Thanks for pointing that out. The agreement we have is more like a promissory note with the house as collateral. We knew we weren't on the deed, and trusted her (plus had the signed agreement). But you're right that in a worst-case scenario, we'd have had to take legal action if she refused to pay. For future reference, would you recommend actually getting on the deed for this kind of arrangement? Or is there a better way to structure it?

For future reference, there are several better ways to structure this. If you want actual ownership, you absolutely need to be on the deed - that's the only thing that legally establishes property ownership. Your name on the deed would make you true partial owners. If you prefer the loan approach (which is simpler), you could use a recorded mortgage or deed of trust. This creates a public record of your loan against the property and gives you much stronger legal protection. If she didn't repay, you'd have a straightforward foreclosure process rather than having to sue based on a private agreement. Either way, for amounts this large, it's worth spending a few hundred dollars on a real estate attorney to structure it properly. The peace of mind and legal protection are absolutely worth it.

This is so frustrating! The government makes you report large deposits of YOUR OWN MONEY coming back to you? It's none of their business if my family pays me back money I lent them. The whole banking system is designed to treat everyone like criminals.

11 What kind of tax treaty benefits did you find with the UK? My wife is from Canada and I'm wondering if there are similar advantages. Also, what's the threshold for FBAR reporting? We have a joint account in her country but it's not a huge amount.

3 The UK-US tax treaty had specific provisions about pension contributions and certain types of investment income that were beneficial in our case. Every treaty is different though - the US-Canada one has its own unique aspects, so definitely look into that specifically. For FBAR reporting, the threshold is if your foreign accounts combined exceed $10,000 at any point during the year. Even if your individual account is small, if you have multiple accounts that together exceed that amount, you need to file. And remember, it's not just bank accounts but also investment accounts, certain pension accounts, etc.

13 I e-filed last year with my husband's ITIN. The trick is that you need to enter the ITIN exactly as it appears on the ITIN letter from the IRS, including any hyphens. I had problems at first because I was entering it without hyphens.

Thanks for this tip! How long does it typically take for transcripts to become available after e-filing? Is it something I can access immediately after getting the acceptance confirmation?

Transcripts are usually available within 2-3 weeks after your e-filed return is accepted, sometimes even faster. You won't have access immediately after acceptance - the IRS needs to do some initial processing first. You can request them through the "Get Transcript" tool on IRS.gov once they're available. If you set up an online account with the IRS in advance, you'll be ready to download them the moment they're processed. Some mortgage lenders can also request the transcripts directly through a service called 4506-T if you sign an authorization form, which might save you some time.

I tried this route last year. You need to make an appointment first by calling 844-545-5640. They won't just let you walk in anymore. When I went, they helped me fill out the forms but still had to submit them through regular channels. They did give me a stamped copy though which my lender accepted as proof of filing.

Do you need to have an actual CPA for this? My guy has some tax credential but I don't think he's a CPA. Not even sure what the difference is honestly.

You can file complaints against any tax preparer regardless of their credentials. For CPAs, you'd contact the state board of accountancy. For enrolled agents, you'd file with the IRS Office of Professional Responsibility using Form 14157. And for any preparer who has a PTIN (Preparer Tax Identification Number), you can still file with the IRS. The important thing is documenting that they had access to the correct information and still prepared the return incorrectly. The fact that your preparer advised you on the 940/941 process and then still filed Schedule H is particularly damning since it shows they knew about both methods and still double-taxed you.

How often do these kinds of major errors happen? I always assumed professional preparers had software that would catch obvious stuff like double taxation...

Major errors like double taxation are relatively rare because most tax software does have flags for obvious issues. However, the software is only as good as the information entered into it. In this case, it sounds like the preparer entered the Schedule H without checking previous tax payments made through 940/941. Most professional offices have quality review procedures specifically to catch these kinds of errors - someone other than the preparer should review the return before filing. That's what's particularly troubling here. Either they completely skipped quality review, or whoever did it was equally incompetent. The issue with stock basis errors confirms a pattern of carelessness rather than a one-time mistake.

That's really good to know about staying compliant! Do they require anything else besides making sure all future filings and payments are on time? Like are there any special forms I need to submit annually after getting approved?

The main requirement is that you file and pay all required tax returns on time for the next 5 years after your OIC is accepted. That includes making estimated tax payments if needed. No special annual forms are required, but you absolutely must stay current on all tax obligations. They monitor this closely and will terminate your agreement for non-compliance. Also, any refunds you would have received in the year your offer is accepted will be kept by the IRS and applied to your debt (this doesn't extend to future years' refunds). Think of it as being on tax probation for 5 years - just be meticulous about following tax rules during that period.

Can confirm this helps with mortgage applications! Had a tax lien that was killing my chances of buying a home. Got on a direct debit payment plan and requested lien withdrawal through the Fresh Start provisions. My credit score jumped 85 points within two months of the withdrawal, and I was able to qualify for a conventional mortgage about 8 months later.