For those with PTPs, remember that these Schedule K-3 requirements are still relatively new and even many tax professionals are confused by them. My approach has been to look at the prior year K-3 (if available) to gauge whether there's likely to be any significant foreign information. If last year's K-3 had minimal or zero foreign information AND your current K-1 has an empty Box 21, that's usually a good indication you can proceed without waiting. Just set a reminder to review the K-3 when it eventually arrives to confirm your decision was correct.

This is a great discussion and really helpful for those of us dealing with PTP K-1/K-3 complications! I'm in a similar situation with two different partnerships - one clearly states no foreign assets like yours, but the other is less clear in their language. One thing I've learned from my CPA is to also check if your partnership issues a Form 8865 (for foreign partnerships) or has any mention of PFIC investments in their annual reports. If there's no mention of these and Box 21 is empty, it's another good indicator that waiting for the K-3 won't provide actionable information. I've decided to follow your approach this year - filing without waiting for the delayed K-3s from partnerships that clearly indicate no foreign tax activity. The stress of extensions just isn't worth it when all indicators point to the K-3 being irrelevant for our tax situations.

same boat fam. filed march 2023 still nothing 😭

Have you tried requesting your account transcript from the IRS website? That'll show you if there are any hold codes or issues that aren't visible in the "Where's My Amended Return" tool. I was stuck for 18 weeks and found out through my transcript that they had flagged my return for additional review. Once I knew the specific issue, I was able to call with the right information and get it resolved much faster. The transcript is free and gives you way more detail than the basic tracking tool.

Has anyone tried the IRS2Go mobile app for this? I had similar issues with the website queue last year, but the mobile app seemed to have shorter wait times.

Just went through this exact same nightmare today! I was in the IRS queue for over an hour trying to get my AGI. What finally worked for me was calling the IRS automated phone line at 1-800-908-9946 - it's their automated refund/account info line. You can get your prior year AGI without talking to a human if you have your SSN and either your filing status or exact refund amount from last year. Way faster than waiting in that website queue, and it's available 24/7. Saved me when I was down to the wire!

Has anybody had experience with the audit risk when filing Form 8840? My accountant is telling me it's a "red flag" but I think he's just trying to scare me into paying for more services. My husband is in almost the identical situation (working in Mexico, comes back to US for about 4 months total throughout the year).

I went through this exact situation with my wife last year! She was working in the UK for about 9 months but we maintained our primary residence and all financial ties in the US. From our experience, Form 8840 is definitely NOT standalone if your husband had any US source income. Since he was physically working in the US for part of the year (even if paid by a Canadian employer), that's considered US source income and requires filing Form 1040-NR with the 8840 attached. One thing that caught us off guard was the level of documentation required for the 8840 itself. They want extensive proof of your closer connection to the US - bank statements, utility bills, voter registration, driver's license, kids' school records, etc. Start gathering all of that now because it's quite comprehensive. Also, make sure to calculate the substantial presence test carefully. The days count differently for the three-year period, and there are specific rules about commuting from Canada that might apply to your situation. We initially miscounted and almost filed incorrectly. The good news is that once you establish the pattern correctly, it becomes much easier in subsequent years. Just be thorough with the documentation the first time around!

Thank you all for the amazing advice! I talked to my wife and we decided to use the IRS Tax Withholding Estimator first to get a baseline. It recommended that I (higher earner) check box 2(c) and add about $55 per paycheck in section 4(c), while she should just select "Married Filing Jointly" without checking 2(c). We're going to submit these changes to our employers this week. I'm really grateful for all the detailed explanations - the W4 form is surprisingly complex for something that seems like it should be straightforward!

Great to see you got it sorted out! Just wanted to add one more tip that helped us - consider doing a "paycheck checkup" around mid-year (July/August) to see if you're on track. You can look at your year-to-date withholding on your pay stubs and compare it to what you actually owed last year (adjusted for any salary changes). If you're way off, you can always submit updated W4s to fine-tune the withholding for the rest of the year. We learned this the hard way after implementing our changes in March and realizing we were still slightly underwithholding by summer. Also, keep in mind that if either of you gets a significant raise or bonus during the year, it might throw off your calculations since bonuses are often withheld at a flat 22% rate which might not match your actual tax bracket.