Has your cousin received any notices from the IRS yet? They usually send multiple notices before moving to collections or criminal investigation. The path to enforcement typically goes: notices → liens → levies → and only then potential criminal charges for the most serious cases. If he hasn't received notices, that doesn't mean he's in the clear - it could just mean they haven't caught up to him yet.

Your cousin is in a really precarious position, and I'm glad you're looking out for him. From what you've described, he's definitely required to file - trust fund distributions and cryptocurrency gains are absolutely taxable income, regardless of whether he gets a W-2. The biggest risk he faces is that the IRS has been aggressively pursuing cryptocurrency cases lately. They've partnered with blockchain analysis companies to track transactions, so his crypto activity is likely already on their radar even if he hasn't heard from them yet. The "I didn't know" defense doesn't work when you have substantial unreported income for 7 years. Here's what could realistically happen: failure-to-file penalties alone could be 25% of what he owes per year, plus interest compounding. If the IRS determines this was willful evasion (which 7 years of non-filing with substantial income suggests), he could face criminal charges. Even if it doesn't go criminal, they can file liens against his assets, levy bank accounts, and garnish any income sources they can identify. My strong recommendation is that he needs to get into compliance immediately through voluntary disclosure before the IRS finds him. Every month he waits, the penalties and interest keep growing. A tax attorney who specializes in delinquent returns would be his best bet at this point - this is way beyond DIY territory.

Just a tip - if you're really in a hurry to file, you can actually submit your taxes with a substitute W-2 form (Form 4852) if your employer hasn't provided your W-2 by the end of January. You'll need your last paystub to complete it accurately though. I had to do this last year and my refund wasn't delayed at all.

I'm dealing with a similar situation right now! My former employer said they mailed W-2s on January 15th but I haven't received mine yet either. Based on what others have shared here, it sounds like we should give it until the end of this week before getting worried. One thing that helped me feel more prepared was calling my old HR department to confirm they have my current address on file. Turns out they still had my old address from when I first started there years ago! Might be worth double-checking that detail if you haven't already. Also, if you have your final paystub from December, keep it handy since you'll need those numbers if you end up having to contact the IRS or file a substitute form later. Fingers crossed both our W-2s show up soon!

One thing nobody mentioned is that you might qualify for dual-status filing for 2023. Since you changed from F1-OPT to H1B mid-year, you could potentially file as a nonresident for part of the year and a resident for part of the year. Dual-status filing is complicated though. You basically file 1040-NR for the nonresident portion and attach a 1040 as a statement for the resident portion. Worth asking your CPA about this option too.

Based on your timeline, you definitely should have filed 1040-NR instead of 1040. Here's why: As an F1 student who arrived in September 2021, you're considered an "exempt individual" for your first 5 calendar years (2021-2025). This means: - Your F1 days (Sep 2021 - Dec 2022): Don't count - Your F1-OPT days (Jan 2023 - Sep 2023): Don't count - Your H1B days (Oct 2023 - Dec 2023): Only about 92 days count With only ~92 countable days in 2023, you clearly don't meet the 183-day threshold for the Substantial Presence test. You should file Form 1040-X to amend your return to 1040-NR. This is especially important since you mentioned potential USCIS applications - having incorrect tax filings can definitely complicate future immigration processes. I'd recommend getting this corrected ASAP and keeping documentation of the amendment for your records. Your accountant may not have been familiar with the F1 exempt individual rules, which is unfortunately common. Consider finding a CPA who specializes in nonresident tax issues for future filings.

Has anyone used the IRS2Go app for this kind of situation? I've heard it lets you check your withholding and request adjustments.

I went through something very similar when I switched from my previous employer to a federal contractor position. The emergency tax code hit me with a 38% withholding rate for two months - absolutely brutal! One thing that helped me was requesting a "withholding statement" from my previous employer showing exactly how much federal tax had been withheld year-to-date. I brought this to my new HR department along with my last paystub, and they were able to work with their payroll provider to expedite the correction with the IRS. Also, since you mentioned you're in Georgia but work for a California company - make sure the state withholding is correct too. I've seen cases where the emergency code affects both federal and state withholding, and sometimes the state correction takes longer than the federal one. If your July paycheck doesn't include the refund as promised, don't wait - call the IRS again immediately. Sometimes the correction gets processed but doesn't flow through to the employer's system right away. Having that paper trail of your previous call will help if you need to escalate. Good luck getting your money back! That $1,600+ interest-free loan to the government is definitely frustrating.

Has anyone mentioned withholding yet? When I did my IRA withdrawal last year, I had them withhold 35% for federal taxes right off the top. That way I didn't have to do that recursive calculation - the withholding counts as if it was paid evenly throughout the year, so no underpayment penalties. You just fill out the form saying what % you want withheld.

One thing that might help reduce your overall tax burden is checking if you qualify for any deductions or credits that could offset the increased income from your IRA withdrawal. Since you mentioned you're divorced, make sure you're not missing out on head of household filing status if you have dependents, or consider if you can bunch itemized deductions (like charitable contributions or state taxes) into the year you take the withdrawal to maximize their benefit. Also, don't forget about estimated quarterly tax payments! If you're taking this withdrawal mid-year and your withholding plus regular paycheck taxes won't cover the full liability, you'll need to make estimated payments to avoid underpayment penalties. The IRS generally wants you to pay 90% of current year taxes or 100% of last year's taxes (110% if your prior year AGI was over $150k) throughout the year. Have you run the numbers on what your effective tax rate would be if you spread this over 2-3 years instead of taking it all at once? Even if it delays your home purchase slightly, the tax savings could be substantial enough to make it worthwhile.