 60089.
https://www.irs.gov/individuals/international-taxpayers/acceptance-agents-llinois
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YES, January of 2017, the IRS introduced a rule requiring to update ITIN numbers. If you have an ITIN number and have not been filing and paying taxes for at least one of the last last three years, your ITIN number is considered expired, and you must complete the entire ITIN procedure from the start.
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YES,
Even if you do not have a SSN, you can still open a Corporation, but only a C-corporation. You will not be entitled to the tax benefits of having an S-corp.
In order to start your business without a SSN, you will need to incorporate your business and receive an EIN (Employer Identification Number) for your new corporation.
Call us (800) 913-0809 or email us: contact@unitedstatestaxservices.us for more information.
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When you register a business, your company must generally end in Corp. Inc. Co. or a number of other terms. These are simply abbreviations of the words Corporation or Incorporation.
It is simply a legal requirement, and choosing between these names has no substantive effect on your business. It simply does not make a difference. You are free to choose whichever abbreviation or ending you like for your new business.
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(All names are changed)
Important! You can correct your taxes for the last three years!
Clients Alice and Erik came to our office by a recommendation from their friend. For the last couple years they were using another accountant. Erik was telling Alice for a while that they need to look for a second opinion and they were glad they came to our office.
When we looked at their taxes, we immediately noticed that they were not signed by the accountant who prepared their taxes. It was sent to the IRS stating, that Alice and Erik did their taxes on their own. So, when we evaluated their taxes we found that Alice and Erik did not claim the biggest refund available for the Earned Income Credit. Alice and Erik have a child and did not receive a refund for two years. After we amended their returns, they received a check from the IRS for $4296.00
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(All names are changed)
Important! You can correct your taxes for the last three years!
My wife was telling me for a while to try another accountant. I googled, and your office came up the closest to my home, so I decided to try. This is what Mike told me when he came to our office. Mike and his spouse were doing their taxes with an old friend. When I looked at Mike’s taxes for the last three years I immediately noticed that he left money on the table for the IRS. Mike has a daughter, who is in college and had some income in those years as well. Mike supported his daughter 100%, and she lived in his home as well. The problem with their taxes was that their old accountant did not indicate that Mike supports his daughter, and that his daughter lives with Mike. After all our corrections, Mike received a check from the IRS for $3696.00. He was so upset that his friend did not do his taxes correctly and he was thankful to his wife who pushed him to look for another tax professional.
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(All names are changed)
Important! You can correct your taxes for the last three years!
I’m new in the country and did only one tax return for my business and my personal taxes. However, I did not like the accountant who prepared my taxes. She was rude to me and did not explain anything, can you please look into my taxes? This is how our meeting started with Sam.
When we analyzed Sam’s taxes we noticed that he has a Small Business Corporation. Next thing we noticed was that he had total income of $28000 and had only $2500 in expenses. Expenses included only his equipment purchases. This short look immediately caught our attention and we could see that his taxes must be amended. I asked him if he had a cell phone for his business, did he have a car, any repairs, a home office, office supplies, parking fees, and fees for tollways. He confirmed that of course he incurred all of these expenses! The next step was to calculate these expenses and amend his return. When the process was completed, Sam received a check from IRS for $5152! You can only imagine how excited he was!
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(All names are changed)
Important! You can correct your taxes for the last three years!
Maria and Kyle came to our office and brought their taxes for the last three years. Looking at them, I asked a question: Are you married? Yes, they answered. Next, question was when you get married, answer was 2 years ago. I was shocked when I looked at their tax return. On their tax return it was indicated that Maria is single. She told me a story about her accountant, and said he did not ask them any questions, did not give any advice or make any comments during tax return preparation. Just short questions, with yes and no answers.
So, in addition to the incorrect status claimed on their tax return, another error was recognized. Maria worked as self-employed and did not show a single expense on her tax return. In their words, she made $18000 a year, and did not claim a single dollar for her expenses. Maria paid taxes from total of $18000. We were able to correct her and Kyle’s taxes. As a result, they received a check from the IRS in the amount of $2569. This is a significant amount for a young family!
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(All names are changed)
Important! You can correct your taxes for the last three years!
Mark attended one of our seminars and heard something so important that he was not able to sleep that night. When you have a corporation, you need to do taxes for your corporation and your personal taxes as well. And it is understandable, he is new in the country and his tax professional who did his taxes for the last two years did not explain all of this. Mark was concerned that he did not have any documents for his corporation taxes, and he realized that he did not file a single tax return for his corporation. Penalties can be up to $2600 a year, just for not filing a corporation tax return. Now, Mark is in our office and we analyzed his taxes. He received a form 1099 for his corporation, and his prior accountant showed all corporation income on his personal tax returns for two years! When we converted and amended his personal tax return and moved all his income to a corporation, Mark received a check for $2180.00. Now he can relax, his corporation income is separate from his personal income and he filed his corporation tax return as required by the IRS.
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No, you won’t have problems. Your old mailing address does not have any effect on using checks if your bank account is still the same. The most important thing is to have money on your bank account. However, it is always a good idea to contact your bank and update your mailing address as soon as possible and request new checks as well.
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The definition of a home office under the Tax Cuts and Jobs Act is an exclusive place for your self-employment. This space must be the primary location for your business or a separate structure that you use for it.
The size of your company is not a requirement for eligibility. As long as you are operating within the scope of self-employment, then you can deduct the direct expenses which relate to your home office as you could in previous years. That includes any equipment, supplies, furniture, and maintenance expenses.
You are also eligible to continue deducting a portion of your expenses which relate to your home based on the amount of space that your office occupies. The Internal Revenue Service also offers a $5 per square foot claim for up to 300 square feet if you prefer to take the simplified deduction instead of tracking your expenses.
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If you are a work-at-home employee (W2), even if you have been working from home because that is what your employer wants, you are unable to deduct these expenses on your return.
Anyone who operates as a freelancer, independent contractor, or sole proprietor will typically stay eligible.
If you have any questions about your specific situation, then our team would be happy to help find the answers you need about your tax return. Contact us today with your concerns, and together we will make sure you can deduct the business expenses for which you qualify to file your taxes correctly.