One thing to consider is state requirements. I formed a small 501c3 in Texas in 2023 that falls under the $5k exception. While federal filing of 1023-EZ wasn't technically required, our state still required proof of 501c3 status for state tax exemptions (sales tax, franchise tax, etc). Without the IRS determination letter, we had to pay state taxes that effectively erased our small budget. Also, when applying for our bank account, they required the IRS determination letter - no exceptions. My advice: just file the 1023-EZ. It costs $275 (as of 2025) and saves a ton of headaches. We ended up filing 6 months after formation and regretted not doing it immediately.

Has anyone experienced any audit issues by NOT filing the 1023-EZ? Like if you stay under $5k for a few years but then grow, does the IRS ever come back and question your earlier years?

I'm shocked at what loan officers tell people to do! When I was applying for my mortgage, mine suggested I deposit cash gifts in my account and just say it was income. When I refused, he stopped returning my calls. Definitely talk to a CPA about fixing your tax return. It's not worth committing tax fraud for a mortgage. Plenty of legitimate lenders work with self-employed people without requiring shady tactics.

This is a really concerning situation, and I'm glad you're questioning it now. As others have mentioned, while legitimate depreciation add-backs are a real thing in mortgage underwriting, what your loan officer suggested crosses into fraud territory. The key issue is that you can ONLY claim business mileage for miles you actually drove for legitimate business purposes. If you amended your return to include fictional miles just to boost your mortgage-qualifying income, that's tax fraud regardless of how mortgage lenders might treat the depreciation component. I'd strongly recommend: 1. Consult with a CPA immediately about your amended return 2. If you claimed miles you didn't actually drive, file another amendment to correct it 3. Consider finding a new mortgage lender - one that doesn't suggest illegal tactics There are legitimate ways to present self-employment income favorably to lenders without breaking tax laws. A good mortgage broker should know the difference between proper income analysis and fraud. Your current loan officer has put both of you at risk with this advice. Better to delay your home purchase than face potential IRS penalties, mortgage fraud charges, or having to explain falsified tax documents later. The housing market will still be there when you get your finances properly sorted.

Watch out for the time involved in filling out multiple 8621 forms! I had 9 PFICs last year and it literally took me about 2 hours PER FORM to complete correctly. That's like 18 hours just for one tax form! If your time is worth anything, consider having a professional handle these. I learned my lesson and switched most of my international investments to US-based international funds (like Vanguard's VEU or VXUS) that invest internationally but don't trigger PFIC rules since they're US companies.

This thread has been incredibly helpful! I'm in a similar boat with about $35,000 spread across 5 different European ETFs that I now realize are PFICs. Based on what everyone's shared here, I think my best strategy is to: 1. Use one of the tax tools mentioned (probably taxr.ai) to help with the immediate 8621 filing requirements for this year 2. Contact the IRS directly using Claimyr if I run into specific calculation questions the software can't handle 3. Start transitioning my international exposure to US-based international funds like VEU or VXUS to avoid this nightmare next year One question though - if I sell my current PFIC investments this year to switch to US-based alternatives, will that create additional complications for my 8621 forms? Or should I wait until after I file this year's taxes to make the switch? The management fee issue is frustrating but sounds like there's not much we can do about that anymore. At least now I understand it doesn't factor into the PFIC calculations themselves.

The EXACT same thing happened to me!! I was so angry I took screenshots of everything. My payment was "pending" for $1,243 but my account showed $0 paid! I was panicking thinking I'd get hit with late payment penalties or something. But it did finally update on the exact day they said it would. The whole time I was thinking "how can a company that literally specializes in FINANCIAL SOFTWARE have such a terrible payment tracking system??" 🤬 So frustrating but at least you know you're not alone in this mess!

I'm going through this exact same situation right now! My payment shows as pending with TurboTax support but my account dashboard still shows $0 paid. It's so stressful when you're dealing with tax payments and the system seems broken. Reading everyone's experiences here is really reassuring though - sounds like this is unfortunately just how their system works. The trace number definitely seems to be the key proof that everything is actually fine. Thanks for posting this Dylan, it's helping a lot of us who are in the same boat! I'll definitely be saving that trace number and waiting for my pending date.

Theyre not gonna call u back in 30 days lol. But the good news is that usually means theyre about to release it anyway

Had the exact same thing happen to me last month! My 810 got removed and they gave me the whole "higher ups will call in 30 days" speech. Didn't get a call but my refund hit my account on day 18. Just keep checking your transcript for movement - once that 810 is gone you're basically in the clear. Hang in there!