Would you recommend discussing this issue with the accountant's supervisor? Or is it better to just move on to a new tax professional at this point?

I'd definitely escalate this to a supervisor or the firm's partner. A mid-5-figure refund being handled differently than expected without client consultation is a serious customer service issue. Explain calmly that this decision has significant financial implications for you, and you expect them to help resolve it, including assistance with filing the amended return. If they're still dismissive after escalation, that's when I'd definitely move on to a new tax professional. A good accountant should be willing to explain their decisions and help fix issues when they arise. Also, be sure to get clear communication about their standard procedures before next tax season, regardless of which firm you use.

This is actually good advice. I adjusted my W-4 last year to have less withheld and get more in each paycheck instead of a big refund. It's made a huge difference in my monthly budget!

That's a fair question. We had some unusual circumstances last year - I received a large bonus that had mandatory 37% withholding, plus we sold some property but had significant basis in it so the withholding ended up being much higher than the actual tax due. We normally try to get our withholding pretty close to what we'll owe. You're absolutely right though - going forward we're adjusting everything to prevent this situation. I just need to solve the immediate problem of getting this year's refund back rather than having it applied to estimated taxes.

Are the Taxpayer Assistance Centers open now? I thought a bunch closed during covid and never reopened?

Yes, most Taxpayer Assistance Centers have reopened, but they operate by appointment only. You can't just walk in anymore. You need to call the IRS appointment line at 844-545-5640 to schedule a visit. The appointment system is actually better than the old walk-in system because you don't have to wait for hours. Just make sure to call at least 2-3 weeks before you want to go because appointment slots fill up quickly.

Not everyone can get certified copies from their consulate though. Some countries' consulates don't offer that service or have really limited appointments. I had to use an acceptance agent because my country's consulate is on the other side of the country from where I live.

Why does tracking home improvements matter for taxes? I thought those weren't deductible?

Home improvements aren't deductible yearly, but they increase your home's "cost basis." When you eventually sell your home, you'll pay capital gains tax on the difference between your selling price and your basis. Your basis is your purchase price PLUS the cost of substantial improvements. So tracking those improvements could save you thousands in capital gains tax when you sell. For example, if you buy at $400K, add $50K in improvements, then sell for $600K, you're only taxed on $150K of gain instead of $200K.

This is good advice but I thought there were income limits for taking the IRA deduction if you have a workplace 401k?

Can you still file Form 4852 if you've already received a W-2, but it's just missing the ISO income? And how do you calculate exactly how much should have been included? My company got acquired in 2024 too and I'm facing the exact same issue.

Yes, you can still file Form 4852 even if you received a W-2 that's incomplete or incorrect. The form specifically allows for situations where your employer issued a W-2 but it's missing information or has incorrect amounts. For calculating the ISO income, you'd take the number of ISO shares that were cashed out, multiply by the difference between your exercise price and the acquisition price per share. So if you had 1,000 ISOs with a $5 exercise price that were cashed out at $15 per share, you'd have $10,000 of ordinary income that should have been included in your W-2. You'd add this amount to what's already reported in Box 1 of your W-2 when completing Form 4852.

Thanks for mentioning the AMT angle - I hadn't even thought about that! So just to confirm, since my ISOs were automatically cashed out as part of the acquisition (not exercised and held), I shouldn't have to worry about AMT implications at all? That would be a huge relief. One more thing - should I be receiving any other tax forms for this transaction besides the W-2? Like a 1099-B or anything like that? I'm worried I'm missing something important.

Correct - since your ISOs were cashed out immediately as part of the acquisition (a disqualifying disposition), you won't face AMT implications. AMT issues with ISOs typically only arise when you exercise ISOs and continue to hold the resulting shares through the end of the calendar year. You typically wouldn't receive a 1099-B for this transaction since it was handled through the acquisition process rather than through a brokerage. The income should be reported on your W-2. However, for the portion you received in acquiring company stock, when you eventually sell those shares, you would receive a 1099-B for that transaction. Make sure you keep documentation of the value of those shares when you received them to establish your cost basis.

Do you know if there's a deadline for filing the Form 843 for FICA refunds? I just realized my employer was withholding these taxes during my OPT period last year.

Yes, there's definitely a deadline. You need to file Form 843 for FICA tax refunds within 3 years from the date you filed your income tax return for that year, or within 2 years from the date you paid the taxes, whichever is later. Since you're talking about last year's taxes, you have plenty of time, but don't put it off too long. The documentation requirements can be strict, and you want to submit while you still have easy access to all your visa and employment records.

I did mine myself last year and regretted it. Took me forever to figure out how to fill out Form 843 correctly and my claim was rejected twice for small errors. First time was because I didn't include a statement from my employer, second time because I didn't properly document my visa status. The specialized software is worth it IMO.