Does anyone know if the IRS is still processing paper returns normally? I heard they had massive backlogs during COVID and I'm worried my late return will get stuck in some warehouse for years. Should I attach some kind of note explaining why I'm filing so late, or do they not care about that?

For Pennsylvania residents filing 2020 Form 1040 with payment, the correct address is indeed the Cincinnati service center that Javier mentioned. However, I'd strongly recommend double-checking this on the current IRS website since mailing addresses can occasionally change. One thing I haven't seen mentioned yet - since you're filing so late, you might want to consider requesting penalty relief if you have reasonable cause. The IRS can waive failure-to-file and failure-to-pay penalties (though not interest) in certain circumstances like serious illness, natural disasters, or other situations beyond your control. You'd need to include Form 843 (Claim for Refund and Request for Abatement) with your return if you want to request this. Also, make sure you're using the 2020 version of Form 1040 and its instructions, not the current year's form. You can download it from the IRS website under "Prior Year Products." The tax law and forms do change from year to year, so using the correct year's forms is important. Definitely use certified mail with return receipt requested so you have proof of mailing and delivery!

Has anyone dealt with the tax consequences if the IRS accepts the revocation? I'm thinking about revoking my S-Corp too, but I'm worried about how to handle things like the built-in gains tax or other penalties.

I've been through this exact scenario with a client earlier this year. The timing is actually in your favor since you're still within the same tax year. Here's what worked for us: We submitted Form 8832 with a detailed letter explaining that the S-Corp election was made in error and requesting to revert to disregarded entity status. The key was emphasizing that no S-Corp tax returns had been filed and no payroll had been processed under the election. The IRS approved our request within about 6 weeks. What really helped was including a copy of the original S-Corp election acceptance letter and clearly stating that we wanted the entity treated "as if the S-Corp election had never been made." For New Jersey, you'll definitely want to contact them separately. NJ doesn't automatically follow federal changes, so you may need to file additional paperwork there. Honestly, if your client is having serious doubts this early, it's probably worth pursuing the revocation rather than being stuck with an unwanted election for 5 years. The administrative burden of S-Corp compliance isn't worth it if it doesn't fit their business model.

Tax accountant here. Another thing to consider with lots of overtime is that your withholding might not be calculated optimally. When you get a paycheck with tons of overtime, the payroll system often calculates withholding as if you make that amount every pay period, which can result in overwithholding. You might feel like you're losing more to taxes than you actually are. That's why people who work irregular overtime sometimes get larger tax refunds - they've had too much withheld throughout the year. If you don't want to wait for that refund, you could consider adjusting your W-4 to account for the irregular income, though be careful not to underwithhold.

The 'overtime isn't worth it' myth caused me to turn down shifts for YEARS before I learned better. Here's a simple way to think about it: Let's say you're in the 22% federal bracket plus 7% state taxes. That means you keep 71% of each additional dollar (100% - 22% - 7% = 71%). So: - Regular time at $42.50/hr = about $30.18 after taxes - Time and a half at $63.75/hr = about $45.26 after taxes - Double time at $85.00/hr = about $60.35 after taxes - Triple time at $127.50/hr = about $90.53 after taxes Tell me where in that calculation it's "not worth it" to work more? Even at your lowest overtime rate, you're making more per hour after taxes than your regular rate before taxes!

Just adding in case this helps - for scholarship or fellowship grants to non-resident aliens, the portion for tuition and books isn't taxable, but the portion for living expenses is considered FDAP subject to 30% withholding unless a tax treaty applies. I learned this after receiving a small research stipend as a visiting scholar at a US university. The university withheld 30% automatically from the living allowance portion.

Great question about FDAP income reporting! You're absolutely correct - as a non-resident alien, you generally only need to report FDAP income that's from US sources. Your Canadian accountant's confusion is understandable since this is a specialized area. For your specific situation with dividends from US stocks, these would definitely be US-source FDAP income subject to reporting. The good news is that under the US-Canada tax treaty, dividend withholding is typically reduced from 30% to 15% if you properly complete Form W-8BEN with your broker. One thing to watch out for - make sure your brokerage is applying the correct treaty rate. I've seen cases where non-resident aliens had too much tax withheld because they didn't properly claim treaty benefits, then had to file Form 1040-NR to get a refund. Your Japanese and European dividends, as others have mentioned, aren't reportable to the US - those would be handled under Canadian tax rules as a Canadian resident.

I'm going through something very similar right now - filed 12 weeks ago and just got told yesterday it could be another 16 weeks! The agent mentioned my return is in "manual review" but couldn't give me any specifics about what exactly they're reviewing. I've been checking my transcript weekly through the IRS website, and all I see is a processing date that keeps getting pushed back. The most frustrating part is that I adjusted my withholding last year specifically to avoid owing money, and now I'm being penalized with these endless delays for essentially giving them an interest-free loan. Has anyone had success with the Taxpayer Advocate Service for processing delays like this? I'm considering filing Form 911 but want to make sure I meet the hardship criteria first.

I completely understand your frustration - 10 weeks is an unreasonably long time to wait for your own money! The 120-day extension they mentioned is particularly concerning. Have you been able to access your account transcript to see what specific codes are showing up? In my experience, codes like TC 570 or TC 971 can give you much better insight into what's actually causing the delay than the generic responses you get from phone agents. Also, you mentioned verifying through ID.me - did they specifically request that verification, or did you do it proactively? Sometimes the ID verification process itself can add additional processing time. The interest accrual you referenced under IRC 6611 should definitely kick in after 45 days, so at least you'll get something for this ridiculous wait. I'd strongly recommend documenting every interaction you have with them (dates, times, agent reference numbers) in case you need to escalate this further through TAS or your congressional representative.