Thank you for your answer.I do have some other questions ,please.
1)So If I will be able to do that bank account,where I would endorse/deposit my clients ' checks(to that I can then send them thru paypal),and also a Power of Attorney that each client will sign,giving me the authorization to deposit their checks and then send the funds to them thru paypal:
Would I have to attach that Power of Attorney, with each tax Returns(so that all is transparent for the IRS)?
How can I recover FICA taxes for J1 students(in case Employers took that)?Are j1 nonresident aliens exempt form FICA for 2 consecutive calendar years or any 2 years(if they participated in the J1 program for more years,for example 2010,2012,2013,would they be FICA exempt for 2010 and 2012?)
Is there a way to deduct Program Costs and Flight Ticket for J1 students?
Question about forms 1040NR and 1040NR-EZ.Are these forms eligible to E-FILE?Or they have to be filled by paper and mailed to the IRS?
ANOTHER TAX QUESTION:different subject:CORPORATION TAX for TAXI MEDALLION business.
My friend has a taxi medallion in Chicago.He has a C Corporation.He purchased the medallion in 2010 with $100,000.In 2012,medallion price/value is $300,000.
He refinaced the medallion in 2012 (loan balance was 90000) and took out cash 50.000.So now the Medallion Loan Amount is 140,000.
VAlue of medallion on Market is 300,000.
When doing the Tax Returns for 2012,does he have to report anything related to the "cash out amount of 50000"?does he have to pay taxes of the Refinaced cash out amount of 50000?Or he can do as many refinances he wants ,without reporting it,and only pay taxes when he sells the medallion ,for the profits(for example,purchase price was 100000.he does a few cash-out refinances that are not reported ,and in a few years he sells the medallion for 500000,and pays tax on the total profits of 400,000)?
And what is the his ASSET VALUE(that needs to be reported on tax return)?(considering he has a Loan of 140000 of a Medallion whose estimated current market value is 300000)?