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Tax Forms

Late Filing of Form 2553 and Payroll Tax Return Concerns

Asked Friday, September 12, 2025 by Wendy

I’m in the process of filing a late Form 2553, and as you know, the effective date must be retroactive to the beginning of the year. My main concern is how to handle the payroll tax returns, specifically Forms 941 and RT-6, since no wages have been paid and all returns would reflect zero liability. My question is: how would you recommend handling the 941s and RT-6 filings in this case to avoid penalties for the quarters that were missed, considering there was no payroll activity?

Business Formation

LLC Formation inquiry

Asked Tuesday, September 09, 2025 by Adam

Hello, I live in Illinois and plan to form a Wyoming LLC that will only sell digital software online worldwide. I will have no office, employees, or no business presence in Illinois as it is entirely digital, but since I live here, I want to confirm if I have to foreign qualify/register the LLC in Illinois, and which state taxes or other requirements would still apply to me personally.

Tax Filing Tips

Implications for Responsible party using SSN for filing with IRS for EIN/TIN

Asked Monday, September 08, 2025 by Charlie

We’ve set up a VA corp wholly owned by our UK parent. One US citizen officer (VP of Growth) could be listed as IRS responsible party to get EIN instantly, or we can file with a foreign director (slower). What are the implications for her if she’s the responsible party now and later removed via 8822-B? Any ongoing exposure/liability? Or if indeed she remains as responsible party and isn't removed? What are the implications if she leaves the business?

Tax Filing Tips

Sales Tax in Florida

Asked Monday, September 08, 2025 by Deidre

I am an independent author and want to sell my books at a local convention. How do I collect and then submit the sales tax?

Deductions and Write-Offs

HSA question

Asked Friday, September 05, 2025 by Adam

I've had an HSA since Feb '22. I'm over 55 and been making the maximum contribution. I've had no medical issues in this time and not spent any of the funds. I didn't realize I was supposed to leave unspent funds in the HSA account so at the end of each year I moved the accumulated funds to my general savings. Do you think I still received my tax credit for my yearly HSA savings? Is there a way to restore the 15k back into my HSA account for interest, investment, and other purposes?

Family Issues

Family member moved into our home

Asked Thursday, September 04, 2025 by Blake

My mother-in-law just moved in to our home; she has health issues and unable to care for herself now. She only has SS as income. We pay for all her needs. She wants to pay something to help out and contribute and not feel like a burden. We don't need her help but she insists. What is the best way to structure her giving us some money (ex. $500/M). Have been told if considered rent it would be taxable.

Tax Filing Tips

Tax Implications of Family Funding for EB-5 Visa

Asked Wednesday, September 03, 2025 by Abhishek

Hi All: I am trying to understand the tax implications around borrowing vs receiving as a gift, half a million dollars from my family (brother). I am exploring options to apply for an EB-5 visa and need $800,000 to do so. I am partially funding it through my savings, and the rest will be covered with help from my family. I want to understand what the most tax-efficient way of doing so is (both for my brother, who will be gifting the money, and me, who will be receiving it). Thank you, Best, Abh

Deductions and Write-Offs

Mileage

Asked Wednesday, September 03, 2025 by Heather

Hi! My company either pay for gas when I travel for site visits or mileage reimbursements. They said if I do the gas option I can claim my mileage on my taxes and get more money back verses having the company pay for my mileage. Which is better

Tax Forms

Gift tax on donor and receiver

Asked Friday, August 29, 2025 by Tianxue

If a donor writes me a $900,000 check and I deposit it into my personal bank account, do neither of us need to pay taxes? Does only the donor need to file a Form 709 with the IRS because the amount is below the $13.99 million lifetime exemption, so it won’t trigger any tax for the donor? Also, since this money is not considered income for the recipient, does that mean the receiver doesn’t need to report or pay taxes on it? Additionally, for a gift of this nature, is it better to have written doc

Retirement

How to fix an excess contribution to a SEP IRA

Asked Thursday, August 28, 2025 by Lisa

In '25, I contributed too much to my personal SEP IRA for '24. I had part of the excess recharacterized as a trad. IRA contrib for '25 and am using a form to withdraw the remaining excess. All seems clear except I have to choose a correction method- IRC404(h) or EPCRS. Which do I choose? What happens if I choose incorrectly? Will there be other documents or forms required later depending on my choice? (I filed for an extension for '24 taxes. I will not have any self-employment income in '25.)