They never really explained it clearly. When I called back to ask questions, they just quickly said they'd cancel everything and deactivated my account. That's what made me most suspicious - like they knew they got caught doing something they shouldn't have been doing. I think I'm definitely going to do my own taxes from now on. I only went to them because a friend recommended them, but now I'm wondering if my friend actually had a good experience or if they might have had something similar happen without realizing it.

Did your son have to repay the entire refund or just the portion that was related to the fake business? I've always been curious what happens in these situations.

I've heard mixed things about the Taxpayer Advocate Service lately. Aren't they super backlogged too? I tried contacting them about 3 months ago and still haven't heard back. Do they actually prioritize cases with pending levies like an LT38?

You're right that they're backlogged, but they do prioritize cases with imminent collection actions like levies. The key is to emphasize that you have an LT38 notice with a pending levy when you call. Also, while the main line might be backed up, try calling your local TAS office directly (you can find the number on the IRS website by searching "local taxpayer advocate" and your state). I had to be persistent, but once I got assigned an advocate, they resolved my issue in about 3 weeks. They're especially helpful if you can demonstrate that the standard IRS processes have failed you or if you're facing financial hardship because of the tax bill.

That's terrifying about your bank account! I definitely don't want that to happen. Did you find that setting up the installment agreement online was pretty straightforward? And does the IRS typically approve reasonable monthly payment amounts or do they push for higher payments?

Would this also apply if changing from 1040-NR to 1040? I think I might have filed the wrong way (opposite problem from OP). Is there a time limit for fixing this?

Yes, the same general process applies when amending from 1040-NR to 1040, but the tax implications might be more favorable since resident aliens generally have access to more deductions and credits than nonresident aliens. Regarding time limits, you typically have 3 years from the original filing deadline to file an amended return. So for a 2022 tax return originally due in April 2023, you'd have until April 2026 to amend it. However, if there's a significant refund involved, I wouldn't wait - the sooner you correct it, the sooner you'll receive any refund you're entitled to.

This is so important! What countries typically have the best tax treaties with the US? I'm from Brazil and wondering if I should be looking into this.

That's a really good point I hadn't considered. Would it make a difference if I initially engaged with them thinking it was legitimate and then only set up the additional accounts after realizing it was a scam? Or is the fact that I created multiple accounts specifically to collect more money the potential issue here?

The timing and intent definitely matter. If you initially engaged in good faith and then took defensive measures after discovering it was a scam, that's more favorable than if you sought out scammers specifically to trick them. The creation of multiple accounts specifically to collect more money could potentially be seen as moving beyond simple recovery or defense into something more deliberate. This is where the legal gray area exists. It's not just a tax question but potentially a legal one about how these funds were acquired.

That's a really good point! If the money came from other victims rather than the scammers' own pockets, that would basically make OP a recipient of stolen funds, right? That definitely complicates things beyond just tax reporting.

That's really helpful info about Form 3520! I had no idea the penalties could be that severe. €37,500 is under $100,000, but if exchange rates shift or if I decide to bring over some additional savings I have there, it could potentially cross that threshold. Better to know this ahead of time than find out the hard way. Is this form something I file along with my regular tax return or is it a separate filing deadline?

Form 3520 is filed separately from your regular tax return, but it's due on the same date as your individual income tax return (including extensions). So if you file for an extension on your 1040, you also get an extension on Form 3520. Be very careful with the currency conversion rates too. The IRS wants you to use the conversion rate on the date you received the money, not when you transfer it to the US. So document the exact date you legally received the inheritance and the exchange rate on that date.

The US-Greece tax treaty doesn't provide significant advantages for inheritances specifically. For an inheritance that size (€200,000), your biggest concern should actually be proper reporting, not US taxation. You'll definitely need to file: 1. FinCEN Form 114 (FBAR) 2. Form 8938 (Foreign Financial Assets) 3. Form 3520 (since it's over $100,000) The US doesn't typically tax foreign inheritances received by US persons regardless of size, but the reporting requirements become stricter with larger amounts. The penalties for non-compliance with these forms are substantial, so I'd recommend working with a tax professional who specializes in international taxation for an inheritance of that magnitude.