dont forget to look into taking some tax specific continuing ed before interviewing! i made the audit to tax switch 2 years ago and the CCH courses helped me alot. also try the IRS VITA program if u can volunteer during tax season - its basic returns but gives u hands on experience u can talk about in interviews. also tax isnt all sunshine compared to audit lol. busy season is BRUTAL especially at smaller firms. but at least its concentrated in 1 part of the year instead of constant deadlines. clients r way more appreciative in tax vs audit where nobody wants u there!

Your audit background actually puts you ahead of many people trying to break into tax! I made a similar transition 18 months ago from internal audit to tax preparation, and here's what worked for me: First, don't undersell yourself - you already understand financial statements, have analytical skills, and client experience. That's huge. I'd recommend getting the IRS Enrolled Agent certification if you have time - it shows commitment to tax and gives you credibility with employers. For the job search, focus on small to mid-sized CPA firms rather than big chains. They value the CPA credential more and are often willing to train someone with your background. I found success by networking through my state CPA society chapter - many tax professionals are happy to chat about their path and sometimes know of openings. Also consider reaching out to firms in October/November when they're staffing up for busy season. Many are willing to bring on experienced CPAs as "seasonal" staff with the potential for full-time offers after April 15th. The pay might be lower initially, but it's a foot in the door with real experience to put on your resume. The transition has been worth it for me - tax work feels more collaborative with clients rather than adversarial like audit. Good luck with the switch!

mine shows received 2/1 but still processing... anyone else waiting this long?

Check for code 846 too - that's your refund date if approved. Also look at the cycle date (top right) which can give you clues about processing timeline. If you see any 570 or 971 codes those might indicate holds or additional review needed. The transcript can be confusing but those are the key codes to focus on!

Important question: Are any of these foreign corps in countries without tax treaties with the US? That can affect reporting requirements and potential withholding.

Great question about minority foreign ownership! I went through a similar situation last year. Since you own less than 10% and aren't an officer/director, you're right that Form 5471 likely isn't required. The investment group composition (mix of US/non-US persons) shouldn't affect your individual filing requirements either. One thing to double-check though - make sure none of these foreign corporations qualify as Controlled Foreign Corporations (CFCs) where US persons collectively own more than 50%. Even as a minority owner, if you're part of a group that collectively controls the company, there could be additional reporting requirements. Also, definitely look into whether any of these companies might be PFICs as others mentioned. If they're investment holding companies rather than operating businesses, you might need Form 8621 regardless of your ownership percentage. For future income, dividends will go on Schedule B and you'll want to look into foreign tax credits if any foreign taxes are withheld. Keep good records of any foreign taxes paid - Form 1116 can help you avoid double taxation. Consider consulting a tax professional who specializes in international tax if the investments are substantial. The penalties for missing international forms can be really harsh!

Quick tip - don't forget about state taxes too! Depending on Texas local tax laws, you might need to report this on your state return as well. Some states follow federal treatment of settlements while others have their own rules.

This is such a thorough discussion! I went through a similar situation with an employment discrimination settlement last year. One thing I'd add is to make sure you get a copy of the settlement agreement that clearly states the nature of the damages being awarded. In my case, the settlement agreement specifically mentioned "emotional distress and mental anguish" which made it much easier when I had to explain the tax treatment to my tax preparer. If your agreement isn't clear about this, you might want to get a clarifying letter from your attorney. Also, regarding the 1099-MISC timing - in my experience, some companies are slow to issue these for settlements. I had to follow up with my attorney in February because the company "forgot" to send mine. Don't assume they'll automatically handle it! The advice about including a written statement with your return is spot-on. I actually attached a brief explanation referencing the specific IRS code sections for emotional distress settlements (Section 104(a)(2)) and the attorney fee deduction (Section 62(a)(20)). Made me feel more confident that everything was properly documented.

Anyone know which form I need to use for reporting US-source FDAP income? Is it just part of the regular 1040-NR or is there some special schedule?

This is a great discussion that covers the key points really well! Just wanted to add one more consideration for non-resident aliens dealing with FDAP income - don't forget about the substantial presence test if you've been in the US for an extended period. Even if you're on a work visa and consider yourself a non-resident alien, if you meet the substantial presence test (generally 183+ days over a 3-year period with specific weighting), you might actually be considered a resident alien for tax purposes. This would completely change your reporting requirements - you'd then need to report worldwide income, not just US-source FDAP. The good news is there are exceptions and tie-breaker rules, especially if you have a closer connection to your home country. But it's definitely worth checking if you've been in the US for substantial periods across multiple years.