Do you have to go in person for that kind of review? I'm not sure if there are any CPAs near me, plus I'm pretty busy with work.

No, most CPAs can do this remotely now. You just need to send them a PDF of your tax return from TurboTax, and they can review it. Many have secure upload portals on their websites. I actually did mine completely virtually - uploaded my documents, had a 20-minute Zoom call to discuss what they found, and they emailed me their recommendations. The good ones will tell you upfront if they think there's potential for significant changes before charging you for a full amended return service. Sometimes they'll even waive the review fee if they end up preparing your amended return.

This is actually a really important question. Different tax software can give wildly different results depending on how they ask questions. I tried three different ones last year (FreeTaxUSA, TurboTax, and H&R Block) and got refund estimates that varied by almost $800!

Thanks for these suggestions. I've been tracking business expenses but wasn't thinking about retirement contributions. Do you know if I can make these contributions up until the tax filing deadline and still have them count for last year?

Yes, you can make traditional IRA contributions until the tax filing deadline (usually April 15) for the previous tax year. For SEP IRAs, you can actually contribute until the extended filing deadline (October 15) if you file for an extension. This is one of the best strategies for self-employed people who end up with higher income than expected. Just make sure you have enough earned income to qualify for the contribution amounts. A good tax professional can help you calculate exactly how much you need to contribute to get under specific income thresholds for the premium tax credit.

This is super important! When I first started with marketplace insurance, I was reporting my gross income rather than net and almost gave myself a heart attack thinking I owed thousands back. Proper income calculation makes a huge difference.

That's exactly what I'm worried about - spending all this money on the setup only to find out the tax benefits are minimal. Did you find any particular jurisdiction or structure that worked better than others? And any broker recommendations that actually accept these kinds of entities?

I eventually switched from Belize to a Seychelles structure which had slightly better terms for satisfying economic substance requirements with algorithmic trading. The key is finding a jurisdiction that clearly classifies algorithmic trading as "active business income" rather than passive investment income. For brokers, I had good experiences with two firms based in St. Vincent and the Grenadines that specifically work with trading companies. They had reasonable documentation requirements and stable platforms. Just be careful - many foreign brokers have great leverage terms but terrible execution quality or withdrawal issues. Always test with small amounts first.

Did you try any of the digital banking solutions specifically for trading companies? I've heard there are some in Lithuania and Estonia that specialize in this.

But I thought the Accumulated Earnings Tax only applied to C Corps, not S Corps? Isn't the whole point of S Corps that income passes through regardless of whether you distribute it?

You're right, and I should have been more precise in my explanation. The Accumulated Earnings Tax specifically applies to C Corporations, not S Corporations. S Corps have pass-through taxation, meaning the income is taxed at the shareholder level regardless of whether it's distributed. However, S Corps can still face scrutiny if they're holding investments unrelated to business purposes. The concern becomes more about whether the business is operating as a legitimate operating company versus functioning as an investment vehicle, which could potentially jeopardize S Corp status in extreme cases. It's a different issue than accumulated earnings tax, but still something to be cautious about.

I did something similar but was advised to have the investment LLC owned by me personally, not by the S Corp. This kept the investment activities completely separate from the business activities and avoided any questions about business purpose.

Thanks for this suggestion! I just looked into the Streamlined Procedures and it seems like I might qualify. My attorney mentioned something similar but called it by a different name and was talking about a much smaller reduction. Do you know if I need a specialized attorney for this or if it's something I can handle myself? The legal fees are adding up fast.

You don't absolutely need an attorney to apply for the Streamlined program, but I'd recommend at least a consultation with someone who specializes in international tax issues. The program requires a detailed narrative explaining why your failure to report was non-willful, and that narrative is critical to acceptance. If your current attorney isn't giving you clear information about the Streamlined program (it's very well-established), you might want to get a second opinion. Many tax attorneys offer free initial consultations, so you could shop around. The penalties at stake are significant enough that good representation is worth it, but you shouldn't be paying for an attorney who isn't experienced with exactly this type of situation.

Is there a time limit on how long the IRS can come after you for these foreign reporting issues? I'm worried now because I inherited a small property in Italy from my grandparents 4 years ago and never reported anything...