Jump to content
All posts are moderated, so it will take time for your post to appear!
Search In
  • More options...
Find results that contain...
Find results in...
vidhya reddy

Vendor not releasing payment - Please assist

Recommended Posts

Thank you JoeF for the information.

 

We were truly misguided by the CPA who opened the firm and not just that  we contacted many CPA's and we did get the same kind of info. Anyways I'm planning to get in touch with Murthy law firm attorney to figure out the next steps. Thanks

Share this post


Link to post

Why don't you quote the tax code and show that ?   You shoudl also probably advise NJ Treasury

I have quoted the tax code before. Do a search.

And it is well known that webpages, even from government agencies, are not necessarily right (see, e.g., USCIS.)

Share this post


Link to post

Thank you JoeF for the information.

 

We were truly misguided by the CPA who opened the firm and not just that  we contacted many CPA's and we did get the same kind of info. Anyways I'm planning to get in touch with Murthy law firm attorney to figure out the next steps. Thanks

Well, if you think immigration law is bad, tax law is much much worse. Knowing some retired IRS people, nothing surprises me with IRS anymore...

This issue in particular doesn't come up often in CPA practice, so most CPAs don't really know the issue well.

A good business lawyer may be able to help you better.

Share this post


Link to post

I have quoted the tax code before. Do a search.

And it is well known that webpages, even from government agencies, are not necessarily right (see, e.g., USCIS.)

 

 

I have quoted the tax code before. Do a search.

And it is well known that webpages, even from government agencies, are not necessarily right (see, e.g., USCIS.)

 

You have not   ,  and you cannot.  The law says "Non Resident Aliens"  cannot be shareholders of S-Corp.  All you have tried to do ever is stretch and twist to try to establish your (incorrect) point.   

 

Looks like you are trying to say Government websites are wrong,  Murthy Attorneys are wrong,  CPAs are wrong,  Law does not exist  but what you say must be right :) 

Share this post


Link to post

Why do you care Mumbaikar .  BTW ,  though not Marathi me Mumbaikar ahe (hope the translation is correct )

 

aree wah. good to know that. BTW not knowing Marathi and being a Mumbaikar wouldnt make Raj happy. :)

Share this post


Link to post

You have not   ,  and you cannot.  The law says "Non Resident Aliens"  cannot be shareholders of S-Corp.  All you have tried to do ever is stretch and twist to try to establish your (incorrect) point.   

 

Looks like you are trying to say Government websites are wrong,  Murthy Attorneys are wrong,  CPAs are wrong,  Law does not exist  but what you say must be right :) 

I have quoted the law. You just are apparently not able to find it.

 

Share this post


Link to post

I have quoted the law. You just are apparently not able to find it.

I have provided link to the post where I quoted the law.  But to make your life easy,  I will reproduce it again  --

 

The regulation 26 CFR 1.1361 says –

"(g) Nonresident alien shareholder--(1) General rule. (i) A corporation having a shareholder who is a nonresident alien as defined in section 7701(b)(1)(B) does not qualify as a small business corporation."

And USC 7701(b)(1)(B) (from Title 26, Chapter 1 Sec 1361)  which defines "Nonresident alien" reads as

b) Definition of resident alien and nonresident alien

(1) In general

For purposes of this title (other than subtitle B) -

(A) Resident alien

An alien individual shall be treated as a resident of the

United States with respect to any calendar year if (and only

if) such individual meets the requirements of clause (i), (ii),

or (iii):

(i) Lawfully admitted for permanent residence

Such individual is a lawful permanent resident of the

United States at any time during such calendar year.

(ii) Substantial presence test

Such individual meets the substantial presence test of

paragraph (3).

(iii) First year election

Such individual makes the election provided in paragraph

(4).

(B) Nonresident alien

An individual is a nonresident alien if such individual is

neither a citizen of the United States nor a resident of the

United States (within the meaning of subparagraph (A))."

As we see above, the definition of Resident Alien include those who satisfy the substantial presence test and this include non-immigrant visa (H1 and L1) holders.

 

Share this post


Link to post

Thank you JoeF for the information.

 

We were truly misguided by the CPA who opened the firm and not just that  we contacted many CPA's and we did get the same kind of info. Anyways I'm planning to get in touch with Murthy law firm attorney to figure out the next steps. Thanks

Don't worry.  your CPA  has not misguided you.  Trust your CPA .  He knows Tax Laws better than some unqualified people in forums (and that includes me too).  

Share this post


Link to post

Don't worry.  your CPA  has not misguided you.  Trust your CPA .  He knows Tax Laws better than some unqualified people in forums (and that includes me too).  

As Ronald Reagan said: "Trust but verify."

And the verification part shows that this particular CPA apparently doesn't know this part of the tax laws.

There are unfortunately a lot of bad CPAs out there, just as there are a lot of bad lawyers, and a lot of bad auto mechanics, and a lot of bad doctors, etc...

Share this post


Link to post

I have provided link to the post where I quoted the law.  But to make your life easy,  I will reproduce it again  --

 

The regulation 26 CFR 1.1361 says –

"(g) Nonresident alien shareholder--(1) General rule. (i) A corporation having a shareholder who is a nonresident alien as defined in section 7701(b)(1)(B) does not qualify as a small business corporation."

And USC 7701(b)(1)(B) (from Title 26, Chapter 1 Sec 1361)  which defines "Nonresident alien" reads as

 

All we see is that you switch from the CFR to the law without any justification.

That's why you are not qualified to discuss this matter.

Share this post


Link to post

All we see is that you switch from the CFR to the law without any justification.

That's why you are not qualified to discuss this matter.

Anybody having elementary knowledge about CFRs and Code knows that CFR often refers to Code.  There are dozens such instances in 26 CFR alone.   

 

If you really want to add value , cite the law . 

Share this post


Link to post

Anybody having elementary knowledge about CFRs and Code knows that CFR often refers to Code.  There are dozens such instances in 26 CFR alone.  

If they refer the code, they actually say so. Here they don't.

Case closed.

Share this post


Link to post

If they refer the code, they actually say so. Here they don't.

Case closed.

There is NOT a single instance in 26 CFR  where they actually say that they refer to the Code but they DO refer to the code.  Those who know how to read CFR knows it.

 

You again fail to show any reference .  That just shows the hollowness of your argument.

Share this post


Link to post

As Ronald Reagan said: "Trust but verify."

And the verification part shows that this particular CPA apparently doesn't know this part of the tax laws.

There are unfortunately a lot of bad CPAs out there, just as there are a lot of bad lawyers, and a lot of bad auto mechanics, and a lot of bad doctors, etc...

A CPA is not bad just because he does not agree to a unnamed forum poster who  does not even know how to read CFR  and who fails to cite ANY legal reference in support of his argument.    Again,  if you have reference show it .... else your argument has ZERO, NADA, ZILCH value .

 

OP ,  go by what your CPA says .  As for verification ,  refer to the CFR and law which I cited.  JoeF  has miserably failed citing any law

Share this post


Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×