Quick question for those who've done the Streamlined Procedure - did you have to amend state tax returns too? I lived in California before moving to Austria 10 years ago, and I'm confused if I need to file CA state returns as part of the Streamlined process.

@Alexis Robinson - I went through almost the exact same situation as a US/Austrian dual citizen about 2 years ago! The stress you're feeling is totally normal, but the good news is it's very manageable once you understand the process. A few key points from my experience: - The Streamlined Foreign Offshore Procedures are specifically designed for people like us who didn't know about filing requirements - No penalties if you qualify (which you almost certainly do based on your situation) - You'll need 3 years of tax returns (2022-2024) and 6 years of FBAR forms - Austria's tax treaty with the US means you'll likely owe little to nothing thanks to Foreign Earned Income Exclusion and tax credits For costs, I ended up paying around €2,800 to a CPA who specializes in expat taxes. It was worth every penny for the peace of mind, especially since my Austrian investment accounts needed careful handling to avoid PFIC complications. One specific tip: gather all your Austrian tax documents (Steuerbescheid) from the past 3 years before meeting with anyone. The Foreign Tax Credit calculations rely heavily on what you already paid to Austria, and having these organized upfront saves time and money. Feel free to ask if you have specific questions about the process!

Does anyone know if AMT credits expire? I've been carrying mine forward for 3 years now and I'm worried I might lose them if I don't use them soon.

Just to add another perspective on the timing strategy - if you're planning to sell the underwater stock anyway, consider doing it in a year when you have other significant capital gains. That way you can maximize the benefit of both the capital loss from the stock AND potentially recover more of your AMT credit in the same tax year. I had a similar situation where I sold my tanked options in the same year I sold some rental property at a gain. The capital gains from the property sale helped me utilize a big chunk of my AMT credit that I wouldn't have been able to use otherwise. It's all about creating the right tax situation to unlock that credit - sometimes you need gains to make the math work in your favor. Also worth noting that if you're married, your spouse's income and tax situation can affect how much AMT credit you can recover each year, so factor that into your planning too.

Has anyone had experience with the IRS denying an extension request for a CP2000? I'm in a similar situation and wondering what happens if they say no. Would they just proceed with the assessment?

I went through this exact same situation about 8 months ago! The phone lines were absolutely impossible - I think I burned through 20+ hours of hold time before giving up entirely. What ended up working for me was sending both a fax AND certified mail with the same extension request letter. I used a format very similar to what Angel Campbell shared, but I also included a specific date I was requesting the extension until (30 days from the original deadline) rather than just asking for "30 additional days." The key thing that saved me was getting that certified mail receipt as proof of timely filing. Even though I never heard back confirming the extension was approved, when I finally got through to an agent weeks later, they confirmed it was in my file and my new deadline was honored. One tip: if your CP2000 has both a mailing address AND a fax number, definitely use both methods. The fax often gets processed into their system faster, but the certified mail gives you the legal protection you need. Also, make sure you're using the EXACT address from your specific CP2000 notice - different types of notices go to different processing centers. Don't stress too much - as long as you get that request postmarked before your deadline, you should be fine. The IRS is generally reasonable about granting extensions for CP2000 responses, especially given how backed up their phone lines are right now.

does anyone know if you can switch from MFS to HOH mid-year if spouse abandons halfway through the year? my wife left in july and took the kids but they've been back with me since september. not sure if i qualify as HOH or still have to file MFS for 2024?

I went through a very similar situation in 2023 when my husband left us in March. The emotional stress is overwhelming, but you're definitely on the right track with Head of Household status. One additional point that really helped me - keep detailed records of ALL expenses you've paid since she left. Not just the obvious ones like mortgage and utilities, but also things like your son's daycare, medical expenses, school supplies, clothing, etc. The IRS requirement is that you paid "more than half" the cost of maintaining the home, and these child-related expenses count toward that calculation. Also, since you mentioned she completely ghosted you, make sure you claim your son as a dependent too. As the custodial parent who's been providing all support, you have that right even while still legally married. The good news is Head of Household will save you significant money compared to Married Filing Separately - both through better tax brackets and a higher standard deduction. In my case, it was about a $4,000 difference. Hang in there, and definitely keep all that documentation others have mentioned in case you ever need to prove the abandonment timeline.

My all-time favorite tax meme is the one where there's a person nervously looking at two buttons labeled: Button 1: "File taxes early and get refund ASAP" Button 2: "Procrastinate until April 14th because taxes are scary" And they're sweating trying to decide which to press 😂 Then there's a third hidden button labeled "File extension and deal with it in October" which is the one I actually press every year!

The meme that perfectly captures my tax experience is the "Distracted Boyfriend" one where the guy (labeled "Me") is looking back at the girl walking by (labeled "Netflix") while his girlfriend (labeled "Tax Forms") looks annoyed. That's basically been my entire April! Another one that gets me every time is the Drake meme where he's rejecting "Organizing receipts throughout the year" but pointing approvingly at "Frantically searching through a shoebox of random papers on April 10th." Called out hard on that one 😅 But honestly, seeing all the helpful recommendations in this thread (like taxr.ai for document analysis and Claimyr for actually reaching the IRS) makes me realize maybe next year I can upgrade from memes about tax chaos to memes about being surprisingly organized!