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.

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.

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!

Your buddy is spreading one of the most persistent tax myths out there! I used to believe the same thing until I actually did the math. Here's what's really happening: When you work that much overtime, your paycheck withholding might look scary because payroll systems often calculate as if you'll earn that same amount every pay period. But that's just withholding - not your actual tax liability. With your income levels, you're likely in the 22% or 24% federal bracket, plus whatever your state charges. Even if overtime pushes some income into a higher bracket, you're still keeping 70-75% of every overtime dollar you earn. Think about it this way: even your lowest overtime rate (time and a half at $63.75) nets you more after taxes than your regular rate before taxes. Your triple time is basically printing money at nearly $90/hour take-home. The real question isn't whether overtime is "worth it" financially - it always is. The question is whether the extra money is worth the physical and mental toll of working 84-hour weeks. That's a personal decision only you can make, but don't let tax bracket myths be the reason you turn down shifts!

This is absolutely unacceptable! I filed my return 8 weeks ago and just got off the phone with an agent who told me the same thing - another 120 days for "additional processing." When I asked what specifically was being reviewed, they gave me the runaround about "manual verification" without any real explanation. The worst part is that I e-filed everything correctly, have simple W-2 income, and claimed standard deduction - nothing complicated that should trigger these massive delays! I'm seriously considering filing a complaint with the Treasury Inspector General for Tax Administration (TIGTA) because this feels like a systematic failure in their processing system. We shouldn't have to become tax code experts just to get our own money back in a reasonable timeframe. The fact that they're holding thousands of returns for 3-4 months with zero transparency is completely unacceptable. Has anyone had success escalating through TIGTA, or is that just another bureaucratic dead end?

I'm dealing with the exact same nightmare right now! Filed 9 weeks ago and just got the dreaded "120 additional days" notice when I called yesterday. What's really getting to me is how they act like this is totally normal - the agent literally said "we appreciate your patience" like I have a choice in the matter! I've been checking my transcript obsessively and all I see are these cryptic codes that don't make any sense. The most infuriating part is that I have the simplest return possible - single filer, one W-2, standard deduction, no dependents. How does THAT require 4+ months to process?! At this point I'm convinced they're using our refunds as an interest-free loan while we struggle to pay bills. The IRC section 6611 interest you mentioned better actually kick in because this is beyond ridiculous. I'm seriously considering documenting everything and filing complaints with both TAS and my congressman's office. We shouldn't have to become activists just to get our own money back! 😤

Has anyone used TurboTax for reporting crypto with all these fee adjustments? Their crypto section confused me last year.

I had the exact same confusion about bitcoin trading fees last year! After going through this myself, I can confirm what others have said - these fees definitely adjust your capital gains but aren't separate deductions. What really helped me was creating a simple spreadsheet to track everything. For each bitcoin sale, I had columns for: original purchase price, purchase fees, sale price, sale fees, and adjusted gain/loss. The formula was basically: (Sale Price - Sale Fees) - (Purchase Price + Purchase Fees) = Actual Gain/Loss. So for your $1,275 in fees, make sure you're adding purchase fees to your cost basis and subtracting sale fees from your proceeds before calculating gains. This will naturally reduce your taxable gains without needing to claim them as a separate deduction anywhere. Keep all your exchange statements showing these fees - the IRS loves documentation for crypto transactions. Good luck with your filing!