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Just a quick reminder that Form 4137 is also used for allocated tips (Box 8 on W-2), not just unreported cash tips. If your employer has allocated tips to you, H&R Block might be trying to generate this form automatically, which could be causing the error if you're entering conflicting information elsewhere.
Thank you all SO MUCH for the helpful responses! I finally figured it out - I was indeed accidentally reporting the same tips twice in different sections. I deleted the duplicate entries, made sure I was only reporting the additional cash tips not included on my W-2 in the Form 4137 section, and the error went away! I was able to submit my return successfully. For anyone else having this issue, definitely check for duplicate entries and make sure you're only reporting the ADDITIONAL unreported tips, not your total tips for the year. Those W-2 tips are already handled!
Glad to hear you got it sorted out! This is actually one of the most common tax software errors I see posted about during filing season. The duplicate entry issue catches so many people - the software interfaces can be confusing about where exactly to input different types of tip income. For future reference, keep good records of your daily cash tips throughout the year. Even a simple notebook or phone app where you jot down your cash tips each shift can save you a lot of headaches come tax time. The IRS expects tip earners to report tips to their employer monthly if they exceed $20, but having your own records makes filing much smoother regardless. Also, don't stress too much about the Form 4137 - it's actually a pretty straightforward form once you understand it's just calculating the Social Security and Medicare taxes on your unreported tips. The software handles all the math for you once you enter the correct amounts in the right places.
Not directly related to the IRS question, but have you considered asking the jewelry store if they'll take multiple smaller payments on different credit cards? When I bought my engagement ring a couple years ago, I was able to split it across two different cards to stay within my limits. Some luxury retailers are more flexible than they initially let on if you're making a big purchase.
Just want to add some reassurance here - you're definitely overthinking this! I've done several large wire transfers for major purchases (home down payment, car, etc.) and it's really straightforward. The bank employees are used to handling these transactions and they'll walk you through every step. When I did my first one, I was nervous too, but the BOA rep explained everything clearly and made sure I understood the process before we proceeded. One tip: bring a photo ID and be prepared to answer some basic questions about the purchase (what it's for, who you're sending money to, etc.). This is just standard procedure for their records, not anything IRS-related. You're being responsible by checking on the requirements beforehand, but honestly, legitimate purchases with your own money are exactly what these systems are designed to handle smoothly. The reporting happens automatically in the background and doesn't affect you as the customer at all.
This is why I'm terrified of receiving any money from overseas. These "gotcha" penalties for purely procedural issues are absolutely ridiculous. The form doesn't even have any tax implications! Has anyone successfully fought these without hiring a lawyer? I received a similar penalty (much smaller amount) and wondering if I can handle it myself or if I need to bite the bullet and pay for representation.
I contested a $10k FBAR penalty on my own and got it completely removed. Key was providing extensive documentation showing I tried to comply with all tax laws and immediately corrected once I knew of the requirement. Downloaded the relevant IRM sections and cited them specifically. Took about 4 months but eventually got a letter saying penalty was removed. For larger amounts like OP's though, I'd probably get professional help.
Thanks so much for sharing your experience. That's really encouraging to hear. Did you submit your appeal through regular mail or did you have to go through some special process? I've been trying to find the right forms online but the IRS website is a maze.
I'm so sorry you're going through this - the stress of facing a $47,000 penalty must be overwhelming. But please don't consider bankruptcy yet! These international reporting penalties are often successfully challenged, especially in cases like yours where you acted in good faith. A few important points to consider: 1. The IRS has been issuing these massive penalties automatically, but they frequently get reduced or eliminated on appeal when taxpayers can demonstrate reasonable cause 2. Your 12-week correction timeframe is actually quite reasonable - many successful appeals involve much longer delays 3. The fact that you hired a professional and included a reasonable cause statement shows good faith effort For your immediate next steps: - File a formal protest letter within the 30-day deadline (don't miss this!) - Request penalty abatement based on reasonable cause under IRC Section 6651(a) - Include all documentation showing your prompt correction and good faith efforts - Consider requesting first-time penalty abatement if you have a clean compliance history Given the substantial amount involved, I'd strongly recommend consulting with a tax attorney who specializes in international reporting penalties. They can ensure your protest letter addresses all the technical requirements and cites relevant precedents. You have legitimate grounds for appeal here. Don't let the intimidating dollar amount discourage you from fighting this.
e-filed through turbotax
This happened to me too! The "Verification of Non-Filing" status is super confusing when you know you filed. What helped me was checking my Account Transcript instead of just the Return Transcript - sometimes it shows different info. Also make sure your SSN and filing status match exactly what you put on your return. If everything looks right, it's probably just a processing delay. The IRS systems are honestly pretty outdated and sometimes take forever to sync up. Keep checking every few days and it should eventually update to show your actual return info.
Kaitlyn Jenkins
I'm in a similar boat with my 2022 amended return that I mailed in February 2024. The uncertainty is definitely the worst part! One thing I've learned from my tax preparer is that the IRS has been dealing with a massive backlog of amended returns since COVID, and they're still catching up. For your 2021 credit question - you're absolutely right about the April 2025 deadline. The three-year rule applies to when you FILE the amendment, not when they process it. So as long as you get that 2021 amendment postmarked before April 15, 2025, you'll be fine even if they don't process it until later. If it helps with the anxiety, I've been tracking my amendment status weekly and from what I've read in various tax forums, most people who mailed their 2022 amendments in late 2023/early 2024 are just now starting to see movement. The processing times have been consistently running 8-12 months for complex amendments. Hang in there - it sounds like you're right in the normal (albeit frustratingly long) timeline!
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Sofia Gutierrez
ā¢Thanks for sharing your experience! It's really reassuring to hear from someone else going through the same thing. The 8-12 month timeline you mentioned actually matches what I've been seeing in other forums too. I think the hardest part is just not knowing if your paperwork made it there safely when there's no confirmation for months. Your point about the April 2025 deadline being based on filing date rather than processing date is super helpful - I was getting confused about that. Definitely going to get that 2021 amendment in the mail soon just to be safe!
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Christian Bierman
I've been through this exact situation twice now and wanted to share some hard-learned lessons. First, don't panic about the online system showing "no record" - that's completely normal and can last 3-4 months even after they receive your paperwork. The IRS processes amended returns in batches, and yours is likely sitting in a queue waiting for its turn. One thing that helped me was keeping detailed records of when I mailed it, what I included, and any correspondence. If you didn't send it certified mail this time, definitely do that for your 2021 amendment. The peace of mind is worth the extra cost. Regarding your 2021 credit - yes, you have until April 15, 2025 to file that amendment, and the postmark date is what matters. Even if processing takes until summer 2025, you'll still get your credit as long as you mail it before the deadline. I'd recommend filing it sooner rather than later though, since you'll want to get in the queue early. The waiting game is brutal, but from what I've seen, January 2024 filers are starting to see movement now. Your timing actually puts you in a decent spot compared to people who filed even later in 2024. Hang in there!
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