I like "The Real Estate CPA" channel. They have awesome videos specifically about rental property tax strategies and explain things clearly without too much jargon. Their series on cost segregation studies saved me thousands on my rental properties.

Thanks for the recommendation! I'll definitely check out The Real Estate CPA channel. I agree that videos can sometimes make complex topics easier to understand than text. It helps to see someone work through examples step by step.

Great point! I definitely need current information. Do you have any recommendations for resources that are updated regularly?

The J.K. Lasser guides mentioned earlier are updated annually, so that's a safe bet. The "Income Tax Guide for Investors" by Michael Zhuang is also updated each year and has good real estate sections. If you want something that's constantly current, the Kiplinger Tax Letter is a subscription service that sends updates whenever tax laws change. A bit pricey but worth it if you're managing multiple properties and need to stay on top of changes.

Thanks for sharing your experience! Did you have any issues with the IRS questioning your Bona Fide Residence status since you were still in the US for almost half the year? And did you have to pay US taxes on the portion of your income earned while physically in the US?

I did initially get some questions from the IRS about my Bona Fide Residence status. What helped my case was having documentation showing I was paying taxes in Hungary, had a permanent residence there (rental agreement), maintained local bank accounts, and had community ties (memberships in local organizations). The key factor that seemed to satisfy them was that my life was clearly centered in Hungary, with US visits being temporary. Yes, I absolutely had to pay US taxes on income earned while physically working in the US, even though it was for my Hungarian employer. I tracked my work days by location and reported accordingly. I used a time-tracking app that logged my IP address to help document where I was working each day, which was helpful documentation.

Form 8833 isn't always required though. The instructions specifically say you don't need it for claiming foreign tax credits or the foreign earned income exclusion. You only need it for treaty positions that aren't already covered by existing forms.

You're right about Form 8833 not being required for standard foreign tax credits or the FEIE. I should have been more specific - I was thinking about treaty-specific provisions that might help in a split residency situation, particularly the "tie-breaker" rules that determine which country has primary taxing rights when you're technically a resident of both. For example, if both the US and Poland consider you a tax resident under their respective domestic laws, the treaty's tie-breaker provisions would determine where your primary tax residence is. Claiming that type of treaty benefit typically does require Form 8833. This became relevant in my case because Germany considered me a tax resident based on my having an apartment there, even though I didn't meet the US FEIE requirements that year.

This is actually really helpful advice I hadn't considered. Do you happen to know the best contact method for reaching OPR anonymously? Would this be instead of filing Form 14157 or in addition to it?

You can reach the Office of Professional Responsibility through their general line at 202-317-6897. While they'll ask for your name, you can explain that you're seeking initial guidance without filing a formal report yet. They're accustomed to preparers calling for ethical guidance. This would be a step to take before filing Form 14157. The benefit is that they can help you understand whether the situation warrants formal reporting and what specific documentation would strengthen your case. They might also suggest alternative approaches depending on the details. After speaking with them, you can make a more informed decision about proceeding with the formal 14157.

This is so true. I reported a similar situation to my state's Department of Revenue preparer division and they actually took action within weeks, while the federal complaint was still sitting in the queue. State agencies often have more bandwidth for these cases!

This is the clearest explanation I've seen! Quick follow-up: does this mean if my tax bill was only $500 before the credit, I'd only get $500 of benefit from the $670 credit since it can't go below zero?

That's exactly right! If your tax bill was only $500 before the credit, you'd only get $500 of benefit from the $670 credit, not the full $670. The remaining $170 would essentially be "lost" because non-refundable credits can't reduce your tax liability below zero. This is why refundable credits (like the Earned Income Credit or Additional Child Tax Credit) are more valuable for lower-income taxpayers - they can actually give you back more than you paid in.

Can confirm. I used FreeTaxUSA this year and claimed the Retirement Savings Credit with their free version. Only had to pay like $15 for state filing. TurboTax wanted $120+ for the same exact thing.

This is really helpful! When I respond, should I send copies of all my documentation or just the specific records related to the discrepancies they found?

Only send copies of the specific documentation that directly addresses the discrepancies mentioned in your CP2000. Sending too many unrelated documents can actually confuse the review process and potentially delay resolution. Make sure each document you send clearly relates to a specific item they're questioning. I like to use a cover letter that lists each discrepancy and exactly which supporting documents address each one. This makes it easier for the IRS agent reviewing your case to connect your evidence to their questions.

I've never heard of an extension request being denied if you ask before the deadline. The IRS is generally reasonable about giving people time to gather documentation. The problem comes when people ignore the notice entirely or wait until after the deadline to ask for more time.