Unanswered Tax Questions

For federal tax purposes, how your LLC files depends on its classification. If you are the sole owner (a single-member LLC), it's typically treated as a "disregarded entity" by the IRS. This means its income and expenses are reported on your personal tax return, usually Schedule C (Form 1040) for business income, even if there are zero sales or income. If your LLC has multiple owners, it's generally classified as a partnership. Partnerships are required to file Form 1065, U.S. Return of Partnership Income, annually, regardless of whether they made sales or had income. Each partner receives a Schedule K-1 from the LLC to report their share of income/loss on their personal return. You would need an Employer Identification Number (EIN) if your LLC is a partnership or if you elected for it to be taxed as a corporation. Even single-member LLCs often obtain an EIN for banking or state purposes. Filing is mandatory even if you had no sales or income for the year, as this establishes your business's activity with the IRS. You should determine your LLC's federal classification to ensure proper reporting.

Based on the information provided, if you were physically present in North Carolina for 3 days for work-related activities and earned income during that time, that income is generally considered North Carolina source income. The fact that you received tax documents for North Carolina further suggests that your employer reported this income to the state. North Carolina generally requires non-residents to file a state income tax return if they have any North Carolina source income. There isn't a specific de minimis income threshold that would exempt you from filing if you earned income while physically present in the state. Therefore, it appears you should file a non-resident North Carolina income tax return to report the income earned while you were physically in the state.

Yes, you must file Form 5472 along with a pro forma Form 1120 for your foreign-owned disregarded DAO LLC. This requirement applies even if the entity has no U

Your concern regarding a reasonable salary for your single-member S-corp with $37,000 in 1099 income and no payroll is valid. The IRS expects S-corp owner-employees to take a reasonable salary for services provided, subject to FICA taxes, before taking distributions. Your exposure lies in the IRS reclassifying your direct transfers as wages. This

For state income tax withholding, you generally pay to the state where the employee performs their work. Since your employee lives and works entirely in the second state, you would typically withhold and remit income tax to that second state. Regarding state unemployment insurance (SUI), also known as State Unemployment Tax Act (SUTA), the general rule likewise points to the state where the services are performed. As your employee works remotely and performs all their duties in their resident state, you would typically register and pay SUI contributions to that state. This means you will likely need to register your business in the employee's state for both withholding and unemployment tax purposes.

You are correct that if your spouse was a nonresident alien and you do not elect to treat them as a resident, you can be considered unmarried for Head of Household purposes. However, for your daughter to be a qualifying child for Head of Household status, she must meet the residency test. This generally means she must be a U.S. citizen, U.S. national, or a resident of the U.S

Yes. A foreign-owned U.S. disregarded entity, such as your Wyoming SMLLC with an EIN, is required to file Form 5472, *Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business*. This form must be attached to a pro-forma Form 1120 (U.S. Corporation Income Tax Return). This requirement applies even if the entity is completely dormant, has no bank account, no income, no expenses, and no capital contributions. The existence of the entity and its foreign ownership trigger the reporting obligation.

For Box 15 of your employee's W-2, you must enter your state employer identification number for each state where you paid wages and state unemployment insurance (UI) taxes.

Thank you for reaching out regarding Form 5472. I understand its complexity. My scope is limited to answering tax questions directly related to tax law and regulations. Therefore, I cannot provide information regarding pricing or specific service offerings for completing forms. My role is to address questions about tax principles, rules, and their application. For assistance with filing this form, you would typically need to engage with a tax professional who offers completion services.

The additional standard deduction for being over 65 is factored into your total standard deduction amount when you prepare your tax return. It is not an amount the IRS adds after you submit. You should calculate your total standard deduction, which includes both the basic standard deduction and any additional amounts for age or blindness, before determining your taxable income and final tax liability. The payment you make should be based on the tax due after all eligible deductions and credits have been correctly applied and calculated on your submitted return. Therefore, if your calculations show a $41 liability after properly including the additional deduction, that is the amount to pay.