That's incredibly risky advice. The IRS has up to 6 years to audit returns with substantial underreporting and potentially unlimited time if they consider it fraudulent. Just because nothing happened yet doesn't mean you're in the clear.

You're right - I wasn't trying to suggest OP should ignore the issue. I was just sharing what happened in my specific case. The statute of limitations is definitely 3 years for most situations, but as you said, it can be longer for substantial underreporting. In my case, the amount was small enough that it wouldn't have triggered the substantial underreporting threshold (which is typically 25% of gross income).

Thank you so much for mentioning this! I hadn't even thought about the state implications. Would this apply even though I'm filing a 1040-NR for federal? Do non-residents generally need to file amended state returns too?

Would those services be cost-effective for a small business with just occasional international sales? I'm concerned about spending more on compliance than the actual value of the sales.

For very occasional international sales, most of these services might not be cost-effective since they typically charge monthly subscription fees designed for businesses with regular international transactions. For your situation with just one small transaction, you might want to look at per-country filing services that charge one-time fees, or consult with an accountant who specializes in international tax to weigh the cost of compliance against the risk of non-compliance. Some businesses choose to hold off on formal registration until they reach a higher volume of sales in a particular country, but this approach does carry some compliance risk.

I used them last year for our company. Pretty decent service and they do handle everything in English. Their customer service is hit or miss though - sometimes took days to get a response. But they did get everything filed correctly and on time.

This is a really important point. I've seen families torn apart over this exact issue. Sometimes the parent is claiming the child for benefits even though grandparents are doing the caregiving. Worth having an honest conversation before tax time.

Thanks so much for sharing your experience! That's really reassuring. Do you remember if the IP PIN section comes before or after the AGI verification part in the H&R Block desktop software?

The IP PIN section typically comes after the AGI verification in the H&R Block software. They're both part of the e-filing preparation process, but they're in separate sections. The software will first ask for your prior year AGI as part of the general identity verification, and then later in the process (usually during the final review before submission) it will prompt you for your IP PIN if you indicate that you have one. Just follow the prompts sequentially and you'll be fine!

This is so true! I made this exact mistake last year and my return got rejected. I was using my 2023 PIN for my 2024 return without realizing they change every year. Had to request a new one and it delayed my refund by almost 3 weeks.

This is super helpful! Do you keep physical receipts too or just the ledger? And has your accountant mentioned any specific percentage of their income that should remain in their accounts vs being spent?

I keep digital copies of major receipts (like the big gymnastics/sports payments) but just note the small stuff in the ledger. My accountant never mentioned a specific percentage that needs to stay in their accounts. The key thing is the money should be used for their benefit - whether that's current expenses or saving for their future. There's no rule about how much needs to stay in the account. In fact, using a good portion for their current needs actually strengthens the case that this is legitimate income that belongs to them, not just a tax scheme.

This is so true! My tax guy says document EVERYTHING - take pics of your kids working, keep timesheets, and pay market rates. Nothing raises red flags faster than overpaying family members.