Be careful about keeping a business technically "open" but dormant for too long. I did this and it created some unexpected complications: 1) Had to keep filing zero-income Schedule C forms each year 2) Some states (like California) have minimum franchise taxes even for inactive businesses 3) Had to maintain certain business licenses and registrations which cost money 4) Created confusion with local tax authorities If you don't realistically expect to restart the business within a year or two, sometimes it's cleaner to just close it properly and start fresh if needed later. Those QBI losses might never be usable if you're fully transitioned to W2 income anyway.

This is a great discussion that touches on something I dealt with recently. One thing worth considering is the interaction between QBI losses and the overall Section 199A deduction limitation based on your taxable income. Even if you do generate future QBI to offset those carryforward losses, remember that the Section 199A deduction is still limited to 20% of your taxable income minus net capital gains. So if you're earning W2 income and have other deductions that reduce your taxable income significantly, you might not be able to fully utilize the QBI benefit even when you do have positive qualified business income. I learned this the hard way when I started a small side business thinking I could immediately benefit from my old QBI losses. The math worked out differently than I expected because of the taxable income limitation. It's another factor to consider when deciding whether to keep a dormant business alive or just close it cleanly. Also, regarding the state-level complications others mentioned - some states don't follow federal QBI rules at all, so you could be maintaining a business entity for federal tax benefits that don't even apply at the state level where you might owe annual fees or taxes.

I'm actually a bit confused why you need Form 8453 at all? I've been e-filing for years and have never had to mail anything afterward. Most tax software handles everything electronically now.

I had a similar situation last year! The 3 business day rule mentioned earlier is correct - you wait for IRS acceptance confirmation, then mail Form 8453 within 3 business days. One thing that might help with your timing concerns: you can actually prepare everything in advance. Get your Form 8453 ready to go (just don't sign it until after e-file acceptance), put all required attachments together, and have the envelope addressed and stamped. That way, as soon as you get the acceptance email, you can quickly sign the form and drop it in the mail. Since you're leaving April 20th, I'd suggest e-filing by April 15th at the latest to give yourself a buffer. Most e-file acceptances come through within 24-48 hours, so you should have time to mail the 8453 before your trip. Also double-check with your tax software exactly which documents you need to include - sometimes it flags Form 8453 when it's not actually required for your specific situation.

Quick tip from someone who's been through 2 audits: Start a dedicated email folder for all tax-related expenses the moment you spend the money. Take pics of receipts immediately and email them to yourself with a descriptive subject line. I use categories like "Office Supplies 2025" or "Client Meeting March 2025." Also, for any home office deduction, take date-stamped photos of your workspace. The IRS questioned my home office in 2023, and having photos with metadata showing it was exclusively a workspace saved me. For charitable donations, always get those acknowledgment letters and keep them organized by year.

The IRS audit process isn't as scary as most people think. I got audited in 2023 and it was basically just paperwork. My advice: don't claim expenses you can't document and be super precise with everything you report.

I want to echo what others have said about the Delinquent FBAR Submission being likely appropriate for your situation. I went through this exact process two years ago with foreign accounts totaling about $42k. The key thing that helped me was organizing everything before I started filing. I created a spreadsheet with all my foreign accounts, their highest balances for each year, and verified that all income from these accounts was properly reported on my tax returns. This made the actual FBAR filing much smoother. One thing I wish someone had told me - when you're calculating the highest balance during the year for each account, you need to convert to USD using the Treasury's exchange rates for that specific year. The BSA E-Filing system will ask for this information, and having it prepared ahead of time saved me a lot of back-and-forth with currency conversions. Also, don't overthink the explanation section. I simply wrote "I was unaware of FBAR filing requirements until 2022" and included the date I became aware of the requirement. The IRS accepted all my filings without any follow-up questions. The whole process took me about 3 weeks from start to finish, and I haven't heard anything from the IRS since submitting them. Sometimes the simplest approach really is the right one.

I'm in a very similar situation and your post really resonates with me. I discovered FBAR requirements just last month when preparing my 2023 taxes, and like you, I've been living in the US since 2018 with foreign accounts I never knew needed separate reporting. After reading through all the responses here and doing my own research, I wanted to share what I learned from speaking with an EA (Enrolled Agent) who specializes in international tax issues. She confirmed that for people like us who properly reported all foreign income on our tax returns but simply didn't know about FBAR filing, the Delinquent FBAR Submission is definitely the right path. The key questions she had me ask myself were: 1) Did I report all foreign income on my tax returns? 2) Was there any intent to hide assets? 3) Are my total foreign assets under the really high thresholds that would trigger additional scrutiny? Since you mentioned your assets are around $38k and you've been properly reporting income, you should qualify for the simple delinquent filing process. The horror stories you're reading about massive penalties are typically for cases involving tax evasion or very large unreported assets. One practical tip: before you start the FBAR filings, gather all your foreign account statements for the past 6 years and create a simple spreadsheet with highest balances for each account by year. This will make the actual filing process much smoother. You've got this! The anxiety is the worst part, but the actual compliance process is more straightforward than it initially appears.

mine took 9 months last year but i got interest added atleast 🤷‍♀️

CP75 audits are definitely rough - had one last year and it took about 8 months total. The key is to respond quickly with all the documentation they request (W-2s, bank statements, childcare records if you claimed EIC with kids). Don't wait for them to send follow-up letters. Also keep copies of everything you send them because they "lose" stuff sometimes. The interest does help a little when you finally get your refund but obviously waiting that long sucks.