Insights
Source-cited answers for individuals and businesses.
Plain-language explainers on IRS forms, Florida tax rules, ITINs, and business formation for the individuals and businesses we serve across Miami and far beyond, including internationally. Every claim links back to its primary source.
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IRS & ComplianceLetter 147C: How to Get IRS Written Verification of Your EIN
A bank, payroll provider, or withholding agent commonly asks for written IRS verification of your EIN before opening the account or releasing a payment. Here is how to request Letter 147C, why the lost CP 575 is not your only path, and what a foreign owner should ask for.
13 min read
IRS & ComplianceForm 990 vs 990-EZ vs 990-N: $50,000 and $200,000 Nonprofit Thresholds
Most tax-exempt organizations file annually. Which return depends on gross receipts and total assets: $50,000 for the 990-N e-Postcard, $200,000 and $500,000 for 990-EZ, otherwise the full Form 990.
11 min read
Tax PlanningSection 121 Home Sale Exclusion: $250,000 and $500,000 Rules
Section 121 lets a homeowner exclude up to $250,000 of gain (or $500,000 on a joint return) when selling a main home. The 2-of-5-year ownership and use tests unlock the tax-free treatment, and any depreciation claimed after May 6, 1997 stays taxable.
13 min read
Small BusinessSection 168(n) Qualified Production Property: 100% First-Year Depreciation on New Factories
Section 168(n), added by the One Big Beautiful Bill Act, lets a manufacturer, refiner, or agricultural producer elect a 100 percent first-year depreciation deduction on qualified production property placed in service after July 4, 2025, and before January 1, 2031.
15 min read
IRS & ComplianceForm 8822-B: 60 Days to Change the Responsible Party on Your EIN
Every business with an EIN carries a named responsible party on file at the IRS, and when the person changes the entity has 60 days to file Form 8822-B. Here is who has to file, what triggers it, and what the deadline actually means.
15 min read
Small BusinessSaaS Sales Tax by State: How Florida Treats Software as a Service
Sales tax on software as a service depends on the state. Florida's 6% base taxes sales, admissions, storage, rentals, and a short list of enumerated services. Remote SaaS sellers still trip Florida's $100,000 economic nexus once they invoice into the state.
14 min read
IndividualsITIN vs SSN vs EIN: Which Taxpayer ID Number Do You Need?
An ITIN, an SSN, and an EIN answer three different questions. Here is what each 9-digit number does, who is allowed to hold one, when a business needs both a personal number and an EIN, and how the numbers change when you finally receive an SSN.
14 min read
Small BusinessSECURE 2.0 Auto-Enrollment: Which New 401(k) Plans Must Enroll Employees
SECURE 2.0 Act section 414A requires most 401(k) and 403(b) plans established after December 29, 2022 to automatically enroll employees at 3 percent, effective for plan years beginning after December 31, 2024. Plans of new and small businesses are exempt.
13 min read
Small BusinessFICA Tip Credit: Section 45B Now Reaches Salons and Barbershops
Restaurants have claimed the Section 45B FICA tip credit for years, and it now extends to barbering, nail care, and spa services. Here is what qualifies, why service charges do not, and how tip reporting drives the credit.
11 min read
International TaxGILTI and Controlled Foreign Corporation Rules for Miami Immigrant Owners
Miami immigrants who own at least 10% of a foreign corporation may become US shareholders of a CFC, triggering GILTI income inclusion, Form 5471 filing, and FATCA reporting on Form 8938. Here is how the rules work.
11 min read
Small BusinessUber and Lyft Driver Recordkeeping in Florida: What the IRS Actually Wants
Rideshare income is self-employment income, and the deductions worth thousands ride on records the driver has to build. Here is what to log, what to keep, and how the IRS reads the file.
12 min read
IRS & ComplianceOffer in Compromise: How the IRS Settles Tax Debt for Less Than You Owe
An offer in compromise lets you settle federal tax debt for less than the full amount you owe. Here is who qualifies, what the $205 fee and initial payment cover, and how the IRS decides.
12 min read
Tax PlanningPassive Activity Loss Rules: The $25,000 Rental Real Estate Special Allowance
Rental real estate losses are passive by default and can only offset passive income. A special $25,000 allowance lets active-participation landlords deduct losses against wages, but it phases out between $100,000 and $150,000 of modified adjusted gross income.
11 min read
Business FormationForm 2553 Deadline: How to Elect S Corporation Status and File on Time
Form 2553 elects S corporation status under section 1362(a). File it within 2 months and 15 days of the start of the tax year the election is to cover, or use the 3-year-and-75-day late-election window under Rev. Proc. 2013-30.
11 min read
IRS & ComplianceForm 2848 Power of Attorney: What an Enrolled Agent Does for You
Form 2848 is the Power of Attorney that lets an authorized representative stand in for you before the IRS on audits, notices, collection cases, and unfiled returns. Here is what an Enrolled Agent can do and when to bring one in.
10 min read
Business FormationS-Corp vs LLC vs C-Corp: How a Miami Owner Should Choose
A Florida LLC is a legal entity you form with Sunbiz. An S corporation and a C corporation are federal tax classifications the IRS applies to that entity. Here is how the three fit together for a Miami owner.
11 min read
IRS & ComplianceHow to File Back Taxes and Unfiled Returns When You Owe the IRS
Unfiled tax returns turn into IRS notices, lost refunds, and personal collection. Here is how to file the missing years, protect refunds within the 3 year window, and choose between an installment plan and an offer in compromise.
12 min read
Small BusinessForm SS-8: How to Request an IRS Worker Classification Determination
Form SS-8 lets a business or a worker ask the IRS to formally decide whether services are those of an employee or an independent contractor. Here is how the form works, what the IRS looks at, and how long a determination takes.
9 min read
Tax PlanningSolo 401(k) Mega Backdoor Roth 2026: Limits, Rules, and How It Works
A self-employed filer with a Solo 401(k) can push after-tax dollars into a Roth account beyond the $24,500 elective deferral limit and up to the 2026 annual additions ceiling. Here is how the moving parts fit together.
11 min read
IndividualsClergy Housing Allowance: What Ministers Can Exclude and How to Designate It
A minister can exclude a church-owned parsonage, or a cash housing allowance designated in writing before payment, from federal income tax. The exclusion cannot exceed reasonable compensation and does not remove the amount from self-employment tax.
12 min read
Tax PlanningFederal Estate Tax in 2026: The $15,000,000 Filing Threshold, Form 706, and Portability
For decedents dying in 2026, the federal estate tax filing threshold rises to $15,000,000. Here is how the exemption works, when Form 706 is required, and how the portability election protects a surviving spouse.
10 min read
Business FormationForm W-8 BEN vs Form W-8 BEN-E: The Right W-8 for a Foreign LLC Owner
A U.S. withholding agent needs a Form W-8 before paying a foreign person. Foreign individuals sign Form W-8 BEN; foreign entities sign Form W-8 BEN-E. Which one applies to a foreign-owned Florida LLC depends on the beneficial owner and the LLC's tax classification.
11 min read
Tax PlanningPrediction Market Taxes: How Kalshi and Polymarket Event Contracts Are Taxed in 2026
No IRS ruling, regulation, or notice addresses event contracts by name, so Kalshi and Polymarket traders pick a characterization without guidance. Here is what the Code says, where the real arguments are, and why the 90 percent wagering loss limit makes 2026 the year it matters.
24 min read
Small BusinessEstimated Quarterly Taxes for Self-Employed Workers in Miami: IRS Rules Explained
Freelancers, sole proprietors, and partners who work for themselves in Miami must pay income and self-employment tax as they earn it. Here is who owes estimated tax, how the four payment periods work, and how Form 2210 figures the underpayment penalty.
11 min read
Tax PlanningReal Estate Investor Tax Guide: How Passive Rules, Material Participation, and the Home Sale Exclusion Fit Together
Rental real estate is passive by default, so losses can only offset passive income. Real estate professional status, active participation, short-term rental treatment, and Section 121 each change that answer. Here is how the framework fits together.
11 min read
Tax PlanningOne Big Beautiful Bill Tax Guide: The 2026 Provisions That Actually Change Business and Family Filings
The One Big Beautiful Bill Act restored 100 percent first-year depreciation for property placed in service after Jan. 19, 2025, revived immediate expensing of domestic research costs, and reset the Section 179 caps for 2025 and 2026.
9 min read
Small BusinessFlorida Small Business Tax Setup: State Filings and Registrations Every New Owner Should Know
After you form a Florida entity, the paperwork just starts. Here is how the Sunbiz filings, the Florida Department of Revenue sales tax registration, and ongoing state deadlines fit together for a new small business.
10 min read
International TaxForeign-Owned U.S. Business Tax Reporting: The Forms and Penalties to Know
A foreign-owned U.S. business often owes information returns like Form 5471, Form 5472, the FBAR, and FIRPTA withholding, each with its own steep penalty. Here is how these cross-border filings fit together and who must file them.
7 min read
Small BusinessSection 41 R&D Credit on Form 6765: $500,000 Payroll Offset and Section G Rules
The Section 41 research credit is worth 20% of qualifying research spending above a base amount, or 15.8% with the Section 280C election. Covers the four-part test, the $500,000 payroll tax offset, and Section G reporting for tax years beginning after 2025.
14 min read
Tax PlanningISO vs. NSO vs. RSU Taxes: Exercise, Vesting, AMT and Sale Rules
Incentive stock options, non-qualified options and restricted stock units each create income at a different moment and in a different character. Here is when each one hits your return, how the AMT adjustment works, and where employers report the amounts.
15 min read
IndividualsForm 1040-NR: Who Must File, When It Is Due, and the 30 Percent FDAP Rate
Nonresident aliens with U.S. source income file Form 1040-NR, not Form 1040. Effectively connected income is taxed at graduated rates, FDAP income at a flat 30 percent, and the standard deduction is off the table. Here are the triggers, the due dates, and the traps.
15 min read
IRS & ComplianceTrust Fund Recovery Penalty: When Unpaid Payroll Tax Becomes Personal
The IRS can move unpaid payroll trust fund taxes onto you personally. Here is who counts as a responsible person, what willfulness means, how the penalty is computed, and the 60 day window to appeal a proposed assessment.
14 min read
IRS & Compliance1099-NEC vs 1099-MISC: 2026 Deadlines and the $2,000 Threshold
Form 1099-NEC is due February 2, 2026, while Form 1099-MISC runs to March 2 or March 31, 2026. The reporting threshold also jumps from $600 to $2,000 for payments made in 2026. Here is what changes and what does not.
15 min read
Tax PlanningReal Estate Professional Status: 750 Hours, Half Your Time, and Grouping
Rental losses are passive by default. Real estate professional status takes more than 750 hours in real property trades or businesses plus more than half of all your personal services, and you must still materially participate in each rental activity.
16 min read
Small BusinessFlorida Sales Tax Registration: Form DR-1 Rules, Deadlines, and Penalties
Florida requires registration with the Department of Revenue before your first taxable sale, admission, storage, or rental. Form DR-1 opens the dealer account, every location registers separately, and returns are late after the 20th with a 10% penalty.
16 min read
IndividualsEarned Income Tax Credit: Who Qualifies for Tax Year 2025
Eligibility for the Earned Income Tax Credit turns on earned income, a valid Social Security number by your return due date, and investment income of $11,950 or less. For tax year 2025 the credit reaches $8,046 with three or more qualifying children.
16 min read
International TaxFIRPTA Withholding Rules for Foreign Sellers: 15%, Form 8288, and the $300,000 Exemption
A foreign person selling U.S. real property triggers FIRPTA: the buyer must withhold 15% of the amount realized and report it on Form 8288. A residence purchase of $300,000 or less is exempt, and Form 8288-B can cut the withholding before closing.
15 min read
Small BusinessContent Creator Taxes: The $400 Filing Rule, 1099-NEC, and Schedule C
YouTube, TikTok, and Instagram creators become self-employed the moment net earnings reach $400. Here is how brand deals, ad revenue, and gifted product land on Schedule C, how self-employment tax is figured, and when quarterly payments start.
14 min read
Small BusinessFlorida LLC Bookkeeping in Spanish and English: What Records to Keep
Florida has over 3.5 million registered business entities. Here is what a Florida LLC should keep in its books, which state and federal records belong in the file, and how bilingual bookkeeping cuts the errors that surface at filing time.
15 min read
Tax PlanningNet Investment Income Tax: Who Owes the 3.8 Percent Surtax on Dividends, Rent, and Capital Gains
The 3.8 percent Net Investment Income Tax hits once MAGI passes $200,000 single or $250,000 married filing jointly. Interest, dividends, capital gains, rent, and royalties count; wages do not. Here is how the lesser-of math works and how to report it on Form 8960.
15 min read
Small BusinessFlorida Economic Nexus: The $100,000 Remote Seller Threshold
Florida economic nexus explained: an out-of-state seller with more than $100,000 in taxable remote sales in the prior calendar year must register, collect the 6% state rate plus county surtax, and file electronically.
15 min read
Tax PlanningForm 709: When You Must File a Gift Tax Return for 2026
A gift over the annual exclusion means a Form 709 is due, even when no tax is owed. Here is who files for 2026, how the $19,000 per recipient exclusion works, and how reportable gifts draw down the $15,000,000 lifetime exclusion.
13 min read
IRS & ComplianceIRS Audit Representation: An Enrolled Agent Answers the IRS for You
An Enrolled Agent can act for you at every stage of an IRS examination: reading the notice, assembling the records, holding the deadline, and taking a disagreed result to Appeals. Here is how an audit runs from the first letter to the closing.
16 min read
Small BusinessIndependent Contractor vs Employee: The IRS Three-Factor Test and Section 530 Relief
The IRS weighs behavioral control, financial control, and the type of relationship. Get it wrong with no reasonable basis and your business owes the employment taxes it never withheld, plus interest. Here is how the test works and how Section 530 relief is earned.
14 min read
Tax PlanningSection 83(b) Election: Form 15620 and the 30-Day Restricted Stock Deadline
A Section 83(b) election taxes restricted stock at its transfer-date value instead of the higher vested value, but only if you file Form 15620 or a signed written statement within 30 days. Here is what it covers and who cannot use it.
14 min read
Small BusinessWork Opportunity Tax Credit in 2026: WOTC Expired for Hires Starting After 2025
The Work Opportunity Tax Credit is authorized only for workers who begin work on or before December 31, 2025. Employers can still certify qualifying 2025 hires, claim the credit on Form 5884, and carry unused credit forward.
17 min read
Tax PlanningShort-Term Rental Loophole: 7-Day Rule, 100 and 500 Hour Tests
A short-term rental with an average guest stay of 7 days or less is not a rental activity under the IRS passive activity rules, so meeting one material participation test turns the loss nonpassive against wages.
16 min read
IRS & ComplianceCP2000 Notice: 3 Response Options for Mismatched 1099 Income
A CP2000 notice means the income data the IRS received from third parties does not match your return. Learn what the notice is, the three ways to reply, how to send your response, and what silence costs you.
14 min read
Tax PlanningSALT Cap $40,000 for 2025: Why PTET Elections Still Matter for Multistate Owners
The itemized SALT deduction limit is $40,000 for tax year 2025 ($20,000 if married filing separately), reduced above $500,000 of modified AGI. Here is how a pass-through entity tax election still fits for multistate partners and S corporation shareholders.
13 min read
Tax PlanningNo Tax on Tips and Overtime: 2025 Deductions of $25,000 and $12,500
The One, Big, Beautiful Bill Act created two deductions starting with tax year 2025: up to $25,000 of qualified tips and up to $12,500 of qualified overtime, or $25,000 on a joint return. Both phase out above $150,000 of modified adjusted gross income.
14 min read
IndividualsTrump Accounts: $1,000 Pilot Contribution and Who Qualifies in 2026
Trump Accounts are traditional IRAs opened for children. Treasury makes a one-time $1,000 pilot contribution for an eligible child born in calendar year 2025, 2026, 2027, or 2028. Here is who qualifies and how the election works.
13 min read
IRS & ComplianceForm 1099-DIV Thresholds: $10 for Dividends, $600 for Liquidations
A payer files Form 1099-DIV for each person paid $10 or more in dividends, or $600 or more in a liquidation. See every filing trigger, what each box reports, and how the qualified dividend holding period works.
14 min read
IRS & ComplianceBOI Reporting: Only Foreign Companies Still File With FinCEN
FinCEN's March 2025 interim final rule ended Beneficial Ownership Information reporting for every entity created in the United States. Only foreign-formed companies registered to do business in a US state still file, and new registrants get 30 calendar days.
13 min read
IRS & ComplianceERC Disallowance: Two Years to Appeal Letter 105-C, Plus Form 907
The IRS disallows an Employee Retention Credit on Letter 105-C or 106-C, and you get two years to resolve the claim or file suit. Since April 27, 2026, a Form 907 request through the Document Upload Tool can extend that window.
15 min read
International TaxFBAR vs Form 8938: $10,000 and $50,000 Thresholds, Deadlines, Penalties
The FBAR is due once your foreign accounts top $10,000 combined at any point in the year. Form 8938 starts at $50,000 and rides your tax return. Many filers owe one, some owe both, and missing either is expensive.
17 min read
International TaxForm 5471: Who Must File, the Categories, and the $10,000 Penalty
US officers, directors, and 10 percent shareholders of a foreign corporation file Form 5471 with their income tax return. Missing it costs $10,000 per corporation per year, plus $10,000 for every 30 day period after a 90 day IRS notice, capped at $50,000.
17 min read
International TaxForm 5472: Who Must File and Why the $25,000 Penalty Repeats
The IRS assesses $25,000 when a reporting corporation misses Form 5472, then another $25,000 for each 30-day period after the 90-day notice window. Who files, what counts as reportable, and how the deadline works.
14 min read
IRS & ComplianceForm 8300: Report Cash Payments Over $10,000 Within 15 Days
Any trade or business that receives more than $10,000 in cash in one or related transactions must file Form 8300 within 15 days, notify the payer by January 31, and e-file once it files 10 other information returns.
14 min read
Tax PlanningQSBS Section 1202: Exclude Up to 100% of Gain on C Corp Stock
Section 1202 lets shareholders of a domestic C corporation exclude qualified small business stock gain. The gross asset ceiling is $75 million for stock issued after July 4, 2025, and $50 million for stock issued on or before that date.
14 min read
Small BusinessS-Corp Reasonable Compensation: 7 Court Cases the IRS Cites
S-corp shareholder-employees who perform more than minor services must be paid a reasonable salary subject to FICA, FUTA, and income tax withholding. Here is the IRS rule, the Watson standard, and the seven decisions the agency cites.
15 min read
Small BusinessForm 7203: Who Must File and How S-Corp Basis Limits Losses
Form 7203 is the S corporation shareholder basis workpaper. Four events require it, stock basis and debt basis are tracked separately, and losses above your combined basis are suspended and carried forward indefinitely.
15 min read
Tax PlanningSection 174A: Domestic R&D Expensing Is Back for Tax Years After 2024
Section 174A restored immediate expensing of domestic research or experimental costs for tax years beginning after December 31, 2024. A 60-month amortization election is available, and foreign research stays on a 15-year track.
12 min read
Tax Planning100% Bonus Depreciation Is Permanent: 2026 Section 179 Cap $2,560,000
Public Law 119-21 made the 100% first year deduction permanent for qualified property acquired after January 19, 2025, and set the 2026 Section 179 cap at $2,560,000 with the phase down starting at $4,090,000.
15 min read
IndividualsForm W-7: How to Apply for an ITIN in Miami and Renew It
An ITIN lets a non-resident or immigrant file U.S. federal taxes without a Social Security number. Here is who qualifies, what the Form W-7 package has to carry, how long the IRS takes, and what an ITIN will never do for you.
14 min read
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