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Offer in Compromise: How the IRS Settles Tax Debt for Less Than You Owe
10 min read
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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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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.
10 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.
10 min read
IRS & ComplianceIRS Representation in Miami: What an Enrolled Agent Does for You
IRS representation is when an authorized professional stands 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.
8 min read
Business FormationLLC vs S-Corp vs C-Corp for a Miami Small Business: How to 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.
9 min read
IRS & ComplianceHow to File Back Taxes and Unfiled Returns: A Guide to Getting Compliant
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.
10 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.
8 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, up to the 2026 annual additions ceiling. Here is how the moving parts fit together.
8 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.
10 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.
6 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.
9 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.
20 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 to avoid the underpayment penalty.
10 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.
9 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.
7 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.
8 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.
6 min read
Small BusinessSection 41 R&D Tax Credit: How Small Businesses Claim Qualified Research Expenses on Form 6765
The research credit under the Internal Revenue Code rewards US businesses for wages, supplies, and contractor fees paid on qualifying research activities. Qualified small businesses under $5 million in gross receipts can apply up to $500,000 against payroll taxes each year.
4 min read
Tax PlanningISO vs. NSO vs. RSU: How Employee Equity Awards Are Taxed
Incentive stock options, non-qualified stock options, and restricted stock units each create income at different times and at different rates. Here is what the IRS rules say about each award type.
4 min read
IndividualsForm 1040-NR: What Nonresident Aliens Must Know Before Filing
Nonresident aliens with U.S. source income must file Form 1040-NR rather than the standard Form 1040. Here is how the IRS defines nonresident alien status, what income triggers the return, and how effectively connected income and FDAP income are taxed differently.
4 min read
IRS & ComplianceTrust Fund Recovery Penalty: What Business Owners Must Know Before the IRS Acts
The IRS can hold a business owner personally liable for unpaid payroll taxes under the Trust Fund Recovery Penalty. Here is how the penalty is calculated, who qualifies as a responsible person, what willfulness means, and how to appeal.
4 min read
IRS & ComplianceForm 1099-NEC vs. 1099-MISC: Deadlines, Thresholds, and What Goes Where
Two different 1099 forms come with two different due dates. Misfiling a payment or missing the February or March cutoff can trigger IRS late-filing penalties. Here is how to get both forms right.
4 min read
Tax PlanningReal Estate Professional Status: The 750-Hour Test and Grouping Election Explained
Rental real estate is passive by default, so losses can only offset passive income. To qualify as a real estate professional, you must log more than 750 hours in real property trades and those hours must represent more than half of your personal services for the year.
4 min read
Small BusinessFlorida Sales Tax Registration: What Triggers the DR-1 Requirement
Any Florida business that makes taxable sales, admits customers for a fee, or rents property must register with the Department of Revenue before its first taxable transaction. The registration form is the Florida Business Tax Application, Form DR-1.
4 min read
IndividualsEarned Income Tax Credit 2025: Eligibility Rules and Maximum Credits for Miami Workers
The EITC for tax year 2025 reaches $8,046 for workers with three or more qualifying children. Eligibility turns on earned income, a valid Social Security number, and investment income below $11,950.
4 min read
International TaxFIRPTA Withholding on Foreign Sellers of U.S. Real Property: Rates, Exemptions, and Form 8288
When a foreign person sells U.S. real property, the buyer must withhold 15% of the amount realized and remit it to the IRS using Form 8288. Foreign sellers can reduce or eliminate that withholding by applying for a certificate on Form 8288-B.
4 min read
Small BusinessTax Guide for Content Creators: 1099-NEC, Schedule C, and Quarterly Payments
YouTube, Instagram, and TikTok creators who earn income from brand deals, ad revenue, or digital products are self-employed under IRS rules. Here is how to report that income, pay self-employment tax, and meet your quarterly obligations.
4 min read
Small BusinessSmall-Business Bookkeeping for Florida LLCs: What to Track and Why It Matters
Florida is home to over 3.5 million registered business entities. For South Florida small businesses that operate in Spanish, bilingual accounting keeps records compliant, deductions documented, and quarterly filings on schedule.
4 min read
Tax PlanningNet Investment Income Tax: How the 3.8 percent Surtax Applies to Dividends, Rent, and Capital Gains
The 3.8 percent Net Investment Income Tax applies when MAGI exceeds $200,000 for single filers or $250,000 for married filing jointly. Dividends, capital gains, rental income, and royalties can all count. Here is who owes it and how to report it on Form 8960.
4 min read
Small BusinessFlorida Economic Nexus: What Remote and E-Commerce Sellers Must Know About the $100,000 Threshold
Since July 1, 2021, Florida law requires out-of-state businesses with more than $100,000 in prior-year taxable remote sales to register, collect sales and use tax, and file electronically. Here is what remote and e-commerce sellers need to understand.
5 min read
Tax PlanningForm 709 and the $19,000 Gift Tax Annual Exclusion: A 2026 Guide
Form 709 explained: the 2026 IRS annual gift tax exclusion is $19,000 per recipient and the One Big Beautiful Bill set a $15,000,000 lifetime exemption.
4 min read
IRS & ComplianceIRS Audit Representation: What an Enrolled Agent Does for You
If the IRS selects your return for examination, you have the right to professional representation. An Enrolled Agent can respond to audit requests, handle document reviews, and appeal findings on your behalf.
4 min read
Small BusinessIndependent Contractor or Employee: How the IRS Common-Law Test Works
Misclassifying a worker as a contractor exposes your business to back employment taxes, interest, and penalties. Here is how the IRS three-factor framework applies, and what to do when the status is unclear.
4 min read
Tax PlanningSection 83(b) Election: File Within 30 Days to Lock In Your Restricted Stock Tax Basis
Founders and early employees who receive restricted stock subject to vesting can elect under Section 83(b) to pay tax on the grant-date value instead of the vested value. You have exactly 30 days from the transfer date to file with the IRS.
4 min read
Small BusinessWork Opportunity Tax Credit: A Small-Business Guide to WOTC Eligibility and Filing
The Work Opportunity Tax Credit lets employers reduce federal taxes by claiming a credit on wages paid to hires from ten targeted groups facing barriers to employment. Here is how WOTC works, who qualifies, and how to file Form 5884.
4 min read
Tax PlanningShort-Term Rental Material Participation: The 7-Day Rule for Nonpassive Losses
When a rental property's average guest stay is 7 days or less, the IRS treats it as a trade or business, not a passive rental activity. Meet any material participation test and the losses flow directly against wages and other ordinary income.
4 min read
IRS & ComplianceCP2000 Notice: What It Means and How to Respond
The IRS sends a CP2000 when third-party income data does not match your return. Learn what the notice means, the three response paths, and how to avoid escalating penalties.
4 min read
Tax PlanningSALT Cap Raised to $40,000: OBBBA 2025 Changes and the PTET Workaround
The One, Big, Beautiful Bill Act raises the SALT deduction cap to $40,000 for 2025, with a phase-out above $500,000 of income. The pass-through entity tax election remains a complementary strategy under Notice 2020-75.
4 min read
Tax PlanningNo Tax on Tips and No Tax on Overtime: 2025 Deductions Explained
The One, Big, Beautiful Bill Act adds two above-the-line deductions for 2025: up to $25,000 of qualified tips and up to $12,500 of qualified overtime pay. Here is who qualifies and how the phase-outs work.
4 min read
IndividualsTrump Accounts: The $1,000 Pilot Contribution and Who Qualifies
Trump Accounts are a new children's savings vehicle from the One, Big, Beautiful Bill Act. Eligible children born between Jan. 1, 2025, and Dec. 31, 2028, receive a $1,000 federal pilot contribution.
4 min read
IRS & ComplianceForm 1099-DIV Explained: The $10 Threshold for Dividend Reporting
Banks, brokerages, and small corporations file Form 1099-DIV when they pay shareholders $10 or more in dividends, or $600 or more in a liquidation. Here is what triggers it and what the boxes mean.
4 min read
IRS & ComplianceBOI Reporting After the 2025 FinCEN Rule: Who Still Files?
FinCEN's March 2025 interim final rule removed Beneficial Ownership Information reporting for US-formed entities and their owners. Foreign reporting companies still file, on new deadlines. Here is what changed and who must act.
4 min read
IRS & ComplianceERC Disallowance, Withdrawal, and the Form 907 Extension Path
If the IRS disallowed your Employee Retention Credit with Letter 105-C, you generally have two years from the date of that letter to appeal or sue. If your claim is still unprocessed, you may withdraw it. A new April 2026 process lets you extend the deadline with Form 907.
4 min read
International TaxFBAR vs Form 8938: Foreign Account Reporting Thresholds and Penalties
US persons whose foreign accounts together exceed $10,000 may owe FBAR. Those whose foreign financial assets exceed IRS thresholds starting at $50,000 may also owe Form 8938. The two forms can apply at the same time and one does not replace the other.
4 min read
International TaxForm 5471 and the $10,000 Penalty for US Owners of Foreign Corporations
If you are a US citizen or resident who is an officer, director, or 10 percent shareholder of a foreign corporation, Form 5471 may be required. The IRS charges $10,000 per missed filing, with continuing $10,000 penalties every 30 days after a 90-day notice.
4 min read
International TaxForm 5472 and the $25,000 Penalty for Foreign-Owned U.S. Corporations
If you own 25% or more of a U.S. corporation as a foreign shareholder, the IRS can assess a $25,000 penalty for a missed Form 5472. Here is what triggers it and how to file on time.
4 min read
IRS & ComplianceForm 8300: Reporting Cash Payments Over $10,000 to the IRS
Any trade or business that receives more than $10,000 in cash in one transaction or in related transactions must file Form 8300 within 15 days. The IRS made electronic filing mandatory effective January 1, 2024. Here is who files, when, and how.
4 min read
Tax PlanningQSBS Section 1202: How the Small Business Stock Gain Exclusion Works
Section 1202 lets eligible C-corp shareholders exclude part or all of the gain on qualified small business stock held for more than 5 years. The One Big Beautiful Bill raised the gross asset cap to $75 million.
4 min read
Small BusinessS-Corp Reasonable Compensation: IRS Rules and the Watson Case Standard
S-corporation shareholder-employees who perform more than minor services must be paid a reasonable salary subject to FICA, FUTA, and federal income tax withholding. Here is the IRS framework and the case law.
4 min read
Small BusinessForm 7203 Explained: S-Corporation Shareholder Stock and Debt Basis Limits
Form 7203 is the IRS workpaper that documents your S-corporation stock and debt basis when you claim losses, take distributions, dispose of stock, or receive a loan repayment. Here is how it works.
3 min read
Tax PlanningSection 174A and R&D Expensing in 2026: What the One Big Beautiful Bill Reversed
Public Law 119-21 brought back immediate expensing of domestic research costs. Section 174A applies to taxable years beginning after December 31, 2024, with a 60-month amortization election available.
3 min read
Tax Planning100% Bonus Depreciation and Section 179 in 2026: What the One Big Beautiful Bill Restored
Public Law 119-21 brought back the 100% first-year depreciation allowance for qualifying property placed in service after January 19, 2025. Section 179 also reset, with the 2026 expense ceiling at $2,560,000.
4 min read
IndividualsITIN Application in Miami: A 2026 Guide for Non-Resident Filers
An Individual Taxpayer Identification Number lets non-residents and immigrants file U.S. federal taxes without a Social Security number. Here is the 2026 process, processing time, and Miami options.
4 min read
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