Oh wow I had no idea about this! I definitely had over $10k in my Korean bank accounts... is there a deadline for this form too? Is it the same as the regular tax deadline?

The FBAR deadline is technically April 15th (same as tax day), but there's an automatic extension to October 15th - you don't need to request it. File it as soon as you can though! It's filed electronically through the FinCEN BSA e-filing system, not with your tax return to the IRS. I'd also check if you need to file Form 8938 (Statement of Foreign Financial Assets) with your tax return if your foreign accounts exceeded certain thresholds. The requirements are different than FBAR and it goes with your tax return, not separately.

I think the 2024 FEIE amount is actually $126,500, but your point still stands! Also, make sure you file Form 2555 to claim it.

Thanks for the warning! Did you have to do anything special to get it fixed when the payments stopped? Or just call the IRS? I'm definitely going to mark my calendar to check after each payment date now.

I had to call the IRS, which was a complete nightmare - took three days of trying before I got through. They claimed my bank had rejected the withdrawal (which wasn't true - my bank had no record of any attempt). They had to set up the whole payment plan again, and I had to pay an additional fee for the "reinstatement" even though it was their error. The most frustrating part was they had my current contact info but never tried to notify me until after I had technically defaulted. My advice is to check your bank account AND your IRS account online every month, and if you see any issues, deal with them immediately before they snowball.

Setting up an installment agreement before the filing deadline counts as meeting your obligation. The agreement itself is considered timely, even if the first payment comes later. There will still be some interest and smaller penalties, but you avoid the big failure-to-file penalty. It's like telling the IRS "I acknowledge I owe this and commit to paying on this schedule" rather than ignoring the debt. As long as you keep making the agreed payments, you're in compliance.

Thank you for explaining the tax implications. I hadn't even thought about how this might trigger an IRS review. Do you know if there are any legal options for small businesses to help employees with maternity leave? My employer seems to think unemployment is their only option.

Small businesses actually have several legal options to support employees during maternity leave. They can offer paid time off from their own funds (which is tax-deductible as a business expense), set up short-term disability insurance (which is relatively inexpensive), or establish a temporary flexible/remote work arrangement. Some states also have paid family leave programs that small businesses can participate in, where both employers and employees contribute small amounts throughout the year. And depending on how your employer structures your compensation, you might qualify for state disability benefits in some locations, which is completely separate from unemployment.

Is there any kind of whistleblower protection if someone reports their employer for suggesting this kind of fraud? asking for a friend...

That spreadsheet idea is really helpful! I haven't been tracking the credits that carefully. Do you think I need to go back and try to reconstruct this information for all of 2024, or is it enough to start tracking properly from now on?

You should definitely try to reconstruct the information for all of 2024 as best you can. The IRS expects you to report all income for the tax year, so you'll need to account for all the credits you received throughout the year. Start by checking any statements or documentation the company provides about your credit balance or transactions. Look through emails or your account on their system for records of sales and credits earned. If you have purchase records showing what you bought with the credits, compile those too. It's better to have incomplete records that you've reconstructed after the fact than no records at all.

This is an important point! The tax treatment can vary depending on the specific details of how these credits work and what your business relationship is with the company. If you're purchasing their products for resale, the discount approach might be valid. However, if you're simply providing a service (like sales or marketing) and receiving these credits as compensation, they're more likely to be treated as income. The key factor is whether these credits are fundamentally a payment for your services or a discount on purchases you would make anyway as part of your business.

I didn't even think to check the receipts! I'll go through them tonight. Do you know if there's any specific place on the receipt where they typically put this information? And what if the amount I paid doesn't match exactly with what they might report (if I missed some cash payments or something)?

Usually it's near the bottom of the receipt with their business information, or sometimes in the header near their logo and address. It might be labeled as "Tax ID," "EIN," or "Federal ID Number." If your records don't match their totals, don't panic! It's best to report what the provider says you paid if they give you a year-end statement. If there's a significant difference, try to reconcile it by looking through your payment methods (bank statements, cancelled checks, credit card statements). Most tax software allows you to explain discrepancies if needed. Remember, the IRS might compare what you report with what the provider reports, so accuracy is important.

Do you know if H&R Block has the same feature? That's what I use and I'm in the same boat as OP.