This is such helpful information! I'm in a similar situation with a Japanese client and have been putting off dealing with the Form 8802 because it seemed so complicated. Reading through everyone's experiences makes it feel much more manageable. One question I have - when you submit Form 8802, do you need to include copies of your previous tax returns or other supporting documents? Or is just the completed form sufficient? I want to make sure I have everything ready before I submit so I don't get delayed like some of you experienced. Also, for those who successfully got their withholding reduced, did your Japanese clients require any advance notice before they could implement the lower rate? I'm wondering if I should give my client a heads up that this certificate is coming.

I went through this exact process last year and wanted to add a few practical tips that really helped me. First, when you're filling out Form 8802, make sure to be very specific in Section 6 about your business activities with Japan. Don't just write "consulting" - describe exactly what services you provide because the IRS needs to determine which treaty article applies to your income. Also, keep detailed records of all your Japanese withholding statements (the documents showing the 10.21% withheld). You'll need these for your U.S. tax return to claim foreign tax credits, and having them organized makes the whole process smoother. One thing that surprised me was that my Japanese client's accounting department needed about 6 weeks to update their systems once I provided the Form 6166 certificate. They had to coordinate with their local tax office and update their payroll system. So even after you get your certificate, there might be a delay before you see the reduced withholding in your payments. Just plan for that timing when you're budgeting your cash flow. The whole process was definitely worth it though - going from 10.21% to 0% withholding made a huge difference in my monthly income!

Have you tried running your return through a second tax software just to double check? I always do mine on both TurboTax and FreeTaxUSA. They're usually within a few dollars of each other, and it gives me confidence that the calculations are correct. It only takes about 30-45 minutes to enter everything into the second system once you've already gathered all your documents.

Your situation sounds very similar to what I experienced two years ago! I had gotten married, bought a house, and had a baby all in the same year. My refund jumped from around $2,000 to over $9,000 and I was absolutely terrified I had made a mistake somewhere. Here's what I learned: major life changes really can cause dramatic swings in your tax situation. The child tax credit ($2,000), mortgage interest deduction (especially in your first year when you're paying mostly interest), and education credits can add up quickly. Plus, if you had multiple employers with different withholding rates, you very well could have overpaid throughout the year. I'd strongly recommend having a tax professional review your return before filing, especially given the amount involved. Many CPAs will do a quick review for $100-200, which is a small price to pay for peace of mind on a $12,000 refund. They can spot common errors that software might miss and explain exactly why your refund is so high. Don't let fear keep you from filing though - if you're entitled to that refund, you deserve to get it! Just make sure everything is accurate first.

One more thing - when you respond to the CP2000, don't just send a stack of documents without explanation. Create a simple cover letter that clearly states: 1) You agree/disagree with the notice 2) The exact reason (Robinhood reported proceeds without cost basis) 3) A simple calculation showing your actual gain/loss I made the mistake of just sending in statements without a clear explanation and ended up getting another notice because they couldn't figure out what I was trying to show them.

As someone who just went through this exact same nightmare with Robinhood, I wanted to share what worked for me. I got a CP2000 for $23K that I definitely didn't owe. The key thing that saved me time was organizing everything before I responded. I created a spreadsheet with three columns: what the IRS thought I made, what I actually made, and the difference. Then I attached the supporting Robinhood documents for each transaction. What really helped was calling the number on the CP2000 notice (yes, you'll be on hold forever, but it's worth it). The agent told me that as long as I could prove my cost basis with official brokerage statements, they would accept my response. She also mentioned that these Robinhood cases are super common right now - apparently their reporting system changed and it's causing tons of these notices. My advice: Don't panic, gather ALL your Robinhood tax documents (the complete package, not just the summary), and respond with a clear explanation. It took about 8 weeks, but I got a revised notice showing I owed $0. You've got this!

Just a quick tip - if your total capital gains are only $19, you might still need to report it, but it's not going to meaningfully impact your tax bill. The IRS has bigger fish to fry than chasing down someone for potentially 2-3 dollars in taxes. Don't stress too much about getting this perfect - just make a good faith effort to report it correctly using the advice others have given about Schedule D, and you'll be fine!

I completely agree with Fatima - you absolutely need to report all income correctly, especially as a non-resident. The IRS expects full compliance regardless of the amount. That said, for your $19 in capital gains, here's what you need to do: Report the stock sales on Schedule D (and Form 8949 if needed) attached to your 1040NR. You don't need a 1042S for this - that form is only for income subject to withholding like dividends and interest, not capital gains. For the free promotional stock, report its fair market value on the day you received it as "Other Income" on your 1040NR. When you eventually sell that stock, you'll report any gain/loss based on that original value as your cost basis. Sprintax should have sections for both capital gains and other income where you can manually enter this information. The key is having accurate records of your transaction dates, purchase prices, and sale prices. Your Robinhood account statements should provide all this data even without a formal tax document.

Has anyone successfully done the "file 1120 now, then amend later when approved" approach? I'm in the same boat but worried about the complexity of amending a C corp return to zero and filing a new S corp return later. Feels like it could create more problems.

I've been through this exact situation multiple times, and here's my recommended approach based on experience: **First, file Form 7004 immediately** to get a 6-month extension for both the 1120 and 1120S returns. This is crucial - you're at the deadline now and need to protect against penalties. **Second, document everything about your Form 2553 submission.** Keep copies of certified mail receipts, fax confirmations, or any proof of timely filing. The IRS is still experiencing major processing delays, so 2 months without response is unfortunately normal. **Third, avoid the "file 1120 then amend" strategy.** I've seen this create unnecessary complexity and potential state tax issues. It's much cleaner to wait for the S election approval and file correctly the first time. While waiting, you might want to prepare both returns so you're ready either way. If the S election is approved, file the 1120S. If denied (rare but possible), you'll have the 1120 ready to go within your extension period. The key is that Form 7004 buying you time - use it. Most S elections that are properly completed do get approved, it just takes time with current IRS processing delays.