As a newcomer to this community, I have to say this thread has been a lifesaver! I'm currently dealing with the exact same issue Grace described, but with a different payment processor that's been giving me nothing but error messages for the past week. Reading through all these detailed experiences and solutions has been incredibly valuable. What really stands out is how many people initially questioned some of the suggested services but then came back with genuine success stories after actually trying them. That kind of honest follow-up really helps build trust in the community's advice. The consensus seems crystal clear: stop wasting time with broken processors and switch to IRS Direct Pay immediately. I was hesitant at first because I'd never used it before, but after reading everyone's experiences, I just submitted my quarterly payment through Direct Pay and got instant confirmation. The relief is incredible! Grace, I really hope you've switched over by now - every day you wait is just adding to the stress. Your payusatax documentation will be valuable if you need penalty abatement later, but getting that payment through should be the absolute priority. Thanks to everyone who shared their stories and solutions. This community's collective wisdom just saved me from what could have been a very expensive mistake. For other newcomers facing similar processor issues: trust the advice here, document everything, and make the switch to Direct Pay today!

As a newcomer to this community, I just want to echo what everyone else has been saying - this thread has been an absolute godsend! I stumbled across it while frantically searching for solutions to my own payment processor nightmare (different company than payusatax, but same horrifying symptoms). What really struck me was how Grace's initial panic post has evolved into this comprehensive guide for handling processor failures. The pattern is so clear: document everything, stop wasting time with broken systems, switch to IRS Direct Pay immediately, and know that penalty abatement is possible with proper documentation. I was initially skeptical of some of the third-party services mentioned here, but seeing multiple community members come back with genuine success stories after trying them really builds confidence. That kind of honest follow-up is what makes this community so valuable - people aren't just throwing out random suggestions, they're sharing tested solutions. Grace, if you haven't already made the switch to Direct Pay, please do it today! Your documentation from the payusatax failures will be great evidence if needed later, but getting that payment through should be the immediate priority. For any other newcomers dealing with similar processor issues: trust this community's collective wisdom, document everything, and don't let a failing third-party processor ruin your day. The IRS has reliable alternatives that actually work!

Has anyone used TurboTax to handle this situation? I'm trying to figure out where exactly to enter the prorated amounts. The interface is confusing me - when I enter my property tax on the rental screen, it doesn't seem to ask about partial year use.

This is such a common confusion point! I went through the same thing when I converted my primary residence to a rental mid-year. You're absolutely correct to prorate - only include the property taxes for July through December on Schedule E. One thing I learned the hard way is to keep really good records of the conversion date and your calculation method. I created a simple spreadsheet showing the total annual property tax, the rental period (6 months out of 12), and the prorated amount. This documentation came in handy when my CPA reviewed my return. Also, if you're in a state where property taxes are paid in arrears or have weird billing cycles, make sure you're matching the payment date to the period it covers. Some areas bill for the previous year, which can create additional complexity in your first year as a landlord. The lack of explanation for Line 16 in the instructions is frustrating, but you're thinking about it the right way!

I just went through this exact situation last year and want to emphasize how important it is to get this right! FGTS absolutely needs to be reported on FBAR - I learned this the hard way after initially thinking it didn't count since it's not a traditional bank account. A couple of additional tips from my experience: 1. If you're having trouble getting your FGTS balance history, you can actually contact Caixa Econômica Federal directly through their international support. They were surprisingly helpful when I explained I needed the information for US tax compliance. 2. Don't forget that if you had any 13th salary deposits or other bonus payments that went into your FGTS, these could have pushed your balance higher at certain points during the year. 3. Keep detailed records of how you calculated the USD amounts - I created a simple spreadsheet showing the Brazilian Real amounts and the Treasury exchange rates I used for each reporting period. The penalties for getting FBAR wrong are no joke, so when in doubt, report it. I'd rather be overly cautious than face potential fines that could be thousands of dollars per unreported account.

Just wanted to add some clarity on a few technical points that might help others in similar situations with FGTS reporting: Regarding multiple FGTS accounts from different employers - you should report each account separately on your FBAR since they have different account numbers, even though they're all managed by Caixa. Each employment contract creates a distinct FGTS account linked to your PIS/PASEP number but with unique identifiers. For those struggling to get complete balance histories, there's actually a useful workaround: if you have your "Extrato do FGTS" (FGTS statement) from when you left Brazil, it typically shows not just the final balance but also the monthly deposit history for the past 12-24 months. This can help you reconstruct the peak balance periods. Also worth noting - if you had any FGTS withdrawals during the year for permitted reasons (like home purchase or serious illness), make sure to account for these when determining your maximum balance. The highest balance might have occurred before any withdrawal, not necessarily at year-end. One last tip: if you're using estimated amounts due to incomplete records, the IRS generally accepts reasonable estimates as long as you can document your methodology. Just keep detailed notes on how you calculated everything in case of future questions.

Does anyone know if taking classes online during covid from my home country affects my exempt period? I was physically outside the US for about 18 months during 2020-2021 even though I maintained my F1 status by taking online classes. Do those periods still count toward my 5 exempt years?

This is such a common source of confusion for F1 students! I went through the exact same situation a few years ago. Here's what I learned that might help: Since you've been here for 6 years on F1 status (starting 2019), you're definitely past the 5-year exempt period. This means for 2024 and going forward, all your days of physical presence in the US count toward the substantial presence test. One thing to keep in mind - even though you're now counting days normally, make sure you're calculating the substantial presence test correctly. It's not just adding up all your days - it's: (all days in current year) + (1/3 of days in prior year) + (1/6 of days in year before that) = must be 183 or more. Also, since this sounds like it might be your first year transitioning from exempt to non-exempt status, you'll likely need to file as a "dual-status alien" - meaning nonresident for part of the year and resident for part of the year. This requires some special forms and calculations. Don't stress too much about "getting in trouble" - the IRS understands these situations are complex for international students. The key is filing correctly based on your actual status, and if you're unsure, it's always worth consulting with a tax professional who specializes in international student taxes or getting clarification directly from the IRS.

My CPA explained that the "reporting gap" is actually by design in our tax system. Congress has repeatedly cut IRS enforcement funding over decades, especially for high-income taxpayers. It's not an accident. Here's the wildest part: the Congressional Budget Office estimates that every additional $1 spent on IRS enforcement yields $5-$9 in recovered revenue. What other government program has that kind of ROI? Yet we keep cutting their budget.

This is a really eye-opening discussion. As someone who's always filed straightforward W-2 returns, I had no idea the compliance gap was so massive - $600 billion is staggering! What strikes me most is how this creates an unfair system where honest wage earners essentially subsidize those who can afford to game the system. My taxes are automatically withheld and reported, so I have zero wiggle room, while business owners with good accountants can apparently play audit roulette. The political angle mentioned about IRS funding is particularly frustrating. It seems like we're essentially choosing to let tax cheats off the hook because nobody wants to be seen as "pro-IRS." Meanwhile, those of us following the rules end up paying higher rates to make up for the lost revenue. Has anyone here actually been through an IRS audit? I'm curious what that process looks like in practice, especially for someone who's been legitimately following all the rules.