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Advisor ask: Pearce Bevill 2025 working session

Advisor: Pearce Bevill, Leesburg, Moore P. C. — primary CPA. Lead: Pearce. Daisy B. Buck (state tax + Five Points / Woolworth / 1006 / personal-return work). Robert Cook (cross-border + Pearce account lead). Coordination with Kim & Rosado LLP (Tony Kim + Nick Rosado) for international tax. Date: 2026-05-10 (drafted; sent date TBD) Deadline / why now: Austin's 2025 1040 extension deadline is 2026-10-15. The 2025 1040 includes the first 5471 for the existing GK (Renfroe Holdings GK, fiscal year ending 2026-10-31), the RHG SA de CV 5471 cycle, FBAR 2024 + 2025, and a number of provisional positions whose Final classifications gate Phase 1 of the Xero buildout. Working-session scheduling NOW gives Pearce 5 months runway to October 15. Severity: Critical — multiple downstream items gate on this session.

Facts we believe

The full 19-item agenda lives at tax/2025-filing-prep.md. The most load-bearing items, sourced:

  • GK Form 8832 status: open. 75-day window from formation (2025-01-24) expired ~2025-04-09. Per Nick Rosado's 2024-12-25 email to Laurence + Robert, GK is NOT a per-se corporation, so 8832 disregarded-entity election was available within the window. No mined Pearce thread confirms 8832 was actually filed. If missed, evaluate retroactive election with reasonable cause. Source: tax/2025-filing-prep.md item 1.
  • Existing GK PFIC posture: open. Mita Garden Hills 1009 generates rental income; PFIC characterization depends on whether rental qualifies as trade-or-business under §954©. Single-condo + outsourced PM is borderline. Default punitive treatment vs QEF vs MTM. Source: accounting/accounting-policy.md §22 / Mita basis section.
  • PROPOSED second-GK formation US-side capital-gain exposure: open. AND THE GK HAS NOT YET BEEN FORMED. Tohyama Office (Takeshima Tohru) is engaged for proposed JP-side formation of a second Renfroe Holdings GK that would take over Mita 1009 from the existing GK. JP-side cleared by Endo (ABS Partners) 2026-04-30 with FMV mark-to-market on transfer date. US-side capital-gain exposure on transferring US LLC pending Pearce + Kim & Rosado review — this is the gate. Austin is holding the Tohyama forms + US-LLC existence cert + affidavit until US-side is cleared. §367 / §1248 implications + member-of-record (RFH directly vs sub-LLC) + carryover-vs-step-up basis treatment all open. Source: context/communications-deep-dive.md, accounting/advisor-decision-register.md 2026-04-30 Endo entry + context/contradictions.md CON-01.
  • 2024 5471 for RHG: filed at 99% Austin / 1% Cindy (per filing). Substantive position is 100% Austin (capital variable per JME signed multi-year FS 2023-2025); Cindy's 1% capital fijo MXN $500 was fraudulently added without authorization (Austin direct correction 2026-05-09); active removal via Mexican consignación de pago. Open: amend 2024 5471 to reflect post-removal cap table when consignación closes? Or wait until S. de R.L. de C.V. conversion is complete? Source: accounting/entity-tax-classification-matrix.md RHG row.
  • FBAR 2024 + 2025: open. Tony Kim's Apr 2024 analysis concluded 2023 was not triggered. Santander MXN PYME alone hit $18,143 USD-equiv on 2025-09-24 — first FBAR-trigger event. 2025 peak $19,585.75 USD (2025-12-15); 2026-YTD peak $27,708.75 USD (2026-02-12). TSB Mita is also FBAR-relevant. Forward tax/fbar-analysis.md to Daisy at start of cycle. Source: tax/fbar-analysis.md, accounting/advisor-decision-register.md Pearce 2024-04 entry.
  • Federal NOL carryforward: $3,429,659 on Austin's 2024 personal return. Multi-year preservation strategy required (not "reduce current tax" — already zero). State character TBD. Source: tax/nol-preservation-ledger.md.
  • Renfroe Innovation entity classification: open. RI converted Inc → LLC on 2017-07-10 (AL); 8832 status at conversion unclear. If 8832 elected C-corp continuation, RI is separate taxpayer through that period; if not, prior S-election terminated by operation of law and RI defaulted to disregarded SMLLC. Affects whose return takes Conley Rose patent prosecution deductions. Source: accounting/renfroe-innovation-ip-register.md.
  • AFR loans (parents → Austin → RFH) — both legs. Five Points BHM leg (terms TBD); Mita-side $350K leg (confirmed 2025-07-23 via Brex API). Promissory notes still missing per Stuart Memory follow-up. §7872 imputed-interest compliance + 1099-INT issuance required. Source: accounting/loan-register.csv rows AFR-FivePts + AFR-Mita.
  • Red Farm §165(g) timing. ~$120K loss; shut down 2026. Worthless-security deduction on 2025 vs 2026 return — open. Source: tax/2025-filing-prep.md.
  • Five Points BHM TX 2024 minimum franchise tax filing. Daisy offered 2025-11-13 to handle with zero gross receipts in response to TX Comptroller forfeiture notice; no follow-up confirmation captured in mining. Active concern given Alabama SoS Notice of Forfeiture filed 2025-11-12. Source: accounting/advisor-decision-register.md 2025-11 entry.
  • LP-interest transfer into RFH: open. Personal-held positions (multiple LP / fund / direct investments). Basis-step-up vs carryover analysis needed. Currently in investments/investment-register.md flagged for advisor decision.

Decision needed

Substantive answers + scheduling commitment. Pearce + Kim & Rosado to schedule a 2025-tax-cycle working session that produces Final-confidence answers to the 19-item agenda with target completion 2026-08-31 (giving 6 weeks of runway to the 2026-10-15 1040 extension deadline).

Options

  • Option A — Single multi-hour working session. All 19 items in one block. High-bandwidth; risks fatigue + skipped items; produces a single deliverable.
  • Option B — Series of 60-90 min focused sessions organized by topic cluster: (1) GK + new-GK + PFIC; (2) RHG cap-table + revenue framing; (3) NOL + cost-seg + STR; (4) AFR loans + 1099 compliance; (5) state filings + entity-classification cleanup. Each produces a deliverable.
  • Option C — Async written exchange with periodic check-ins. Lowest scheduling overhead; risks slow turnaround; harder to nail down priorities.

Option B. Topic-clustered sessions allow Pearce + Kim & Rosado to bring the right specialist depth to each cluster (e.g., Tony Kim on the GK 8832 / 5471 questions; Daisy on state filings; Robert on cross-border restructure). 5 sessions × 90 min = ~7.5 hours total focused time; spread over 8-12 weeks aligns with Pearce's typical engagement cadence + leaves rooms for follow-ups.

Xero / books impact

  • Accounts affected: 7110 (Pearce + Kim & Rosado professional fees per accounting/accounting-policy.md §25 BY-NATURE refinement); various tax-adjustment accounts in 9000 range pending each Final answer
  • JE template: US tax adjustment JE pattern per accounting/xero-buildout.md Phase 4 three-JE-types decomposition
  • Confidence level today: Most positions [P] (Provisional). Each Final answer upgrades the corresponding entity / topic to [F]
  • Confidence level after working sessions: Phase 1 COA finalization unblocked → US Operating View transitions from [P]-dominant to [F]-dominant per accounting/reporting-views.md

The 2025 1040 prep has a tighter critical path than the 2024 cycle because of (a) the proposed-but-not-yet-executed second-GK restructure US-side gain exposure (gates whether Austin executes Tohyama's formation), (b) the existing GK first-year 5471 (drives Mita basis allocation + depreciation method — fully relevant since the existing GK is the SOLE GK today), © FBAR 2024 + 2025 backfill (Santander crossed in Sep 2025), and (d) the $3.43M NOL preservation strategy (multi-year planning, not just current-year). Without a working session that actually produces Final-confidence answers, several Phase 1 + Phase 4 items in the Xero buildout stall.

Source documents attached

  • tax/2025-filing-prep.md (19-item agenda)
  • tax/pearce-bevill-thread-summary.md (mining of prior threads, what Pearce has previously addressed)
  • tax/fbar-analysis.md
  • tax/nol-preservation-ledger.md
  • accounting/entity-tax-classification-matrix.md
  • accounting/loan-register.csv (rows AFR-FivePts + AFR-Mita)
  • accounting/renfroe-innovation-ip-register.md
  • accounting/advisor-decision-register.md

Open follow-ups for advisor

  • Sign Oklahoma Power of Attorney Daisy sent 2026-02-11 (pending Austin signature)
  • Forward IRS notice on $254 refund delta (per Pearce Nov 22 2025 computation vs IRS)
  • Refresh Pearce direct-deposit info from WF (Austin personal) to Brex
  • Pearce ↔ JME introduction (Austin to make)
  • Pearce ↔ ABS Partners introduction (engagement letter Docusigned 2026-03-01; intro queued)
  • Identify US cross-border counsel for the intercompany services agreement (largest remaining advisor gap)

Decision register entry (post-call)

After each topic-clustered session, log answers in accounting/advisor-decision-register.md with date / advisor lead / decision / effective date / Xero impact. Active row should change to superseded by YYYY-MM-DD when a new entry covers the same question.