This is such a frustrating situation and unfortunately more common than it should be! I went through something very similar last year. Here are a few additional things to check that might help: 1. Look at your bank statement for the exact description of the withdrawal. Sometimes electronic payments get processed through third-party processors, and if there's any mismatch in how your information was transmitted, it can cause the payment to go into a suspense account. 2. If you used tax software like TurboTax, check if they offered "pay with bank account" vs "direct debit" options. These are processed differently and sometimes the software companies batch payments in ways that can cause tracking issues. 3. Request Form 4340 (Certificate of Assessments, Payments and Other Specified Matters) in addition to the account transcript. This shows ALL payments received by the IRS, even if they weren't properly applied to your brother's account. 4. When you do get through to the IRS, ask them specifically to check for "unpostable transactions" or payments in suspense. Have them search by the exact date and amount of the bank withdrawal. The key is being persistent and documenting everything. Keep records of every call, letter, and document you send. This will eventually get resolved, but I know how stressful it is in the meantime!

I work as a tax resolution specialist and see this exact scenario weekly. The most important thing to understand is that your brother's payment was almost certainly received by the IRS - it's just sitting in what we call a "suspense account" because of some kind of mismatch. Here's my recommended action plan: 1. **Get an Identity Protection PIN (IP PIN) status check** - Sometimes payments get rejected into suspense if there's an IP PIN requirement that wasn't met during filing. 2. **Request a specific payment trace using Form 3911** (Taxpayer Statement Regarding Refund). Even though this isn't technically about a refund, this form triggers the most thorough payment investigation process. 3. **When calling the IRS, ask to speak with the "Accounts Management" department specifically** - they have access to more detailed payment tracking systems than the general customer service reps. 4. **Get a "Record of Account" transcript, not just the regular account transcript** - this shows every single transaction including those that haven't been properly posted yet. Most importantly, don't panic about the threatening letters. As long as you can prove the payment was withdrawn from your account, the IRS will eventually fix this and reverse any penalties/interest once they locate the payment. I've never seen a case where a legitimate payment couldn't be traced - it just sometimes takes persistence. Document everything and keep pushing. This will get resolved!

One thing nobody mentioned - check if your work qualifies as a "permanent establishment" under Article 7 of the US-Belgium tax treaty. If it does, different rules might apply. This bit me when I was contracting with a US company from Sweden.

Dont forget about social security! The US and Belgium have a totalization agreement that prevents double taxation on social security. You'll probably pay into the Belgian system only since you live there permanently, but you need to get a certificate of coverage from Belgian authorities.

Has anyone actually received the stimulus payments as part of their late-filed returns? I filed my 2020 return in February 2023 and claimed the recovery rebate credit but I'm still waiting. IRS "Where's My Refund" just says it's still processing.

@Abby Marshall, I was in almost the exact same situation last year! I filed my 2020 and 2021 returns super late while still having unfiled 2018 and 2019 returns. The good news is that you should still get your refunds - the IRS processes each year separately like others mentioned. One thing to watch out for though - if you end up owing money on those older unfiled returns, the IRS can and will apply your current refunds to those balances once you eventually file them. So you might get your refunds now, but if you owe for 2018/2019, they could come back later and ask for some of that money back. My advice would be to try to at least get a rough estimate of what you might owe or be owed for those missing years before spending your refund money. That way you won't get caught off guard later. The stimulus payments should definitely come through with your 2020 return though - those were processed pretty smoothly even for late filers in my experience.

Great question! I went through the same confusion a few months ago. The trace number is basically the IRS's internal tracking ID for your specific refund payment. When you see "funded to you" with a trace number, it means your refund has been fully approved and is now in the payment pipeline. You should see your money within 3-5 business days for direct deposit or 1-2 weeks for a mailed check. The hardest part is over - your return cleared all their checks and reviews. Now it's just a matter of the payment system doing its thing. Hang in there, you're almost done!

I see you're getting great answers here! Just wanted to add that you can also check your bank account for any pending deposits - sometimes the money shows up there before the IRS website updates to "refund sent" status. I've noticed with my credit union that refunds often appear as pending a day or two before they actually clear. The trace number is definitely your green light though - you're in the final stretch! Fingers crossed it hits your account soon. 🤞

Let me add a wrinkle most people don't know - if you distributed any business assets to yourself during the dissolution (like computers, furniture, etc.), that needs to be reported as a liquidating distribution on your final 1120-S. The corporation is treated as having sold these assets to you at fair market value. I completely messed this up when closing my S-corp and ended up having to amend returns. Cost me an extra $400 in accounting fees!

I went through this exact same situation with my S-corp dissolution last year and want to emphasize something that might save you some headaches - make sure you also cancel your EIN with the IRS after everything is filed and processed. Even after filing all the final returns (1120-S, Form 966, etc.) and getting state dissolution completed, I kept getting IRS notices asking about missing tax returns for subsequent years because the EIN was still active in their system. You have to specifically write to the IRS requesting EIN cancellation and include copies of your dissolution documents. Also, if you had any business bank accounts, credit cards, or merchant services tied to your EIN, close those ASAP. Some banks will report 1099s to closed business EINs which can trigger more IRS correspondence down the road. The penalty situation sucks, but as others mentioned, first-time penalty abatement is usually granted if you've been compliant in the past. Get everything filed immediately to stop the bleeding, then deal with penalty relief afterward.