Just so you know, there's a way to check if you have a pending offset without calling. Go to your tax transcript and look for Transaction Code 898. If you see this code with a future cycle date, it means an offset is pending. Also, make sure you're calling the right offset number: 800-304-3107. The automated system should tell you if you have any NEW offsets, not just historical ones. In your case, since the message is referring to the exact date and amount from last year, it's almost certainly just showing your history, not a new offset. Once a debt is paid via offset, it's marked as satisfied and removed from the active offset list.

Just a warning about the TOP offset - sometimes they don't take the full amount in one year if it would leave you with less than $3,500 of your refund. Could that be what happened? Like maybe they took partial payment last year and are coming for the rest this year? For example, if your refund was $7,375 last year and your debt was $4,300, they would take $3,875 to leave you with exactly $3,500. Then they'd come after the remaining $425 this year.

Random question - what tax software are you using for the partnership return? I've found some handle liquidating distributions with negative capital accounts better than others.

I dealt with a very similar situation last year and want to emphasize something that might not be immediately obvious - make sure you're also considering the partnership agreement's liquidation provisions. In our case, we had language that specifically addressed how negative capital accounts should be handled upon liquidation, which affected whether the departing partner had a restoration obligation. Also, don't forget to check if your partnership has made a Section 754 election or if you should consider making one now. When a partner with a negative capital account liquidates, there can be significant inside basis adjustments that affect the remaining partners. In our situation, failing to make the 754 election would have resulted in a built-in loss that the remaining partners couldn't benefit from. One more thing - document everything thoroughly. The IRS tends to scrutinize these liquidating distributions, especially when there are negative capital accounts involved. We kept detailed records of the partner's capital account history, the reasons for the liquidation, and all the calculations. This saved us during an audit two years later.

Your dad's situation is definitely fixable, but time is critical here. I agree with the advice to apply for Social Security immediately - don't wait for the tax situation to be resolved first. The SSA can work with his earnings record that employers have been reporting all these years. For the tax side, start by requesting wage and income transcripts from the IRS for all the unfiled years. You can do this online at irs.gov or by calling them (though as others mentioned, getting through can be challenging). These transcripts will show what income was reported by his employers and any taxes withheld. Since he had taxes withheld from his paychecks, he likely doesn't owe anything and may even be due refunds for some years. The key is getting those last 6 years filed to bring him into compliance. Given the complexity and the urgency with his health situation, I'd strongly recommend working with a tax professional who has experience with unfiled returns - they can streamline the process and help avoid costly mistakes. The most important thing is to take action now rather than letting this drag on any longer. Both his Social Security benefits and potential tax refunds are time-sensitive.

I went through almost the exact same situation with my father-in-law two years ago. He hadn't filed in about 18 years and was panicking about Social Security eligibility. Here's what we learned that might help: First, definitely start the Social Security application ASAP as others have mentioned - the earnings record from employers is what matters most for benefits, not tax filings. We were amazed to discover his full work history was already in their system from employer reporting. For the IRS side, we found out that since taxes were withheld from his paychecks the whole time, he actually qualified for what's called "substitute for return" status for many years where the IRS basically filed simplified returns on his behalf. This meant he wasn't in as much trouble as we feared. The real breakthrough came when we got his wage and income transcripts for all the missing years. It showed that for 4 of the years, he was actually owed refunds totaling over $3,200 (though we could only claim the ones from the last 3 years). We ended up only needing to file the last 6 years to get him current, and the whole process took about 3 months working with a tax professional who specialized in unfiled returns. The key was getting started immediately - don't let fear of the IRS paralyze you into waiting longer. Your dad's health situation makes this urgent, but it's absolutely manageable. The government actually wants people to get caught up and claim their benefits!

Hey, Italian-American dual citizen here with personal experience on this exact issue! US taxes are definitely a pain, but it's manageable. For me, I use TurboTax to file each year. It costs about $100 for the version that handles foreign income. I take the Foreign Tax Credit instead of the FEIE because Italian taxes are higher than US taxes, so I never end up owing anything to the US.

As someone who went through this exact situation (dual US-Italian citizen who didn't know about filing requirements), I can tell you it's definitely stressful at first but totally manageable once you understand the system. The key thing is don't wait any longer - the longer you put it off, the more anxiety it causes. I was terrified for months before I finally dealt with it, and it turned out to be much less complicated than I imagined. Since you mentioned you're 24 and have never filed, you'll likely need to use the Streamlined Foreign Offshore Procedures that others mentioned. This is specifically designed for people in your situation who didn't know about the requirements. A few practical tips from my experience: - Gather all your Italian tax documents (they'll help show you've been paying taxes somewhere) - Make a list of all your bank accounts and their highest balances during each year - Don't stress about giving up citizenship yet - most dual citizens find the annual filing is just paperwork, not actual tax owed The Italian tax system is generally more aggressive than the US system, so between the Foreign Tax Credit and FEIE, you'll probably end up owing nothing. But yes, you still need to file the paperwork annually going forward. Feel free to ask if you have specific questions about the Italy-US situation!

I'd also recommend checking if your boyfriend qualifies for Head of Household filing status if he claims your daughter. Since he's been supporting both of you and your daughter lived there all year, he might be eligible which could lower his tax rate significantly. Just make sure he understands that claiming a dependent is a serious responsibility - the IRS can audit and request proof of support, so keep all those receipts for rent, food, medical expenses, etc. Also worth mentioning that if you're receiving any government benefits based on being a single parent, releasing your claim to him could potentially affect those benefits, so double check that too.

One more important thing to consider - if your boyfriend does claim your daughter and gets the Child Tax Credit, make sure he also looks into the Child and Dependent Care Credit if he's paying for any daycare or childcare expenses while you're in school. That could be additional tax savings on top of the dependency exemption and Child Tax Credit. Also, since you mentioned you're a full-time student, you might want to check if you qualify for education credits like the American Opportunity Tax Credit on your own return - just because you're releasing the dependency claim doesn't mean you can't still claim your own education expenses. The tax code can work in your favor in multiple ways if you plan it right!