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Global Business Growth Club

Public • 1.6k • Free

The Pool Funding Network

Private • 35 • Free

3 contributions to Global Business Growth Club
Penalty for private use
Hi guys! I just received a letter in my business mail (Earthclass) from the IRS with the words "Penalty for private use $300" printed on the outside. Unfortunately, I couldn't scan it to open it. I'm not sure what it could be about. I recently established my company in the US, and I haven't conducted any business yet. I mean, literally, I haven't done anything. Do any of you have a clue what this could be? How can I verify if it's legitimate or if I need to pay it?
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New comment Jul '24
1 like • Mar '24
When I received a notice of a penalty from the IRS, it clearly stated how much, by when, and what would happen if I did not comply. To me, it just sounds like they are saying, “Here is the EIN you applied for.” It is common for postal mailings sent by government agencies to have such a warning that the postal service mailing cannot be used for any private use. (This is a warning to the person sending the mail, that this type of mailing cannot be used by the mailer to do something like send a greeting card for free through the government mailing system.)
Where are you from? Do you know your tax laws?
I'm moving forward on my expert interview series where I will be exploring the tax laws between countries so I can best advise my entrepreneur clients. Post here where you are from and if you are interested in more insights and a conversation between me and a local accountant from your country.
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New comment Nov '23
0 likes • Nov '23
It looks like basically it is not taxed if conditions are met. One of the conditions is “the income is not taxed in the country of origin “? As a non US person my US Income is not taxed in the US, but it is in Japan. So I expect them to interpret it that I am not taxed in Malaysia (as tax resident) if taxes are paid in Japan.
0 likes • Nov '23
I think I have figured it out. As a tax resident of Malaysia, I would not be taxed on FSI, if that US based income is not taxable income (spendthrift trust related) when I bring those funds into Malaysia. The difference with being a tax resident of Japan is I would be taxed based on Japanese laws rather than US, and they may consider all income as taxable.
Welcome!
Thanks for being here. Please introduce yourself. Tell us where you are from and what you do for business. Marketing, ecom, services, investing? Let us know? Also, what are you looking to get from this group?
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New comment Dec '24
0 likes • Oct '23
It was suggested that in order to protect my trust funds from being taxed like crazy, (Not a tax event for US, but by my tax country) I should set up a US LLC as the manager and then put that under a holding company. Does that sound right?
0 likes • Oct '23
I’m only taxed in Japan. Have never been part of Canada’s tax system. I’ve heard that Japan treats US trusts the same as US LLC, I think that by joining Malaysia’s MM2H visa program I can move there and exit the Japanese system,, and no longer be taxed on world income.
1-3 of 3
Stephen Nelson
1
4points to level up
@stephen-nelson-7527
Canadian in Japan

Active 95d ago
Joined Oct 14, 2023
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