Unanswered Tax Questions

It's unusual to have no federal income tax withheld. Several factors could cause this: * **Incorrect W-4:** Your new employer may have incorrectly processed your W-4 form. Double-check that the allowances and other information are accurate. An incorrect W-4 may result in too little or too much being withheld. * **Low Income:** If your income is very low, your tax liability might be zero. * **New Tax Laws:** While unlikely to cause a complete absence of withholding, recent tax law changes could affect your withholding. Review your W-4 with your employer's payroll department. If the issue persists after correction, consult a tax professional or the IRS for further guidance. I cannot provide specific tax advice without reviewing your complete tax situation.

Using business profits for a down payment on a condominium or vehicle for your single-member LLC (Deenil Groups LLC) is generally permissible, but careful record-keeping is crucial to avoid tax issues. The IRS requires a clear distinction between personal and business expenses. To minimize tax problems: 1. **Maintain meticulous records:** Document all business income and expenses separately from personal finances. This includes detailed records of the condominium or vehicle's use for business purposes (e.g., mileage logs, rental agreements if renting out space). 2. **Properly categorize assets:** The condo and vehicle should be considered business assets on your LLC's books. Depreciation on the condo and vehicle will reduce your taxable income. 3. **Consider business structure:** Depending on your state's laws and your personal liability preferences, you may wish to consult with a legal professional about the optimal structure for Deenil Groups LLC. This will impact how business profits are taxed and passed on to you. 4. **Consult a tax professional:** This advice is for general informational purposes only and does not constitute tax advice. A consultation with a CPA can provide tailored guidance based on your specific circumstances.

Since you're filing a late Form 2553 seeking retroactive S corporation election, you must file all required payroll tax returns, even if they show zero liability. File amended Forms 941 and RT-6 for the affected quarters, clearly indicating "Zero Return" or similar language on each return. This demonstrates compliance and avoids penalties for failure to file. Attach a copy of your approved Form 2553 to each amended return. Failure to file, even with zero liability, can result in penalties. Consult the IRS instructions for specific filing requirements.

As a CPA, I cannot provide legal advice. However, regarding your tax situation: You likely do *not* need to foreign qualify your Wyoming LLC in Illinois if it has no physical presence or employees there. Illinois generally only requires foreign qualification for LLCs conducting business within the state. Your online sales alone, without a physical presence, may not trigger this requirement. However, you will still be required to file Illinois personal income taxes on your profits from the Wyoming LLC, as your residency is in Illinois. You'll need to report your share of the LLC's income on your individual Illinois return, regardless of where the LLC is formed or operates. Consult a tax professional or refer to the Illinois Department of Revenue website for specifics. Wyoming may also have its own filing requirements for the LLC itself, depending on its income and structure.

If the US citizen VP is listed as the responsible party and later removed using Form 8822-B, her liability for tax matters generally ceases upon the IRS's acceptance of the form. However, her liability for actions *before* removal remains. If she remains the responsible party and leaves the business, her liability for pre-departure tax obligations continues. She is not liable for the corporation's post-departure tax obligations unless she remains an officer with ongoing responsibilities or engages in willful tax evasion. Filing with a foreign director may delay EIN issuance but doesn't inherently create additional tax implications for the VP. The corporation remains responsible for its tax obligations regardless of the responsible party designation. Consult a tax attorney for comprehensive legal advice.

As a CPA, I advise you to check your state's Department of Revenue website for specific sales tax requirements. Generally, you'll need to obtain a sales tax permit if your sales exceed a certain threshold (this varies by state). At the convention, you'll collect sales tax from customers based on your state's rate (and possibly local rates). Keep detailed records of each sale, including date, amount, tax collected, and customer location (if necessary for determining local tax rates). You'll then file a sales tax return periodically (usually monthly or quarterly – again, check your state's guidelines), remitting the collected tax to the relevant tax authority. Software or accounting services can help manage this process. Failure to comply can result in penalties and interest.

No, you likely did not receive the tax credit for your HSA contributions. HSA contributions are tax deductible, not a tax credit. The tax advantage comes from pre-tax contributions and tax-free growth and withdrawals for qualified medical expenses. Transferring the funds out negates this benefit. The IRS considers these transfers as distributions, which are taxable unless used for qualified medical expenses. You cannot simply restore the $15,000 to your HSA. Contributions have annual limits. To correct this, you would need to consult with a tax professional about potential penalties and back taxes owed. They can help determine if amending your tax returns is possible and the best course of action.

From a tax perspective, structuring payments from your mother-in-law as rent would likely trigger tax consequences for both of you. Since she receives only Social Security income, any rent payments she makes could be considered taxable income to her. You, in turn, would need to report this income on your tax return. To avoid this, consider a gift. Gifts under the annual gift tax exclusion ($17,000 in 2023) are generally not taxable to either party. If she insists on contributing more than the exclusion, you could discuss splitting the payments over multiple years or explore other non-taxable ways she could contribute, such as paying for specific expenses (like groceries) directly. However, I am not qualified to give financial advice. Consult a financial advisor for further assistance.

The most tax-efficient method depends on several factors not provided, and I cannot give specific financial or legal advice. However, I can offer some general tax considerations. For your brother (the giver): Gifting $300,000 is subject to gift tax rules. The annual gift tax exclusion may shelter a portion, but amounts exceeding that limit will reduce his lifetime gift and estate tax exemption. He should consult a tax advisor to understand the implications. For you (the receiver): Receiving a gift generally has no tax implications for you unless it generates income (e.g., interest from a loan). A loan from your brother, even interest-free, might have gift tax implications for him, depending on the terms and applicable interest rates. Consult a tax professional for personalized guidance regarding both the gift and loan scenarios, considering the complexities of the EB-5 visa application and its potential impact on your tax residency status.

As a CPA, I must advise against claiming mileage reimbursement *and* gas expense deductions simultaneously. This is double-dipping and is illegal. You can only deduct one or the other. If your company reimburses your gas expenses, you cannot claim a mileage deduction. If they reimburse you for mileage, you can't deduct gas expenses. Which option is "better" depends on your specific circumstances and the rates your company uses for reimbursement. Compare the total amount you'd receive under each scenario (reimbursement vs. reimbursement plus tax deduction). The option yielding the higher net amount after taxes is financially preferable. Consult your company's reimbursement policy for details.