What about retirement accounts in foreign countries? I have something similar to a 401k in Australia, and I've heard conflicting things about how the US treats these accounts.

Foreign retirement accounts are one of the trickiest areas for US expats. Unfortunately, unless there's a specific provision in the tax treaty between the US and your country (like there is for Canadian RRSPs), the US often doesn't recognize the tax-deferred status of foreign retirement accounts. For Australian superannuation accounts, they exist in a gray area. Some tax professionals treat them as equivalent to US retirement accounts, others report them as foreign trusts requiring complex reporting, and others treat them as regular investment accounts. Recent IRS guidance has leaned toward treating them as foreign pension plans, but it depends on your exact situation. I recommend getting specific advice on this issue from a tax professional who specializes in US-Australia tax matters, as getting it wrong can have significant consequences.

Thank you for sharing your experience! It's reassuring to hear from someone who's been through the same situation. I was definitely imagining scenarios where I'd be pulled into secondary inspection and questioned about my tax situation! Did you use the Streamlined Filing Procedures that others mentioned? And how long did the whole process take from starting to get compliant until you were fully caught up with the IRS?

Yes, I used the Streamlined Filing Procedures - it was fairly straightforward but took about 3 months from start to finish. I gathered all my foreign tax documents, bank statements, and employment records first (that was the most time-consuming part). Then I worked with a tax preparer who specialized in expat issues to complete the necessary forms. The actual filing involved submitting 3 years of back tax returns along with a statement explaining why I failed to file (I just honestly explained I didn't understand my obligations as a dual citizen living abroad). For the FBAR forms (reporting foreign accounts), I had to file 6 years worth. About 4 months after submission, I received notices confirming everything was processed. I didn't owe any taxes thanks to the Foreign Earned Income Exclusion and Foreign Tax Credits for taxes I'd already paid in the UK.

Thanks for these suggestions! Is the Bittker book still relevant with all the recent tax changes? And I've tried looking at some IRS publications but found them a bit hard to navigate - any tips on how to use them effectively?

The core principles in Bittker's book remain relevant as they explain the foundational concepts that don't change much. For the newest regulations, you'll want to pair it with current IRS publications. For navigating IRS publications, start with the table of contents rather than reading straight through. They're designed as reference materials. Publication 17 has a great index - identify what topics you're interested in and jump to those sections. Also, the IRS website has a "Tax Topics" section that organizes publications by subject matter which makes finding relevant information much easier.

Free resources are great, but they're often overwhelming for beginners. I tried starting with the free stuff and got lost quickly. Sometimes a well-organized book that builds concepts systematically is worth the money.

I actually tried this already but unfortunately the company I worked for in 2018 was bought out in 2020 and the new owner purged a lot of the old records. They told me they only kept the "legally required minimum" which apparently didn't include my 2018 W-2. Really frustrating since this would've been the easiest solution!

That's definitely frustrating! In that case, your next best option is to request a Wage and Income Transcript from the IRS, which will show all reported W-2 information. This is different from the Tax Return Transcript you tried to access online. You can request this specific transcript using Form 4506-T (check box 8 on the form). Even though the online system only goes back to 2020, the IRS can provide Wage and Income Transcripts going back 10 years when requested via mail or fax using this form. This would show exactly what was reported to them on your W-2, including state withholding information.

This is not entirely accurate. While the burden of proof does shift in certain circumstances, the general rule is that taxpayers bear the burden of proving their income, deductions, and credits. If the state is claiming you had income but paid no tax, they usually have some evidence of the income (like W-2 reporting) but are claiming you never filed or paid. The statute of limitations point is valid though - worth checking your state's specific rules.

Have you noticed any difference between tax prep software? Like does using TurboTax vs H&R Block vs FreeTaxUSA change how fast the IRS processes things?

I haven't noticed any consistent difference in processing speed between tax software options. I've used TurboTax, H&R Block, and FreeTaxUSA over the years, and the refund timing seemed to depend much more on when I filed and what was on my return rather than which software I used. All the major tax software providers use the same electronic filing system to submit to the IRS, so once your return is accepted, the processing time should be the same regardless of which program you used to prepare it. The IRS doesn't prioritize returns based on which software was used.

Totally agree. And the really annoying thing is when it says "We cannot provide any information about your refund" and tells you to call, but then when you call they just tell you to check the website. It's a never-ending cycle of frustration!

This is exactly what I'm worried about. I don't want to accuse my customer of anything, but the $9,500 amount seems specifically chosen. How do I protect my business while still maintaining the customer relationship? Should I just tell them I have to file the forms regardless of the payment amount since it's a single debt?

Yes, you should absolutely be transparent with your customer. Explain that since the payments are all related to a single debt, you're required to file Form 8300 regardless of the individual payment amounts. Make it clear this is a legal requirement for your business. If they're legitimate, they'll understand. If they suddenly change their mind about the payment plan or get upset, that's a huge red flag. Remember, filing Form 8300 is just information reporting - it doesn't mean your customer is doing anything wrong, but failing to file when required can result in serious penalties for YOUR business.

I file them regularly for my jewelry business. It's not terrible - basic info about your business, the customer (name, SSN/tax ID, address), and transaction details. You can e-file through the BSA E-Filing System. The trickiest part is knowing WHEN you need to file, not actually completing the form.