My uncle was in this exact situation! Never filed for like 30 years, worked mostly construction jobs for cash. He finally got caught when he tried to take out a loan to buy a truck and they needed proof of income. The aftermath was actually less catastrophic than everyone expected. He had to file 6 years of back taxes and pay some penalties, but he worked out a payment plan with the IRS. The scariest part was just taking the first step. The biggest issue now is that he has no social security credits, so his retirement options are really limited. That's the part your friend should be most concerned about - even if they escape IRS notice, they're shooting themselves in the foot for retirement.

Your friend might be what the IRS calls a "ghost taxpayer" but it's definitely not sustainable! A few thoughts on how this might have happened: 1) If they've worked as an independent contractor and nobody issued 1099s, the IRS might not have automatic records of their income 2) For the mortgage, they're probably not on the loan at all - only their partner with the W2 qualified 3) For hospital bills, if they paid cash or had insurance through a partner/employer without being the primary policyholder, it wouldn't trigger tax flags 4) For the child, the other parent may be claiming them on their taxes The most concerning part is retirement. Without tax records, they won't have Social Security credits for those working years. They're effectively planning to retire with potentially zero Social Security benefits. They need to fix this ASAP, starting with consulting a tax attorney who specializes in non-filer cases.

Another option is to check if your W2 is available electronically! A lot of employers use services like ADP, Paychex, or Workday where you can log in and download your tax forms, even if you don't work there anymore. Do you remember if you ever set up an online account for viewing paystubs? Try logging in there or call and specifically ask if they use an online system for tax documents. Sometimes the managers don't even think to mention this option.

Something similar happened to my son last year. We found that reporting them to the state labor department was actually faster than going through the IRS! Different states have different rules, but many have penalties for employers who don't provide wage statements. It might be worth checking your state's department of labor website to see if you can file a complaint there too. In our case, they contacted the employer within 3 days and we had the W2 by the end of the week.

To answer your original question - yes, it's completely normal for tax preparers to have disclaimers about not being responsible for errors. I've used three different CPAs over the years and they all had similar language in their agreements. The reality is that tax preparers rely on the information YOU provide to them. They can't verify whether the numbers you give them are accurate. The paperwork is actually them covering their own behinds because ultimately, you sign the return and you're responsible for what's on it. That said, a good CPA should be doing more than just data entry. Mine reviews everything for consistency with prior years, asks questions when something looks unusual, and provides actual tax planning advice throughout the year.

Has anyone here tried going back to tax software after using a CPA? I'm considering it after paying $825 last year for what felt like them just plugging my info into their own version of TurboTax.

OP, I think you might be overthinking this. The substantial presence test is really meant for people who split time between countries. You've been here 23 years straight - you're definitely a resident alien for tax purposes. When I was doing payroll, we had lots of folks in similar situations. The key thing the IRS cares about is where you're physically living and earning money, not your immigration status. Just select "US citizen or resident alien" on your W-4.

I was actually in the opposite situation - lived in the US for years but traveled outside the country frequently for work. Make sure you keep detailed records of any time you leave the US even for short trips (if you ever do). I got audited once because the IRS thought I didn't meet the substantial presence test due to my travels.

For what it's worth, I'm an academic advisor at a university with lots of veteran students, and this confusion with education credits and GI Bill happens constantly. Two tips that might help: 1) Ask your school's Veterans Affairs office for a "Student Account Summary" that clearly separates GI Bill payments from your out-of-pocket expenses. This documentation is crucial if you ever get questioned. 2) The computer might qualify as an education expense, but you need to prove it was required for your specific program, not just convenient. Some programs explicitly require certain tech specs, which makes this easier to document. Most tax software struggles with the nuances of military education benefits. The default calculations often underestimate legitimate credits.

Just a heads up that education credits are one of the most commonly audited items on tax returns, especially when GI Bill or other education benefits are involved. The IRS system often flags returns where both education benefits AND education credits appear. Make sure you keep ALL documentation for at least 3 years: - Receipts for every qualified expense - Course requirements showing materials were required - Financial aid statements showing what was covered by GI Bill - Statements showing what you paid out of pocket TurboTax isn't necessarily wrong - it's calculating based on the info you provided - but it might not be asking all the right questions to maximize your legitimate deductions.