Sirius Tax Group LLC

RELIEF STARTS WITH THE RIGHT GUIDE.

One client came in overwhelmed by an ITIN issue. We walked through every step, verified the documents carefully, and helped bring clarity back to the process.

That is the heart of Sirius Tax Group. Personalized support, cultural understanding, and IRS Certifying Acceptance Agent expertise, all in one place.

If you need help with tax preparation, ITIN applications, or international tax questions, reach out today. We are here to help you feel confident and supported. 💙

SMALL BUSINESS SERIES: Foreign Nationals & U.S. Business Ownership

If you're a foreign national looking to start or invest in a U.S. business, understanding your tax obligations is critical. Your visa status, residency status, and business structure all impact how you'll be taxed.

**Key considerations:**

**Visa Status Matters** - H-1B, L-1, E-2, and other visa holders have specific restrictions on business ownership. Some visas allow business ownership; others don't. Violating these restrictions can jeopardize your immigration status.

**Residency for Tax Purposes** - The IRS determines tax residency based on physical presence, not visa status. A nonresident alien is taxed only on U.S.-source income. A resident alien (for tax purposes) is taxed on worldwide income.

**Entity Structure** - Foreign nationals typically benefit from LLC or S Corp structures to minimize self-employment taxes and protect personal assets. C Corps create double taxation concerns.

**ITIN vs. SSN** - You may need an ITIN (Individual Taxpayer Identification Number) to file U.S. taxes and conduct business, even without an SSN.

**Treaty Benefits** - Depending on your home country, you may qualify for tax treaty benefits that reduce withholding rates and avoid double taxation.

**Compliance** - FBAR and FATCA reporting requirements apply if you have foreign accounts over $10,000. Failure to report carries severe penalties.

Don't navigate this alone. Working with a tax advisor who understands visa-specific implications ensures you stay compliant and minimize your tax burden.

SMALL BUSINESS SERIES: Entity Classification Matters

Choosing the right business structure is one of the most important decisions you'll make as a business owner. Your entity classification affects your tax liability, personal liability protection, and ongoing compliance requirements.

Here are the main options:

**Sole Proprietorship** - Simplest structure, but offers no personal liability protection. All business income is reported on your personal tax return (Schedule C).

**Partnership** - Two or more owners sharing profits and losses. Each partner reports their share on Form 1065. Personal liability exposure exists unless structured as an LLC.

**S Corporation** - Offers liability protection and potential tax savings through reasonable salary + distributions strategy. Requires quarterly estimated taxes and payroll processing.

**C Corporation** - Separate legal entity with full liability protection. Subject to corporate-level taxation, then shareholder-level taxation on distributions (double taxation).

**LLC (Limited Liability Company)** - Flexible hybrid structure offering liability protection with pass-through taxation. Can be taxed as sole proprietor, partnership, S corp, or C corp depending on elections.

**Nonprofit Organization** - Legally structured to pursue a public or social benefit rather than private wealth, requiring a specific incorporation and IRS application process to establish its tax-exempt status. Crucially, its corporate structure shields founders and directors from personal liability.

The right choice depends on your industry, profit level, growth plans, and risk exposure. Don't leave money on the table—consult with a tax professional to optimize your structure.

CLIENT SUCCESS STORY. ITIN & FIRPTA.

One of our clients had a time-sensitive need for receiving a refund in conjunction with a FIRPTA transaction from a previous year. As the time frame to receive a refund was quickly approaching, it was critical that our client apply for and receive an ITIN as soon as possible before the tax deadline of April 15, 2026.

We coordinated with our client to apply for the ITIN, receive the paperwork via international courier, and then submit the
W-7 application to the ITIN unit in Austin, Texas.

This was a sizeable refund and our client, a Middle Eastern foreign national, is extremely pleased that his application was approaching and that a refund is forthcoming.

As a reminder, FIRPTA requires withholding when foreign persons sell U.S. real property interests. The standard rate is 15% of gross sales price, though rates vary based on property type and sale price:

• Residential property ≤$300,000: No withholding (if buyer occupies as primary residence for 50%+ of first two years)
• Residential property ≤$1,000,000: 10% withholding (if buyer intends primary residence use)
• Property >$1,000,000 or investment property: 15% withholding

At Sirius Tax Group, we've successfully guided foreign nationals through FIRPTA compliance and ITIN applications for property sales. Recent clients from Asia and the Middle East both obtained ITINs and are receiving their withholding refunds—a testament to comprehensive, culturally sensitive advisory.

If you're a foreign national seeking assistance with applying for an ITIN for a FIRPTA transaction or other tax need, please don't hesitate to reach out to us.

FIRPTA Compliance for Foreign Property Sales: A Tax Professional's Guide

As tax professionals, real estate attorneys, and advisors, understanding FIRPTA (Foreign Investment in Real Property Tax Act) is essential for serving international clients and protecting your practice.

**The Fundamentals:**
FIRPTA requires withholding when foreign persons sell U.S. real property interests. The standard rate is 15% of gross sales price, though rates vary based on property type and sale price:

• Residential property ≤$300,000: No withholding (if buyer occupies as primary residence for 50%+ of first two years)
• Residential property ≤$1,000,000: 10% withholding (if buyer intends primary residence use)
• Property >$1,000,000 or investment property: 15% withholding

**Critical Compliance Steps:**
The withholding agent (typically the buyer or closing agent) must file Form 8288 within 20 days of transfer. Form 8288-A must be prepared for each foreign seller and serves as proof of withholding for tax credit purposes. Foreign sellers can reduce or eliminate withholding by filing Form 8288-B before closing.

**Real-World Application:**
At Sirius Tax Group, we've successfully guided foreign nationals through FIRPTA compliance and ITIN applications for property sales. Recent clients from Asia and the Middle East both obtained ITINs and are receiving their withholding refunds—a testament to comprehensive, culturally sensitive advisory.

**Why This Matters:**
Many foreign nationals overlook FIRPTA requirements or lack access to expert guidance. Tax professionals who specialize in international clients gain competitive advantage and build client loyalty by providing clear, proactive FIRPTA counsel.

If you're looking to expand your international tax practice or need FIRPTA guidance for clients, let's connect.

Ready to elevate your tax expertise fast?

Discover why Certifying Acceptance Agent training is the industry’s gold standard.

Sydney R. Smith, MBA, CAA, brings 25+ years of insight and real-world IRS experience to every masterclass.

Learn forensic ID best practices. Master W-7 compliance. Build trust with international clients.

Want to lead with confidence? 👉 Join our next CAA Masterclass for exclusive IRS insights.

Real stories. Real results. Trusted every step.

We recently received ITIN approval for a client in Asia. Our client, a Japanese national, sold property and needed an ITIN in conjunction with the sale, which was subject to FIRPTA withholding.

Our clients are extremely happy and we look forward to assisting them in getting them their withholding back, next year. The entire process was seamless and stress-free. They felt heard, understood, and empowered—right here in Silver Spring.

Curious how we can help you or your family? Let’s talk. 😊

Visa holders. Your tax journey starts here.

Did you know ITIN approval can be simpler? Most clients never mail passports with a Certified Acceptance Agent.

We guide you through every step, in your language and with cultural understanding.

Ready for clarity? Book your consultation today.

Unlock the secrets of CAA expertise. Ever wondered what sets top Certified Acceptance Agents apart? Sydney R. Smith, MBA CAA, shares real-world training insights that elevate your tax practice and client trust. Discover the forensic skills, cultural awareness, and compliance knowledge every serious tax advisor needs. Ready to advance your skills? Join our next CAA Academy session or message us for details. 👩🏾‍💼

Visa taxes don’t have to be scary.

Wondering if your visa status affects your tax filing? Curious how to apply for an ITIN without mailing your passport?

Sydney, an IRS Certifying Acceptance Agent, guides you every step—no guesswork, no confusion. Personalized help is just a conversation away.

Ready for clarity? Book your consult today. 📝