Thanks for mentioning PFIC and FBAR! I hadn't even considered the PFIC angle. My foreign corporation is actually involved in manufacturing, so I think it's an active business rather than passive, but I'll double-check the passive income percentages to be sure. And good reminder about the FBAR requirements - those definitely apply to me as I had over $10,000 in foreign accounts. Is the FBAR filing threshold the same regardless of residency status?

For PFICs, you're right that manufacturing is typically considered an active business, but be careful if your company also earns interest, dividends, or has rental properties as those could push you over the passive income thresholds. Regarding FBAR, the filing requirement applies to "U.S. persons" which includes resident aliens. During your non-resident period, you technically wouldn't have an FBAR requirement, but once you become a resident alien, the requirement kicks in. If you had over $10,000 in foreign accounts at any time while you were a resident alien, you need to file the FBAR for that period.

Do any exceptions apply specifically to the dual status year though? I'm trying to figure out if there's a minimum time you need to be a resident for 5471 to apply. Like if you're only a resident for 2 months of the year, seems excessive to require full reporting.

Do they offer audit protection? That's the main reason I've stuck with the big companies.

Yes, they do offer audit assistance for an additional $7.99. It's not the same as full audit representation, but they provide guidance on what documents you need, help you understand what the IRS is requesting, and assist with preparing your responses. I actually think their audit assistance is more straightforward than what H&R Block offers. H&R Block's "Peace of Mind" warranty has a lot of fine print exclusions, and they often try to upsell you on more comprehensive audit defense. FreeTaxUSA's offering is simpler and much more affordable, while still giving you professional guidance if you get audited.

How did you vet the CPA before hiring them? I'm nervous about just picking someone random.

Wouldn't hiring someone just for this purpose seem suspicious to the IRS? Like you're just trying to create a loophole? I wonder if that would hold up in an audit.

It's not about creating a loophole - it's about satisfying the specific requirements of the tax code. The IRS doesn't require that the presenter be a long-term employee. The key is proper documentation and following the letter of the law. The award must be for a legitimate business achievement, the presentation must be meaningful, and everything must be documented in corporate records. Having a third party involved actually strengthens the legitimacy since it creates the arm's-length transaction the IRS is looking for. My accountant has had several clients use this approach successfully through audits. Remember - tax avoidance (legal) is different from tax evasion (illegal).

The benefit can actually be up to $1,600 if it's part of a qualified plan, not just $400. Plus, remember this is completely tax-free to you as the recipient too, so you're saving both corporate and personal income taxes. That makes it more valuable than just the corporate tax savings. But I agree there are bigger fish to fry in C corp tax planning.

So if my employer has fewer than 50 employees but still provides insurance, what form should I expect? I work at a small business with about 20 people total.

If your employer has fewer than 50 full-time employees, they're not required to provide a 1095-C form. In that case, your insurance company might send you a 1095-B instead, though many insurers have stopped automatically sending these unless requested. The good news is you don't actually need either form to file your taxes. You can simply indicate you had coverage when your tax software asks. These forms are primarily for your records and to verify coverage if there's ever a question about it.

Yes, you can skip it! On that screen there should be a button that says something like "I don't have this form" or "This doesn't apply to me" - it's usually at the bottom of the page. Click that and it'll let you move past that section without entering any 1095-A information.

Thanks! Found it hiding at the very bottom of the page. Wish they made these skip options more obvious for forms that many of us don't need.

What about property tax records? I've been keeping those forever because I'm not sure when it's safe to get rid of them.

For property tax records, you should keep them at least until you sell the property, plus 3-7 years after that. They're important for calculating your basis in the property when you sell, which affects your capital gains tax. If you've made improvements to the property that increase its value (renovations, additions, etc.), definitely keep those receipts as they adjust your basis and can reduce your capital gains when you sell.

I use Microsoft Lens on my phone and it works great! Creates clear PDFs that I store in an encrypted folder. Just make sure to back them up somewhere secure like an encrypted external drive or password-protected cloud storage. Regular phone backups aren't secure enough for tax docs.