


Ask the community...
Slightly off-topic but related - make sure you check if your home country requires you to report your US LLC interest or allows you to claim the losses on your home country tax return! I'm from Australia, and I have to report my US LLC interest on my Australian tax return too, even though I already file a 1040-NR in the US. Some countries treat US LLCs as corporations while others treat them as flow-through entities like the US does. This "hybrid entity" issue can create tax mismatches where losses get trapped in one country.
Good point! In the UK we have to file a specific supplementary page for foreign partnerships. My accountant said the losses from my US LLC were basically "trapped" in the US system until the business became profitable, couldn't use them on my UK return at all.
As someone who went through a similar situation last year, I can confirm what others have said - you absolutely need to file Form 1040-NR even with only losses from your LLC partnership. The filing requirement is triggered by being "engaged in a trade or business in the United States," not by having positive income. One thing I'd add that hasn't been mentioned yet - make sure you keep detailed records of these losses because they become valuable when carried forward. The IRS may ask for supporting documentation in future years when you try to use the losses against profitable income. Also, if your LLC made any estimated tax payments on your behalf during 2024 (which sometimes happens even in loss years for various reasons), you'll want to make sure those are properly reported on your 1040-NR so you can get credit for any overpayments. Check box 16 on your K-1 to see if there were any payments made. The $17,400 loss figure you mentioned should go on Schedule E of your 1040-NR. Don't let the complexity intimidate you - it's a standard filing requirement for non-US persons with US business interests.
Can someone explain what happens if you just put $0 for this question? I've honestly never reported any use tax in my life and I buy stuff online constantly. Never had an issue with my returns. Is the IRS really going to come after me for not tracking every random purchase I make on the internet??
Technically, you're supposed to pay it, but the reality is that for small amounts, enforcement is practically non-existent. I'm not advocating tax evasion, but most states just don't have the resources to track individual online purchases. They're more focused on big-ticket items and business purchases.
I totally get the confusion! I went through the same thing last year. Here's what I learned: that question is basically asking about "use tax" - which is what you owe on purchases where the seller didn't collect sales tax from you. Don't stress too much about tracking every single purchase perfectly. Most states know this is unrealistic for regular people. Here's what I'd suggest: 1. Check if your state offers a "safe harbor" amount - this is usually a flat fee based on your income that you can pay instead of calculating exact amounts 2. Focus on any big purchases you made from smaller online retailers (especially out-of-state ones) 3. Major retailers like Amazon usually collect sales tax everywhere now, so those probably aren't an issue For this year's filing, if you can't track everything perfectly, most people either use the safe harbor amount or make a reasonable estimate. The key is being honest and making a good faith effort. You're definitely not alone in finding this confusing - it's one of those tax questions that trips up tons of people!
My brother-in-law had this exact issue last year - kept getting rejected because his dad has the same name. Turns out his Social Security card didn't have "Jr." on it, but he was adding it to his tax return! ๐ The IRS computers were basically saying "this SSN belongs to [First Name] [Last Name]" (no Jr.), but he was submitting as "[First Name] [Last Name] Jr." Once he dropped the Jr. from his tax return, it went through immediately. The moral of the story: your Social Security card is like your tax ID card - whatever's printed on that card is your official tax name, whether you like it or not!
I went through this exact same situation with my daughter last year! The key thing everyone is mentioning is absolutely correct - you MUST use the name exactly as it appears on the Social Security card, nothing more, nothing less. What helped me was actually requesting a replacement Social Security card first to see exactly how the name was recorded in their system. Sometimes parents assume the Jr./Sr. suffix was added when the card was issued, but it might not have been. The replacement card request can be done online at ssa.gov and takes about 2 weeks. Once you have the physical card in hand, you'll know for certain what name to use on the tax return. If there's still a mismatch after that, then you know it's a deeper database issue that requires calling both agencies. But in most cases, the problem is solved just by using the exact name format from the SS card.
Just got my refund yesterday through Chime! My situation was almost identical - transcript showed 2/27 DDD, WMR still on first bar, but the money hit my Chime account yesterday afternoon (2/25). The WMR tool finally updated this morning, a full day AFTER I already had my money. Hang in there, yours is definitely coming soon!
Your transcript DDD is the most reliable source - that's straight from the IRS processing system! I've been tracking refund patterns for years and Chime consistently releases deposits 1-2 days early. With your 2/28 DDD, expect it between 2/26-2/27. The WMR being stuck on one bar is totally normal this time of year - it's basically broken during peak season. I'd set up account notifications on your Chime app so you get alerted the moment it hits. That $3,742 should be there soon!
Natasha Kuznetsova
To add some historical context to this discussion, the authority for the Treasury Department to issue tax regulations comes from 26 U.S. Code ยง 7805, which gives the Secretary of the Treasury the power to "prescribe all needful rules and regulations for the enforcement" of tax laws. This delegation of authority has been around since the Revenue Act of 1916! Sometimes Congress will specifically direct Treasury to issue regulations on a particular topic. These are called "legislative regulations" and they carry the full force of law. Other times, Treasury issues "interpretative regulations" on their own initiative to clarify how they understand the tax code.
0 coins
AstroAdventurer
โขDoes the public get any say in these regulations before they become final? Or do they just get announced and we have to deal with them?
0 coins
Natasha Kuznetsova
โขYes, the public absolutely gets input! The Treasury Department follows the Administrative Procedure Act, which requires a notice and comment period for most regulations. They publish proposed regulations in the Federal Register, and then anyone can submit comments during a specified period (usually 30-90 days). After reviewing public comments, Treasury then issues final regulations, often with modifications based on the feedback received. Sometimes they'll even hold public hearings on particularly complex or controversial regulations. The IRS also issues Revenue Rulings, Revenue Procedures, and other guidance that help interpret the tax code, though the formal regulation process is the most rigorous.
0 coins
Javier Mendoza
Something nobody has mentioned yet is that sometimes courts effectively "write" tax regulations when they interpret ambiguous parts of the tax code or regulations. I had a case where I followed what I thought the regulation clearly stated about rental property depreciation, but my accountant explained that a Tax Court decision had effectively changed how that regulation is applied.
0 coins
Emma Wilson
โขThis is an excellent point! I think the courts use something called the Chevron doctrine when reviewing tax regulations? I vaguely remember learning about this in a business law class - something about courts deferring to agencies like the IRS when the law is unclear?
0 coins
Hailey O'Leary
โขYou're absolutely right about the Chevron doctrine! It's a legal principle that says courts should defer to federal agencies' reasonable interpretations of ambiguous statutes. So when the tax code is unclear, courts typically give significant deference to how the IRS interprets it through regulations. However, there's been some recent developments that might change this. The Supreme Court actually overturned Chevron deference in the Loper Bright case this past year, which could mean courts will be more willing to second-guess IRS interpretations going forward. It's still too early to tell how this will affect tax law specifically, but it could lead to more judicial oversight of tax regulations rather than automatic deference to the IRS.
0 coins