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If you have a pass-through LLC it’s time to dissolve
thechatch
Member Posts: 7,112
in Tug Tavern
….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.
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.
Comments
BLM will be fine though.
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
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?