I went through this exact situation with my daughter's ITIN. Here's what worked for me: 1. First, call the dedicated ITIN unit at 1-800-908-9982 2. Have your tax return info ready - they'll ask for the tax year and your information 3. Request a status check on the ITIN application 4. If they can't find it, ask if you should submit Form 4506-T to request verification 5. If no record exists, you'll need to reapply with a new W-7 6. When reapplying, consider using a Certified Acceptance Agent (CAA) who can verify your original documents 7. This prevents sending originals to the IRS The whole process took about 6 weeks once I reapplied properly.

I had a very similar experience with my nephew's ITIN application in 2022. What I learned from calling the ITIN hotline is that sometimes the applications get "suspended" in their system when there's a minor documentation issue, but they don't always notify you about it. In my case, the birth certificate copy I submitted wasn't clear enough, but instead of rejecting it outright, they just held the application in limbo. The agent was able to tell me exactly what was missing and I resubmitted just that document. Got the ITIN number about 8 weeks later. Definitely call 1-800-908-9982 first before doing anything else - they can see the status even if you never received any correspondence from them.

Don't forget about the estate tax loophole! The wealthy use trusts and life insurance to pass MILLIONS to their kids tax-free while regular people get nothing. The stepped-up basis at death is another huge advantage - all the capital gains on investments essentially disappear when assets are inherited.

The system really is designed with built-in advantages for different types of income and wealth levels. What frustrates me most is that many of these "loopholes" aren't actually loopholes - they're intentional policy decisions that favor capital over labor. For example, the carried interest provision that lets private equity managers pay capital gains rates (around 20%) instead of ordinary income rates (up to 37%) on what is essentially their salary. That's not available to regular employees no matter how good our accountants are. But there are some strategies middle-income folks can use that we often overlook: - Tax-loss harvesting in taxable investment accounts - Bunching itemized deductions in alternating years - Contributing to dependent care FSAs if you have kids - Taking advantage of the American Opportunity Tax Credit for education expenses The real barrier isn't just the cost of fancy accountants - it's that the most lucrative strategies require having significant assets or business ownership to begin with. You can't depreciate real estate you don't own, and you can't defer income you don't control the timing of. The system isn't broken by accident - it's working exactly as designed to reward wealth accumulation over wage earning.

Does anyone know if using a PEO (Professional Employer Organization) for remote workers changes the nexus situation? My client is considering using a PEO to handle their multi-state employees to simplify compliance.

This is such a helpful thread! I'm dealing with a similar situation with my consulting practice. One thing I learned the hard way is to also check if the states where your remote employees work have any specific registration requirements beyond just income tax filing. For example, some states require you to register as a "foreign entity" doing business in their state if you have employees there, even if you're just an LLC from another state. This can involve additional fees and annual reports that are separate from your tax filings. Also, don't forget about potential local taxes! Some cities and counties have their own business taxes or licensing requirements that might apply to businesses with employees working within their jurisdiction. It's not just about state-level compliance. I'd recommend creating a compliance calendar once you figure out all the filing requirements across the different states. Multi-state tax compliance can get overwhelming fast if you don't stay organized!

Just want to add that timing matters here too. If you were married on ANY day in 2024, the IRS considers you married for the ENTIRE tax year when filing your 2024 taxes in 2025. So your marital status on December 31st determines your filing status for the whole year.

I went through this exact same situation two years ago when I married my wife from the Philippines! Here's what I learned after making some mistakes the first time around: You definitely CAN file Married Filing Jointly even without your wife having an SSN - you'll need to get her an ITIN first. But here's the key thing that tripped me up initially: make sure you understand the "nonresident alien spouse election" that Marcus mentioned. You can elect to treat your nonresident spouse as a US resident for tax purposes, which opens up joint filing. One tip that saved me a lot of headaches: before applying for the ITIN, call the IRS (or use one of those callback services others mentioned) to confirm which specific documents they'll accept from your wife's country. Different countries have different acceptable documents, and the IRS agents can tell you exactly what works best. Also, don't stress too much about the foreign income reporting if you do file jointly - most countries have tax treaties with the US that prevent double taxation. My wife's income from the Philippines was covered by the Foreign Earned Income Exclusion, so it didn't actually increase our US tax burden. The whole process took about 3 months from start to finish, but it was definitely worth it for the tax savings compared to filing single. Good luck!

Has anyone formed an LLC in New Mexico? I've heard good things about their privacy laws and low fees, which seem important for expats.

As someone who went through this exact process two years ago while living in Portugal, I'd strongly recommend Wyoming for your situation. The combination of strong privacy protections, low annual fees ($60), and no state income tax makes it ideal for expats running online businesses. A few practical tips from my experience: 1. Don't worry about matching your driver's license state - choose based on business benefits, not past connections 2. Use Northwest Registered Agent or similar for your registered agent service - they're reliable and expat-friendly 3. For banking, I had success with Relay Financial and Mercury - both are online-first and work well with foreign addresses 4. Keep detailed records of your foreign residency (lease agreements, utility bills, etc.) as this will be important for tax purposes One thing to consider: since you're serving US clients, make sure you understand the tax implications. Even with a Wyoming LLC, you'll still need to file US federal taxes as a citizen, and depending on your income level, you might benefit from the Foreign Earned Income Exclusion. The key is getting everything set up properly from the start - it's much easier than trying to fix issues later when you're dealing with international time zones and communication barriers.