I did file a police report actually! The officer wasn't super familiar with crypto theft but took all the details. I also reported it to the FBI's Internet Crime Complaint Center (IC3) online. Not sure if anything will come of it, but at least I have documentation that I reported it officially. Do you think I should include copies of these reports with my tax return? Or just keep them on hand in case of audit?

I would definitely keep the police report and IC3 complaint with your tax records, but you don't necessarily need to include them with your filed return. Having those documents will be extremely helpful if you're ever questioned about the loss. My accountant also suggested writing a brief statement explaining the theft that you can attach to your return - just a simple explanation of what happened, when it happened, and that you filed reports. This shows you're being transparent and proactive.

I used Koinly for a similar situation. You can manually add a transaction and mark it as "lost" or "stolen" which helps with the reporting. You'll still need to double-check everything because the software isn't perfect with edge cases like theft.

Thanks for this explanation. Does this mean I've been doing something wrong the past few years? Will this cause problems when I apply for OPT after graduation?

If you've had mixed income (both W-2 and treaty-exempt 1042-S) and didn't report the 1042-S income on your returns, you might want to consider filing amended returns. The good news is that if you didn't owe additional tax (because the income was truly treaty-exempt), you likely won't face penalties other than possibly interest on late payments if any portion was actually taxable. As for OPT applications, USCIS doesn't typically verify tax compliance for OPT specifically, but they may check this for later immigration benefits like H-1B or permanent residency. They're mostly concerned that you maintained status and followed visa regulations. If you're worried, consulting with an international tax specialist would be worthwhile before your OPT application.

Does Glacier work for alumni too? I graduated last year but still got a 1042-S for a final scholarship payment in January.

I looked into the IRS Direct File, but unfortunately it doesn't support Form 1065 for partnerships yet. I think they're still focusing on basic individual returns with some Schedule C support, but not the full partnership forms that I need to file. Would have been great if it was an option though! That's exactly the kind of solution I'm looking for.

You're right - I just double-checked and Form 1065 isn't included in their Direct File program yet. My mistake! I was thinking of Schedule C for sole proprietors. They're supposed to be expanding the program each year, so maybe it'll be an option for 2026 filing season. For now, it seems like your best options are either using one of the more affordable tax software options others have mentioned or e-filing your personal return and mailing in the Form 1065 separately.

This happened to me too! The IRS claimed they never received my mailed Form 1065 and I had no proof of mailing. Ended up paying over $800 in penalties. Certified mail with return receipt is absolutely worth the extra few dollars.

Yeah, the return receipt is key! I learned my lesson after that first disaster. Also, keep a complete copy of everything you mail them - all schedules, attachments, everything. They sometimes claim they received the form but not all the required schedules, which can also trigger penalties.

17 Wait, I thought only tuition and fees counted? Can you really include textbooks too? My books cost like $1200 last semester alone!

3 You can include books, supplies and equipment that were required for your courses - meaning they were specifically listed in your course syllabus or requirements. So yes, if those $1200 of textbooks were required for your courses, they can potentially count as qualified education expenses that offset scholarship income. However, things like optional study guides, general computer purchases (unless specifically required), or room and board don't count as qualified education expenses for this calculation. It's worth gathering all your syllabi that list required textbooks as documentation in case of any questions.

16 That's how my school did it too. You only report what's on this year's 1098-T form. Your school is using the "payment method" rather than the "billed method" for reporting. It's confusing but completely normal. Just report what's on your current 1098-T, and next year you'll report the fall semester amounts.

Thanks for sharing your experience! Do you think having the previous counter offer will help his case? Also, did you have to provide any special documentation that might not be obvious?

The previous counter offer is absolutely golden - it shows the IRS was already willing to settle. He should definitely include all documentation from that previous interaction and reference it prominently in his new submission. As for non-obvious documentation, medical bills were huge in my case. The IRS allows for necessary medical expenses, but most people don't document them thoroughly enough. Have him gather EVERY prescription, doctor visit, and medical expense for the past year. Also, if he has any unusual expenses that aren't on the standard IRS forms (like caring for an elderly parent, special education needs for children, etc.), he needs to document these with receipts and explanations. The IRS can be surprisingly reasonable about legitimate unusual expenses if they're properly documented.

What tax software would you recommend for someone wanting to DIY an Offer in Compromise? Can regular software like TurboTax handle this or do you need something special?

I used TaxSlayer last year and it doesn't have OIC forms. Had to do those manually. Not sure about other programs though.