#friendlysolutions

“Dominion & Principles in Global Compliance” Powered by Friendly Solutions — Commercial Payment Solutions & Credit Dominion Worldwide

🌍 Full Disclosure / Divulgación Completa Foreign Entity Classification as an Option and Benefit / Clasificación de Entidades Extranjeras como Opción y Beneficio

ENGLISH: In today’s global economy, entity classification is not a burden — it is an option, a benefit, and a gateway to global capital access. FRIENDLY SOLUTIONS helps clients interpret compliance as a tool for expansion, not restriction.

ESPAÑOL: En la economía global actual, la clasificación de entidades no es una carga — es una opción, un beneficio y una puerta de acceso al capital internacional. FRIENDLY SOLUTIONS ayuda a sus clientes a entender el cumplimiento como una herramienta de expansión, no como una limitación.

⚖️ 1. 26 U.S. Code § 7701(a)(31)(B) Definition of Foreign Entities / Definición de Entidades Extranjeras — The Power of Proper Identity / El Poder de la Identidad Correcta

ENGLISH: This law defines what makes a trust or entity “foreign.” Proper classification allows companies to maintain sovereignty while being recognized by U.S. financial institutions, enabling cross-border credit and compliance.

ESPAÑOL: Esta ley define lo que hace que un fideicomiso o entidad sea “extranjera.” La clasificación correcta permite a las empresas mantener su soberanía mientras son reconocidas por las instituciones financieras de EE. UU., habilitando crédito y cumplimiento transfronterizo.

Benefit / Beneficio : Access to international banking and privacy protections / Acceso a la banca internacional y protección de privacidad.

💳 2. Treasury Regulation § 1.1441-1(e)(4)(vii) Withholding & Treaty Relief / Retención y Exención por Tratado — Turning Regulation into Rebate / Convirtiendo la Regulación en Reembolso

ENGLISH: This regulation governs how payments to foreign entities are taxed and documented. Friendly Solutions helps partners claim treaty benefits to reduce or eliminate U.S. withholding — converting compliance into a financial advantage.

ESPAÑOL: Esta regulación controla cómo se gravan y documentan los pagos a entidades extranjeras. Friendly Solutions ayuda a sus socios a reclamar beneficios de tratados para reducir o eliminar la retención en EE. UU., convirtiendo el cumplimiento en una ventaja financiera.

Benefit / Beneficio : Tax treaty relief and rebate qualification / Exención fiscal y reembolsos.

🏛️ 3. Internal Revenue Manual 21.7.13.3.2.7.1 (05-16-2018) IRS “O” File Procedures / Procedimientos del Archivo “O” del IRS — Recognition without Tax Obligation / Reconocimiento sin Obligación Fiscal

ENGLISH: Certain foreign entities not required to file U.S. tax returns may still obtain an EIN for banking or treaty purposes. Friendly Solutions guides clients through this process, securing recognition without triggering taxation.

ESPAÑOL: Ciertas entidades extranjeras que no están obligadas a presentar declaraciones fiscales en EE. UU. pueden obtener un EIN para fines bancarios o de tratados. Friendly Solutions guía a sus clientes en este proceso, logrando reconocimiento sin generar obligación fiscal.

Benefit / Beneficio : Non-filing U.S. system recognition / Reconocimiento en EE. UU. sin declaración fiscal.

📈 Friendly Benefits /

Beneficios de Friendly Option /

Opción Statutory Reference /

Referencia Legal Benefit /

Beneficio Foreign Entity Classification 26 U.S.C. § 7701(a)(31)(B) International banking and privacy protection /

Banca internacional y protección de privacidad Withholding Documentation Treas. Reg. § 1.1441-1(e)(4)(vii) Tax treaty relief and rebate qualification /

Exención fiscal y reembolsos IRS “O” File EIN Option IRM 21.7.13.3.2.7.1 Non-filing U.S. recognition /

Reconocimiento sin obligación de declarar In Conclusion

ENGLISH: “The virtue of understanding is dominion. Friendly Solutions stands as your principle of clarity, turning compliance into capital.”

ESPAÑOL: “La virtud del entendimiento es dominio. Friendly Solutions es su principio de claridad, convirtiendo el cumplimiento en capital.”

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Title: Federal Cuts in Motion — What You Need to Know

On March 14, 2025, the Trump administration signed Executive Order 14238, aiming to “reduce federal bureaucracy.” But what’s really happening is the potential dismantling of programs that protect housing access, community development, and economic equity.

Agencies on the chopping block include:

CDFI Fund 💰 (funding for underserved small businesses + housing)

USICH 🛏️ (coordinates efforts to end homelessness)

Minority Business Development Agency

Institute of Museum and Library Services

Federal Mediation and Conciliation Service

and more...

These programs are being ordered to shut down anything not explicitly required by law. That means less support for marginalized communities, fewer resources for shelters, libraries, and nonprofits—and potential job losses + service gaps across the country.

Why it matters:

Groups like OFN, NAAHL, and credit union associations are calling this a direct threat to financial equity, housing justice, and small business survival.

Stay informed. Speak out.

We’ll keep sharing updates as this unfolds. Together, we can defend the programs our communities depend on.