I went through this exact same situation last year! The key is persistence and documentation. Since your benefits department isn't responding, I'd recommend escalating to your CFO or whoever oversees retirement benefits at the executive level. In the meantime, start documenting everything - save all your 401(k) statements showing the excess contribution, keep records of every call attempt to benefits, and screenshot any emails you've sent. This creates a paper trail showing you're trying to resolve it in good faith. The 415(c) limit violation won't go away on its own, and waiting too long could result in additional penalties. If you absolutely can't get your employer to cooperate before tax season, you may need to consult with a tax attorney or CPA who specializes in retirement plan corrections. They can sometimes work directly with plan administrators when employers are unresponsive. Don't let this drag on - the IRS takes these limits seriously, and the longer it goes uncorrected, the more complicated (and expensive) the fix becomes!

I had a very similar situation with my 401(k) provider last year - the runaround between HR and the plan administrator is unfortunately common. Here's what finally worked for me: First, send a certified letter (not just email) to your benefits department with a clear subject line like "URGENT: 415(c) Excess Contribution Correction Required." Include your name, employee ID, the exact excess amount ($38), and request immediate action. Certified mail creates a paper trail and shows you're serious. If that doesn't work within a week, escalate to your company's legal or compliance department if they have one. 415(c) violations can create liability for the company, not just you, so mentioning "fiduciary responsibility" and "plan compliance" often gets attention quickly. As a backup plan, some 401(k) providers will accept a written request directly from you if your employer won't act, though they prefer employer authorization. Ask your provider specifically about their "participant-directed correction" procedures. The correction deadline is typically April 15th of the year following the excess contribution, so you still have time but don't wait much longer. Document everything and stay persistent - this is fixable but requires someone to actually do their job!

• Has anyone noticed different timeframes for different types of verification? • Do returns with certain credits (like EITC or CTC) take longer after verification? • Is there a difference in processing time between ID.me verification vs. letter verification? • Does filing method (e-file vs paper) impact post-verification processing?

I went through identity verification last year and can share my timeline. After completing ID.me verification, I was also told 130 days, but my refund actually came through in exactly 11 weeks. What helped me stay sane during the wait was checking my IRS transcript online rather than the Where's My Refund tool - the transcript updates more frequently and shows actual processing codes. One thing I learned is that joint filers sometimes face additional scrutiny, which can add a few weeks to the process. My advice is to set a calendar reminder to check your transcript weekly (not daily - it won't change that often) and try not to stress too much about the 130-day timeframe. In my experience talking to other taxpayers, most people get their refunds between 8-12 weeks after verification, assuming there are no other complications with their return.

Has anyone considered just ignoring the expense imbalance entirely? If you're truly 50/50 partners, then why not just have EVERYTHING be a partnership expense regardless of who incurs it? Seems like you're overthinking this.

One approach that worked well for my restaurant partnership might be relevant here. We had a similar imbalance where my partner handled all the vendor relationships (lots of travel and entertainment) while I managed operations locally. We structured it as a combination of guaranteed payments for the predictable higher expenses (like estimated annual travel costs) and an accountable plan for the variable ones. This gave us tax certainty while maintaining fairness. The key was quantifying the expected expense differential upfront. We estimated my partner would incur about $15K more in business expenses annually, so we set up a $15K guaranteed payment to them at the beginning of each year. Then both partners submit actual expenses for reimbursement through the accountable plan. This way, the partnership gets all the deductions, expenses are properly documented, and there's no surprise imbalance at year-end. Your CPA can help you estimate the differential and structure the guaranteed payment amount.

Has anyone used TurboTax for reporting these kinds of acquisition expenses through an LLC with no revenue? Their interface is confusing me when I try to enter these expenses without any income.

One thing I haven't seen mentioned yet is the importance of distinguishing between investigation expenses and actual startup costs. The IRS treats these differently under Section 195. Investigation expenses are costs you incur to decide whether to enter a business or acquire a specific business. These are generally deductible immediately if you actually go into that business, but if you decide not to proceed, they're typically not deductible at all. However, once you've made the decision to proceed and are actively working toward acquisition, those expenses become startup costs which follow the $5,000 immediate deduction rule mentioned earlier. Given that you've already formed your LLC with the specific purpose of acquiring this business, it sounds like you've moved past the "investigation" phase into actual business operations. This should work in your favor for deductibility even if the deal falls through. Also, keep in mind that meals during business travel are only 50% deductible (or 100% if they were in 2021-2022 due to temporary COVID rules). Make sure you're separating meal costs from other travel expenses when you calculate your deductions.

I went through a very similar situation when I moved from Germany to the US for my doctoral studies! One thing that caught me off guard was the PFIC (Passive Foreign Investment Company) rules that can apply to certain European mutual funds and ETFs. If you have any investments in German or EU-domiciled funds, these might be subject to punitive US tax treatment even if they seem like simple index funds. The PFIC rules can result in much higher tax rates and complex reporting requirements (Form 8621), so you might want to consider liquidating European fund holdings before establishing US tax residency. US-domiciled ETFs tracking the same indices are usually much more tax-efficient for US taxpayers. Another practical tip: if you're planning to continue investing while in the US, many German brokers will actually restrict your account once you become a US tax resident due to compliance issues. So you might be forced to switch to a US broker anyway. Interactive Brokers is popular among international students because they handle multi-currency accounts well and have reasonable international wire transfer fees. One last thing - don't forget about the Foreign Bank Account Report (FBAR) requirements. If your German accounts exceed $10,000 at any point during the year, you'll need to file FinCEN Form 114. The penalties for missing this are severe, so it's worth setting up calendar reminders.

This thread has been incredibly enlightening! As someone who's been through the US tax system as an international student, I wanted to add a few practical points that might help @Anastasia Popov and others in similar situations. One thing I learned the hard way is that the timing of when you establish US tax residency can significantly impact your investment strategy. If you're planning to hold investments for the long term, consider whether it makes sense to realize some gains in Germany before you potentially become a US tax resident after 5 years on your J-1 visa. Also, regarding cryptocurrency taxation - while the IRS treats crypto as property, the reporting can get complex if you're trading frequently. If you're just buying and holding Bitcoin or other cryptocurrencies, the long-term capital gains treatment is straightforward. But if you're doing any crypto-to-crypto trades, each transaction is a taxable event that needs to be tracked in USD terms. For record-keeping, I'd strongly recommend starting a detailed spreadsheet or using software like Koinly or CoinTracker from day one. Include dates, amounts in both currencies, exchange rates, and the purpose of each transaction. The IRS expects very detailed records for crypto transactions, and recreating this information years later is nearly impossible. Finally, don't underestimate the value of getting professional advice early. The cost of a consultation with an international tax professional who understands both German and US systems will likely save you much more than their fees in avoided mistakes and optimized tax planning.