Don't overlook the potential mileage deduction! For 2023 its 65.5 cents per mile for business travel in your truck. If your driving a lot for these contracts that really adds up. Just make sure you keep a detailed mileage log (i use the stride app). You can either do actual expenses or the standard mileage rate but not both.

Just to add another perspective - I went through this exact same decision last year when I started my handyman business. I ended up going with a single-member LLC for the liability protection, especially since I'm working with power tools and heavy equipment on client properties. The peace of mind is worth the small additional paperwork. One thing I wish I'd known earlier: if you're buying that pickup truck, look into whether you qualify for the full Section 179 deduction (up to $1.16 million for 2023) vs. regular depreciation. For vehicles over 6,000 lbs GVWR used primarily for business, you might be able to deduct the full purchase price in the first year instead of depreciating it over time. This could be huge for your tax situation, especially if you're expecting a loss this year anyway. Also, keep every single receipt and document everything. The IRS gets picky about vehicle and equipment deductions, so having bulletproof records is essential.

Just FYI - make sure you're sending these by certified mail with return receipt! I sent FIRPTA forms to the correct address last year but the IRS claimed they never received them. Had no proof and ended up having to resubmit everything and pay penalties. Now I document EVERYTHING with tracking and keep digital copies of all receipts.

Adding to the excellent advice already shared here - I just want to emphasize double-checking the specific requirements in Treas. Reg. 1.897-2(h) before mailing. The regulation requires that the certification include not just the transferor's information, but also a detailed statement about why the transferor believes they qualify for the exception from FIRPTA withholding. I've seen cases where people send the forms to the correct Ogden address but forget to include the required affidavit or supporting documentation, which can delay processing for months. The IRS won't process incomplete submissions and often doesn't send timely rejection notices. Also worth noting - if this is for a certification under section 1.897-2(h)(1) (non-recognition provision), make sure you're including documentation of the qualifying exchange. The requirements are slightly different depending on which subsection applies to your situation.

One thing to remember about tax code 1242L - if you have multiple jobs, HMRC usually applies your full personal allowance to your main job (with the 1242L code) and then uses a BR (Basic Rate) code on your second job, which means you pay 20% on all earnings from that job. If you've recently changed jobs or added a second job, this could explain your tax code situation.

Thanks for all the helpful info everyone! I've been reading through all these comments and I think I have a much better understanding now. It sounds like my 1242L code is pretty normal, just with a small adjustment from the standard allowance. I'm going to check my Personal Tax Account online first to see if there's any explanation for the £150 difference, and if I can't figure it out from there, I might try that Claimyr service to get through to HMRC without waiting on hold for hours. Really appreciate everyone taking the time to explain this - the UK tax system can be so confusing when you're not used to it!

I went through this exact same situation about 6 weeks ago and can share what happened in my case. The WMR status change you're describing is usually triggered when the IRS needs additional verification - in my case it was a CP05 notice requesting income verification because one of my W-2s didn't match what their systems had on file from my employer. The letter took exactly 2.5 weeks to arrive, and once I provided the requested documentation through their online portal, my refund was released within 3 weeks. I'd recommend checking your tax transcripts online now if you can access them, as they often show the specific notice codes before the physical letter arrives. Given that you're caring for your mother and need the refund, having that advance knowledge of what's coming can help you prepare the right documents ahead of time.

I'm in almost the exact same boat - my WMR changed to the letter status on Friday and I'm also waiting anxiously since I need my refund for some medical expenses. Reading through everyone's experiences here has been really reassuring, especially knowing that most of these letters are just routine verification requests rather than anything serious. I tried accessing my tax transcripts online but I'm having trouble getting through the ID.me verification process (the video selfie keeps timing out). Has anyone had success calling the transcript line directly, or should I just wait for the physical letter to arrive? The uncertainty is definitely the worst part, but it sounds like most people get their refunds within a few weeks of responding to whatever documentation they're requesting.

Don't forget that Form 8938 (FATCA) is separate from FBAR (FinCEN Form 114), and you likely need to file both if you're over the thresholds! Many people confuse these or think they're the same thing. They have different filing thresholds and slightly different asset definitions, but significant overlap. For FBAR, the threshold is $10,000 across all foreign accounts at any time during the year. For Form 8938, it depends on your filing status and whether you live in the US or abroad. The penalties for missing FBAR filings can actually be worse than Form 8938 in some cases.

One thing nobody's mentioned yet is that the actual FATCA penalties aren't automatic. The IRS doesn't immediately hit everyone with $10,000 fines for honest mistakes. They generally look for willful non-compliance (like intentionally hiding assets) before applying the harshest penalties. If you're upfront about your mistake and file through the Streamlined procedures like others have suggested, the chance of facing severe penalties is much lower. The IRS is primarily concerned with tax evasion, not honest mistakes by people who are trying to correct their compliance issues. I've helped several clients through this process, and most with situations similar to yours ended up with no penalties when they voluntarily came forward and filed properly.