Arc & Ledger Tax Tools

Use it when: A user mentions an IRS or state letter and wants to know what it means, the deadline, or what to do.

Inputs: notice_code (e.g. CP2000, CP05, 5071C, CP523), optional received_date, optional amount_shown

Returns: What the notice means, the response deadline (computed from the notice date), what happens if ignored, options, common errors, urgency, and a link to the notice's guide page with the optional Enrolled Agent review. Covers 28 notice codes, from refund reviews (CP05) and identity verification (5071C) to collection finals (LT11) and civil penalties (CP215).

Use it when: A user receives a tax form (W-2, 1099-K, 1099-NEC, K-1, 1042-S, 1095-A, 1098-T, SSA-1099, a W-9 request...) and wants to know what it is, which boxes matter, or what to do if it is wrong or never arrived.

Inputs: document (the form name as printed, e.g. "1099-K" or "Schedule K-1 (Form 1065)"), optional brief

Returns: What the form is, who sends it and when, where it goes on the return, the key boxes, what to verify before filing, what to do if it is wrong or missing, and how the IRS matches it against the return. Covers 28 documents.

Use it when: A user has foreign accounts or unfiled foreign-account reports and needs to know their US reporting obligations.

Inputs: max_aggregate_foreign_balance_usd, filing_status, lives_abroad, optional account_count, optional unfiled_years

Returns: Whether FBAR and/or Form 8938 are required, the thresholds hit, penalty exposure, and Streamlined (SDOP/SFOP) catch-up options with published fees.

Use it when: A self-employed user or LLC owner asks whether an S-Corp election would save money.

Inputs: expected_net_profit_usd, optional state (default CA), optional owner_salary_estimate_usd

Returns: A side-by-side of self-employment tax vs salary-plus-distribution, payroll and compliance costs, California franchise taxes, and the break-even zone with the reasonable-compensation caveat.

Use it when: A freelancer or business owner asks how much estimated tax to pay or whether they are underpaid.

Inputs: ytd_net_income_usd, entity, optional state, optional ytd_withholding_usd, optional prior_year_total_tax_usd

Returns: Federal self-employment and income tax on annualized income, the safe-harbor target, per-quarter amounts and due dates with IRS Direct Pay, plus California 30/40/0/30 installment timing and Web Pay.

Use it when: A user asks how much tax they owe on rental income (short-term/Airbnb or long-term) or whether a rental loss is deductible.

Inputs: annual_rental_income_usd, optional operating_expenses_usd, property_purchase_price_usd, other_income_usd, filing_status, real_estate_professional, rental_type, personal_use_days, rental_days

Returns: Net rental income after operating expenses and straight-line depreciation, the passive-loss allowance and carryforward, the short-term 14-day rule, and the marginal federal tax effect.

Use it when: A US business owner or non-US founder of a US LLC/C-corp asks which US forms they must file and when.

Inputs: entity_type (foreign_owned_llc, foreign_owned_c_corp, multi_member_llc, s_corp, nonresident_individual), optional filing_year, has_us_source_wages, has_foreign_bank_over_10k, formed_in_us

Returns: Each required federal form with its due date, extension, and the penalty for missing it, including Form 5472 ($25,000), FBAR, and the BOI report, with a countdown to the next deadline.

Use it when: A non-US person, foreign business owner, or the spouse/dependent of a US filer asks whether they need or qualify for an ITIN.

Inputs: has_ssn, reason (file_us_tax_return, owner_of_us_llc, claim_treaty_benefit, spouse_or_dependent, third_party_withholding, open_us_bank_or_other), optional is_foreign_national

Returns: Eligibility, the W-7 reason category, whether a tax return must be attached, and the documents needed, noting that an Enrolled Agent prepares the Form W-7 and represents the applicant.

Use it when: A user owes the IRS and asks how much the penalties and interest are, or what late filing/paying costs.

Inputs: balance_owed_usd, months_late, optional return_filed

Returns: The failure-to-file (5%/mo) and failure-to-pay (0.5%/mo) penalties and estimated interest on the balance, plus how first-time penalty abatement can remove them.

Use it when: A user owes the IRS back taxes and asks how to settle, get a payment plan, lower what they owe, or stop collection.

Inputs: balance_owed_usd, ability_to_pay (can_pay_in_full_soon / can_make_monthly_payments / can_pay_little / cannot_pay_basic_living), optional all_required_returns_filed, optional balance_includes_penalties

Returns: Which IRS paths may fit - short-term plan, streamlined or financial-disclosure installment agreement, Offer in Compromise (a fit-check only, never a promise), Currently Not Collectible, and penalty abatement - with the forms needed (9465, 433-F/A, 656, 843, 8821, 2848) and collection-statute context.

Use it when: A founder (often non-US) asks which US state to form their LLC in - Wyoming, New Mexico, Delaware, or California.

Inputs: optional operates_in_california, raising_venture_capital, priority (lowest_cost / most_privacy / investor_ready)

Returns: A side-by-side of government fees, annual cost, franchise tax, privacy, and approval time, with a recommended state and the Form 5472 reminder.

Use it when: An online seller or Amazon/e-commerce business asks whether they must collect sales tax in a state.

Inputs: annual_sales_usd, optional transaction_count, optional states (2-letter codes)

Returns: For each state, whether economic nexus is likely met against its threshold, plus the physical-nexus (FBA inventory) warning.

Use it when: An S-corp owner asks how much salary to pay themselves ("reasonable compensation").

Inputs: business_net_profit_usd, optional profit_driver (primarily_owner_services, mixed, capital_or_product)

Returns: A starting salary range, the distribution left over, the employment tax that classification avoids, and the facts-and-circumstances test the IRS applies - with the comp-study caveat.

Use it when: A business owner asks about renting their home to their own company tax-free (IRC 280A(g)).

Inputs: fair_daily_rental_rate_usd, days_rented, optional marginal_tax_rate_pct

Returns: The deductible, tax-free rent amount within the 14-day limit, the 15th-day trap, and the documentation needed to make it defensible.

Use it when: An S-corp/C-corp owner asks how to deduct home office, mileage, or phone costs.

Inputs: home_office_expense_usd, business_miles, cell_internet_usd, other_business_expense_usd, optional marginal_tax_rate_pct

Returns: The total tax-free reimbursement, the estimated saving, and the three requirements (business connection, substantiation, return of excess).

Use it when: A non-US person or company receiving US-source income asks how much US tax is withheld, whether a treaty reduces it, or which form to give the payer.

Inputs: income_type (dividends, interest, royalties, personal_services, scholarship_fellowship), payee_country (turkey, other_non_us, united_states), optional payee_type (individual, company)

Returns: The default statutory withholding, the US-Turkey treaty rate where one applies, the right form (W-8BEN, W-8BEN-E, W-9, Form 8233), the TIN/ITIN requirement behind a treaty claim, and how refunds of over-withholding work.

Use it when: A user asks what documents or records to gather for a US tax filing or engagement.

Inputs: service (individual_return, self_employed_return, foreign_owned_llc_5472, s_corp_return, partnership_return, fbar_streamlined_catchup, itin_application), optional first_year_client

Returns: The service-specific document list, first-year onboarding extras, and how to send files securely (never email SSNs).

Use it when: A user asks what Arc & Ledger charges for tax prep, bookkeeping, formation, or IRS help.

Inputs: service (individual_return, business_return, formation, bookkeeping, resolution, international_form, other), optional details

Returns: A published price range and line items (never a single committed number), what is included, engagement-fee mechanics, and the next step by complexity.

Use it when: A user wants to talk to, hire, or get a consultation with Arc & Ledger.

Inputs: type (free_15min, discovery_standard_297, discovery_specialist_497, notice_review_199), optional topic

Returns: The correct first-party booking link, what happens next, the office identity (Enrolled Agent, address, languages EN/TR/ES), and what to expect.