That's interesting about the 25% increase. Do you know if there's any way to request a different verification method if the assigned one is causing hardship? I live 2 hours from the nearest IRS office.

@Jessica Suarez Unfortunately, the IRS doesn t'typically allow you to switch verification methods once assigned. However, you might be able to request a hardship accommodation if the distance creates genuine difficulty. I d'recommend calling the Taxpayer Advocate Service at 1-877-777-4778 - they can sometimes help with situations like yours where the assigned method creates undue burden. Also worth checking if any mobile IRS offices will be in your area during tax season.

Would the new owner even know that the old owner was still paying? I mean, most people just assume when they buy a house that the tax bills automatically start coming to them. The county should have sent the bills to the new owner, right?

DON'T try to DIY this with TurboTax!! I did that last year thinking I could handle it, and missed reporting some forms related to the related-party transaction. Ended up with a notice from the IRS and had to pay penalties. This type of transaction requires proper reporting on multiple forms and schedules that typical consumer software doesn't guide you through well.

This is correct. I learned this the hard way. The PFIC rules are a nightmare but you absolutely have to file 8621 for each foreign ETF that qualifies as a PFIC. My accountant charges me $150 PER FORM for each PFIC I own. Totally ridiculous but better than the penalties.

Great questions! For PFIC identification, you'll want to ask Chase for the fund names, ticker symbols, and ideally the country of organization/domicile for each foreign ETF. The key identifier is usually whether the fund is organized outside the US - most European ETFs (like those domiciled in Ireland or Luxembourg) are automatically PFICs regardless of what they invest in. You don't necessarily need expense ratios or distribution details for basic PFIC determination, but having the full fund prospectus or fact sheet can be helpful since it will clearly state the fund's country of domicile. For online research, I've found that checking the fund company's website usually shows the domicile pretty clearly. For example, if you see "UCITS" in the fund name or description, it's almost certainly a European fund and therefore a PFIC. Vanguard, iShares, and other major fund families usually have separate US and international versions of similar funds. That said, given the complexity and potential penalties (up to $10,000 per PFIC per year for late filing!), I'd strongly recommend having a tax professional review your specific situation. The tools mentioned earlier in this thread like taxr.ai might also be helpful for identifying which of your holdings require PFIC reporting. The good news is that once you identify them, future years become much easier since you'll know which funds to avoid or properly report.

Great questions! For PFIC determination, you'll want to ask Chase for the fund ticker symbols, full fund names, and country of organization/domicile for each foreign ETF. The expense ratios and distribution details aren't typically needed for basic PFIC status determination. Most foreign ETFs (especially those domiciled in Europe, Canada, etc.) are indeed PFICs, but there are some exceptions. For example, Canadian mutual fund corporations that make valid QEF elections, or certain Australian and UK investment trusts may have different treatment. For online research, I've found the IRS PFIC guidance helpful as a starting point, and some tax software like the ones mentioned earlier in this thread can help identify PFIC status. However, given the complexity and potential penalties (the IRS can assess interest charges that compound annually on undistributed PFIC income), I'd strongly recommend getting professional guidance for the final determination. One tip: if you do have PFICs, ask your accountant about making QEF elections if available - it can simplify the annual reporting and avoid the punitive interest charge regime, though you'll need to track the income annually going forward. @Marcus Williams - you re'smart to be thorough about this. The PFIC rules are some of the most complex in the tax code, and the penalties for getting it wrong are severe.

This isn't entirely accurate. The exemption codes on the W-9 are based on entity type, not payment type. A corporation (Code 2) is exempt from backup withholding regardless of payment type (with a few exceptions like medical payments). The payment type matters for determining if backup withholding could apply in the first place, but the exemption codes themselves are based on what type of entity you are.

Sorry, I think I confused backup withholding with regular withholding requirements. You're right that the exemption codes relate to the entity type rather than payment type. I was thinking of the different rules for when backup withholding applies in the first place - like for interest, dividends, rents, etc. versus services. But once you determine if backup withholding could apply, then the exemption is based on entity type as you said.

Great questions! For the EIN situation, you technically can use your SSN temporarily if you're still waiting for your EIN to be processed, but I'd strongly recommend getting your EIN first before submitting W-9s to clients. You can actually get an EIN online immediately through the IRS website (ss4.irs.gov) - it takes about 10-15 minutes and you get the number right away. Much faster than waiting for mail! Using your SSN temporarily could create complications later when you get your EIN, because your clients' systems will have the wrong TIN on file. You'd need to submit updated W-9s to everyone, and there's risk of backup withholding issues if there are mismatches. As for W-9s expiring - they don't have a set expiration date, but clients typically request updated ones if there are changes to your business (like getting an EIN after using SSN, changing business name, etc.) or if they have reason to believe the information is outdated. Some larger companies request fresh W-9s annually as part of their vendor management process, but most smaller clients will use the same one for years unless something changes. The key is just making sure the information stays current - if you move, change your business structure, or get that EIN, you should proactively send updated W-9s to your active clients.

Great questions! For the EIN situation - you can actually get an EIN online from the IRS website immediately (it's called the EIN Assistant). It literally takes about 10-15 minutes and you get the number right away. Much faster than waiting for mail! Just go to irs.gov and search for "Apply for EIN online." You technically could use your SSN temporarily, but I'd strongly recommend getting the EIN first. Using SSN for business purposes can create complications later, and some clients' systems expect partnerships to have EINs. For your template question - W-9s don't technically expire, but you should update them if your business information changes (name, address, TIN, tax classification, etc.). Most clients will ask for a new one every few years or when they update their vendor files. The nice thing is once you have the format right, you just need to update the date and any changed info for future submissions. Pro tip: Keep a digital copy saved as "W9_Template_[YourBusinessName]" so you can quickly customize it for different clients!