Does FTA work for all types of penalties? Like would it work for this specific CP 162 notice for partnership returns?

Yes, the First Time Abatement policy applies to the failure-to-file and failure-to-pay penalties for Form 1065 (partnerships), which is what CP 162 notices typically address. The FTA is available for most common penalties including these partnership return penalties. The key qualification is having a clean compliance history for the three years prior - meaning you filed all required returns and paid (or arranged to pay) all tax due. If your LLC is newer than three years, they'll look at your personal tax compliance history as the partner/member.

Better yet, e-file everything possible! I haven't mailed anything to the IRS in years. Extensions can be e-filed too, even for partnerships.

I hadn't even thought about reporting bank accounts! What's the threshold again - is it $10k across all accounts combined or each account needs to be over $10k?

It's $10k across all foreign accounts combined at any point during the year. So if all your UK accounts added up to over $10k even for one day, you need to file. This includes accounts you have signature authority over, even if not yours (like a joint account with a partner or business account). The form is fairly straightforward but needs to be filed electronically through the FinCEN BSA filing system. You'll need to report maximum account values, account numbers, bank addresses, etc. Keep in mind this is separate from your tax return and goes to the Treasury Department, not the IRS.

That fee used to be like $450 not that long ago! The US gov dramatically increased it when too many people started renouncing. Plus if your net worth is over $2M or your average tax liability over 5 years exceeds a certain threshold, you could be hit with an exit tax. Not a simple solution unfortunately.

That's really interesting, I hadn't heard of this option before. Would this affect my credit score or have any long-term impacts? I'm worried about creating problems for myself down the road.

An Offer in Compromise itself won't directly impact your credit score the way debt settlement with private companies might. However, tax liens used to appear on credit reports (though the credit bureaus removed them from reports in 2018 as part of their National Consumer Assistance Plan). The bigger consideration is that the process is lengthy and there's a filing fee unless you qualify for a low-income exemption. During the review period, collection activities are generally paused, but interest and penalties continue to accrue. If your offer is rejected, you'll owe the original amount plus all accumulated interest and penalties. For most people with a $10k tax bill and regular income, a payment plan is usually more practical. The Offer in Compromise is more suitable for those with very limited income and assets who genuinely cannot pay their tax debt over time.

The HSA tip is gold! I managed to contribute $4,150 to my HSA for the previous year (did it in April before filing) and saved about $900 in taxes. Not enough to fix a $10k problem but every bit helps. For next year, def adjust your W-4 at your new job. When I started my new job I put "0" allowances and had them withhold an extra $100 per paycheck. Made a huge difference.

Does FreeTaxUSA handle home office deductions well? I work remotely and I'm trying to figure out if I qualify since I have a dedicated office space.

Yes, it handles home office deductions really well! It walks you through all the requirements and calculations. You'll need to measure your dedicated office space and know your total home square footage. It also explains the simplified option ($5 per square foot up to 300 sq ft) versus the regular method. One thing to note though - if you're a W-2 employee working remotely (not self-employed), you generally can't take the home office deduction anymore after the tax law changes. But if you have any self-employment income like OP, you definitely can for the portion related to that business.

How did you find a reasonably priced CPA? All the ones near me want to charge $400+ for a basic return with some self-employment.

5 I tried looking at my transcript but all those codes are confusing! What do codes like 570 and 971 actually mean? Mine shows both of those.

11 Code 570 is a temporary hold on your account, which can happen for various reasons during processing. Code 971 indicates that a notice has been sent to you - this is likely the verification letter the original poster mentioned. When you see these codes together, it usually means the IRS is reviewing something on your return. If you see a code 571 later, that means the hold was released. Look for code 846 with a date - that's your refund issue date, which is when you can expect the money to be sent to your bank or as a check.

3 Yes! Totally slower this year. I read something about the IRS implementing new fraud detection systems that are causing some delays. Also they're scrutinizing certain credits more carefully - especially Earned Income Credit and Child Tax Credit.