Has anyone considered whether this transaction might also trigger Form 8865 requirements instead of Form 926? If the foreign business is structured as a partnership rather than a corporation, Form 8865 would be the correct form. OP, what's the legal structure of your foreign business?

Great question about entity classification! You're absolutely right that this is crucial. @Carmen Ortiz - you mentioned it's a "family business overseas" but the specific legal structure matters enormously for US tax purposes. If it's organized as a corporation in the foreign country, you'll likely need Form 926. But if it's a partnership, LLC, or similar pass-through entity, then Form 8865 would be the correct form instead. The tricky part is that some foreign entities can elect how they want to be treated for US tax purposes (called "check-the-box" elections), so even a foreign LLC might be treated as a corporation if an election was made. Do you know what type of entity it is under local law? And more importantly, do you know if any elections have been made for US tax treatment? This will determine which forms you need to file.

I'm dealing with something similar right now. My long-time tax preparer retired and the new firm wants me to sign what they call a "client engagement letter" but it's basically the same thing you're describing. From what I've researched, these agreements became more common after some high-profile lawsuits where clients sued preparers for issues that weren't really the preparer's fault. The agreements help clarify who's responsible for what. That said, I'd definitely read it carefully before signing. Make sure it doesn't completely absolve them of responsibility for their own errors or negligence. A fair agreement should protect them from liability when you provide wrong information, but they should still be accountable for their own mistakes. Has your tax guy given you any guidance on what changed since the sale? Might be worth asking him directly about the new policies.

I went through something very similar when my CPA of 15 years sold to a regional chain. The new firm immediately sent me a 4-page "service agreement" that felt more like legal protection than a service contract. After reading through it and doing some research, I learned these agreements became standard practice around 2018-2020, largely due to increased litigation against tax preparers. The COVID-era changes to tax laws also made preparers more cautious about liability. The key things I looked for in mine were: 1) Clear definition of what constitutes "reasonable care" on their part, 2) Specific language about correcting their own errors at no charge, 3) Audit representation clauses, and 4) Data security provisions. My advice? Don't sign anything that makes you uncomfortable, but also recognize that most reputable firms won't work without one nowadays. If the language seems too broad or one-sided, ask for modifications. I successfully negotiated two clauses in mine that were too vague about their responsibilities. The transition from small independent preparers to larger firms definitely changes the dynamic, but it doesn't necessarily mean worse service - just more formalized processes.

One more thing to consider - if your income is under $30k, check if you qualify for any tax credits related to charitable giving. Some states have credits (not deductions) for donations that apply regardless of whether you take standard deduction. The 1098-C might be needed to document eligibility for those. I took standard deduction last year but still got a small credit on my state return for my car donation.

I'd strongly recommend getting the 1098-C form, even though you're taking the standard deduction. Here's why: The IRS has specific rules for vehicle donations over $500 - they require the 1098-C for proper documentation, regardless of whether you itemize or not. Since your CR-V is worth $6,500, this puts you well into the range where the IRS expects official documentation. Also, consider that your financial situation could change. Maybe you'll have unexpected medical expenses later in the year, or other deductible expenses that could make itemizing worthwhile. Having the 1098-C gives you that option. From an audit protection standpoint, vehicle donations are one of the areas the IRS scrutinizes more closely. Having the official form filed with the IRS creates a paper trail that protects you, even if you don't claim the deduction this year. The only "cost" is sharing your SSN with a legitimate charity, which they're required to keep secure anyway. There's really no downside to getting proper documentation for such a significant donation.

Filed my RI return on 2/4 and still waiting too! Really appreciate everyone sharing their timelines here - it's way more helpful than the vague info on the state website. Sounds like we're all in the same boat with early February filers. At least knowing they're working through late January gives me some hope I'll see mine in the next few weeks. The waiting game is brutal when you're counting on that refund! 😅

Filed mine on 2/2 and got my RI refund yesterday via direct deposit! Took exactly 6 weeks. For everyone still waiting on early February filings, it sounds like you're getting close based on what others are saying about them processing late January returns now. I know the wait is stressful but they do seem to be moving at a steady pace this year. Hang in there! 🙏

Has your daughter checked if her identity might have been compromised? The IRS usually issues IP PINs when there's been some kind of identity theft concern. The fact that she got one automatically and now it's not working properly might mean someone tried to file using her SSN. It might be worth checking her credit report at annualcreditreport.com (the official free site) just to make sure nothing fishy is going on. Sometimes resolving the underlying identity issues helps resolve the PIN problems too.

I went through almost the exact same situation with my 20-year-old son last year! The IP PIN rejection loop is incredibly frustrating, especially when you know you entered everything correctly. One thing that helped us was requesting a "wage and income transcript" from the IRS online (or by calling) to see exactly how they have your daughter's information on file. Sometimes there are small discrepancies in how names, addresses, or even birth dates are recorded that cause the IP PIN validation to fail. Also, when you do call that specialized number Gabriel mentioned (800-908-4490), ask them specifically about "IP PIN regeneration" - sometimes the original PIN gets invalidated in their system due to processing delays or other technical issues, especially when the letter was sent so late like yours was. If you're running short on time before the extension deadline, definitely consider the paper filing backup plan that others mentioned. I know it's slower for refunds, but at least you'll meet the deadline and avoid any penalties while they sort out the electronic filing issues. The identity theft angle Amara brought up is also worth investigating - my son discovered a fraudulent filing attempt from two years prior that we never knew about, which explained why he got the IP PIN in the first place.