


Ask the community...
Have they looked into the IRS Fresh Start Program? My brother had a significant tax debt (about $85k) after his construction business failed, and he was able to get substantial relief through this program. The Fresh Start Program has several components that might help your parents: - Increased dollar threshold for filing tax liens - Easier access to Installment Agreements - More flexible Offer in Compromise terms - Tax lien withdrawals after payment arrangements The key is providing thorough documentation of their financial situation, medical expenses, and limited ability to pay. My brother was ultimately able to settle his $85k debt for about $32k through an Offer in Compromise.
The Fresh Start Program sounds promising but remember it's not a specific program you apply for directly - it's a collection of IRS initiatives with different eligibility requirements. A $200k debt might be harder to settle than an $85k one. Still worth exploring though.
Don't forget about potential state-level tax relief programs! When I was dealing with federal and state tax issues after a business failure, I found that my state had hardship provisions that were actually more generous than the IRS options. Depending on what state your parents live in, they might qualify for: - State tax forgiveness programs - Hardship status at the state level - Special provisions for farmers/agricultural businesses - Senior tax relief programs (if they're close to retirement age) Also, check if your state has a Taxpayer Advocate Service similar to the federal one. These advocates can sometimes help navigate both systems simultaneously and coordinate relief efforts.
Have you checked your IRS transcript online? You can request it at irs.gov and it shows all activities on your account including stimulus payments, refunds issued, etc. Might give you some clues about what's happening with your account.
Thanks for the suggestion. I tried accessing my transcript online but because I've been overseas so long, the verification system won't work for me (it needs a US phone number I've had for more than 2 years, which I don't have since moving back). I requested a mailed transcript but haven't received it yet. Seems like everything with the IRS requires workarounds when you've been an expat.
That's a common issue for expats! For the phone verification problem, you might want to use a family member's phone number temporarily if possible. Another option is to request your transcript by filing Form 4506-T instead of using the online system. For recently returned expats, sometimes the local Taxpayer Advocate Service can help navigate these authentication issues. They're separate from the regular IRS customer service and can sometimes cut through red tape when standard procedures don't work for your situation.
Did you use direct deposit for your tax refund when you filed the streamlined returns? I had issues with my stimulus because I used paper check for my refund, but my friend who used direct deposit got her stimulus automatically despite living abroad.
This is accurate - the payment method makes a huge difference. I work at a tax prep office and we've seen that international filers who used direct deposit had about 80% success rate getting stimulus automatically, while paper check people had endless problems.
I just wanna point out that if your employer is failing to provide your W-2, you should report them to the IRS using Form 4852. There's literally a box on the form where you indicate whether you've attempted to obtain your W-2 from your employer. Employers are required BY LAW to provide W-2s by January 31st, and they can face penalties for not doing so. Some crappy employers try to avoid sending W-2s to avoid payroll taxes. Dunno if that's happening in your case but thought you should know.
Pro tip from someone who's been doing taxes for years - when you file with Form 4852, KEEP A COPY of everything. If your employer eventually sends a W-2 that doesn't match your estimates (even if it arrives after you've filed), you'll need to file an amended return with Form 1040X. If the differences are small, you might not need to amend, but if there's a significant difference in income or withholding, the IRS will eventually notice the discrepancy when they match documents.
I second this advice! I had to file with a 4852 last year and then got my W-2 three weeks later with slightly different numbers. I called the IRS and they said small differences weren't worth filing an amendment for, but never told me what "small" meant. Anyone know what the threshold is for needing to file an amendment?
There's no official threshold published by the IRS for when to file an amendment, but generally, tax professionals suggest amending if the difference affects your tax liability by more than $100 or changes any tax credits you claimed. The most important thing is whether the difference increases your tax liability - if you would owe more tax with the correct W-2 information, you should definitely file an amendment to avoid penalties and interest. If the difference would result in a larger refund for you, it's still worth amending to get that money back.
Don't forget about your state tax return too! You'll need to file a similar substitute form for your state taxes in most cases. Each state has their own version of the federal substitute W-2 form. Just google "[your state] substitute W-2" to find it.
Good point about state taxes! I live in a state with no income tax so I totally forgot about this aspect.
Make sure you also report this guy to your state's labor department! Even though the business is closed, he might still face penalties for wage theft and improper payroll practices. Those agencies can sometimes go after personal assets if the violations were bad enough. Might get some justice for all of you who worked there.
Honorah King
Just to add another perspective - the 'c' markings sometimes appear on tax transcripts as well, not just on physical documents. They typically show up in the IRS internal systems as verification codes. If you order your tax transcript online through the IRS website, you might see these marks in the digital version too. If you're updating previous returns for 2025 filing season, make sure you're using Form 1040-X for amendments and reference your original tax year. Those 'c' marks won't affect your amendment process at all.
0 coins
Oliver Brown
ā¢Do we need to request transcripts before filing amendments? I assumed I just need my original return copy. Also, how far back can you amend returns? I might have similar issues with my 2021 taxes.
0 coins
Honorah King
ā¢You don't absolutely need transcripts before filing amendments, but they're extremely helpful to ensure you have the exact information the IRS has on file. Having your own copy of your return is good, but the transcript shows how the IRS actually processed it, which sometimes differs from what you submitted. For amended returns, you generally have 3 years from the original filing date or 2 years from when you paid the tax, whichever is later. So for 2021 taxes (typically filed in 2022), you should still be within the amendment window for the 2025 filing season. I'd recommend grabbing the transcript though - it makes the amendment process much smoother when you can see the IRS's internal codes and processing marks.
0 coins
Mary Bates
I just wanted to share that my tax preparer always marks items with 'c' when she's checked them during preparation - it's a common notation system among tax professionals too, not just the IRS. Might be why you're seeing those marks. Is it possible the document is from your preparer and not directly from the IRS?
0 coins
Clay blendedgen
ā¢That's a good point about tax preparers! My accountant uses checkmarks and little symbols all over my returns before submitting. I always thought it looked so messy but I guess that's their system.
0 coins
Melina Haruko
ā¢Thanks for bringing this up! I double-checked, and you're right - the documents are actually from my tax preparer's office, not directly from the IRS. They sent me copies of what they submitted. That makes so much more sense why there are these little marks all over them. I feel kinda silly now for worrying, but at least I understand what I'm looking at. Guess my preparer was just marking things they verified before submitting. Learning something new about taxes every day!
0 coins