Tax questions answered
Straight answers on personal, business, international, and India-US tax matters from Add-wise professionals.
FAQs
Does Add-wise Tax work with clients who don't live in the US?
Yes. A significant part of our practice is built around nonresidents, foreign business owners, and individuals with tax obligations in more than one country.
What's the difference between a bookkeeper, a tax preparer, and a fractional CFO?
A bookkeeper keeps your financial records current, a tax preparer files your returns based on those records, and a fractional CFO uses that same financial picture to help you plan and make decisions. Add-wise Tax offers all three, connected rather than handled separately.
Do you only work with businesses, or do you handle personal tax returns too?
Both. We prepare personal tax returns, including nonresident filings, alongside business returns, bookkeeping, and advisory services.
How is Add-wise Tax different from a general accounting firm?
Most firms handle either US domestic tax or international tax, rarely both in depth. Add-wise Tax is built specifically around the intersection of the two.
Can I book a consultation before committing to anything?
Yes. You can book a free consultation to talk through your situation before deciding how to move forward.
Do you work with clients in India specifically?
Yes, India-US tax advisory is one of our dedicated specialties, covering NRIs, Indian founders with US entities, and related filing requirements.
Is Add-wise Tax a full CPA firm, or an outsourced service?
We're a CPA-led practice, led by a founder dual-qualified as both a US CPA and an Indian Chartered Accountant, not an outsourced or offshore-only service.
Can you help me figure out which services I actually need?
Yes, that's exactly what the initial consultation is for. We review your situation first and recommend services based on what you actually need, not a bundled package.
Do you work with clients outside the US and India, or is that your only focus?
While India-US cross-border work is a core specialty, we also work with nonresidents and foreign-owned businesses more broadly through our International Tax Advisory service.
Do I need to file a US tax return if I'm not a US citizen or resident?
It depends on whether you have US-source income or other filing triggers. Nonresident aliens with US income generally need to file Form 1040NR, and we can help determine whether that applies to you.
What should I do if I receive an IRS notice?
Don’t ignore it. Reach out so we can review exactly what the notice is asking for and respond appropriately before any deadlines pass.
Can you help if I owe back taxes from previous years?
Yes, we help resolve back tax filings and work with the IRS on payment plans or other resolution options.
How long does IRS tax resolution typically take?
It varies significantly based on the type of issue, ranging from a few weeks for straightforward matters to several months for more complex resolutions or audits.
What is an Offer in Compromise and do I qualify?
It’s an IRS program that lets some taxpayers settle for less than the full amount owed. Eligibility depends on your income, expenses, assets, and ability to pay, and we review your numbers before recommending it.
Can you get my IRS penalties removed?
Often, yes. Penalties can sometimes be reduced or removed through first-time penalty abatement or by showing reasonable cause. We review your history and tell you honestly whether it’s worth requesting.
Will interest keep growing on what I owe?
Yes. Interest accrues on unpaid tax and on penalties until the balance is paid in full. This is why acting early usually saves money.
What happens if I ignore IRS notices?
The IRS escalates over time, and unpaid balances can lead to liens, levies, or wage garnishment. Responding early keeps your options open and often keeps the problem small.
How do I get started?
Book a consultation. We will talk through your situation and determine the best path forward. There isno pressure and no jargon.
I live outside the US. Do I still need to file a US tax return?
Yes, US citizens and green card holders are required to file regardless of where they live, as long as they meet the income thresholds. Where you live affects what you owe, not whether you need to file.
Will I be taxed twice on the same income?
Not if it’s handled correctly. Between the Foreign Earned Income Exclusion and the Foreign Tax Credit, most expats significantly reduce or eliminate double taxation. Which option works better depends on your specific numbers.
What is FBAR and do I need to file it?
FBAR is a report of foreign bank and financial accounts, required if the combined value of your foreign accounts exceeded $10,000 at any point in the year. It’s filed separately from your tax return, and the penalties for missing it are steep.
I haven’t filed a US return in years since moving abroad. What now?
FBAR is filed with FinCEN and covers foreign financial accounts. FATCA (Form 8938) is filed with your tax return and covers a broader set of foreign financial assets, with different thresholds depending on your filing status and location.
What makes AddWise different?
The Streamlined Filing Compliance Procedures exist for exactly this situation, letting you catch up without the penalties that normally apply. We can walk you through whether you qualify and handle the filings.
How do I get started?
Book a consultation. We will talk through your situation and determine the best path forward. There isno pressure and no jargon.
Do I need to file a US tax return if I’m not a US citizen or resident?
It depends on whether you have US-source income or other filing triggers. Nonresident aliens with US income generally need to file Form 1040NR, and we can help determine whether that applies to you.
What’s the difference between Form 1040 and Form 1040NR?
Form 1040 is for US citizens and resident aliens, while Form 1040NR is for nonresident aliens with US-source income. The forms differ in what income and deductions apply.
Can you handle personal tax returns involving multiple states?
Yes, multi-state personal tax return preparation is something we handle regularly, including situations involving income earned or residency established in more than one state during the year.
What documents do I need?
Bring your W-2s, 1099s, K-1s, mortgage statements, and any other income or deduction records. We will provide a checklist before our meeting.
How much does it cost?
Pricing depends on the complexity of your return. After a short consultation, we will give you a clear, fixed quote before any work begins.
How do I get started?
Book a consultation. We will talk through your situation and determine the best path forward. There isno pressure and no jargon.
What information do you need to prepare my personal tax return?
It depends on your situation. We’ll give you a customized document checklist so you know exactly what to provide rather than sending documents you don’t need.
Can you prepare returns for multiple states?
Yes. We regularly work with individuals who lived or worked in more than one state and need to file multiple state returns.
Can you handle returns with multiple K-1s?
Yes. We can incorporate K-1s from partnerships and S-corps into your individual return and help you understand how they affect your overall tax position.
Can you prepare returns if I own a business?
Yes. If you have an interest in a partnership, S-corp, or other business entity, we can incorporate the relevant information into your personal return.
What if I’m behind on my tax returns?
We can help you catch up on unfiled returns and determine what needs to happen next, including situations where you’ve already received an IRS notice.
How do I get started?
Book a consultation. We will talk through your situation and determine the best path forward. There isno pressure and no jargon.
Does an Indian resident who owns a US LLC need to file US taxes?
In most cases, yes. Owning a US LLC typically creates US filing obligations regardless of where the owner lives, and specific forms like 5472 often apply to foreign-owned entities.
What is the US-India tax treaty, and how does it help avoid double taxation?
The US-India tax treaty outlines rules for how certain income is taxed when it could otherwise be taxed by both countries, and provides mechanisms like foreign tax credits to reduce or eliminate double taxation.
How does FEMA affect Indian founders setting up a US entity?
FEMA governs how Indian residents can invest or hold interests abroad, and it interacts with US filing requirements in ways that are easy to overlook without advisors who understand both systems.
As an NRI, do I need to report my US income to Indian tax authorities too?
Depending on your residential status under Indian tax law, US income may need to be reported in India as well, with the tax treaty helping to prevent that income from being taxed twice.
Can you help with US tax implications when repatriating funds from an Indian business?
Yes, we help evaluate the US tax treatment of funds moving between Indian and US entities or accounts, which is a common point of confusion for founders operating in both countries.
How do I get started?
Book a consultation. We will talk through your situation and determine the best path forward. There isno pressure and no jargon.
Is fractional CFO support ongoing, or project-based?
It can be either, depending on what you need. Some clients want ongoing monthly support, while others need help around a specific event like fundraising or a major financial decision.
Can a fractional CFO help with fundraising?
Yes, including financial modeling, investor-ready reporting, and helping present your numbers clearly to potential investors.
How much does a fractional CFO typically cost compared to a full-time hire?
Fractional CFO services generally cost a fraction of a full-time CFO salary, since you're paying for the time and expertise you actually need rather than a full-time role.
Do you work with businesses that don't have clean financials yet?
Yes, and often the first step is working with our bookkeeping team to get your finances to a place where meaningful CFO-level planning is possible.
Can a fractional CFO help with international or cross-border businesses specifically?
Yes, this is an area where our cross-border tax background adds real value, since financial planning for a business operating across countries involves considerations a domestic-only CFO wouldn't typically account for.
How do I get started?
Book a consultation. We will talk through your situation and determine the best path forward. There isno pressure and no jargon.
What is cross-border tax?
Cross-border tax covers any situation where your income, assets, or entities touch more than one country. That includes foreign-owned US LLCs, US persons with foreign corporations, and treaty claims. We handle the reporting and the planning.
Do you handle 5471s?
Yes. Form 5471 is one of the most common forms we prepare for US persons with interests in foreign corporations. We verify the filing categories and build the return from your actual records.
What about foreign-owned LLCs?
Foreign-owned US LLCs often trigger Form 5472 and other reporting. Missing these filings carries steep penalties. We confirm what applies to your entity and prepare everything correctly.
Can you claim treaties?
We prepare Form 8833 disclosures and help you claim treaty benefits where they apply. We also handle Form 6166 certifications for US tax residency. The goal is to pay what you owe, not more.
Do you advise year-round?
Yes. Cross-border tax is not a once-a-year problem. We stay available after filing for questions, notices, and planning decisions that affect next year’s return.
How do I get started?
Book a consultation. We will talk through your situation and determine the best path forward. There isno pressure and no jargon.
Can a non-US resident form a US LLC?
Yes, non-residents can form and own US LLCs, and it’s a common structure for founders operating internationally.
What’s the best state to form a US LLC as a foreigner?
It depends on your specific business, though factors like state fees, privacy, and tax treatment often make certain states more common choices for non-resident founders. We walk through the tradeoffs for your situation during the initial consultation.
Do I need a US address or Social Security Number to form an LLC?
No, a US address and Social Security Number aren’t required to form an LLC, though you will need an EIN (Form SS-4), which we handle as part of formation.
How long does US LLC formation typically take?
Usually 1-2 weeks, depending on the state, plus additional time for your EIN once the entity is formed.
What happens after my LLC is formed? Do I have ongoing filing requirements?
Yes, foreign-owned LLCs generally have ongoing annual filing requirements, including Form 5472, which is one of the most commonly missed obligations after formation.
Do I need an ITIN to form my LLC?
Not to form the LLC itself, but you’ll likely need one shortly after, since an ITIN is typically required once compliance obligations like Form 5472 or a personal US filing kick in.
What’s the difference between a 1065 and an 1120-S filing?
Form 1065 is filed by partnerships and multi-member LLCs taxed as partnerships, while Form 1120-S is filed by businesses that have elected S-corporation status. Each has different rules around how income passes through to owners.
Do you prepare returns for small businesses, or only larger companies?
We work primarily with small and growing businesses, including LLCs, partnerships, and S-corps.
How far in advance should I start preparing my business tax return?
Starting well before the filing deadline gives us time to review your books, catch any issues, and look for planning opportunities rather than just filing what’s already there.
Do you only prepare returns, or do you also advise on tax strategy?
Both. We review your return for planning opportunities and can advise on decisions that affect future filings, not just prepare the current year’s return.
What records do you need from me to prepare my business return?
Generally your bookkeeping records, prior year returns if applicable, and any relevant documentation for major transactions during the year. If your books aren’t fully current, we can help with that first.
How do I get started?
Book a consultation. We will talk through your situation and determine the best path forward. There isno pressure and no jargon.