Interesting point about international competition. Do other major economies like the EU, Japan, etc. also use flat corporate rates? Or are there any examples of major economies successfully using graduated corporate rates?

Yes, almost all major economies use flat corporate rates. The UK, Germany, France, Japan, Canada - all flat rates with various deductions and credits. China has a flat 25% standard rate with reductions for certain industries or regions. There are very few examples of graduated corporate rates in major economies. South Korea has a modestly graduated system with three brackets (10%, 20%, 22%), and the US actually had a slightly graduated system before the 2017 tax reform with brackets of 15%, 25%, 34%, and 35%, though with income phaseouts that effectively flattened it for many corporations. The trend globally has been toward flatter systems with targeted incentives rather than graduated rates.

Your facts about Amazon aren't quite accurate. While they did pay little federal income tax in some years (2017-2018 notably), that was because they used legal deductions for R&D, stock-based compensation, and carried-forward losses from earlier years when they weren't profitable. They've since paid billions in taxes. The tax code incentivizes certain behaviors like R&D and investment. That's by design, not cheating. And corporate profits that go to executive compensation get taxed as personal income at graduated rates. Stock buybacks now have an excise tax specifically to address that issue.

This is good to know! We have a small investment account for our son that generates about $200 in dividends annually. Does that count toward the threshold?

Where did you find your crypto-friendly accountant? I've been looking for someone who won't charge me these insane rates but have had trouble finding anyone who seems knowledgeable about crypto tax rules.

I found mine through a local crypto meetup group. There are also some online directories specifically for crypto-friendly accountants - try searching "crypto tax professional directory" and you'll find a few options. The key questions to ask are: what software do they use for crypto tax preparation, how do they handle missing cost basis information, and if they have a flat fee structure for crypto reporting regardless of transaction count. Any accountant who acts like crypto is some mysterious new technology or charges by the transaction is probably not your best option in 2025.

This is really good advice. I'd add that you should sit down with your accountant and go through the forms together before filing to make sure everything transfers correctly. And keep copies of EVERYTHING, including all the work you did to calculate your crypto basis. The IRS has been focusing more on crypto compliance lately.

Thanks! Is there any downside to just checking that box instead of doing the more complicated worksheet? I'm worried about overwithholding now and giving the government an interest-free loan.

The main downside is that it might withhold slightly more than necessary, which means you'd get a refund instead of owing. For most people, that's preferable to owing a large amount, but you're right that it's essentially giving the government an interest-free loan. If you want to get it more precise, the IRS Withholding Estimator is much easier than the worksheet and gives more accurate results. You just enter your and your spouse's income, current withholding, and expected deductions. It then gives you specific numbers to put on your W-4. I recommend redoing this calculation mid-year to make any needed adjustments.

This is actually not great advice. An extension doesn't help when you already know you owe money. The extension is just for filing paperwork, not for paying. If anything, filing ASAP and setting up a payment plan is better because then you have official arrangements with the IRS.

Thanks for this perspective. For the active business exception, what level of operations would typically satisfy this requirement? Would having 2-3 employees in Dubai be sufficient, or do tax authorities look for more substantial local presence?

The requirements vary by jurisdiction, but generally, 2-3 employees might not be sufficient unless they're performing core business functions. Tax authorities increasingly look at the nature of activities, not just headcount. Key factors include whether strategic decisions are made locally, whether the local employees have the skills and authority to conduct the core business, and whether the activities in that jurisdiction generate the income being reported there. Documentation is crucial - maintain evidence of local board meetings, decision-making processes, and business operations.

That approach is extremely risky and likely ineffective. Most tax jurisdictions now require disclosure of ultimate beneficial ownership, and using nominees specifically to avoid tax obligations could potentially cross the line into tax evasion. Modern tax authorities share information internationally and have sophisticated methods to look through nominee arrangements. If discovered (and the chances are high), you could face severe penalties beyond just the taxes owed.