Thanks for bringing this up! 2019 was definitely my first year in the US - I arrived in August 2019 for fall semester. I'm certain I should have filed as a non-resident. I just wasn't familiar with US tax laws at all and TurboTax didn't really ask the right questions about my visa status.

Sounds like you're definitely right to amend then! Just wanted to make sure since I've seen people mistakenly amend when they were actually residents for tax purposes. For your first partial year in 2019, the 1040-NR is absolutely the correct form. Good luck with the amendment!

I amended my 2020 return last year and did get a refund! It took about 7 months to process but I eventually got a check for $642. The key was documenting everything very clearly and including all supporting materials.

That's really helpful to know, thanks! 7 months is a long time but still worth it if I get money back. Did you have to do anything special to follow up, or did they just process it without you having to check in?

Thanks for bringing this up! Would I qualify for an Offer in Compromise with only $2,400 owed? I always thought that was for people with massive tax debts. My financial situation isn't great, but I do have steady income - just not enough extra to pay this all at once.

There's no minimum amount required for an Offer in Compromise, but with only $2,400 owed, it might not be your best option. The application fee is $205 unless you qualify for low-income certification, and the process can take 6-24 months with no guarantee of acceptance. In your situation with steady income, a long-term payment plan is probably more practical. The IRS will likely approve a 72-month plan with payments around $40-50 per month on your balance. That's much easier to manage and doesn't require the extensive financial documentation an OIC needs.

This is so important. My roommate ignored a $1,500 tax bill for almost 2 years, and by the time they finally dealt with it, it had grown to over $2,800 with penalties and interest. The IRS even started garnishing their wages which was way worse than just setting up a payment plan would have been.

Thanks for this info! Did you end up filing Form 3520 for your TFSA, or did you go with just FBAR and 8938? I'm trying to understand what the majority of people in this situation are doing.

I initially filed Form 3520 for my TFSA for two years, following advice from my first cross-border tax specialist. It was a paperwork headache and added considerable complexity to my returns. After consulting with another tax professional who specializes specifically in US-Canada issues, I switched to reporting my TFSA on FBAR and Form 8938 only, with a note explaining the account's status. This professional provided me with several IRS memorandums and case examples supporting the position that most standard TFSAs don't meet the technical definition of foreign trusts requiring 3520 filing.

This is so frustrating! So even if I properly report the TFSA now, any interest, dividends, or capital gains inside it are still taxable for US purposes? That completely defeats the whole purpose of having a TFSA.

I've never heard of "true-up" contributions. Would that explain why ADP insists the W-2 box 12 amount is "meaningless" compared to when contributions actually hit my account?

Yes, that might explain their strange language about the W-2 being "meaningless." With true-up contributions, the employer makes additional deposits to your 401(k) to ensure you receive the full match you're entitled to, even if your own contributions were front-loaded during the year. These adjustments typically happen in January for the previous year, which aligns with what they told you about January 2024 crediting. However, for contribution limit purposes, the IRS still looks at the tax year shown on your W-2. I'd suggest specifically asking ADP if your final "contribution" was actually a true-up adjustment rather than a regular paycheck deduction.

The limit for 2023 was $22,500, but don't forget they might have both traditional and Roth 401k contributions combined in that box, or maybe there's employer matching included? Not all money in box 12 counts toward the employee limit.

Thanks for bringing this up. I did pay the Delaware annual franchise tax for 2023, but then stopped when I abandoned the LLC. Should I have formally dissolved it with the state? As for New Mexico, I've registered for gross receipts tax but didn't think about how using the same EIN might create confusion. Would filing state tax returns in NM using the same EIN potentially trigger Delaware to think I'm still active there?

Yes, you should have formally dissolved your Delaware LLC by filing a Certificate of Cancellation with the Delaware Division of Corporations. Without formal dissolution, Delaware will continue to consider your entity active and may assess annual franchise taxes and penalties for failure to file. For New Mexico, using the same EIN shouldn't automatically trigger issues with Delaware, as they're separate state systems. However, for clarity in your records and to prevent future confusion, I strongly recommend formally dissolving the Delaware entity. It typically costs around $200 to file the dissolution paperwork, which is much cheaper than continued annual fees or potential penalties. The good news is that most states allow late dissolutions, so you can still properly close the Delaware LLC even though it's been a while since you abandoned it. This clean break will help you avoid any state tax complications while you focus on resolving the federal filing requirements we discussed earlier.

Is there a way to check if the IRS has already assessed penalties for the unfiled 5472 forms? I'm worried they might have been sending notices to my old address.