Thanks for sharing your experience! Do you think having the previous counter offer will help his case? Also, did you have to provide any special documentation that might not be obvious?

The previous counter offer is absolutely golden - it shows the IRS was already willing to settle. He should definitely include all documentation from that previous interaction and reference it prominently in his new submission. As for non-obvious documentation, medical bills were huge in my case. The IRS allows for necessary medical expenses, but most people don't document them thoroughly enough. Have him gather EVERY prescription, doctor visit, and medical expense for the past year. Also, if he has any unusual expenses that aren't on the standard IRS forms (like caring for an elderly parent, special education needs for children, etc.), he needs to document these with receipts and explanations. The IRS can be surprisingly reasonable about legitimate unusual expenses if they're properly documented.

What tax software would you recommend for someone wanting to DIY an Offer in Compromise? Can regular software like TurboTax handle this or do you need something special?

I used TaxSlayer last year and it doesn't have OIC forms. Had to do those manually. Not sure about other programs though.

Thanks for this explanation. Does this mean I've been doing something wrong the past few years? Will this cause problems when I apply for OPT after graduation?

If you've had mixed income (both W-2 and treaty-exempt 1042-S) and didn't report the 1042-S income on your returns, you might want to consider filing amended returns. The good news is that if you didn't owe additional tax (because the income was truly treaty-exempt), you likely won't face penalties other than possibly interest on late payments if any portion was actually taxable. As for OPT applications, USCIS doesn't typically verify tax compliance for OPT specifically, but they may check this for later immigration benefits like H-1B or permanent residency. They're mostly concerned that you maintained status and followed visa regulations. If you're worried, consulting with an international tax specialist would be worthwhile before your OPT application.

Does Glacier work for alumni too? I graduated last year but still got a 1042-S for a final scholarship payment in January.

I definitely didn't opt in voluntarily - I would remember something like that. And I've been at the same address for 3 years now, so it's not a mail forwarding issue. I'm starting to think maybe there was an attempted fraud with my info that I never knew about. I'm going to try calling that specialized unit tomorrow morning. If that doesn't work, might try that Claimyr service people mentioned. I just want to get my taxes filed at this point!

That makes sense - if you didn't opt in and haven't moved, then it's likely either an attempted fraud or an IRS system error. The specialized unit should be able to straighten it out pretty quickly once you reach them. One more tip: if you've created an IRS online account, sometimes you can access your IP PIN there without having to wait for mail or phone calls. Might be worth checking if you already have an account set up on irs.gov.

I used it successfully about 3 weeks ago! It's much better than last year. They've streamlined the identity verification process. You'll need a credit card (doesn't get charged, just for verification), a mobile phone in your name, and an email address. The whole process took me about 10 minutes, and I got my IP PIN immediately on screen and via email. No waiting for snail mail. Definitely worth trying before spending hours on the phone.

Thank you so much for this! I didn't know we could check our transcripts online. Is it hard to set up an account? And will it show all three stimulus payments or just the $1400 one?

Setting up an IRS account isn't too difficult, but you need to verify your identity with some specific documentation. You'll need a photo ID, social security number, tax filing status, mailing address from your last return, and some financial account that can be verified (like credit card, mortgage, loan, etc.). The transcript will show all stimulus payments you received, not just the $1400 one. Look for the 766 code with dates in 2020 and 2021. The first payment was $1200, second was $600, and third was $1400. If you're missing any, that's what you would claim on an amended return for the appropriate tax year.

I filed my amended return in January for the missing stimulus and just got my refund last week, so about 5 months total. The online status never updated though! It still says "processing" even though I got my check already. The IRS systems are super behind on updates.

Wait, really? I didn't know CPAs could be forced to testify. Does that mean anything I tell my CPA could be used against me if I accidentally did something wrong on my taxes?

It's a bit more nuanced than that. CPAs do have a limited privilege in certain non-criminal tax matters, but it's not as broad as attorney-client privilege. Generally, if criminal tax issues are involved, a CPA can be compelled to testify. This doesn't mean you should be worried about normal tax planning discussions with your CPA. For typical tax preparation and planning, this distinction rarely matters. It only becomes important if there's potential criminal tax evasion or fraud involved. For most people with legitimate tax questions or mistakes, this isn't something to worry about.

This matches my experience too. My CPA charges $200/hr for business consulting but my tax attorney was $450/hr when I needed help with an IRS dispute. The attorney was worth it though because they got the penalties reduced significantly.