Do you need to use the same exact exchange rate for all the accounts on one day, or can you use the rates from when you actually had the maximum balance in each account (which might be different days)?

For FBAR (FinCEN Form 114), you should use the Treasury Financial Management Service rate on the last day of the calendar year if you're reporting the value on that day. However, if you're reporting the maximum value during the year (which you should be), you're supposed to use the rate on the day when the maximum value occurred. For Form 8938, you use the exchange rate on the last day of your tax year, regardless of when the maximum balance occurred. This creates inconsistencies between the two forms, which is why they often have different reported values for the same accounts.

If you qualify for the Streamlined Filing Compliance Procedures, there's a miscellaneous offshore penalty of 5% of the highest aggregate balance of your foreign financial assets during the 6-year lookback period. However, for non-willful violations outside the streamlined program, penalties can range from $10,000 per violation per year. The key is demonstrating that your failure to file was truly non-willful. If you go through the streamlined program and properly certify that your failure was non-willful, you can avoid the harsher penalties.

With the M-1 adjustment, should you include the full amount of the credit or only the portion received as an advance payment? One of my clients received part as an advance and claimed the rest on their quarterly 941s.

You should only include the amount that creates a book-tax difference on your M-1. If your books show the full wage expense but your tax return reflects the reduced wage expense (after applying the credit), then your M-1 adjustment would be for the full amount of the credit that affected wages in that tax year. If part was received as an advance and part was claimed on 941s, but the total impact on wage expense is the same, then the full amount would go on the M-1. The key is reconciling what's on your books versus what's on your tax return, regardless of how or when the credit was received.

That's a great question. In that case, you would treat the advance payment as a liability on the books until it's properly claimed on the tax return. When you file the 2022 return with Form 5884-A, you'd then reduce the 2022 wage expense and clear the liability.

Thanks for the suggestion! I didn't even think about their guarantee. Do you know if their guarantee covers situations like this? And would you recommend going back now or waiting to see if the refund comes through first?

H&R Block's accuracy guarantee typically covers penalties and interest that result from preparer errors. In your case, since you caught the error before the return was finalized, it's a bit different, but they should still help you navigate the refund process. I'd recommend going back now rather than waiting. Explain what happened and ask them to contact the IRS on your behalf to confirm the overpayment will be refunded. They have a professional responsibility to help resolve this since it was their preparer's error. If the manager isn't helpful, you can escalate to their corporate customer service.

This is good advice! Also, check your mail regularly. Sometimes the IRS will send a paper check instead of direct deposit for refunds resulting from corrections or amendments, even if you originally paid electronically. I learned this the hard way when my refund check sat in a pile of mail for weeks.

I did call them actually! They basically just confirmed what the 1098 shows - that the actual payment to the county hadn't been made yet in 2023. They said they could provide a statement showing my escrow contributions, but they were clear that doesn't change when the tax was technically "paid" for IRS purposes. Frustrating but at least consistent with what everyone here is saying.

In TurboTax, the property tax paid will typically import automatically if you have your 1098 imported electronically. If not, you'd enter it manually in the "Deductions & Credits" section under "Home Mortgage Interest and Real Estate Taxes." Look for the section about Form 1098 and it will ask for the amount in Box 11 (which is where property taxes paid by your mortgage company appear).

File early!!! Especially if you're expecting a refund. The sooner you file, the sooner you get your money back. Also, identity theft is a real problem - if someone gets your SSN they can file a fake return in your name and steal your refund. Filing early prevents this. Filing early also gives you more time to correct any mistakes if something goes wrong. Last year I waited till the last minute and realized I was missing a form, had to file an extension and it was a whole mess.

This is what I did! Our business school had accounting students doing this as part of their practical experience. They were super thorough and even found a credit I didn't know about. Definitely worth checking if your school offers this!

This is a great suggestion! I'll check with our business school to see if they offer this. Having someone walk me through it the first time would be really helpful. Thanks for the tip!