Draft email — Pearce (primary) + Kim & Rosado (CC) — 2026-05-09 advisor escalation¶
Status: Draft. Review and send when ready. Drafted by Claude after Dive 7 (context/document-audit-2026-05-09.md) + Dive 8 (context/tax-and-cap-table-audit-2026-05-09.md) — verifications committed in this repo at commits bdebb5e + 2c3896d. Each item below is sourced from a primary document (filed return PDFs, 1040 supporting schedules, BOIR submission record, mailbox content); citations omitted from the email body but available on request.
To: Daisy Buck ([email protected]), Robert Cook ([email protected]) Cc: Tony Kim ([email protected]), Nick Rosado ([email protected]), Peter Chang ([email protected]), Alex Snider ([email protected]) Subject: Renfroe — seven items needing review (2025 cycle prep)
Daisy, Robert —
I've been doing a thorough audit of the family-office records ahead of the 2025 cycle and have identified seven items that need a review on your end (with the relevant items also addressed to Tony, Nick, and Peter at Kim & Rosado). I'd like to get all of these covered before we get deep into 2025-cycle preparation.
In rough order of urgency:
1. Renfroe Holdings GK — Form 8832 election¶
GK was formed in Japan on January 24, 2025. The 75-day window for a Form 8832 entity-classification election ran out on or around April 9, 2025. I've been through the Synology document share, both M365 mailboxes, and the bundled returns Pearce delivered through the portal, and I do not see evidence that an 8832 was filed for GK within the window.
If it wasn't filed, GK currently defaults to a per-se C-corp under the foreign-default rules, which materially changes 2025 treatment (GILTI exposure + likely PFIC analysis on Mita rental income).
Can you (a) confirm whether an 8832 was filed for GK and provide the IRS acceptance letter if so, and (b) if not, advise on a retroactive election with reasonable cause under Rev. Proc. 2009-41? Tony / Nick / Peter — happy to loop you in on the entity-classification side.
2. BOIR (FinCEN Beneficial Ownership Information Report) — apparent overdue filings¶
The CTA's 30-day-from-formation BOIR deadline appears to have been missed on four entities formed in 2025:
- W 3101 Holdings, LLC
- Casa Moksha LLC (formed 2025-10-13)
- Casa Moksha Holdings LLC (formed 2025-10-19)
- Austin Marine Holdings, LLC
Tony / Peter — you handled the Renfroe Innovation BOIR successfully in November 2024. Can you check whether these four were filed; and if not, file them now and document the late-filing rationale?
(For reference: Renfroe Hospitality Group, LLC — the empty US TX shell formed 2024-08-09 — has a confirmed BOIR filing in the Synology share. So I know the pattern works on your side.)
3. Form 3520 + Form 8938 — apparent absence from 2023 + 2024 personal returns¶
Tony's 2023 scope memo and the 2024 cycle thread both reference Form 3520 (foreign trust) and Form 8938 (specified foreign financial assets) as part of the deliverable. However, when I dump-text the bundled 1040 PDFs you delivered through the Pearce portal for both 2023 and 2024, I don't find either form in the file.
Two possibilities:
(a) They were filed separately and the bundled portal copy doesn't include them — in which case I'd appreciate a copy for our records. (b) They weren't actually filed — in which case we have a meaningful penalty exposure (3520 = greater of $10K or 35% of trust transactions; 8938 = up to $50K + criminal liability for willful) and need to talk through remediation.
Can you confirm filing status and provide copies?
4. 2024 Schedule B Part III — line 7a foreign-account financial-interest threshold question¶
The 2024 personal return checks "No" on line 7a (foreign account financial interest). Austin's 99% ownership of Renfroe Hospitality Group SA de CV gives him interest in three Mexican Santander accounts. The aggregate-balance question (line 7c) is correctly "No" because the 2024 aggregate didn't cross $10K, but line 7a is a more literal "did you have a financial interest in any foreign account at any time" question. I want to make sure the position taken is defensible if examined.
Can you re-review and confirm we're comfortable with the answer as filed? If we'd answer differently knowing what we know now, this is a candidate for an amended return.
5. Renfroe Innovation, LLC — 2017 conversion + Form 8832 history¶
Renfroe Innovation converted from an Alabama Inc. (S-corp on a 2010-04-06 effective Form 2553) to an Alabama LLC on July 10, 2017, then to a Texas LLC on December 5, 2025. We have primary source for the 2012 Form 1120-S and the 2014 Form 7004 (extension to 1120-S). We do not see any Form 8832 in the Synology share for the 2017 LLC conversion.
If no 8832 was filed in 2017, RI defaulted to a disregarded SMLLC at conversion and the S-election terminated by operation of law. That's consistent with what I see (no 1120-S returns visible 2015 onward, and your 2025-12-02 line about "minimum TX franchise report" only).
Two questions:
(a) Can you confirm RI's federal classification on Austin's 2024 1040 supporting schedules? (b) For 2025 forward, does the post-conversion-to-TX classification need any explicit treatment, or is "TX disregarded SMLLC, minimum franchise report" the working answer?
6. PFIC analysis on the GK / Mita rental income¶
If GK ends up classified as a per-se C-corp (per item 1), then we need a PFIC analysis on Mita's rental income — the question being whether the rental income is "passive" under §1297 or whether the GK qualifies for the active real-estate trade-or-business exception (which depends on level of services, multiple-tenant scenarios, etc.).
This hasn't been raised in our prior correspondence, so I want to flag it now: depending on the answer to item 1, this becomes a PFIC question with three possible regimes (QEF, MTM, or default Excess Distribution), each with different reporting and tax impact. Worth getting in front of before the 2025 return prep.
7. AFR-loan paperwork (parents → Austin)¶
Stuart Memory at Memory Memory & Causby has been looking for the formal AFR-compliant promissory note for the Eugene + Jana → Austin → Five Points BHM transaction since at least September 2025. I want to make sure we also have AFR-compliant paper for the parallel ¥350K parents→Austin Mita-related leg from July 2025, since both have §7872 / 1099-INT compliance implications.
I'm following up with Stuart on his side. From the Pearce side: are there any 1099-INT filings already done on these intrafamily loans, or has Stuart been the only paper trail to date?
I'd appreciate a hold on 2025 cycle prep until items 1, 2, and 3 are clarified — they're materially load-bearing for the rest of the return. Items 4 through 7 can move in parallel.
Happy to set up a call this week if it's faster than email.
Best, Austin