That's actually a really helpful suggestion! I hadn't thought about switching providers, but it makes sense to look for better investment options. Did you have any fees when you moved your Roth IRA to Fidelity? And how long did the whole process take?

No fees to transfer the Roth IRA to Fidelity - most major brokerages don't charge for incoming transfers. The whole process took about 2 weeks from starting the paperwork to having everything settled in the new account. Fidelity handled most of the transfer work once I filled out their forms. The good part was getting access to their research tools and fund options. I met with one of their advisors (free consultation) who suggested a portfolio mix based on my retirement timeline that's been working well.

This is a really important point! I had a similar situation happen and it's easy to focus on the loss and forget that the money you put in is still accessible if needed.

Did you have any issues with penalties even though you were owed refunds? And how long did the whole process take from when you first contacted the CPA to getting everything resolved?

No penalties at all since I was due refunds! That's the good news about being owed money - the IRS doesn't penalize you for filing late when they owe YOU. They only charge penalties and interest when YOU owe THEM. The process took about 3 weeks total. First meeting was dropping off all my documents (W-2s, 1099s, etc.). About 10 days later they had all the returns prepared for me to review and sign. Filed electronically for the two most recent years, paper filed the older ones. Got my electronic refunds about 3 weeks after filing, and the paper filed ones took about 4 months. The whole thing was way less painful than the years I spent worrying about it!

This is so true! Those places prey on fear with their scary commercials about IRS collections. A regular tax preparer or CPA is totally sufficient for unfiled returns when you have all your documents.

Thank you for this warning! I've been hearing those commercials and they definitely play up the fear factor. I'll look for a local CPA instead of one of those national chains. Appreciate the advice!

I haven't heard of OnPay before. How user-friendly is it for someone who understands accounting basics but isn't a payroll expert? And does it integrate with any accounting software?

It's super user-friendly! I'd say it's actually easier to navigate than QuickBooks Payroll, with a cleaner interface. The setup wizard walks you through everything including tax registrations. They have good help articles that explain things in plain English. It does integrate with QuickBooks Online, Xero, and a few other accounting systems. The integration with QuickBooks works well in my experience - it automatically records payroll expenses in the right categories. If you understand basic accounting concepts as a CPA candidate, you'll have no trouble with it.

ADP is way overpriced for small businesses! I used them for my repair shop and switched to Gusto which does the same thing for half the price. Plus ADP's interface feels like it was designed in the 90s.

I think this depends on the state though? I'm in Texas and we don't have state income tax, so I only needed to file the federal 1040NR. Are there any states that honor the federal treaty exemptions?

You're absolutely right that it varies by state. Texas is lucky with no state income tax! States like California and New York generally don't fully honor federal treaty exemptions, so you often have to pay state tax even on treaty-exempt income. Some states like Pennsylvania and Virginia do honor many federal treaty provisions, but it's very state-specific. A good rule of thumb is that if your state has income tax, you should research whether they honor your specific treaty benefit or file a return anyway to be safe.

Most of the mainstream tax software isn't great with international situations. I had decent luck with Sprintax which is specifically designed for nonresident tax returns, but it's not free.

OLT.com actually has a decent nonresident version that handled my 1042-S and treaty benefits correctly. It's cheaper than Sprintax but still costs about $40-50 for federal filing.

This is helpful, thanks! Where exactly can I find if there's a tax treaty between my country (India) and the US? And how do I track my days present - is there an official way to do this?

You can find information about tax treaties on the IRS website under "Tax Treaties" - specifically look for "Table 1" which summarizes the withholding tax rates. For India, there is indeed a tax treaty and the reduced rate for interest income is 15% instead of the standard 30%. For tracking days present in the US, you can use the entry/exit stamps in your passport, your I-94 travel history (which you can download from the CBP website at i94.cbp.dhs.gov), or your travel records like flight confirmations. For tax purposes, you'll need to apply the Substantial Presence Test which counts full days you were physically present in the US across a three-year period using a weighted formula.

The difference in timing exists because of regulatory requirements. Financial institutions must issue 1099 forms by January 31st, but they have until March 15th to issue 1042S forms. This extended deadline allows institutions more time to apply the complex withholding rules and tax treaty provisions that apply to non-resident accounts. Additionally, 1042S processing often requires manual review to ensure proper withholding rates based on tax treaties, which varies by country. Some institutions actually prepare these forms through separate departments or even third-party specialists rather than their regular tax document systems.

Thanks for explaining! So I shouldn't be worried that something's wrong with my account? I'll just have to be patient until mid-March I guess.