How do you get those transcripts? Is that something available online or do you have to request them by mail?

You can get your transcripts online pretty easily through the IRS website. Go to IRS.gov and search for "Get Transcript Online." You'll need to create an account if you don't already have one. They use a verification process that requires some personal info like a credit card number or loan account number to verify your identity. If you can't access them online for some reason, you can also use Form 4506-T to request them by mail, but that takes several weeks. The online method gives you immediate access and you can download PDFs of your transcripts right away.

Yikes, that's what I was worried about - some massive bill showing up years later with penalties. I never thought about it being a tax preparer error with similar names/SSNs. That actually makes a lot of sense! I'm definitely going to request those transcripts and submit that identity theft form. When I've called the IRS before, I feel like I never get to talk to someone who can actually see the details behind these payments. Between the transcript analysis and getting through to the right department, hopefully I can get this sorted before it becomes a bigger problem. Thanks everyone for the suggestions. This has been driving me crazy for years!

This is why I always double check SSNs when I prepare tax returns. One wrong digit can cause chaos! OP's situation is a textbook example of why tax preparers need to be careful.

Thank you for bringing up the state tax issue! I hadn't even considered that. Do you know if I should contact the state tax department now or wait until I resolve things with the IRS first?

In your situation, focus on resolving the federal CP2000 issue first. Most states won't take action until after the IRS assessment is finalized, which gives you some time. Once you've submitted your response to the IRS and have a resolution, then you can be proactive with your state tax department if needed. Just keep copies of all documentation and correspondence with the IRS, as you'll likely need the same information for the state. This approach lets you handle one tax authority at a time rather than juggling both simultaneously.

Is it better to call early morning or late afternoon to get through? I've heard conflicting advice about this.

Is there any resource that lists which states have these additional local requirements? I'm trying to be proactive but there's so much conflicting info out there.

There's no perfect single resource that I've found, but the Sales Tax Institute has a good overview of "home rule" states where local jurisdictions can administer their own sales taxes. Colorado, Alabama, Louisiana, and Alaska are the major ones to watch for. Arizona and Idaho also have some local peculiarities. The worst offender is definitely Louisiana with over 60 different local tax authorities. When you register with the state, they'll usually provide information about local requirements, but it's easy to miss if you're not paying attention to all the documentation they send.

I've used both. Avalara is more comprehensive but also more expensive and complicated to set up. TaxJar is more user-friendly for smaller businesses but might not have some of the advanced features. For just tracking economic nexus thresholds, both do a decent job, but I found TaxJar's alerts about approaching thresholds to be more helpful.

Thanks for the insight! I think TaxJar might be better for me then since I'm not that big yet. Did you find it integrated well with your existing systems? I'm using Shopify and QuickBooks.

Can you explain more about what this means? My unfiled return is just from last year, so does that affect anything?

Since your unfiled return is only from last year, you're well within the 3-year assessment period. This means the IRS has 3 years from the date you file to audit your return and assess additional taxes if they find issues. The 10-year collection statute doesn't start until taxes are assessed, which happens after you file. Once assessed, the IRS has 10 years to collect. For most people with straightforward tax situations and relatively small balances like yours, audits are unlikely. The important thing is just getting current with your filings, which you're planning to do.

Wait, there's ANOTHER form beyond FBAR and 8938?? How many of these things do we need to file for foreign money? And does the $100,000 threshold apply to inheritances too or just gifts?

Yes, Form 3520 is specifically for reporting large foreign gifts and inheritances exceeding $100,000 from a nonresident alien (like your foreign father). It's separate from the FBAR and Form 8938, which are specifically for reporting the foreign accounts themselves. The $100,000 threshold absolutely applies to inheritances as well as gifts. Many people miss this form because they focus on the FBAR requirements but don't realize gift/inheritance reporting is separate. The penalty for not filing can be 5% of the gift amount per month up to a maximum of 25%, which on your inheritance could be substantial.

I used H&R Block's expat services for an inheritance from Ireland, and it was decent but expensive (around $800). They were familiar with FBAR and Form 8938 but honestly didn't seem super knowledgeable about the specifics of Irish inheritance rules.