I've been doing my small business taxes for about 5 years now, and here's a practical tip: keep very clear records separating your different types of inventory and supplies throughout the year. I use a spreadsheet with columns for: - Finished products I buy for resale (PURCHASES) - Raw materials for products I make (MATERIALS & SUPPLIES) - Packaging materials (SHIPPING SUPPLIES) - General business expenses (separate from COGS) Makes tax time way easier when everything is already categorized correctly!

Don't forget that your inventory method also matters! If you're using the accrual method, you need to count your remaining inventory at the end of the year and subtract that value from your COGS. So if you bought $5000 in supplies but have $1000 worth left at year end, your actual COGS would be $4000.

I've been following this thread as someone who recently completed the EIN application process for my Hungarian Kft., and I wanted to add a few observations that might help future applicants. First, the C-Corporation designation advice here is absolutely correct - I can confirm this worked perfectly for my Hungarian limited company. The IRS processed it without any questions or delays. One thing I'd add that I haven't seen mentioned: if you're applying during peak tax season (January-April), expect longer processing times. I submitted my SS-4 in March and it took nearly 4 weeks instead of the typical 2-3 weeks others have reported. The IRS international line confirmed this was due to higher application volumes during tax season. Also, regarding the international fax number (+1-304-707-9471), I recommend calling your fax service provider first to confirm they can send to US numbers. Some European fax services have restrictions on international transmissions that I discovered the hard way after my first attempt failed. For anyone still on the fence about those callback services mentioned earlier - I was initially skeptical but ended up using Claimyr when I needed to check my application status. It genuinely worked as described and saved me hours of frustration trying to get through on my own. The key takeaway is that this process is very manageable once you know the right steps. European limited companies should confidently select C-Corporation, use "Banking purpose" if that's your intent, and be patient with processing times. This community's collective experience makes it much easier for newcomers to navigate successfully.

This has been an incredibly thorough and helpful thread! I'm preparing to apply for an EIN for my Swiss GmbH and this collective wisdom has answered virtually every question I had. The consistency across all European limited company types is remarkable - whether it's Belgian, German, Romanian, Hungarian, or any other EU limited liability structure, the C-Corporation designation seems to be the universal solution. This gives me complete confidence moving forward. A few key takeaways I'm noting from everyone's experiences: - Use "Banking purpose" if that's your actual reason (not "Started new business" for existing companies) - Format addresses clearly with country name in caps - Use personal name as responsible party rather than company name - International fax number: +1-304-707-9471 - Expect 2-4 weeks processing time (longer during tax season) - Keep company registration docs handy but they likely won't be requested For anyone still reading this thread in the future, this is basically a complete playbook for European companies getting US EINs. The community knowledge here is invaluable and could save hours of research and potential mistakes. Thanks to everyone who shared their real experiences - this is exactly the kind of practical guidance that makes these bureaucratic processes manageable!

I went through this exact same situation a couple years ago when I started taking personal finance seriously! That initial shock of seeing your refund drop is really jarring, but you're absolutely making the right financial moves. One thing that helped me was thinking about it differently - that $520 difference in your refund represents roughly $2,364 in interest income you earned (assuming you're in the 22% bracket). So even after taxes, you still came out ahead by about $1,844 compared to keeping that money in a regular checking account earning nothing! For next year, I'd recommend starting with the IRS Tax Withholding Estimator in January to get a baseline, then checking it again around June when you have a clearer picture of your actual interest earnings. Interest rates can change throughout the year, so your projections might need adjusting. Also consider that if your savings continue to grow (which sounds like the plan!), your interest income will keep increasing, so you'll want to revisit your withholding annually. The key is just staying on top of it rather than letting it surprise you again. You've got this!

This is exactly what happened to me when I first opened my HYSA! The key thing to remember is that you're still way ahead financially - that $520 reduction in your refund likely represents around $2,300+ in interest income you earned (depending on your tax bracket), so you netted roughly $1,800 more than if you'd kept it in a regular savings account. For withholding adjustments, I'd recommend using the IRS Tax Withholding Estimator tool mid-year once you have a better sense of your actual interest earnings. HYSA rates can fluctuate, so your January estimate might be off by year-end. A simple approach: take your current quarterly interest earnings, multiply by 4 to get an annual estimate, then multiply that by your marginal tax rate (probably 22% based on your situation) to see how much extra tax you'll owe. Divide that by your number of paychecks per year and add that amount to line 4(c) on your W-4. Don't let this discourage you from the HYSA - it's still the smart move! You're just learning how to manage the tax side of building wealth, which is a good problem to have.

One creative approach worth exploring - have you considered doing a partial stock sale for certain assets and an asset sale for others? We did this with our manufacturing business. Sold some specialized equipment as assets (buyer wanted the depreciation) but did a stock transaction for the real estate holding portion. Saved a bundle on taxes without scaring away the buyer.

Great question about the tax implications! One thing I'd add to the excellent advice already given is to make sure you understand how your S-Corp's accumulated adjustments account (AAA) and any accumulated earnings and profits (AE&P) from prior C-Corp years will be affected by the asset sale. When the S-Corp recognizes gain from the asset sale, it increases the AAA, which then flows through to you as shareholders. This can actually be beneficial because it increases your stock basis, which might help offset some of the tax impact when you eventually liquidate the S-Corp after the sale. Also, since you mentioned installment payments over 5 years, consider whether you want to make a Section 338(h)(10) election if the buyer is willing. This can sometimes provide better tax treatment by treating the transaction as an asset sale for tax purposes while still being a stock sale legally. It requires buyer cooperation but might be worth exploring with your team. The depreciation recapture timing that others mentioned is crucial - with installment sales from S-Corps, the recapture generally gets accelerated and recognized in year one even though the payments are spread out. This can create a significant tax burden upfront that you'll want to plan for.

I'm so sorry you're going through this - identity theft is incredibly stressful, but you're absolutely doing the right thing by seeking advice quickly! From my experience working in financial fraud prevention, here are the key steps I'd recommend: **Immediate actions:** 1. **Don't contact the company first** - go straight to the IRS. File Form 14039 (Identity Theft Affidavit) online at irs.gov immediately to flag your account 2. **Call the IRS Identity Theft Hotline** at 800-908-4490 to report this and get a case number for tracking 3. **File your legitimate tax return ASAP** - only report income you actually earned. Include a statement referencing your identity theft case **Protect yourself further:** - Check your Social Security earnings record at ssa.gov to see if there's other fraudulent employment history - Place fraud alerts on all three credit bureau reports (Experian, Equifax, TransUnion) - Request your wage and income transcript from the IRS online to see if there are other fraudulent tax documents you don't know about yet **Important:** The IRS will likely issue you an Identity Protection PIN (IP PIN) for future years, which adds an extra layer of security to prevent future tax fraud. The process typically takes 3-6 months to fully resolve, but you'll have peace of mind much sooner once your account is properly flagged. The IRS has really improved their identity theft procedures - you've got this!

I can't imagine how stressful this must be for you! Identity theft involving tax documents is unfortunately becoming more common, but the good news is that there are clear steps to resolve it. The advice here about filing Form 14039 immediately is absolutely correct - this should be your first priority. I'd also recommend creating an online account with the IRS at irs.gov if you don't already have one, as this will make it easier to track your case and access your transcripts to see if there are other fraudulent documents you don't know about yet. One thing I haven't seen mentioned is to also check with your state's Department of Revenue if you live in a state with income tax. They often have separate procedures for identity theft cases, and you'll want to protect your state tax account as well. Document everything - dates, times, who you spoke with, case numbers, etc. Keep copies of all forms you submit and any correspondence you receive. This paper trail will be invaluable if you need to reference your case later. The IP PIN system really is a game-changer for preventing future fraud. Yes, it adds a small extra step each year when you file taxes, but the security it provides is well worth it. You'll get through this - stay organized and follow the steps systematically!