If federal tax withheld is blank on your W-2, there are 4 possibilities: 1. You claimed exempt on your W-4 2. Your employer made a mistake processing your W-4 3. Your income was low enough that withholding wasn't required 4. Your employer messed up and didn't withhold taxes they should have With summer work at $8,750, it's possible #3 applies. If your projected annual income (what you'd make if you worked there all year) would be under the standard deduction, they might not withhold anything.

honestly if ure under like 12k for the year u probly dont owe any fed taxes anyway bc of the standard deduction so it might not matter. but def call ur job to make sure its not a mistake

I just want to add that if you do hit a big jackpot (usually $1,200+ for slots), the casino will withhold 24% federal tax and issue you a W-2G form right there. But that doesn't mean you're done with taxes on that win! You'll still need to report it on your tax return, and depending on your tax bracket, you might owe more or potentially get some back if your actual tax rate is lower than 24%. Also, some states have their own withholding requirements for gambling winnings. In my state they take an additional 6% right away.

One thing that might help clarify the confusion is understanding that gambling taxes follow the same principle as other income - you're taxed on net profit, not gross winnings, but the reporting process can be tricky. In your example with the $1250 bet and $1500 win, you're absolutely right that your actual profit is only $250. The key issue is whether you can effectively deduct that $1250 loss against the $1500 win on your tax return. If you itemize deductions, you can deduct gambling losses up to the amount of your gambling winnings for the year. So you'd report $1500 as income but deduct $1250 as a gambling loss, leaving you taxed on the $250 profit - which is correct. The problem arises when the standard deduction is better for your situation. In that case, you'd pay taxes on the full $1500 without being able to deduct the $1250 wager, which creates exactly the scenario you described where you lose money despite "winning." This is why many casual gamblers end up paying more in taxes than they should, and why keeping detailed records of all gambling activity throughout the year is so important - it helps you determine whether itemizing might be beneficial.

Guys I think we're missing something important. OP if you deposited CASH from side hustles, the IRS probably flagged you because of suspicious activity reports. Banks have to file these for cash deposits over $10k or patterns of smaller deposits that seem designed to avoid that threshold. Did you make lots of smaller cash deposits instead of larger ones? That's called "structuring" and it's a bigger red flag than just underreporting income.

The structuring point is really important - that's something you definitely need to discuss with your tax attorney. If you were making regular deposits just under $10k, that could escalate this beyond a simple underreporting issue. But here's what I want you to focus on right now: you're taking all the right steps. You're getting professional help, you're willing to be honest, and you're prepared to make things right. That puts you in a much better position than someone who tries to hide or fight it. I went through something similar a few years back (not as much money involved, but still scary). The anticipation and anxiety were honestly worse than the actual resolution. The IRS worked with me on a payment plan, and while I paid penalties, it wasn't the life-ending disaster I thought it would be. Document everything you can remember about your deposits - dates, amounts, which clients paid you. Your attorney will help you organize this properly. And try to get some sleep - I know it's hard, but you'll need to be clear-headed for your meeting.

Has anyone considered whether this transaction might also trigger Form 8865 requirements instead of Form 926? If the foreign business is structured as a partnership rather than a corporation, Form 8865 would be the correct form. OP, what's the legal structure of your foreign business?

Great question about entity classification! You're absolutely right that this is crucial. @Carmen Ortiz - you mentioned it's a "family business overseas" but the specific legal structure matters enormously for US tax purposes. If it's organized as a corporation in the foreign country, you'll likely need Form 926. But if it's a partnership, LLC, or similar pass-through entity, then Form 8865 would be the correct form instead. The tricky part is that some foreign entities can elect how they want to be treated for US tax purposes (called "check-the-box" elections), so even a foreign LLC might be treated as a corporation if an election was made. Do you know what type of entity it is under local law? And more importantly, do you know if any elections have been made for US tax treatment? This will determine which forms you need to file.

After my tax guy retired, the new firm made me sign something similar. I read it carefully, signed it, and honestly never thought about it again. Been with them 3 years now with no issues. These agreements are just like the terms & conditions we all click "agree" to online everyday lol.

I'm dealing with something similar right now. My long-time tax preparer retired and the new firm wants me to sign what they call a "client engagement letter" but it's basically the same thing you're describing. From what I've researched, these agreements became more common after some high-profile lawsuits where clients sued preparers for issues that weren't really the preparer's fault. The agreements help clarify who's responsible for what. That said, I'd definitely read it carefully before signing. Make sure it doesn't completely absolve them of responsibility for their own errors or negligence. A fair agreement should protect them from liability when you provide wrong information, but they should still be accountable for their own mistakes. Has your tax guy given you any guidance on what changed since the sale? Might be worth asking him directly about the new policies.