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dont forget to bring birth certificate if ur doing in-person verification at IRS office. learned that the hard way and had to reschedule š¤¦āāļø
Also keep in mind they might ask for Social Security card or ITIN documentation during verification. I had mine done over the phone and they walked through each document step by step - much easier than I expected. The whole process took about 20 minutes once I had everything ready. Just make sure you call from the phone number that matches your tax return!
This is really useful information everyone! I'm in a similar situation waiting for interest on my 2023 refund that was delayed until January. Based on what I'm reading here, it sounds like I should be watching both my bank account and mailbox over the next few weeks. Quick question - for those who received paper checks for interest, did the envelope have any special markings or did it look like regular IRS correspondence? I want to make sure I don't accidentally overlook it among other mail. Also, does anyone know if the interest amount is calculated from the original due date of the return or from when they were supposed to process it?
Great question about the envelope markings! From my experience, the interest payment checks come in standard IRS envelopes - they usually have "Department of the Treasury" and "Internal Revenue Service" printed on them, but nothing specifically indicating it's an interest payment. The envelope looks very similar to other IRS correspondence, so it's easy to miss if you're not expecting it. As for your interest calculation question, the IRS typically calculates interest from 45 days after the return due date (or extended due date if you filed an extension). So if you filed by April 15th, 2024 for your 2023 return, interest would generally start accruing from May 30th, 2024. The rate changes quarterly - it was around 7-8% for most of 2024. Hope this helps!
Just wanted to add my recent experience to this thread! I received my delayed 2023 refund in February via direct deposit, and then got the interest payment about 3 weeks later - also via direct deposit to the same account. The interest amount was $127.84 and showed up with a description like "IRS TREAS 310 TAXREFUND" similar to how the original refund appeared. I think the IRS systems have gotten better at keeping payments consistent. I did receive a notice in the mail about a week after the interest deposit explaining the calculation, but the money hit my account first. One thing I noticed is that the interest deposit happened on a Wednesday, whereas my original refund came on a Friday. Not sure if that timing difference means anything, but thought I'd mention it in case others are tracking deposit patterns. So definitely monitor both your bank account AND mailbox as others have suggested - seems like it really varies by case!
Thanks for sharing your recent experience! It's really encouraging to hear that some people are getting the interest via direct deposit now. The timing difference you mentioned (Wednesday vs Friday) is interesting - I wonder if that has to do with different processing systems or departments handling the interest calculations versus regular refunds. I'm definitely going to keep watching both my account and mailbox like everyone suggests. It sounds like the IRS is still inconsistent with their methods, so better to be prepared for either scenario. Did you notice any delay between when your interest showed up in your account versus when you could actually see the transaction details, or was it all visible right away?
Has anyone successfully claimed back NRP overpayments? My company applied non-resident payroll tax to my entire salary for months but I'm certain they calculated it wrong because I was only in Portugal for 65 days last year (well under the 183 threshold). They took almost ā¬8000 extra and HR is being super unhelpful saying "tax authorities required it" but won't show me the calculation or which specific regulation applies.
You absolutely need to get a breakdown of the calculation. This happened to me and it turned out they were applying Portuguese domestic law without considering the Germany-Portugal tax treaty exemptions. I got about 70% of my money back after having a tax advisor send a formal letter. Ask specifically which article of which tax treaty they're applying. Most HR departments don't understand international tax law well and are just following general guidelines from their payroll provider.
Thanks for the advice! I'll email HR tomorrow and specifically request the tax treaty article they're using. Just found my travel records and I was actually only in Portugal for 59 days last year, not 65, which strengthens my case. Really appreciate the tip about getting a tax advisor involved if needed. This whole situation has been incredibly stressful and it's a substantial amount of money.
This is such a common issue that more people need to be aware of! I went through something very similar when my UK employer discovered I'd been working from Barcelona for 4 months. The key thing to understand is that your employer is likely being overly cautious because they're worried about creating a "permanent establishment" in the country where you're working. This can trigger corporate tax obligations for them, not just payroll tax issues for you. What saved me was getting a formal opinion from a tax advisor confirming that my work arrangement didn't create PE risk for my employer. Once I showed them this documentation, they were willing to adjust the withholding approach. Also, keep detailed records of everything - your physical location each day, the nature of your work, any client interactions. If you do need to file for refunds later, this documentation will be crucial. I learned this the hard way after spending months trying to reconstruct my travel history from credit card statements and hotel bookings. The "don't ask, don't tell" approach unfortunately doesn't work anymore with remote work becoming so common. Tax authorities are cracking down and employers are getting more sophisticated about tracking this stuff.
This is really helpful, especially the part about permanent establishment risk! I had no idea that was even a concern for employers. Could you share more details about what kind of documentation the tax advisor provided? Was it expensive to get that formal opinion? I'm in a similar boat where my employer seems to be panicking about the tax implications of my remote work, and if a professional opinion could help calm their fears, that might be worth the investment. Also wondering if there are specific qualifications I should look for when choosing a tax advisor for this kind of international situation.
Make sure you're charging enough for shipping! I started selling Malaysian snacks to the US last year and completely underestimated international shipping costs. Also FYI USPS has this thing called ePacket for lightweight items from certain Asian countries that's way cheaper than regular shipping options.
ePacket is definitely the way to go for small items! Just be aware it can be slow (2-4 weeks sometimes). I offer my customers both ePacket for cheaper shipping and DHL as a premium option. That way they can choose based on their budget and timeline.
This is such a helpful thread! I'm in a similar boat - just started selling handmade Thai textiles to US customers from Bangkok. One thing I learned the hard way is to clearly communicate shipping times upfront. Even with ePacket being affordable, customers sometimes get impatient waiting 3+ weeks for delivery. I also discovered that some payment processors (like PayPal) have specific requirements for international sellers that affect how you handle refunds and disputes. Make sure you understand their policies before you scale up. And definitely keep detailed records of everything - sales by state, shipping costs, product classifications. It makes tax season much less stressful and helps you track when you might approach those nexus thresholds everyone's mentioned. Good luck with your Thai snack business! There's definitely demand for authentic Asian foods in the US market.
Thanks for sharing your experience with Thai textiles! The payment processor requirements are something I definitely need to look into more carefully. I'm currently using Stripe but hadn't thought about how international seller policies might be different for refunds and disputes. Your point about communicating shipping times upfront is so important. I was thinking of creating a simple FAQ page that explains the typical delivery timeline and what customers can expect during the import process. Did you find that helped reduce customer service inquiries? Also curious - have you run into any issues with Thai customs on the export side? I'm still figuring out what documentation I need to provide when shipping out from here.
StarStrider
Has anyone had this happen but with state taxes? I filed both my 2023 and 2024 MI state returns together but only got my 2024 refund. It's been 12 weeks now and nothing for 2023.
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Sean Doyle
ā¢State tax processing is totally separate from federal, but most states also process prior year returns more slowly. Each state has their own "where's my refund" tool on their tax department website. Have you checked that?
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Zara Rashid
ā¢I had this exact issue with CA state taxes. The current year processed normally but the prior year took almost 5 months! Different states have different processing times, but all of them handle prior year returns more slowly than current year.
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Aisha Mahmood
I'm dealing with something very similar right now! Filed my 2023 and 2024 returns together in March, got my 2024 refund within 3 weeks, but my 2023 return seems to have vanished. The "Where's My Refund" tool for 2023 gives me the same error message you're getting. What I've learned from calling around is that late-filed returns (like our 2023 taxes) go into a completely different processing queue that's mostly manual. They prioritize current year returns during tax season, so prior year returns can take 3-6 months to process. The automated tracking systems often don't work properly for these returns until they're fully processed. For penalties, if you owed money for 2023, you'll definitely get hit with late filing penalties (5% per month up to 25% max) plus interest from the original April 2024 due date. If you're getting a refund, they might still charge a late filing penalty but will just deduct it from your refund. My advice: try to create an account on IRS.gov to view your tax transcripts - this sometimes shows more info than the refund tracker. And honestly, don't stress too much about the lack of communication yet. It sounds like your return is just sitting in the manual processing queue, which is totally normal for late-filed returns.
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Jordan Walker
ā¢This is really helpful info, thank you! I'm actually in almost the exact same boat - filed both years together and only the current year processed. One question though: when you say they "might still charge a late filing penalty" even for refunds, is that only if you were legally required to file? I thought if you're getting money back, there's no penalty for filing late since you don't owe them anything. Or am I missing something here?
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