Quick tip from someone who's filed 1120-F for 5+ years: Don't forget to include Form 8833 for any treaty-based return positions you're taking. I see so many foreign corps miss this and it immediately flags your return. Also, if you have any US real property interests, make sure you're properly handling Form 8288 withholding requirements. These are audit magnets if handled incorrectly.

Maya, I've been through this exact situation with our UK subsidiary filing 1120-F. A few additional points that might help: For your R&D allocation question, consider maintaining a detailed allocation study that documents not just the methodology but also the business rationale. We had success using a combination approach - gross receipts for general R&D, but direct attribution for specific projects where we could clearly identify US vs. global benefits. Regarding your software licensing revenue question, be very careful here. The IRS has been increasingly scrutinizing income attribution between related entities. If your US operations are involved in customer relationships, technical support, or customization for those licenses, you may have ECI even if the contracts are signed in Japan. Document all US activities related to that revenue stream. One thing I didn't see mentioned - make sure you're considering the branch profits tax implications. With $2.4M in receipts, you're likely subject to it, and proper planning around deemed repatriation can save significant tax. Also, file Form 5472 for related party transactions if you haven't already. Missing this can trigger automatic penalties even if your 1120-F is perfect.

bruh why even offer this if they deny everyone lmaooo been seeing so many ppl get denied this year

Sorry you got denied! That's so frustrating when you really need the money. Just wanted to mention that even though the refund advance didn't work out, you can still track your actual tax refund once the IRS starts processing returns. The IRS Where's My Refund tool usually updates within 24 hours after they receive your return. Hang in there - at least you'll get your regular refund once processing begins! 💪

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.

This is exactly why I always tell people to be extremely cautious with new tax preparers, especially when they promise unusually large refunds. What you're describing sounds like classic "ghost preparation" tactics where preparers manufacture deductions and credits to inflate refunds. The -$35,000 "additional income" combined with $30,000 in credits is a huge red flag. These numbers suggest your preparer may be claiming fake business losses or inappropriate refundable credits like the Earned Income Tax Credit that you don't actually qualify for. My advice: DO NOT file this return. Get copies of everything your preparer did and take it to a reputable CPA or enrolled agent for a second opinion. Ask them to explain every single line item that's different from your previous returns. Also document everything about your interactions with this preparer - you may need it if you decide to report them to the IRS. The fact that she's giving you conflicting refund amounts ($25k vs $35k) is another major warning sign. Better to get a legitimate smaller refund than deal with years of IRS problems, penalties, and having to pay back fraudulent refunds with interest.

I'm a tax professional and I need to emphasize how serious this situation is. The combination of negative income adjustments and large refundable credits you've never qualified for before is textbook preparer fraud. Here's what likely happened: Your preparer probably created a fake Schedule C (business) showing losses to generate that -$35,000, then claimed refundable credits like EITC or Additional Child Tax Credit based on manufactured income scenarios. This is called "refund fraud" and it's one of the most common schemes the IRS investigates. The fact that she gave you two different refund amounts and can't provide documentation is all you need to know. A legitimate preparer would have clear explanations and supporting documents for every entry. My recommendation: 1) Do NOT file this return under any circumstances 2) Get your documents back and find a reputable CPA or EA 3) Report this preparer to the IRS using Form 14157 4) Consider reporting to your state's licensing board if applicable The IRS has sophisticated computer systems that flag these patterns immediately. You would almost certainly be audited within months of filing, and you'd be liable for the full amount plus penalties regardless of your preparer's actions. Trust your instincts - they're telling you something is very wrong here.

Another approach worth considering is checking with your state's unclaimed property division. When custodial accounts are transferred or when brokerages go out of business, sometimes historical records or even forgotten dividend payments end up there. Many states have online databases where you can search by name. Also, if your grandfather used a tax preparer or CPA during the years he held these shares, they might have copies of old tax returns that show dividend income. This could help you piece together the ownership timeline and potentially estimate share quantities based on dividend payments received. For the dividend reinvestment piece specifically, don't forget that many companies switched transfer agents over the decades. The current transfer agent might not have complete records, but they can often tell you who the previous agents were. Sometimes you need to trace through 2-3 different agents to get the full picture, especially for shares going back to the 1990s. One last thing - if you're still stuck after trying all these approaches, consider consulting with a tax professional who specializes in complex basis calculations. The cost might be worth it given the potential tax implications, and they often have access to specialized databases and resources that aren't available to individual taxpayers.

I've been following this thread with great interest since I'm dealing with a very similar situation - inherited shares from a custodial account with no cost basis information. One thing I haven't seen mentioned yet is checking with the state where your grandfather originally opened the account. Some states require custodial account documentation to be filed with state agencies, and these records might still be accessible. Also, if your grandfather had any financial advisors or wealth managers over the years, they sometimes maintain client files much longer than brokerages do. Even if he wasn't working with them when the shares were transferred to you, they might have records from when he was actively making investment decisions. For anyone still struggling with dividend reinvestment calculations, I found that many older investors kept physical dividend check stubs or statements in filing cabinets or safety deposit boxes. It might be worth asking your grandfather to check any old financial paperwork he might have stored away - sometimes the most important documents are sitting in the most obvious places. The documentation approach that several people mentioned is absolutely critical. I created a spreadsheet tracking every phone call, email, and record request I made, along with the responses. This paper trail ended up being just as valuable as the actual basis calculation when I filed my return.