Good point! I'll ask her to look at her W-4. She started this job last January and I'm wondering if she just filled something out wrong when she started. Is there an easy way for her to check what she put on the form?

She can ask her HR department or payroll provider for a copy of her current W-4 on file. Most employers will readily provide this. She can also just look at her pay stub - it usually shows the withholding status or at least the amount being withheld (which in her case would be $0). While she's at it, she should file a new W-4 right away. The form was completely redesigned a few years ago and no longer uses allowances. Instead, it has a more straightforward worksheet approach. The IRS also has a Tax Withholding Estimator tool on their website that can help her figure out exactly what to put on the new form.

This! Head of Household status is huge for single parents. The standard deduction for 2024 is $20,800 for HOH vs just $13,850 for single filers. That's a $6,950 difference which could save her over $800 in taxes!

So I can just go to the IRS website and make a payment even though my account doesn't show any balance due yet? Will they know what to do with my money if I don't have any payment plan details or account numbers?

Yes, you can absolutely make a payment even if your balance isn't showing yet. The IRS can match payments to your tax account using your Social Security Number, tax year, and payment type. When you go to the IRS Direct Pay website, you'll select the tax year, the reason for payment (select "extension" or "balance due"), and enter your identifying information. The system will know what to do with your payment even without specific payment plan details. The most important thing is to get some payment in before the deadline to reduce the penalties and interest that are starting to accrue.

This is such an important point! Different states have different rules about extensions. Some automatically grant a state extension if you get a federal one, some require a separate state extension form, and the deadlines can vary too.

That's exactly what worries me - what else are they missing? The firm has been around for decades and has a good reputation locally, but they might not have enough trust experience. Do you think it's worth having someone do a comprehensive review of all the past returns, or would that cost more than it's worth given the dollars involved?

A comprehensive review could be expensive, potentially costing more than you'd recover. A practical approach might be to have another firm do a focused review looking only at common trust tax issues like the US Obligations, proper allocation of deductions, and correct classification of distributions. Explain the situation and ask for a limited review rather than a full audit of past returns. Focus on the last 3-4 years since those are still amendable. The review might cost $500-800, but if they find additional errors, it could pay for itself. Plus, it gives you peace of mind about other potential issues. Either way, I'd seriously consider finding a new accountant with more trust experience for future returns.

Not OP but this is super helpful. I'm also a trustee and never heard of the 65-day rule. Can you explain what that is? My accountant has never mentioned it.

I actually looked into wiring the money, but there are some complications. The banking system in Nicaragua isn't well connected internationally, and my aunt doesn't have a bank that can easily wire to the US. Plus the fees were crazy high - like 8% of the total amount. That's why I'm considering just bringing cash, even with the extra paperwork.

That makes sense - some countries definitely have banking limitations. If cash is your only reasonable option, then definitely follow all the advice about proper documentation. Make sure to keep the cash secure during travel too - consider a money belt or other secure option rather than just keeping it in your luggage. One other tip - once you're back in the US, don't be surprised if your bank asks a lot of questions when you deposit the cash. Banks have their own reporting requirements for large cash transactions, and they might request some of the same documentation you prepared for customs. Just be transparent about everything.

I brought back around $18k from selling my deceased mother's home in Mexico last year. They took me to a separate room, had me fill out the FinCEN form, and then questioned me for about 45 minutes about the source of the funds. They called the number I provided for the real estate agent in Mexico to verify parts of my story. They also took pictures of all the documentation I brought (deed of sale, my mother's death certificate, etc). It was intense but professional. The key was having solid documentation - I saw someone else there with a similar amount who couldn't properly explain where it came from, and they were having a much harder time.

This happened to me too! They had my address right but the last 4 digits of the SSN were wrong. I wouldn't have even noticed if I hadn't double-checked everything. Definitely look at all the identifying info carefully.

This is so important - ignoring IRS notices is the worst thing you can do. My dad thought a letter was a scam and ignored it... ended up with a $2,500 tax bill that grew to over $4,000 with penalties and interest before he finally dealt with it. The IRS doesn't just "forget" about these things!