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I feel your pain, OP. The IRS is so understaffed and underfunded, it's ridiculous. We need to pressure our representatives to give them more resources so we don't have to deal with this bs.
Has anyone tried reaching out to their congressperson? I've heard that can sometimes help with IRS issues.
Yep, just look up your rep's website and there should be a 'Contact Us' section. They usually have staff dedicated to helping with federal agency issues.
Anyone else think its crazy that we have to jump through so many hoops just to get our own money back? The whole system needs an overhaul smh
Anyone else feel like the whole tax system is just designed to be confusing af? Like, why do we even need to 'verify' our identity to the people who already have all our info? š
Quick question - does anyone know if this identity verification thing affects your refund if you're expecting one? I'm still waiting on mine and wondering if this is why
Yeah, it can delay your refund. They won't process it until the verification is complete. Happened to me last year.
Ugh, that's what I was afraid of. Guess I better get on this asap. Thanks!
Have you considered using a tax software that specializes in expat taxes? I've been using TaxAct Premium for filing with my Canadian spouse. It walks you through all the foreign spouse questions step by step and costs way less than a CPA. The key forms you'll need to know about are: - Form 8840 (Closer Connection Exception Statement) - Form 8833 (Treaty-Based Return Position) - Form 1116 (Foreign Tax Credit) - FinCEN Form 114 (FBAR for foreign accounts) The software prompts you for all of these and explains when they're needed. Just make sure you read each section carefully.
Thanks for the suggestion! Does TaxAct handle the resident vs. non-resident alien distinction well? And did you find it easy to understand whether your spouse's foreign income needed to be reported? I'm worried about missing something important and getting flagged for audit.
TaxAct does handle the resident vs. non-resident alien distinction pretty well. It asks a series of questions to determine which status applies to your spouse and then guides you through the appropriate forms based on your answers. The software has improved significantly in this area over the last few years. Regarding foreign income reporting, it was straightforward once I understood the basic principles. The software prompts you about foreign earned income and walks you through Form 2555 (Foreign Earned Income Exclusion) or Form 1116 (Foreign Tax Credit) depending on your situation. I found their explanations clear enough that I could make informed decisions without needing an expensive CPA.
Don't forget about FBAR requirements! My wife is Brazilian and we got hit with a $10,000 penalty for failing to report her foreign bank accounts that had over $10,000 combined. The threshold is surprisingly low. Also, make sure you understand FATCA requirements (Form 8938) which is separate from FBAR but has similar purposes. The thresholds are different though - for married filing jointly living in the US, you need to report if the total value of foreign assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the year.
Did you try to get the FBAR penalty abated? I've heard they can be reasonable if it's your first offense and you can show it wasn't willful neglect.
GalaxyGazer
Anyone else feel like we need a support group for people dealing with IRS identity verification? š We could call it "IRS Survivors Anonymous" or something
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Mateo Sanchez
ā¢LOL sign me up! I'll bring the coffee and donuts to the first meeting š©ā
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Aisha Mahmood
ā¢Can we make t-shirts? "I survived IRS identity verification and all I got was this lousy t-shirt" š
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Ethan Moore
Serious question: has anyone successfully completed the identity verification process without wanting to pull their hair out? Asking for a friend (the friend is me, I'm losing it) š
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