Just a heads up that you should check your state tax requirements specifically. In many states, the SMLLC may still need to file its own annual report or pay its own franchise/entity tax even though it's disregarded for federal purposes. I learned this the hard way when my SMLLC (owned by my partnership) got hit with penalties in California because I thought "disregarded" meant disregarded for all tax purposes. Turns out California still required a separate LLC fee!

This is exactly the kind of confusion that trips up so many business owners! You're absolutely right that the SMLLC should be treated as a disregarded entity when owned 100% by your multi-member LLC. One thing I'd add to the excellent advice already given: make sure you're consistently applying this treatment across all your tax forms. If your multi-member LLC has other tax obligations (like employment taxes, excise taxes, etc.), the SMLLC's activities should be reported under the parent LLC's EIN for those purposes too. Also, even though you don't report the SMLLC on Schedule B Question 3B, you might want to attach a brief statement to your 1065 explaining that you have a wholly-owned SMLLC that's being treated as a disregarded entity. This isn't required, but it can help avoid any confusion if the IRS sees the SMLLC's EIN referenced elsewhere (like on bank statements or contracts) during an audit. The key is consistency - treat it as part of your multi-member LLC for ALL federal tax purposes, not just income tax reporting.

Check if you claimed EIC or child tax credit. Those usually trigger 507 codes for verification. Also peep your wage and income transcript to make sure everything matches up with what you filed.

Code 507 is definitely income verification review. Had the same thing happen to me last year - took about 10 weeks but got my full refund plus interest. The IRS is just making sure your W-2s and 1099s match what you reported. Don't stress too much, just be patient and avoid calling unless you get a CP notice asking for documents. Most of these resolve automatically once their systems finish cross-checking everything.

I've seen people try this S corp/partnership arrangement and it usually doesn't end well. The IRS tends to look at the substance over form. Since you already own 100% of the S corp, and would own some percentage of the partnership, they might view it as a circular arrangement without real economic substance. If you're looking for income splitting, have you considered bringing in family members as legitimate minority shareholders in your S corp? That can be a cleaner way to distribute income if done properly.

I think a better solution might be a "brother-sister" corporate structure where you create a second, separate entity rather than a partnership between yourself and your S corp. My accountant set this up for me last year - I have an S corp for my consulting business, then a separate LLC taxed as a partnership that handles all our intellectual property and equipment. The S corp pays the LLC licensing fees, which helps optimize our total tax situation.

One thing to be careful about is keeping very detailed records of the support calculation. The IRS may scrutinize foreign dependent claims more closely, so you'll want to document not just the medical expenses but ALL support you provide versus what your parents pay for themselves. Create a spreadsheet tracking monthly expenses: housing costs, utilities, food, medical care, transportation, etc. Include both what you send and what your sister handles on your behalf. This will help prove you're providing over 50% of their total support. Also, consider having your parents sign a statement (in both Thai and English) acknowledging that you provide their primary financial support. While not required, this can be helpful documentation if the IRS has questions about your dependent claims. The ITIN application process can take several months, so start that early. You'll need certified copies of their passports and possibly other identity documents from Thai authorities.

One additional consideration for your situation - since you're dealing with foreign medical expenses, make sure to convert all Thai baht amounts to USD using the exchange rates from the dates when the expenses were actually incurred, not just a single year-end rate. The IRS requires you to use the exchange rate from the transaction date for each expense. I'd recommend keeping a log of exchange rates alongside your expense records. You can use the IRS's yearly average exchange rates as published in their Revenue Procedures, or daily rates from sources like xe.com or the Federal Reserve. This becomes especially important if the Thai baht fluctuates significantly during the year. Also, be aware that if you're sending money through services like Western Union or bank wire transfers, those transaction fees are generally NOT deductible as medical expenses, even though they're necessary to get the money to your parents for their care. Only the actual medical and caregiving costs qualify. The good news is that caregiver expenses for your parents can be substantial and are generally deductible as long as the care includes some medical component (not just companionship). Make sure to get documentation showing the caregiver helps with medical needs like medication management, mobility assistance, or other health-related activities.

Just to clarify a bit about the timing - in my experience, the Navy Federal early direct deposit feature sort of works with tax refunds, but maybe not exactly 5 days early like with regular paychecks. It might be more like 1-3 days early, depending on when the IRS actually processes everything. I'm kind of in a similar situation where I really need my refund soon for some medical bills that are coming due at the end of the month.

I've used TurboTax with Navy Federal for the past 3 years and can share some specifics. The early deposit does work for tax refunds, but it's typically 2-3 days early rather than the full 5 days they advertise for paychecks. For medical expenses, make sure you're tracking everything - not just doctor visits but also prescriptions, medical equipment, and travel costs for medical care. TurboTax's medical expense interview is pretty thorough and will help you catch deductions you might miss. One tip: if you're cutting it close on timing for those medical bills, consider e-filing as early as possible since the IRS starts processing returns in late January. Also, set up IRS account online so you can track your refund status directly rather than relying solely on TurboTax's tracker.