Would you say it's better to focus on understanding the big picture of how entities relate to each other first, or to get into the details of tracking specific transactions? I'm also struggling with this area.

Start with the big picture of entity relationships and the overall consolidation workflow. Understanding the hierarchy and how information flows between entities gives you the framework needed to then tackle specific transactions. Once you have that foundation, you can focus on specific areas like tracking inter-company transactions, which is often the most complicated part. But without understanding the entity structure first, the transaction details won't make sense in context.

Agreed! Working with payroll saved me during our last audit. They had reports that linked each employee's bonus accrual to the actual payment date, which was exactly what the IRS wanted to verify.

Did the state board help you get any compensation for the extra taxes you paid or did they just discipline the CPA? I'm worried about the time and expense of going through the complaint process if we don't get any actual money back.

The state board only handled the disciplinary action against the CPA - they don't have the authority to order financial compensation. However, filing the complaint created documentation that helped when I filed amended returns with the IRS. It strengthened my case that the errors weren't my fault. For getting money back, that happens entirely through filing amended returns with the IRS. My new accountant handled that process. I did end up suing the original CPA in small claims court for the fees I paid him plus the costs of having the returns corrected, and I won that case. The disciplinary action from the state board was helpful evidence in that lawsuit.

Does anyone know if filing amended returns increases your audit risk? I've always been scared to amend my returns even when I find mistakes.

I moved from New York to Florida last year specifically for tax reasons. Saved me about $12,000 in state income tax alone. BUT there are serious considerations beyond just the tax savings. Florida has higher insurance costs, and the culture shock was bigger than I expected. Also, you need to be really careful to establish proper domicile in your new state - the high-tax states are aggressive about auditing people who claim to have moved.

This is really interesting! Would this work for regular W-2 employees though? I don't have control over when my employer pays me, but I do make charitable donations. Would bunching them actually help if I don't have enough other deductions to itemize?

It's more challenging for W-2 employees, but you still have options. While you can't control your regular paychecks, you might have some flexibility with bonuses or by adjusting your W-4 withholding toward the end of the year. Regarding charitable donations, bunching absolutely helps if it pushes you over the standard deduction threshold. For 2025, the standard deduction is projected to be around $14,000 for single filers and $28,000 for married filing jointly. If your itemized deductions (including state/local taxes, mortgage interest, and charitable giving) would normally be just below the threshold each year, bunching two years of donations into one year could push you over the limit, allowing you to itemize in that year and take the standard deduction the next.

Thank you for sharing your real experience! That's exactly the kind of insight I was hoping for. Can I ask how you found out what type of audit you were facing? Is it clearly stated in the initial letter from the IRS?

Yes, the IRS notification will specify what type of audit it is. For correspondence audits, you'll get a letter asking for specific documentation on certain items. For office audits, they'll request you come to an IRS location. For field audits, they'll propose coming to your home or business. The type of audit often indicates how serious the IRS considers the examination. Correspondence audits are usually for simple matters, while field audits suggest they're looking more comprehensively at your situation. That's why the field audit is where I decided having an attorney made sense - the stakes and scope were much higher.

Do you know if these professionals typically charge flat fees for audit representation, or is it always hourly? And does complexity of the return affect their rates?

This is a great suggestion! Do you know if they can help remotely? I'm now in Singapore so I can't exactly show up in person at my old university.

Most VITA programs adapted to remote assistance during COVID and many have kept that option available. You'd need to schedule a video appointment and provide your tax documents electronically. I've seen several universities explicitly offering remote VITA services for their international alumni who have returned home. Contact your former international student office first - they typically maintain relationships with the VITA programs most experienced with nonresident/resident tax transitions and can direct you to programs offering remote help. They might even have specific contacts who specialize in substantial presence test issues.

This is only partially correct. The exemption is limited to 5 calendar years for F-1 students (2 years for J-1 trainees). If OP was in the US for undergrad AND grad school, they likely exceeded this exemption period, which is why SprintTax is correctly identifying them as having passed the substantial presence test.