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

thechatch
thechatch Member Posts: 7,196
….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.
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Comments

  • RaceBannon
    RaceBannon Member, Moderator, Swaye's Wigwam Posts: 113,703 Founders Club
    I have nothing to hide
  • Bob_C
    Bob_C Member, Swaye's Wigwam Posts: 12,628 Founders Club
    Yeah, LLC's and S-Corps are gonna be serious targets.

    BLM will be fine though.
  • thechatch
    thechatch Member Posts: 7,196

    I have nothing to hide

    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
  • Pitchfork51
    Pitchfork51 Member Posts: 27,661
    Wait so what's the move now
  • Bob_C
    Bob_C Member, Swaye's Wigwam Posts: 12,628 Founders Club

    Wait so what's the move now

    Flesh trade
  • MikeDamone
    MikeDamone Member Posts: 37,781
    thechatch said:

    ….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.

    How big is your company. Mine is under $500k.
  • DerekJohnson
    DerekJohnson Administrator, Swaye's Wigwam Posts: 68,209 Founders Club
    thechatch said:

    I have nothing to hide

    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
    Race was utilizing one of HCH's expressions, which originated from @TheKobeStopper
  • Pitchfork51
    Pitchfork51 Member Posts: 27,661

    Wait so what's the move now

    Register as a Democrat.

  • hardhat
    hardhat Member Posts: 8,344
    citation needed
  • thechatch
    thechatch Member Posts: 7,196
    hardhat said:

    citation needed

    🤷‍♂️

  • Sledog
    Sledog Member Posts: 37,640 Standard Supporter
    Family business was a subchapter S corp. Glad we sold it.
  • MikeDamone
    MikeDamone Member Posts: 37,781
    Sledog said:

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

    According to TheCatch, the action will be on past years. I'm not sure how closing or selling a company makes any difference.
  • Sledog
    Sledog Member Posts: 37,640 Standard Supporter

    Sledog said:

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

    According to TheCatch, the action will be on past years. I'm not sure how closing or selling a company makes any difference.
    Too far in the past.
  • Bendintheriver
    Bendintheriver Member Posts: 6,999
    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?
  • WestlinnDuck
    WestlinnDuck Member Posts: 17,537 Standard Supporter

    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?

    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.
  • BleachedAnusDawg
    BleachedAnusDawg Member Posts: 13,148 Standard Supporter

    thechatch said:

    I have nothing to hide

    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
    Race was utilizing one of HCH's expressions, which originated from @TheKobeStopper
    The poor folks like Mello and Kobe have nothing to hide because they literally have nothing.
  • Goduckies
    Goduckies Member Posts: 7,965
    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.
  • MikeDamone
    MikeDamone Member Posts: 37,781
    Goduckies said:

    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 don’t “make $100k”
  • Goduckies
    Goduckies Member Posts: 7,965

    Goduckies said:

    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 don’t “make $100k”
    After real expenses, not irs expenses it was 75k in the bank... but yes... that was before expenses which I said.

    Not life changing money, but enough to travel multiple times a year...

  • SFGbob
    SFGbob Member Posts: 33,183

    Goduckies said:

    Goduckies said:

    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 don’t “make $100k”
    After real expenses, not irs expenses it was 75k in the bank... but yes... that was before expenses which I said.

    Not life changing money, but enough to travel multiple times a year...

    No. You didn’t. Especially if you’re taking time off for vacation. Leave it to HCH to have the worlds top Uber driver along with the most right wingers with black wives per capita of any message board.
    There are people who post here who have met me and my wife. Why would I lie about such a thing? Do you think I'm the Dazzler?

  • Fire_Marshall_Bill
    Fire_Marshall_Bill Member Posts: 25,576 Standard Supporter
    US average Uber makes $38,000 plus a year.
  • MikeDamone
    MikeDamone Member Posts: 37,781
    SFGbob said:

    Goduckies said:

    Goduckies said:

    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 don’t “make $100k”
    After real expenses, not irs expenses it was 75k in the bank... but yes... that was before expenses which I said.

    Not life changing money, but enough to travel multiple times a year...

    No. You didn’t. Especially if you’re taking time off for vacation. Leave it to HCH to have the worlds top Uber driver along with the most right wingers with black wives per capita of any message board.
    There are people who post here who have met me and my wife. Why would I lie about such a thing? Do you think I'm the Dazzler?

    Didn’t say you were. Why do defensive?
  • MikeDamone
    MikeDamone Member Posts: 37,781

    US average Uber makes $38,000 plus a year.

    US average Uber makes $38,000 plus a year.

    To gross 100k you have to average $1,900 a week with no weeks off. Take off 4 weeks and you have to average $2100. To make $2100 a week you’d need to work 60-70 hours a week in a market like LA. Not CDA.
  • SFGbob
    SFGbob Member Posts: 33,183

    SFGbob said:

    Goduckies said:

    Goduckies said:

    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 don’t “make $100k”
    After real expenses, not irs expenses it was 75k in the bank... but yes... that was before expenses which I said.

    Not life changing money, but enough to travel multiple times a year...

    No. You didn’t. Especially if you’re taking time off for vacation. Leave it to HCH to have the worlds top Uber driver along with the most right wingers with black wives per capita of any message board.
    There are people who post here who have met me and my wife. Why would I lie about such a thing? Do you think I'm the Dazzler?

    Didn’t say you were. Why do defensive?
    Dazzler level dishonesty, you're clearly inferring that people are being less than honest about both issues you cited.
  • Pitchfork51
    Pitchfork51 Member Posts: 27,661
    I've never hooked up with an Asian chick
  • PurpleThrobber
    PurpleThrobber Member Posts: 48,007

    I've never hooked up with an Asian chick

    You’ve had a week since that was disclosed.

    Drive down to Houston and get to work.

  • MikeDamone
    MikeDamone Member Posts: 37,781
    edited August 2022
    SFGbob said:

    SFGbob said:

    Goduckies said:

    Goduckies said:

    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 don’t “make $100k”
    After real expenses, not irs expenses it was 75k in the bank... but yes... that was before expenses which I said.

    Not life changing money, but enough to travel multiple times a year...

    No. You didn’t. Especially if you’re taking time off for vacation. Leave it to HCH to have the worlds top Uber driver along with the most right wingers with black wives per capita of any message board.
    There are people who post here who have met me and my wife. Why would I lie about such a thing? Do you think I'm the Dazzler?

    Didn’t say you were. Why do defensive?
    Dazzler level dishonesty, you're clearly inferring that people are being less than honest about both issues you cited.
    Some are, some aren’t. I know for a fact Race has a black wife. Just a comment that there seems to be quite a few more than average here than the population at large. So fuck off. You do you.

    Also everyone here is wealthy and kicks ass in their careers.