Giovanni, I completely understand your anxiety about this situation! As someone who has dealt with similar international tax complications, I want to reassure you that you're taking the right step by seeking clarity now rather than continuing to ignore it. From what you've described, your Colombian vacation house worth $85k that doesn't generate income and is held directly in your name likely doesn't require reporting on Form 8938. The key factor you need to investigate is whether you have any Colombian bank accounts associated with the property - even small accounts for property taxes or utilities. The $10,000 FBAR threshold applies to the aggregate value of ALL your foreign financial accounts, so if you have Colombian accounts plus accounts in other countries, you'd need to add them all together to see if you hit that threshold in any given year. If you discover you should have filed FBAR forms in previous years, definitely look into the Streamlined Filing Compliance Procedures. This program is specifically designed for taxpayers who had non-willful failures to report foreign accounts/assets. Since you genuinely didn't know about these requirements, you'd likely qualify for this program which has much more reasonable penalties than regular enforcement. I'd strongly recommend scheduling a consultation with a tax professional who specializes in international taxation. Even if it costs a few hundred dollars, it's much better to get clarity now than to potentially face significant penalties later. You're being proactive by addressing this now, which puts you in a much better position than if the IRS discovered unreported assets through other means.

Giovanni, I really feel for your situation - inherited foreign property can be such a minefield when it comes to US tax compliance! I went through something similar with a rental property I inherited in Canada a few years ago. The good news is that based on what you've described, you're probably not in as dire straits as you might think. Since your Colombian property is worth $85k, doesn't generate rental income, and is held directly in your name (not through a foreign entity), the property itself likely doesn't need to be reported on Form 8938 or similar forms. The critical question is whether you have any Colombian bank accounts - even small ones for paying property taxes, utilities, or maintenance expenses. If the total value of ALL your foreign accounts combined ever exceeded $10,000 in any calendar year, you'd need to file FBAR forms for those years. If you discover you missed required FBAR filings, don't panic! The Streamlined Filing Compliance Procedures are specifically designed for situations like yours where the non-reporting was genuinely unintentional. Since you clearly didn't know about these requirements (non-willful non-compliance), you'd likely qualify for this program which has much more reasonable penalties. My advice: Schedule a consultation with a tax professional who specializes in international taxation and dual citizenship issues. Yes, it'll cost a few hundred dollars upfront, but it's infinitely better than potentially facing penalties later. You're being smart by addressing this proactively rather than hoping it goes away. The peace of mind alone will be worth the investment!

I'm in almost the exact same boat! Filed through TurboTax two days ago and just found a 1099-DIV I missed. Mine's even smaller - only about $15 in additional tax owed. Reading through everyone's responses here is super reassuring. Based on what the tax preparer mentioned about the IRS matching program not running until later in the year, I think I'm going to follow the consensus advice: let my original refund process, then file the amendment right after I receive it. The peace of mind from getting official IRS guidance (like what people got through that Claimyr service) would probably help, but honestly the advice here seems pretty consistent. Sometimes being too eager to fix a small mistake can actually make things worse, which is counterintuitive but makes sense given how the IRS processes returns. Thanks everyone for sharing your experiences - it's really helpful to know I'm not the only one who's done this!

I was in a very similar situation last year - filed electronically and then found a missed 1099-DIV about a week later. The dividend was small (around $45 in additional tax) and I was also expecting a substantial refund. After researching and calling the IRS (took forever to get through), I learned that filing an amendment before your original return processes can actually delay everything significantly. The agent I spoke with confirmed what others have mentioned here - during filing season, they're focused on processing returns as submitted, not cross-checking against information returns. I ended up letting my original refund process normally (got it in about 3 weeks) and then immediately filed Form 1040-X with the corrected information. The amendment took about 4 months to process, and I simply sent them a check for the additional tax plus a small amount of interest. The key thing the IRS agent told me was that being proactive about correcting it (rather than waiting for them to catch it) actually works in your favor. It shows good faith and typically results in minimal penalties, if any. For your $29 situation, I'd definitely recommend the "wait for refund, then amend" approach based on my experience.

This is such a helpful thread! I'm dealing with the exact same situation and was getting so confused by all the different advice online. Just to make sure I understand correctly - for a single-member LLC that hasn't elected corporate taxation, I can either: 1. Use my SSN on the W-9 and check the "Individual/sole proprietor or single-member LLC" box, OR 2. Use my EIN on the W-9, check the "Individual/sole proprietor or single-member LLC" box, put my personal name on the "Name" line, and put my LLC name on the "Business name/disregarded entity name" line Is that right? I'm leaning toward option 2 for privacy reasons, but I want to make sure I don't create the same mismatch issues that Connor mentioned. Also, when I send corrected W-9s to clients who already have the wrong version, should I include a brief explanation about the change or just send the new form without explanation?

This thread has been incredibly helpful! I'm a CPA and I see this confusion with single-member LLCs constantly. One thing I'd add is that if you're planning to have employees in the future, you'll definitely need that EIN anyway for payroll purposes, so getting comfortable with using it correctly on W-9s now is good practice. Also, for those worried about the IRS mismatch issues - the key is consistency. If you use your EIN on W-9s, make sure you're reporting that business income on Schedule C of your personal return and that your business name matches what's on file with the IRS for that EIN. The IRS systems are getting better at matching disregarded entity income, but clean record-keeping on your end makes everything smoother. One more tip: keep copies of all the corrected W-9s you send out and maybe a simple spreadsheet tracking which clients got updated forms and when. This documentation can be really helpful if any questions come up later during tax season or if the IRS has any inquiries.

I went through this exact situation with FanDuel last year and want to share what worked for me. The most important thing is getting organized documentation before you file your amended return. First, log into your DraftKings account and download your complete 2023 transaction history - not just the tax summary, but every deposit, withdrawal, and contest result. This creates a complete paper trail that shows your actual gambling activity versus what the W2G reports. Second, create a simple spreadsheet showing your monthly net results. This doesn't have to be complicated - just columns for deposits, winnings, withdrawals, and net position each month. This visual summary makes it crystal clear to the IRS that despite the large W2G amount, you ended the year with a net loss. When I filed my amended return, I included both the detailed transaction history and the monthly summary. The IRS accepted it without any follow-up questions. The key was showing that my record-keeping was thorough and matched their records. One tip: if you're borderline on whether itemizing vs standard deduction makes sense, calculate both scenarios before filing. Sometimes the math works out better than you'd expect, especially if you have other deductions you might have overlooked. Don't stress too much about this - it's a very common issue with fantasy sports players, and the IRS has seen it thousands of times. Just be proactive about fixing it properly.

I just want to add a word of caution about timing here. While everyone's giving great advice about amending your return, don't wait too long to take action. The IRS typically has 3 years to assess additional tax, but that clock starts ticking from when you filed your original return (or should have filed it). Since you filed in 2024 for tax year 2023, you're still well within that window, but the longer you wait, the more interest will accrue if they do catch the missing W2G income. I've seen cases where people waited 2+ years thinking "no news is good news," only to get hit with a massive bill that included substantial interest charges. The automated matching system isn't perfect, so sometimes it takes them a while to flag missing income, but when they do, they expect payment for the entire period. Filing the amended return proactively shows good faith and can help you avoid penalties even if you do end up owing some tax. Also, make sure you have enough in savings to cover any potential tax liability while you're organizing your documentation. Even if you had a net loss, the quirks of the tax code might still result in you owing something depending on your other deductions.

Make sure you explore all possible deductions/credits to offset some of this conversion income! Unemployment often makes people eligible for credits they wouldn't normally get. Check if you qualify for the Earned Income Credit, education credits if you took any classes, or increased medical expense deductions (threshold is lower when income drops). Also, since you were laid off, don't forget to deduct any job search expenses that might be eligible. Every little bit helps when facing a big tax bill from Roth conversions!

I'm really sorry to hear about your situation - getting hit with unemployment and a massive tax bill at the same time is incredibly stressful. Since you can't undo the conversion, here are a few additional strategies to consider: First, if you haven't already, make sure you're maximizing your 2023 deductions. Since you were unemployed for part of the year, you might qualify for larger medical expense deductions (they need to exceed 7.5% of AGI), and any charitable contributions you made could help offset some of the conversion income. Second, consider whether you have any capital losses in taxable investment accounts that you could harvest to offset some of the ordinary income from the conversion. While capital losses primarily offset capital gains, you can use up to $3,000 per year to offset ordinary income, with any excess carrying forward to future years. Finally, when you do speak with the IRS, emphasize your unemployment situation. They're often more willing to work with taxpayers facing genuine financial hardship. Document everything about your job search efforts and financial situation - this will support any hardship claims. The combination of an installment plan, penalty abatement if you qualify, and maximizing all possible deductions should help make this more manageable. Hang in there!