If you have a pass-through LLC it’s time to dissolve

thechatch

thechatch

Well-known poster
Standard Supporter
….per my CPA, whom I had a 2hr conf call with yesterday.

Not to get into specifics but her contact at the IRS basically told us that any pass through 1099s are going to get bulldozed over the next 2 years at least, unless something happens in 2024.

The hiring focus at the IRS is weighted heavily toward investigation/enforcement and one of the goals is an audit increase ratio in several orders of magnitude, with the concentration being those SBOs reporting annual revenues between 500K and 50M. They aren’t going after the billionaires.

She advised me to immediately dissolve 2 of my LLCs and amend a few of the expense pieces on my 2020 and 2021 filings, and pull the PDFs on any receipt above 5k. We report all revenues and I can’t imagine there’s anything egregious on the expense side, so I’m not freaked out by it, but it was an eye-opening call.

“This is not going to be a forward projection initiative. This is going to be retroactive….and it’s going to start to really roll out about 18mo from now.”

My CPA assured me that we/I should be fine, as long as my BK is able to handle the turnaround, but then told me that there are going to be a lot of small to midsize corps and ICs that get absolutely buried by this.

Class warfare unwittingly funded by the people, and planned/executed by the USFG.

Imagine voting for a 50b expansion of the surveillance state.
 
Yeah, LLC's and S-Corps are gonna be serious targets.

BLM will be fine though.
 
I have nothing to hide
Click to expand...

I don’t think I/we do either, but we have a little bit of unnecessary work ahead of us, in terms of organizing receipts against prior filings.

The amendments will be on legitimate equipment purchases with some cross-utilization between a couple of pass throughs and our primary corp and that’s it, is my understanding.

This just seems like a potential huge headache for sole proprietors and independent contractors
 
….per my CPA, whom I had a 2hr conf call with yesterday.

Not to get into specifics but her contact at the IRS basically told us that any pass through 1099s are going to get bulldozed over the next 2 years at least, unless something happens in 2024.

The hiring focus at the IRS is weighted heavily toward investigation/enforcement and one of the goals is an audit increase ratio in several orders of magnitude, with the concentration being those SBOs reporting annual revenues between 500K and 50M. They aren’t going after the billionaires.

She advised me to immediately dissolve 2 of my LLCs and amend a few of the expense pieces on my 2020 and 2021 filings, and pull the PDFs on any receipt above 5k. We report all revenues and I can’t imagine there’s anything egregious on the expense side, so I’m not freaked out by it, but it was an eye-opening call.

“This is not going to be a forward projection initiative. This is going to be retroactive….and it’s going to start to really roll out about 18mo from now.”

My CPA assured me that we/I should be fine, as long as my BK is able to handle the turnaround, but then told me that there are going to be a lot of small to midsize corps and ICs that get absolutely buried by this.

Class warfare unwittingly funded by the people, and planned/executed by the USFG.

Imagine voting for a 50b expansion of the surveillance state.
Click to expand...

How big is your company. Mine is under $500k.
 
I have nothing to hide
Click to expand...

I don’t think I/we do either, but we have a little bit of unnecessary work ahead of us, in terms of organizing receipts against prior filings.

The amendments will be on legitimate equipment purchases with some cross-utilization between a couple of pass throughs and our primary corp and that’s it, is my understanding.

This just seems like a potential huge headache for sole proprietors and independent contractors
Click to expand...

Race was utilizing one of HCH's expressions, which originated from @TheKobeStopper
 
Wait so what's the move now
Click to expand...

Register as a Democrat.
Click to expand...

giphy.gif

 
Family business was a subchapter S corp. Glad we sold it.
Click to expand...

According to TheCatch, the action will be on past years. I'm not sure how closing or selling a company makes any difference.
 
Family business was a subchapter S corp. Glad we sold it.
Click to expand...

According to TheCatch, the action will be on past years. I'm not sure how closing or selling a company makes any difference.
Click to expand...

There is a three year statute of limitations, so at least you can start the clock running. The problem is that you need legal protection which you get with an LLC or S corporation. The IRS also hates Schedule C small businesses which is where your single member LLCs and unincorporated small business income gets reported on your 1040. Your going to get raped either way. You will have bottom feeder new IRS agents who have no common sense and have will hate "rich" small businesses and time will have no meaning to their work, but they will issue document requests with tight time limits for the taxpayer. Like supply a copy of all your contracts for all business conducted for the past three years. They will want all your banking records, both business and personal. Manchin deserves a special room in hell for his vote on this. There is no way they will collect the projected $20 billion from small business, but they will cause a multiple of that figure on the strangulation of small businesses.

 
We are out of all our LLC's and S corp's we have had over the years so for that I am grateful.

The ones who are going to get hurt are the family run businesses. The one's that show income to one individual but had numerous family members/dependents working in the company but not officially an employee. Farmers, small business owners, husband & wife type companies.

If you and your wife own an corp but only you are getting a pay check to support your whole family while your wife was basically a full time employee who "didn't get paid", they will fuck you three ways from Sunday and there isn't a damn thing you will be able to do about it.

Anyone who, for even one moment, thinks 87,000 additional agents aren't going to go after middle class to upper middle class families, is an idiot.

There are 1.8 million in this country making over $400K. If each new agent (not even counting the 40K current agents) takes on 10 cases a year which is nothing, what the hell are they going to do in year 3? Are they going to be expected to just quit?
 
We are out of all our LLC's and S corp's we have had over the years so for that I am grateful.

The ones who are going to get hurt are the family run businesses. The one's that show income to one individual but had numerous family members/dependents working in the company but not officially an employee. Farmers, small business owners, husband & wife type companies.

If you and your wife own an corp but only you are getting a pay check to support your whole family while your wife was basically a full time employee who "didn't get paid", they will fuck you three ways from Sunday and there isn't a damn thing you will be able to do about it.

Anyone who, for even one moment, thinks 87,000 additional agents aren't going to go after middle class to upper middle class families, is an idiot.

There are 1.8 million in this country making over $400K. If each new agent (not even counting the 40K current agents) takes on 10 cases a year which is nothing, what the hell are they going to do in year 3? Are they going to be expected to just quit?
Click to expand...

It's mostly not about the money, but the control. Especially control of conservatives. Like with Trump, New York audited the sh*t out of Rush until Rush told them to phuck off and moved to Florida. Even then, New York made him submit all the days he was in New York trying to get a share of his Florida income.
 
I have nothing to hide
Click to expand...

I don’t think I/we do either, but we have a little bit of unnecessary work ahead of us, in terms of organizing receipts against prior filings.

The amendments will be on legitimate equipment purchases with some cross-utilization between a couple of pass throughs and our primary corp and that’s it, is my understanding.

This just seems like a potential huge headache for sole proprietors and independent contractors
Click to expand...

Race was utilizing one of HCH's expressions, which originated from @TheKobeStopper
Click to expand...

The poor folks like Mello and Kobe have nothing to hide because they literally have nothing.
 
They are also coming after us Uber and lyft drivers we have a ton of deductions, I make 100k but with mileage and other deductions show a 30K profit.... they want that to end or to make sure you have your records... dems party of the people my arse.
 
You must log in or register to reply here.
Back
Top