One important consideration that hasn't been mentioned yet - even if your Wyoming/Delaware LLC doesn't owe US federal income tax because you have no US clients or operations, you WILL most likely need to file: 1. Form 5472 (Information Return of a 25% Foreign-Owned US Corporation) 2. Form 1120 (even if it's a zero return) or potentially 8832 + Schedule C on your personal return depending on election Failing to file these, especially Form 5472, results in a $25,000 penalty PER FORM. I learned this the hard way. And the IRS is getting much stricter about foreign-owned LLCs because too many people were forming them without proper compliance.

Has anyone considered using a pass-through structure with an offshore holding company instead? My team (all non-US residents) formed a BVI company that owns our Wyoming LLC. This way: 1. The LLC is treated as a disregarded entity 2. We file minimal US paperwork (still need Form 5472) 3. Banking is managed through the Wyoming entity 4. Tax obligations remain primarily in our home countries This creates an additional layer of separation while maintaining the benefits of a US business presence for payment processing.

One area you might want to focus on during your secondment is owner-manager taxation. This is a huge part of domestic tax practice in Canada that involves integration of corporate and personal tax planning. Ask to sit in on meetings with business owners where the tax team discusses compensation strategy (salary vs dividends), timing of distributions, purification strategies for QSBC status, and estate freeze transactions. These areas combine technical knowledge with practical business advice. Also, pay attention to how tax professionals communicate complex concepts to clients who don't have accounting backgrounds. The ability to translate technical jargon into actionable business advice is what separates great tax practitioners from average ones.

Quick tip: during your secondment, make sure you understand the difference between tax PREPARATION and tax PLANNING. Many firms keep these functions somewhat separate. Tax preparation is more compliance-focused and involves working with historical data to prepare returns accurately. It's detail-oriented but can be repetitive. Tax planning is forward-looking and strategic, helping clients structure their affairs to minimize tax within legal boundaries. This involves more client interaction and creativity. Based on your comment about enjoying unique problems and solutions, you might gravitate more toward the planning side. But both skills are essential for a well-rounded tax professional.

I was in the exact same situation last year (self-employed, Head of Household, income below standard deduction). Just want to share a couple things that helped me. 1) File for the Earned Income Credit!! With one child and income around $10k, you could get back around $3,700 which would more than cover your self-employment taxes. 2) If you use your home for business AT ALL, claim the simplified home office deduction. It's $5 per square foot up to 300 sq ft, so potentially $1,500 of deductions with zero documentation needed. 3) Track ALL your business mileage. Even short trips add up with the 65.5 cents per mile deduction. Don't be ashamed of your income level. The tax system is actually designed to help people in your exact situation, especially with a dependent.

I'm seeing some confusion in these comments so I want to clarify: being under the standard deduction doesn't affect your filing STATUS, but it does affect your tax LIABILITY. With $10,500 in self-employment income, you: 1) Can still file as Head of Household 2) Likely won't owe INCOME tax (because under standard deduction) 3) WILL owe SELF-EMPLOYMENT tax (15.3% of 92.35% of your self-employment income) 4) Can still get REFUNDABLE credits like EITC and Child Tax Credit The self-employment tax would be about: $10,500 × 92.35% × 15.3% = $1,479 But your EITC with one child at that income level could be $3,000-3,500 So you'd likely get money BACK overall, not owe money!

Everyone's talking about services but nobody mentioned the simplest solution - just select "Tax Due on Return" as your reason for payment. I've paid several CP notices this way and never had an issue. The system just needs to know what year and form, the specific notice type doesn't actually matter for payment processing.

Has anyone had a CP503 sent to collections? I just got one for 2019 taxes and I'm worried about my credit score if I can't pay the full amount immediately.

Another strategy to consider is passing the property to your heirs instead of selling it. When you die, the property gets a "step-up" in basis to the fair market value at your date of death, which effectively wipes out all the depreciation recapture tax! Obviously this only works if you don't need the money from selling during your lifetime, but it's a huge tax advantage that can save your heirs a fortune in taxes if they decide to sell.

I'm actually dealing with this exact issue right now! I've been taking depreciation on my rental for 8 years (about $9,800/year in deductions) and now I'm selling. My accountant just showed me that I'll owe about $22,000 in depreciation recapture taxes! I was in the 22% bracket all those years, so I saved about $17,200 in taxes while owning (22% of $78,400 total depreciation). But now I'm paying $22,000 back (25% of $78,400). So I'm actually LOSING $4,800 just from the tax rate difference! My accountant says the only reason it still worked out okay for me is that I invested those tax savings each year and they grew to more than make up the difference. But if I had just spent that money, I'd definitely be worse off!