Hello All,
Happy (near) Independence Day to the USA! 250 years! It's going to be a great weekend celebrating the U.S., so hopefully you are at the pool with family, bbq'ing with friends, or watching USA advance in the World Cup 
, it should be a fun month!
The next couple of months should be slow on a business front. There are no federal or state tax deadlines during the summer months. You may be required to file an annual report or Statement of Information, and we will remind you.
Regarding annual report and statement of information filings....it has come to my attention that you are receiving A LOT of scam letters that appear to be regulatory asking you to pay to file the annual report and statement of information on top of filing fees. An annual report or statement of information only requires the minimum filing fee paid directly to the state. You should not pay a third party to handle this task. If you see a suspicious email asking you to pay for a state filing, delete it or ask me.
Upcoming federal & state deadlines
None until September
Please refer to your individual emails for any other state or local deadlines.
Household employee v. paying an individual
Some of you may be considering hiring a household employee instead of paying someone cash for tasks performed at home. A household employee can take care of kids, chores, cook meals, gardening, etc..
It's quite easy and simple to just pay an individual in cash. The expectation is that the individual will declare that income on their personal income tax return. If the person fails to report the income, they may be subject to fines & penalties. There is no onus on the payer, because a 1099 does not need to be issued for personal payments where a deduction is not taken.
If you become a household employer, you will get a household EIN and be subject to withholding income taxes, disability, unemployment, social security, and Medicare taxes from the employees. This is similar to having a business employee, except for reporting requirements. If you have a household employee, we report the withholdings to the IRS on Schedule H of your personal income tax return, whereas, for your business employees, we file Forms 941 and 940. Most state agencies also use different reporting forms.
Using the household employee method would be "above the line" and much cleaner & safer for both the employer and employee. The household employee would also be eligible to claim disability and unemployment insurance benefits and have contributions paid into Social Security and Medicare.
Trump accounts open July 4th
Deposits into Trump accounts start on July 4th (or the next business day). If you applied, you can begin contributing after that day. If you requested that we complete the task, we filed Form 4547 with your 2025 tax return. You can also apply here. You will receive emails from "no-reply@trumpaccounts.
The Trump account is available for any child under the age of 18. If you have a child born between January 1st, 2025 and December 31st, 2028, your child will receive a tax-free $1,000 seed deposit if you open the account. Previous emails highlighted the benefits of the account. If you want more information, please reach out.
Happy 4th and go USA!
Kind regards.--
Neel Sodha, CPA CPA License No. 102833
213-399-3820
