Worked at H&R Block for 7 years. One trick I've seen people use is to look at Schedule A (Itemized Deductions) instructions. It specifically mentions that you can deduct contributions to "A religious organization (church, synagogue, etc.)" without saying they have to be US-based. Some people deduct tithes to foreign religious organizations based on this language. Not sure if that helps with ICRC but thought I'd mention it.

I can add some clarity here from a tax preparer's perspective. The ICRC is actually one of the few foreign organizations that IS deductible for US taxpayers, but the confusion comes from their unique status. They're what's called a "Friends of" organization - they have legitimate US operations through the ICRC Washington Delegation office, which allows them to qualify for deductible donations despite being headquartered in Switzerland. This is different from most foreign charities that don't qualify. The key is that your donation needs to go to their US operations (which it does when you donate through their main website). The outdated 2014 information you found was from before they established their current US status. For future reference, Publication 526 has the official rules, but honestly for international donations, it's worth getting confirmation directly from the organization or the IRS rather than trying to interpret the complex rules yourself. The $350 donation to ICRC should be deductible on your Schedule A.

I think the IRS intentionally makes these forms confusing lol. Has anyone had their Form 8802 rejected? How long did it take to get a response? I'm supposed to start a position in Korea in 6 weeks and I'm worried about timing.

I went through this exact same nightmare with Form 8802 about 6 months ago! For line 4a when you check "Individual," you literally just need to write your full name exactly as it appears on your most recent tax return - nothing more, nothing less. Don't add your SSN, don't add extra info, just your name. Since you're working for a Singapore company, make sure you're also including copies of your most recently filed 1040 and any relevant schedules (like Schedule C if you have any self-employment income). The IRS uses this to verify your U.S. tax residency status for the foreign tax authority. One tip that saved me - call the IRS practitioner priority line if you get stuck. The regular customer service line is useless, but the practitioner line (even though you're not technically a practitioner) sometimes gets you through to someone who actually knows about international forms. Good luck with your deadline!

I was in a similar situation with my S corp and almost got nailed in an audit. Even though the instructions for 1125-E say to file it if gross receipts are over $500K, the bigger issue is definitely the lack of reasonable compensation. My accountant now has me document WHY I'm paying myself the amount I do each year with comparable salary data for my industry. This has been super helpful in justifying my compensation decisions.

Based on this discussion, I'm really concerned about my situation too. I've been running my S corp for 3 years with similar revenue levels but zero officer compensation. Reading about the Watson case and the potential for retroactive reclassification has me pretty worried. I think I need to take action immediately - both filing Form 1125-E correctly (showing $0 compensation) and establishing reasonable compensation going forward. The documentation approach that Andre mentioned sounds like exactly what I need to implement. Has anyone here actually gone through the process of fixing this retroactively? I'm wondering if I should reach out to a tax professional who specializes in S corp compliance or if there are specific steps I should take first. The potential penalties and back taxes are keeping me up at night!

22 Just an FYI - I called the EFTPS customer service line (not the IRS) at 1-800-555-4477 and they were able to tell me exactly which form to select for my CP128. Only took about 10 minutes on hold. Sometimes the EFTPS folks are more helpful than the IRS for these specific payment questions.

I've been through this exact situation with a CP128 notice last year. The key thing that finally worked for me was calling the EFTPS helpline directly at 1-800-555-4477 rather than trying to reach the IRS. They walked me through the correct form selection based on what type of tax the penalty was related to. For my situation (employment tax penalty), I had to select Form 941, but the EFTPS rep emphasized that it really depends on the underlying tax type shown on your CP128 notice. They also told me to include three things in the comments: the CP128 notice number, the tax period, and my EIN. The payment posted correctly within a few business days, and I received confirmation that it was applied to the right penalty. Much easier than the hours I spent on hold with the IRS!

One warning about cost segregation - the IRS has been increasing scrutiny of these studies in recent years. Make sure whoever does yours is legit and has engineering credentials. I've seen people try to DIY this and get absolutely hammered in audits.

Great discussion here! As someone who's been through a similar conversion, I wanted to add a few practical points. First, don't forget about the "material participation" tests beyond just Real Estate Professional status - there are 7 different tests you can meet, and some are easier than others depending on your situation. For the Airbnb conversion specifically, document EVERYTHING. Keep logs of time spent on guest communication, cleaning coordination, maintenance, marketing, etc. The IRS loves detailed records, especially for short-term rental activities since they're often more hands-on than traditional rentals. One thing that caught me off guard: if you're doing cost segregation on a duplex where only one unit becomes an Airbnb, you'll need to track the depreciation schedules separately for each unit since they have different business purposes. It's not complicated, but it's something to plan for. Also consider the state tax implications - some states treat short-term rentals differently than long-term rentals for tax purposes, which could affect your overall strategy. Worth checking with a local CPA who understands your state's rules.