Skip to main content

#tax-compliance

Tax Compliance

Stay compliant with tax regulations and filing requirements

1135 postsView all tagsBack to All Posts
11 min read

After ERC Voluntary Disclosure Program 2.0: How Small Businesses Can Still Fix Improper Claims in 2026

With the second ERC Voluntary Disclosure Program closed since November 2024, small businesses with overstated Employee Retention Credit claims still have three remedies in 2026: claim withdrawal, self-amendment via Form 941-X, or responding to an IRS recapture letter. The IRS has a six-year audit window open through April 15, 2027 for Q3 and Q4 2021 claims, plus a 20% accuracy-related penalty for erroneous refunds.

Mike Thrift

tax-compliancesmall-businesspayroll
13 min read

ESBT vs QSST: How Trusts Can Hold S-Corporation Stock Without Killing the S Election

A trust holding S-corporation stock must qualify as a QSST or ESBT under Section 1361 or the S election terminates retroactively. A QSST taxes pass-through income at the single beneficiary's personal rate; an ESBT permits multiple beneficiaries but traps S-portion income at the 37% top trust rate. The election deadline is two months and sixteen days from the triggering event.

Mike Thrift

s-corporationtrustestate-planning
12 min read

Form 6166 U.S. Residency Certification: How Businesses and Individuals Use Form 8802 to Slash Foreign Withholding on Royalties, Dividends, and Service Income

Form 6166 is the IRS-issued certificate of U.S. tax residency that unlocks reduced foreign withholding under bilateral tax treaties. Apply with Form 8802 — $85 for individuals, $185 for entities — and one filing covers unlimited countries and certificates, often saving five or six figures per cross-border contract.

Mike Thrift

international-taxtax-compliancetax-planning
12 min read

Form 6252 Installment Sales Under Section 453: Spreading Capital Gains and Avoiding the 453A Interest Charge

A practical walk-through of reporting installment sales on Form 6252 under IRC Section 453 — computing the gross profit percentage, why depreciation recapture is taxed in year one, the 453A interest charge on notes above the $5M aggregate threshold, the two-year related-party resale rule, and when electing out beats deferring gain.

Mike Thrift

taxtax-planningtax-compliance
14 min read

Form 8308 and Section 751 Hot Assets: Why Selling Your Partnership Interest Often Costs More Than You Think

Selling a partnership interest can convert expected capital gain into ordinary income under Section 751, raising the federal tax bill on the recharacterized slice from 23.8 percent to 37 percent. This guide explains Form 8308, hot-asset categories, the January 31 partner statement deadline, and what sellers, buyers, and partnership administrators need to do for 2025 and 2026 transfers.

Mike Thrift

partnershipstaxcapital-gains
15 min read

Form 8825 Demystified: How Partnerships and S-Corps Report Rental Real Estate Without Triggering an IRS Letter

Form 8825 consolidates partnership and S-corp rental real estate activity, with line 21 flowing to Schedule K-1 box 2 where each owner applies the passive activity loss rules under Section 469. The December 2025 revision splits gross rents from other rental income and adds Schedule A's twenty named expense categories for Schedule M-3 filers. Owners hit basis, at-risk, and passive walls in that order before a loss reaches Form 1040.

Mike Thrift

real-estatepartnershipss-corp
11 min read

Form 8865 Foreign Partnership Reporting: The Four Categories of Filers, the $10,000 Penalty, and How U.S. Persons Stay Off the IRS Radar

Form 8865 is the U.S. information return for foreign partnership interests, with $10,000 per-partnership per-year penalties for non-filing. This guide breaks down the four filer categories under Sections 6038, 6038B, and 6046A, the constructive ownership rules that catch most surprise penalties, and the schedules each category must include.

Mike Thrift

taxinternational-taxpartnerships
Start Free→Documentation