Given the complexity of your situation, I'd strongly recommend getting professional tax advice before making any moves. With 32 years of history and an automatic transfer, there could be some nuances that even the insurance company reps might not fully understand. One additional consideration - if your father has been claiming any tax deductions for the premium payments over the years (which is unlikely for personal life insurance, but possible if it was structured as part of a business arrangement), that could also affect the tax treatment of both the transfer and eventual surrender. Also, don't forget about state tax implications. While federal gift tax rules are fairly standard, some states have their own gift tax or inheritance tax rules that might apply to the ownership transfer. Before you call the insurance company, it might be worth gathering all the original policy documents if your father still has them. The initial policy structure and any amendments over the 32 years could provide important context for understanding the current tax situation.

Just wanted to add one more important consideration that I don't think has been mentioned yet - timing matters significantly for tax purposes. If your father is planning to surrender the policy this tax year, you'll want to complete the ownership transfer well before the surrender to ensure the taxable gain is properly attributed to him rather than you. The IRS generally looks at who owned the policy at the time of the taxable event (surrender), so if you transfer ownership back to your father in say March but he doesn't surrender until December, that should clearly establish him as the owner responsible for any taxes on the gain. However, if the transfers happen too close together or in the same tax year as the surrender, it might raise questions about whether this was structured primarily for tax avoidance purposes. While what you're describing sounds completely legitimate (returning ownership to the person who paid all the premiums), proper documentation and reasonable timing will help avoid any IRS scrutiny. Also, make sure both transfers (the original automatic one to you and the planned one back to your father) are properly documented with the insurance company. You'll want clear paper trails showing the ownership changes and dates for your tax records.

I'm also in PA and experiencing the same delays - filed electronically on February 12th and still waiting. What's really concerning is that I've noticed PA's processing seems inconsistent even among people who filed around the same time. My coworker filed a week after me with a similar W-2 return and got her refund last Friday, while I'm still stuck in "processing" limbo. I've been doing some research and it seems like PA did implement stricter identity verification procedures this year after some fraud issues in 2023 that cost them millions. They're now requiring additional verification for returns that meet certain criteria - things like address changes, first-time filers, or even certain income thresholds. The frustrating part is they don't tell you if your return is in this additional review queue. I finally got through to someone using a callback service (similar to what others mentioned) and learned my return was flagged simply because I moved apartments last year. They said it could take another 2-3 weeks for the verification to complete. Might be worth checking if any of you had similar life changes that could trigger their new screening process.

I filed my PA return on February 25th and just got my refund deposited yesterday! What helped me was calling early in the morning (around 7:30 AM) when their lines first open - I actually got through on the second try. The representative told me that PA is definitely processing returns slower this year due to enhanced fraud prevention measures they implemented after losing $47 million to fraudulent refunds in 2023. She said they're now cross-checking returns against multiple databases including Social Security records, previous year filings, and even utility company data for address verification. For anyone still waiting: if you had any life changes (moved, got married, changed jobs, etc.) your return likely got flagged for manual review which adds 2-4 weeks to processing time. The good news is once it clears review, the refund usually deposits within 3-5 business days. Don't panic if you're still waiting - the representative assured me that legitimate returns are being processed, just much more slowly than previous years. She also mentioned that mid-March through early April is their heaviest processing period, so delays are expected to continue for a few more weeks.

Anyone else notice that Form 8802 processing times seem to vary depending on the country you're requesting the Form 6166 for? I've had Germany ones come back in 3 weeks while China ones took nearly 9 weeks.

This is really helpful information from everyone! As someone new to handling Form 8802, I'm taking notes on all these tips. The 4-6 week standard timeframe seems consistent with what others are saying, and I'll definitely keep the expedited processing option in mind for future clients who have urgent deadlines. @Dmitry - for your current situation, it sounds like you'll need to manage your client's expectations and let them know it's likely going to be at least a month. Maybe explain that this is standard IRS processing time and not something you can control. I've found that being upfront about government processing delays usually helps clients understand it's not a reflection of your service. The tools mentioned here like taxr.ai and Claimyr sound interesting for future reference, especially if you regularly handle international tax forms. Thanks everyone for sharing your experiences!

Great question! I went through something similar last year with a deck replacement on my rental property. The key factor that helped me was understanding that since your gutters are adding something that wasn't there before (rather than replacing existing gutters), it's definitely a capital improvement. However, at $1,650, you're well within the de minimis safe harbor threshold of $2,500 for taxpayers without applicable financial statements. This means you can deduct the full amount in the year you placed the gutters in service, as long as you make the proper election on your tax return. Make sure to keep detailed records - the invoice, any permits if required, and photos showing the property didn't have gutters before. I'd also recommend getting a separate invoice just for the gutters if any other work was done at the same time, since the IRS looks at whether improvements are part of a larger project. The election statement is crucial - don't forget to attach it to your return stating you're making the de minimis safe harbor election under Treasury Regulation 1.263(a)-1(f). Without this election, you'd have to depreciate the improvement over 27.5 years instead of deducting it immediately.

This is exactly the kind of question that trips up so many rental property owners! You're definitely dealing with a capital improvement since you're adding gutters where none existed before - this adds value and functionality to the property. The good news is that at $1,650, you should be able to take advantage of the de minimis safe harbor. Since you likely don't have audited financial statements as an individual landlord, you can deduct improvements up to $2,500 per item in the year they're placed in service. A few important things to keep in mind: - Make sure to attach the election statement to your tax return (Treasury Reg 1.263(a)-1(f)) - Keep excellent documentation - invoice, photos showing no gutters existed before, permits if any - Report it on Schedule E, typically under repairs and maintenance or clearly labeled as "de minimis safe harbor election" Since this is your first major update since 2019, you're in a good position. Just make sure the gutter installation was invoiced separately from any other work to avoid the IRS grouping it with other improvements that might push you over the threshold. The alternative would be depreciating it over 27.5 years, which would only give you about $60 per year in deductions - definitely not as beneficial as the immediate deduction!

This thread has been incredibly helpful! As someone who's been in a similar limbo situation with an L1 visa, I wanted to add one more consideration that hasn't been mentioned yet. Even though you don't have filing requirements now, it's worth starting to document everything related to your US travel and visa status. Keep records of: - Entry/exit dates from the US (I-94 records) - Purpose of each trip (business meetings, etc.) - Your UK tax returns showing UK-sourced income - Employment contracts/payroll records proving UK employment This documentation becomes invaluable later when you do make the transition to US tax residency. The IRS may ask about your prior tax status, especially for the first few years after you become a US resident. Having clear records that demonstrate you were correctly classified as a non-resident alien during your business travel period will save you potential headaches down the road. Also, once you do relocate, consider whether you'll need to report any UK bank accounts or investments on FBAR (Form 114) or Form 8938. The reporting thresholds are different for US residents vs non-residents, so accounts that didn't require reporting before might need to be disclosed after you move.

This has been an incredibly thorough discussion! I'm in a very similar situation - UK-based with an L1 visa that I haven't used yet but planning to relocate within the next 12-18 months. One thing I wanted to add that might be helpful for others in this position: I recently spoke with an international tax attorney who mentioned that even though we don't have US filing requirements now, it's worth understanding the "election to be treated as resident" option under IRC Section 6013(g). If you're married and your spouse will also be moving to the US (or is already a US citizen/resident), you might be able to elect to be treated as a US resident for tax purposes starting from your first day in the US, rather than waiting until you meet the substantial presence test. This can sometimes be beneficial for tax planning purposes, though it also means you'd be subject to US tax on worldwide income immediately. It's definitely something to discuss with a tax professional before making the move, as the election affects both spouses and can't easily be undone. But it's another consideration that might be relevant for people planning their transition timing. Has anyone else encountered this situation or have experience with the resident election?