I went through this exact same situation when I first arrived on my H1B! The confusion is totally understandable because both forms deal with tax documentation, but they serve different purposes. As others have mentioned, the key is determining your tax residency status. Since you mentioned you "recently moved" to the US, you're most likely still considered a non-resident alien for tax purposes, which means you should fill out the W-8BEN form. The bank needs this form regardless of what your employer is doing with payroll taxes - these are separate requirements. Your employer withholds income tax from your salary, but the bank needs the W-8BEN to properly report any interest income from your accounts to the IRS and to determine if they need to withhold any taxes on that interest. One thing to keep in mind: if you stay in the US long enough to pass the substantial presence test (usually by your second year), your tax status will change to resident alien, and you'll need to update your bank documentation to a W-9 at that point. For now, go with the W-8BEN, but make sure you understand which country's tax treaty benefits (if any) you might be eligible for when filling out that section of the form.

I went through this exact same confusion when I first arrived on my H1B visa! The good news is that you're asking the right questions before submitting anything. Based on what you've shared - that you "recently moved" to the US on an H1B - you should almost certainly fill out the **W-8BEN form**. Here's why: The W-8BEN is for non-resident aliens (which you likely are in your first year), while the W-9 is for US citizens and resident aliens. Your tax residency status is determined by the "substantial presence test," not just your visa type. A few important points: - This bank requirement is completely separate from your employer's payroll tax withholding - The bank needs this form to properly report any interest income from your accounts to the IRS - Even though your employer is handling income tax, the bank has its own reporting obligations **Pro tip:** When filling out the W-8BEN, don't forget to check if your home country has a tax treaty with the US that could reduce withholding on interest income. Many countries do, and you don't want to leave money on the table! Also, keep track of your days in the US because you'll likely need to switch to a W-9 form once you become a resident alien for tax purposes (usually in your second year). The bank won't remind you of this - it's your responsibility to update them. Hope this helps clear things up! The tax system here can be overwhelming at first, but you're being smart by asking questions before acting.

As a newcomer to understanding payroll taxes, this entire thread has been absolutely invaluable! I just started my first job with significant benefits and was completely lost trying to figure out why my take-home pay seemed lower than my calculations predicted. The explanation about FICA taxes being calculated differently than income taxes is a real eye-opener. I had no idea that my 401(k) contributions would still be subject to Social Security and Medicare taxes while reducing my federal income tax. That distinction explains so much about what I was seeing on my paystub! What's particularly helpful is learning about all these verification tools and resources. I'm definitely planning to try taxr.ai to analyze my pay stub and make sure everything is being calculated correctly. And knowing that services like Claimyr exist for actually reaching the IRS gives me confidence that if I do find errors, there are realistic ways to get them resolved. This community's willingness to share detailed experiences and practical advice is amazing. It's turned what started as a confusing payroll question into a comprehensive education on tax withholdings, employee rights, and available resources. Thanks everyone for making this complex topic so much more understandable!

This thread has been an absolute goldmine of information! As someone who just started their first job out of college, I was completely bewildered by all the different tax calculations on my paystub. I had no clue that FICA taxes and income taxes treated pre-tax deductions so differently. The biggest revelation for me was learning that my 401(k) contributions still get hit with Social Security and Medicare taxes even though they reduce my federal income tax. That explains why my FICA withholding seemed disproportionately high compared to my taxable wages! I'm also grateful for all the tool recommendations. I was dreading having to figure out if my payroll calculations were correct, but knowing about resources like taxr.ai for document analysis and Claimyr for actually reaching the IRS takes a lot of stress off my shoulders. It's reassuring to hear so many success stories from community members who've used these services. What really strikes me is how this started as a simple question about OASDI and Medicare withholding but evolved into a comprehensive masterclass on payroll taxes, pre-tax deductions, and employee rights. This is exactly the kind of practical financial education that should be taught in school but never is. Thanks to everyone who shared their knowledge and experiences - I'm definitely bookmarking this thread as my go-to reference for payroll tax questions!

Just wanted to share my experience as someone who's been dealing with this exact issue for the past two years. The confusion is totally understandable because the rules around gig economy platforms can be tricky. The key thing to remember is that when you pay through platforms like Fiverr, Upwork, TaskRabbit, etc., YOU are the customer, not the employer. The platform is the intermediary that handles all the contractor relationships and tax reporting. You're essentially buying services from the platform, which then pays their freelancers. However, if you ever hire someone from these platforms and then start paying them directly outside the platform (which some people do to avoid platform fees), THEN you would need to issue 1099s if you pay them over $600 in a year. Also keep in mind that the 1099 threshold recently changed - for 2024 and beyond, the threshold for 1099-K forms from payment processors is back to $20,000 and 200 transactions, not the $600 that was originally planned. This affects what freelancers receive from platforms, but doesn't change your obligations as a business customer.

As someone who runs a consulting business and has navigated this exact situation, I can confirm what others have said - you don't need to issue 1099s to Fiverr workers. The platform relationship is key here. I've been using Fiverr for various services (web development, graphic design, copywriting) for three years now, and I treat all those payments as regular business expenses. Fiverr handles the contractor relationships and tax reporting on their end. One thing I'd add that hasn't been mentioned much - make sure you're categorizing these expenses correctly on your own tax return. I typically put graphic design and marketing content under "Advertising," technical services like web development under "Professional Services," and virtual assistant work under "Office Expenses." Also, if you're ever unsure about a specific platform's reporting structure, most of them have detailed FAQ sections about tax obligations. Fiverr's help center specifically addresses this and confirms they handle 1099 reporting for their freelancers. Keep those receipts and invoices organized though - even if you don't need to issue 1099s, you'll want good documentation for your business expense deductions!

I just went through this exact same penalty abatement process for a Section 6657 dishonored payment penalty and wanted to share what worked for me! Like you, I had sufficient funds in my account when the IRS tried to process my payment, but something went wrong on their end. Here's the approach that got my penalty completely removed: **My successful strategy:** 1. **Paid the penalty immediately** to stop interest from accumulating (they'll refund it if approved) 2. **Used Form 843** as the official abatement request mechanism - this is critical 3. **Wrote a concise but detailed letter** explaining the situation, referencing my SSN, tax year, and CP14 notice number 4. **Included highlighted bank statements** showing my account balance exceeded the payment amount on the processing date 5. **Sent everything certified mail** to the address on my CP14 notice The key was being factual and specific about dates while keeping the letter professional and to the point. I emphasized that I had sufficient funds, filed on time, and paid immediately upon discovering the issue - basically proving it wasn't due to my negligence. It took about 6 weeks to get approval, but they removed the penalty entirely and refunded what I had paid. Don't lose hope - these situations are more common than you'd think with electronic payments, and the IRS is generally reasonable when you can document that you had the funds available.

I went through this exact situation last year and successfully got my Section 6657 penalty removed! The process can be frustrating, but it's definitely doable when you have the right documentation. Here's what I learned from my experience: The IRS is actually pretty reasonable about these penalties when you can clearly demonstrate that the payment failure wasn't due to insufficient funds or negligence on your part. Since you filed on time, had adequate funds, and paid immediately once you discovered the issue, you have a strong case. For the letter itself, keep it professional but straightforward. Start with your identifying information (name, SSN, tax year, CP14 notice number), clearly state that you're requesting abatement of the Section 6657 penalty, and explain that you had sufficient funds when the payment was supposed to process. Include the date your payment was supposed to go through and the date you successfully made the payment once you discovered the issue. The bank statements are crucial - make sure they clearly show your account balance on the date the IRS attempted to process your payment. I'd also recommend including Form 843 (Claim for Refund and Request for Abatement) as the formal mechanism for your request. Regarding payment timing, I'd suggest paying the penalty now to stop interest from accruing. The IRS will refund it with interest if they approve your abatement request. Send everything via certified mail to the address on your CP14 notice. In my case, it took about 7 weeks to get a response, but they completely removed the penalty. Stay patient and persistent - you've got this!

The good news is that Energy Transfer LP typically makes their K-1s available online through their investor portal around mid-March each year, so you should be able to access your missing forms going back several years. You'll want to log into ET's investor relations website and look for tax documents. One important thing to understand about MLP K-1s is that they often show losses in the early years due to depreciation and depletion deductions, even when you're receiving cash distributions. This means you might actually owe less tax than you think, or even get refunds when you file amended returns. The key is to act quickly though. While the IRS has up to 3 years to assess additional taxes for most situations, if you substantially underreport income (by 25% or more), they have 6 years. And there's no statute of limitations if you don't file at all. Given that MLPs send copies of all K-1s directly to the IRS, this is definitely on their radar. I'd recommend getting all your K-1s first, then either using tax software that handles MLPs properly or consulting with a CPA who has experience with partnership taxation. The complexity goes beyond just reporting income - there are basis adjustments, potential state filing requirements, and other nuances that can trip you up if you're not careful.

I'm in a very similar situation with my Energy Transfer LP shares - owned them for about 4 years and just discovered I should have been reporting K-1s this whole time. Reading through everyone's experiences here has been both terrifying and helpful! What really caught my attention was the mention of automated IRS systems flagging discrepancies regardless of dollar amount. I always assumed my small position wouldn't matter, but it sounds like that's not how it works. The fact that ET sends copies of all K-1s directly to the IRS means they definitely know what I should have been reporting. I'm planning to log into ET's investor portal this weekend to pull all my historical K-1s. From what I'm reading here, it sounds like I need to prepare for filing amended returns for the past few years. The complexity around basis adjustments and potential state filing requirements is honestly overwhelming, but I'd rather deal with it now than wait for the IRS to come knocking. Has anyone found a good resource or guide that walks through the amendment process specifically for unreported MLP K-1s? I'm trying to figure out if this is something I can handle myself or if I need to bite the bullet and pay for professional help.