Not sure if anyone mentioned this yet, but you should file Form 3949-A with the IRS to report your employer for suspected tax fraud. Not filing W-2s for multiple employees over multiple years is almost certainly intentional - they were probably pocketing the tax money they withheld from your paychecks. That's theft!

This is a serious red flag situation that you need to handle carefully. As others have mentioned, the POA request is highly suspicious - there's no legitimate reason a company's CPA would need power of attorney from you to fix their own filing obligations. Here's what I'd recommend doing immediately: 1. **Document everything** - Save all communications with the CPA, keep copies of your pay stubs, W-2s, and the IRS notice 2. **Get your transcripts** - Request both Wage & Income and Account transcripts from the IRS online for all affected years 3. **Don't sign anything** - Absolutely do not give them POA or sign any documents The fact that this spans multiple years and involves withholding 45% from your severance suggests they may have been mismanaging payroll taxes for a long time. If they withheld taxes from your pay but never remitted them to the IRS, that's essentially theft. You might also want to check if other former employees are having similar issues - if this is affecting multiple people, it strengthens the case for deliberate non-compliance rather than an administrative error. Consider consulting with your own tax professional who can help you navigate this without any conflicts of interest. The company's CPA is looking out for the company, not for you.

This thread has been absolutely incredible! I'm on an H-4 EAD (spouse of H1-B holder) and have been struggling with Form 8802 for weeks. Reading through everyone's detailed experiences across so many visa types has finally made everything click. Like many others here, I was getting confused by the "resident alien" terminology since I'm clearly not a permanent resident. But now I understand that line 4a is asking about TAX residency status, not immigration status. I've been in the US for 4 years and definitely meet the substantial presence test, so I should check "Individual U.S. citizen/resident alien" and then put "H-4 EAD" in section 4e. What's really helpful is seeing the consistent approach work across H1-B, L1, F-1, TN, E-3, R-1, and now H-4 situations. The substantial presence test truly is the universal determining factor regardless of the specific visa category. I'll be including my H-4 visa copy, EAD card copy, I-94, recent tax returns showing I filed as a resident alien, and a brief cover letter explaining my tax residency qualification. Based on everyone's timelines, I'm expecting about 8 weeks for processing. Thanks to everyone who shared their experiences - this thread should definitely be saved as a reference guide for anyone dealing with Form 8802 confusion! The IRS instructions really need to be clearer about the tax residency vs. immigration status distinction.

This thread has been absolutely amazing! I'm on a J-1 visa (research scholar) and have been completely stuck on Form 8802 for the past two weeks. Like so many others here, I was getting tripped up by the "resident alien" language when I know I'm not a permanent resident. The key insight that everyone keeps emphasizing - that line 4a is about TAX residency, not immigration status - finally makes perfect sense. I've been in the US for 2.5 years doing postdoctoral research and clearly meet the substantial presence test, so I should check "Individual U.S. citizen/resident alien" and then specify "J-1" in section 4e. What's really remarkable is seeing this same pattern work across literally every visa type mentioned here - H1-B, L1, F-1, TN, E-3, R-1, H-4 EAD, and now J-1. The substantial presence test is truly the universal standard the IRS uses, regardless of whether you're here for work, study, research, or any other purpose. I'll be including my J-1 visa copy, DS-2019 form, I-94, past two years of tax returns showing I filed as a resident alien, and a cover letter explaining my substantial presence test qualification. The 7-9 week processing timeline everyone has shared gives me realistic expectations. One J-1 specific question - since research scholars sometimes have different substantial presence test rules in their first few years, should I include any documentation about my specific J-1 category? Or is the standard approach everyone has outlined sufficient? This community discussion has been infinitely more helpful than the confusing IRS instructions. Thank you all for sharing your detailed experiences!

I think everyones missing the elephant in the room. if ur spending 300k+ on a rolls, the tax break shouldn't be the deciding factor!! either u can afford it or u cant. trying to get uncle sam to subsidize ur luxury car is exactly why they tighten these rules.

As someone who's worked in tax preparation for over 15 years, I'd strongly caution against this strategy. While you're technically correct that vehicles over 6,000 lbs GVWR qualify for heavy vehicle treatment, the IRS has gotten increasingly aggressive about challenging luxury vehicle deductions. The "ordinary and necessary" test is subjective and heavily scrutinized for expensive vehicles. Even if you win an audit, the time, stress, and professional fees will likely exceed any tax savings. I've seen clients spend $50,000+ in legal and accounting fees defending $30,000 in tax benefits. Consider this: if your business truly needs a luxury vehicle for client relations, document that business need thoroughly BEFORE purchasing. Get client feedback, industry standards, competitor analysis - anything that shows this vehicle level is expected in your industry. Without that foundation, you're essentially gambling with the IRS. The smart money says buy what you can afford without the tax break, or find a more defensible vehicle that still meets your business needs.

From my experience as a small business owner, there are situations where you might get an unusually large refund. Last year, I estimated my quarterly tax payments based on the previous year's income, but then had a significant business loss in Q4. I had already paid in about $22k in estimated taxes throughout the year but ended up owing much less due to the business loss, resulting in a large refund. Another possibility: if your cousin bought a house last year, there are substantial first-time homebuyer credits in some states that can be combined with federal credits, especially for energy-efficient improvements. These can add up quickly.

There's another scenario that could explain your cousin's $25k refund - if she's been involved in any kind of tax-related legal settlement or IRS error correction. I had a neighbor who received a massive refund because the IRS had incorrectly processed her returns for several years, and when they finally caught and corrected their mistake, she got a lump sum payment that included not just the refund amounts but also interest. Also, some healthcare workers (like nurses) were eligible for special pandemic-related relief programs and credits that might still be processing. There were student loan forgiveness programs, emergency worker benefits, and various state-specific credits for essential workers that could contribute to an unusually large refund. The timing might also be important - if she filed late or had to wait for certain tax documents (like K-1s from investments or partnerships), her refund might include interest payments from the IRS for the delay, which can add up significantly over time.

Oh man I think I've been doing this wrong for years! I always thought ordinary and qualified were completely separate calculations. So just to double check - line 1a on my 1099-DIV (total ordinary dividends) is the number that goes into my total income calculation, right? And then the qualified portion on line 1b gets the special tax rate?

This is such an important distinction that I wish more investment platforms explained better! I made this exact mistake a few years ago and ended up underpaying taxes because I didn't realize my ordinary dividends from REITs were pushing my qualified dividends into a higher tax bracket. One thing that helped me understand this better was looking at it this way: imagine your total taxable income is like filling up a bucket. Every dollar of income (wages, ordinary dividends, qualified dividends, interest, etc.) goes into that bucket. Once the bucket reaches certain levels, that determines your tax brackets. Then the IRS looks at each type of income in your bucket and applies the appropriate tax rate - regular rates for ordinary income, and preferential rates for qualified dividends based on which bracket your total bucket falls into. So yes, those ordinary dividends absolutely count toward determining what tax rate applies to your qualified dividends. It's all interconnected, which is why tax planning can get complex but also why it's so important to understand these interactions.