17 Do you know how long it typically takes for amended returns to be processed? I'm in a similar situation and worried about how long I'll be in tax limbo.

5 Right now amended returns are taking approximately 16-20 weeks to process according to the IRS website. However, in my experience with a similar situation, it took closer to 6 months because they had to process both years together. I recommend filing the amendments electronically if possible because paper amendments take even longer. Also, make sure you don't file your actual 2020 return until the amendments are fully processed, or it might create further confusion. You can request an extension if needed to give time for the amendments to clear the system.

9 I used the Taxpayer Advocate Service last year for a similar issue. You need to demonstrate that you're facing "significant hardship" as a result of the IRS delay. In my case, I was being denied a mortgage because of the incorrect tax filing. The advocate was helpful, but it still took about 2 months to resolve after they got involved. You can request assistance through Form 911 or by calling them directly.

2 Thanks for sharing your experience. My situation might qualify as a hardship since I'm unable to get approved for student loans because of this tax filing mess. I'll look into Form 911. Did you submit yours online or did you have to mail it in?

That's really helpful info! My AGI is around $95k so it sounds like I would qualify. Do I need to do anything special to claim these losses, or does it happen automatically when I file Schedule E?

It should flow through automatically when you complete Schedule E and Form 1040. The key is that you need to be "actively participating" in rental management decisions (which it sounds like you are). The tax software should handle this calculation, but just make sure the loss from Schedule E is being applied against your other income on your 1040. One caveat - if you use a property manager and aren't making most of the management decisions yourself, you might not qualify as "actively participating," so keep that in mind.

And remember that if you do keep part of the pet deposit for damages when a tenant moves out, you can offset that income with the actual cost of repairs! So if you keep $300 of a deposit but spend $300 fixing chewed baseboards, it's a wash for tax purposes.

Woah, that sounds complex and potentially expensive. So how do you determine if your foreign LLC is considered a corporation for US tax purposes? Is that something I actively choose or does the IRS decide for me?

By default, a foreign LLC with a single owner is treated as a disregarded entity (essentially a sole proprietorship) for US tax purposes, unless you elect otherwise. If there are multiple owners, it's typically treated as a partnership. You can file Form 8832 to elect corporate treatment if that's beneficial for your situation. The key thing to understand is that the US tax classification might be completely different from how your entity is classified in the foreign country. So your "LLC" abroad might be treated as something entirely different by the IRS. This is why getting proper advice early is crucial - the filing requirements and tax treatment vary dramatically based on the classification.

Yeah, this is a common problem. Many foreign banks don't want to deal with US citizen customers because of the FATCA reporting burdens. I had to shop around in Thailand to find a bank willing to work with my company. Usually larger international banks are more willing to deal with US citizens than smaller local ones.

Thanks for the info. I'll check with some of the bigger banks here. It's super frustrating that being a US citizen makes banking so difficult abroad even when I'm legitimately running a business in another country where I also have citizenship.

Thanks for mentioning Form 4852 - I didn't know that was an option! Does it work the same for 1099-MISC as it does for W-2s? And did you still need to attach an explanation letter or did the form itself cover everything?

Form 4852 works for both W-2s and 1099s, though it's more commonly used for W-2s. The form itself includes sections where you explain the discrepancy and how you calculated the correct amount. I still attached a short explanation letter with mine just to be extra clear, along with copies of my invoices and bank statements showing the actual payments received. Better to provide too much documentation than not enough when you're contradicting what's been reported to the IRS.

I work in government accounting and can confirm this happens ALL THE TIME. Our fiscal year is different from the calendar year and our ancient software regularly messes up 1099s because of December/January payment processing. Always worth asking if this is what happened.

That's terrifying! I'm not looking at partnership yet, but what questions should I be asking when the time comes to make sure I don't get blindsided? And should I have both a CPA and attorney review any practice buy-in?

You absolutely should have both a healthcare-specialized CPA and attorney review any practice buy-in agreement before signing. The key questions to ask include: How are accounts receivable valued and taxed? Is the buy-in structured as stock or asset purchase? What's the allocation between goodwill (capital gains tax rate) versus other assets (ordinary income tax rate)? What retirement plan obligations am I assuming? Always get a pro forma tax return showing the estimated tax impact of the transaction before proceeding. Many physicians focus only on the monthly payment amount without understanding the tax consequences, which can sometimes double the effective cost of the buy-in.

This is really important. I got individual disability insurance during residency (cheaper when you're young) with specialty-specific language. My colleague waited until attending salary and not only pays 3x what I do, but had developed mild hypertension by then, resulting in a policy exclusion for any cardiac-related disability. Terrible situation to be in as a surgeon.

Exactly right. Purchasing disability insurance during residency or fellowship is one of the smartest financial moves physicians can make. The premiums are significantly lower when locked in at a younger age, and you're more likely to qualify for clean coverage without exclusions before developing the common health issues that come with age and medical practice stress. The specialty-specific language is absolutely critical. The difference between a policy that pays if you can't perform your specific surgical specialty versus one that only pays if you can't work as any type of doctor can literally be millions of dollars over your career. It's one area where physicians should never cut corners or delay.