I set up a Belize IBC for forex trading back in 2021 and wanted to share some practical advice. The regulatory benefits (higher leverage) worked great, but the tax situation was a NIGHTMARE. First, most "offshore experts" don't understand how GILTI works for trading entities. I ended up owing nearly the same US tax I would have without the structure, PLUS had $12K in annual compliance costs between the foreign registered agent, specialized tax preparation, and legal reviews. Also, be extremely careful about which foreign broker you use. Many won't accept entities from certain jurisdictions due to their own regulatory requirements. I had to switch brokers twice, which was incredibly disruptive to my trading strategy.

Don't forget about banking issues! This is what killed my foreign trading entity setup. Even after properly forming the company and finding a broker, I couldn't find a reliable bank that would: 1) Open an account for a foreign entity with US beneficial ownership 2) Allow smooth transfers to/from forex brokers 3) Not charge excessive fees I went through 3 different banks in 2 years. First one suddenly closed my account after 6 months with no explanation. Second had 5-day holds on all incoming wire transfers. Third worked OK but charged $75 per outgoing wire transfer which ate into profits.

This is slightly off topic but dont forget that your sister is probably eligible for a Social Security lump sum death benefit of $255. Its not much but its something. She should contact Social Security right away as there are time limits. Also if they were married for at least 9 months she might be eligible for monthly survivor benefits depending on her age.

One more thing to consider - if your sister and her husband had any joint accounts, the basis (original cost) of investments might get a "step up" as of the date of death. This can be SUPER important if they owned stocks or property together. Basically, the deceased's portion gets revalued to what it was worth on the day they died, which can save a ton in capital gains taxes later. Might want to look into this if they had any investments.

Have you looked into the Streamlined Domestic Offshore Procedures? If this was non-willful (meaning you didn't know about the requirement), this program might help reduce the penalties significantly. I made a similar mistake with not reporting my foreign pension from when I worked in Singapore. The standard penalty would have been about $45k, but through the streamlined program I ended up paying just under $10k. The key is documenting that you genuinely didn't understand the requirement. The fact that you took action immediately after discovering the requirement will work in your favor. Make sure your attorney is specifically experienced with the Streamlined program.

whatever u do, don't ignore this!!! i made that mistake when i got hit with a 18k penalty for not reporting my overseas rental income. thought it would go away if i just didn't respond. BIG MISTAKE. they started garnishing my wages and put a lien on my property which destroyed my credit score. took 3 yrs to finally resolve and ended up paying way more in the end. at minimum set up a payment plan asap even while ur contesting the penalty. u can always get refunded later if u win the abatement but it shows good faith effort.

Does anyone use tax software that DOESN'T use whole dollar rounding? I've tried three different programs and they all seem to do it automatically. TurboTax, H&R Block, and TaxAct all rounded my numbers. Is there any software that lets you choose to keep cents?

Honestly the whole dollar method has saved me from so many mistakes. I used to track every cent and would get frustrated when things didn't add up perfectly. Now I just round as I go and it's so much faster. The IRS instruction booklet literally says it's fine on page 13. My refund has never been affected by more than a dollar either way.

Just to add another perspective - I've been a delivery subcontractor for 5 years now. You definitely want to track EVERYTHING. Beyond just gas, make sure you're deducting: 1. Any portion of insurance you pay 2. Parking and tolls (like mentioned above) 3. Car washes (if you pay for them) 4. Any required safety equipment or uniforms 5. Your cell phone percentage used for work 6. Meals during long shifts (50% deductible) My accountant catches stuff I would never think about. The actual expense method can actually work out better than mileage sometimes depending on your situation.

Quick question - does anyone use any specific apps to track their expenses as a subcontractor? I'm doing delivery work too and trying to stay organized for next year's taxes.