This thread has been incredibly educational - I had no idea how sophisticated the IRS tracking systems have become or how much the "protest" framing could backfire legally. What really stands out to me is how many people here have shared stories about the IRS actually being reasonable when approached proactively, versus absolutely ruthless when they have to chase someone down. It seems like your cousin is choosing the worst possible path when better options are still available. The bank levy story from QuantumQuester really drives home what "getting caught" actually looks like in practice - not some dramatic arrest, but waking up to find your entire checking account emptied with no warning. That's probably a more effective wake-up call than abstract warnings about jail time. If I were in your shoes, I'd print out this entire thread and sit down with him. Sometimes seeing multiple strangers all telling the same story carries more weight than family advice. The tax attorney's point about voluntary disclosure programs and the stories about services like taxr.ai and Claimyr might give him concrete next steps instead of just feeling overwhelmed by the whole situation. The window for handling this the "easy way" is closing. Every day he waits, those penalties are compounding and he's losing negotiating power. His anti-system protest is ironically just going to make the system come down harder on him.

As someone who went through a similar situation with my brother, I can't stress enough how much your cousin is underestimating the IRS's reach and persistence. The "moving around to avoid notices" strategy is completely ineffective in 2025 - they have access to employment databases, banking records, credit reports, and can even track people through utility connections and voter registration. What's most concerning is his framing of this as a "protest." I've seen this exact mindset lead to criminal referrals because it demonstrates willful intent to evade taxes rather than simple non-compliance due to confusion or financial hardship. The IRS treats deliberate defiance very differently than accidental non-filing. The financial penalties alone should scare him - failure to file penalties are 5% per month (up to 25%), plus failure to pay penalties, plus compound interest. A $3,000 tax bill can easily become $6,000+ in just two years. And unlike other debts, tax obligations don't disappear in bankruptcy and have a 10-year collection statute that doesn't even start until taxes are assessed. The good news is he still has options if he acts quickly. The IRS has excellent voluntary disclosure programs and is surprisingly willing to work with people who come forward proactively. Payment plans, currently not collectible status, and even offers in compromise are all possibilities - but only if he stops running and starts engaging with the system. Show him this thread. Sometimes hearing real experiences from people who learned the hard way is more convincing than family warnings.

I had the same exact issue earlier this tax season! The key thing to remember is that SBTPG operates on a "just-in-time" account creation system. Your account literally doesn't exist in their customer portal until your refund has been approved by the IRS and is ready for processing. I made the mistake of calling them repeatedly for a week, only to learn that this is completely normal. Check your IRS "Where's My Refund" status first - if you're still showing "Return Received" or "Being Processed," then SBTPG won't have your account visible yet. Once you hit "Refund Approved," you should see your SBTPG account within 24-48 hours. It's frustrating but totally normal!

I completely understand your frustration! I went through this same exact situation about three weeks ago. The waiting period between filing and when SBTPG actually shows your account is one of the most stressful parts of tax season. What I learned from calling them multiple times is that their system is designed with a "verification lag" - they literally cannot display your account information until the IRS moves your return from "accepted" status to "approved for refund" status. It's like having a package that's been shipped but hasn't arrived at the distribution center yet - the tracking system has nothing to show you. I recommend setting up a daily check routine: first check Where's My Refund on IRS.gov in the morning, and only if that shows "Refund Approved" should you bother checking SBTPG. This approach saved my sanity and prevented me from obsessively refreshing their website 20 times a day! Your refund is safe, just stuck in the normal government processing pipeline.

This is such a helpful thread! I went through something similar last year and want to add one more piece of advice that saved me headaches: keep copies of ALL your Roth IRA contribution receipts/confirmations from your brokerage. When I had to file Form 8606, I discovered that my old brokerage (which had been acquired by another company) couldn't easily provide historical contribution data going back more than 3 years. Having my own records meant I could accurately complete the form without having to dig through old tax returns or make estimated guesses. Also, if you've been contributing to your Roth for several years like the original poster, double-check that you didn't accidentally exceed the annual contribution limits in any given year. If you did, those excess contributions could complicate your withdrawal calculations and potentially trigger different tax treatment. The peace of mind from having proper documentation is worth the small effort to maintain these records!

Great discussion everyone! As someone who works in tax preparation, I see this Roth IRA contribution withdrawal confusion constantly. The key points mentioned here are spot on, but I want to emphasize one critical thing that often gets overlooked: Even if you file Form 8606 correctly, the IRS automated systems sometimes don't properly match it with your 1099-R, which can trigger incorrect penalty notices months later. This is exactly what happened to several people in this thread. My recommendation: After filing your return with Form 8606, keep a copy of that form easily accessible and monitor your IRS account online (irs.gov) for any notices. If you do get an incorrect penalty notice, you'll need to either call the IRS directly or use a service like the ones mentioned here to get it resolved quickly. Also, for future reference, some newer brokerage platforms are starting to track contribution vs. earnings separately, which should eventually make this process smoother. But for now, assume you'll need to handle the proper reporting yourself regardless of what code appears on your 1099-R. The ordering rules Sofia mentioned are absolutely critical - contributions always come out first, but YOU have to prove that to the IRS through proper documentation!

Just adding another data point - I'm from Montreal and I used the US Consulate route last summer. Made an appointment online, brought my passport + W-7 + tax return, and they certified the copy right there. Took about 25 minutes total. Mailed everything to the IRS and had my ITIN in about 7 weeks. One tip they gave me at the consulate: make sure you call ahead to confirm they offer the passport certification service specifically for ITIN purposes. Some smaller consulates apparently don't offer it or have limited hours for this service.

Great thread with lots of helpful info! I went through this process as a Canadian in 2023 and wanted to add a few practical tips: 1. **Timing is everything** - If you're applying during tax season (January-April), expect longer processing times. I applied in May and got my ITIN in 6 weeks, but friends who applied in February waited 10+ weeks. 2. **Double-check your W-7 form** - The most common mistake I see other Canadians make is in Section 6a where you select your reason for needing an ITIN. Make sure you're checking the right exception box based on your specific situation. 3. **Keep copies of EVERYTHING** - The IRS will return your certified passport copy, but sometimes things get lost in the mail. I made photocopies of all documents before sending them. 4. **US Consulate appointment booking** - Book your consulate appointment ASAP. In Toronto especially, they can be booked weeks out. You can find the online booking system on the US Consulate website. The certified copy route is definitely the way to go - never send your original passport! I was traveling internationally while my application was processing and had zero issues.

Has anyone used the partnership tax calculator on the IRS website? I tried inputting different profit allocation scenarios, but I'm not sure if I'm using it correctly. I also heard that different states have different rules about partnership structures - does anyone know if that's true?

Katherine, I've been through a similar situation with my own partnership structure. One important consideration that hasn't been fully addressed is the "material participation" test for self-employment taxes. Even as an LP, if you materially participate in the business (more than 500 hours annually or meet other criteria), you could still be subject to self-employment tax on your share of the income. Also, make sure you understand the difference between guaranteed payments to your wife as GP versus her distributive share. Guaranteed payments are always subject to self-employment tax regardless of her role, while her distributive share as GP would be subject to SE tax. This affects how you structure her 20% compensation. Before finalizing anything, I'd strongly recommend getting a written opinion from a tax attorney or CPA who specializes in partnership taxation. The IRS has been increasingly scrutinizing these arrangements, and having professional documentation of the business purpose and structure will be crucial if you're ever audited.