can tax professionals request ip pins for clients? my accountant mentioned something about that but im not sure if that applies to this situation

Tax professionals cannot request IP PINs specifically for clients - the IRS issues them directly to taxpayers either because they've been victims of identity theft or because they've voluntarily opted into the IP PIN program. However, tax professionals with proper authorization (Form 2848 Power of Attorney) can contact the IRS on behalf of clients to resolve account issues, including IP PIN problems. They have access to the Practitioner Priority Service, which often has shorter wait times than the regular taxpayer hotline. If your accountant suggested they could help, they probably meant using their professional channels to contact the IRS about your situation, not actually requesting a PIN themselves.

Thanks for this specific advice! Do you remember how long it took from when you called this special number until you were able to successfully file your return? I'm getting really worried about missing the deadline.

It was pretty quick once I got through to the right department. I called on a Tuesday, they verified my identity and cleared the flag in their system during that call, and I was able to e-file successfully the next day. They also provided documentation showing I had been working to resolve the issue in case there were any questions about filing deadlines. If you're getting close to the deadline and still can't resolve it, make sure to file Form 4868 for an automatic extension. That will give you until October to file the actual return without late filing penalties. Just remember an extension to file isn't an extension to pay, so if your mom will owe anything, she should estimate and pay that amount when filing the extension.

Be careful about hiring CPAs through random reddit recommendations. Always check their credentials and reviews online first! No offense to the person above, but there are a lot of scams out there.

What about companies that are already cutting R&D specifically because of this tax change? I've seen several businesses in our industry reducing US-based research and moving more overseas because of this issue. Doesn't that defeat the purpose of encouraging innovation?

You're absolutely right that the tax change is having unintended consequences. I have clients who are shifting R&D to countries with more favorable tax treatment, like Canada and the UK, which offer refundable R&D tax credits on top of immediate expensing. This is exactly why there's bipartisan interest in fixing it. The original change was never about discouraging R&D - it was a revenue raiser to offset other tax cuts in the 2017 bill. Many legislators from both parties have expressed concern about the competitiveness impact. But tax policy often moves slowly, especially with divided government. Companies have to make decisions based on current law while advocating for changes. It's a challenging balance.

Great question - it varies by state. Many states use federal taxable income as their starting point, so they automatically adopt federal treatment unless they specifically decouple. California partially conforms to federal tax changes but has its own R&D credit that remains very favorable. Massachusetts has decoupled from this specific federal change, allowing immediate expensing of R&D for state tax purposes. Check with your specific states, but this is an area where you might get some relief at the state level even while the federal issue remains unresolved.

Thanks so much for this breakdown! You're right, it's just a one-time workshop so probably easier to just fill it out. Do you know if I need to include my SIN number on the form? I'm always hesitant to share that with organizations outside Canada.

Yes, unfortunately you do need to include your SIN as your "foreign tax identifying number" on the form. I understand the hesitation, but it's a requirement for treaty benefits. If it helps ease your mind, legitimate US organizations (especially non-profits) are required to maintain confidentiality of tax identification numbers under IRS regulations. They need your SIN to properly report the payment to the IRS, so there's no way around providing it if you want the treaty benefits.

Artists also have some special provisions in the US-Canada treaty. If you're selling artwork rather than providing a service like teaching a workshop, different rules might apply. The distinction matters for tax purposes.

I had no idea I might qualify for those credits! Do they apply even if I'm self-employed? And how do they interact with the self-employment tax?

Yes, they absolutely apply to self-employed people! Self-employment income is earned income, so it counts for the EITC calculation. The Child Tax Credit and Child and Dependent Care Credit are available regardless of how you earn your income. These credits don't reduce your self-employment tax directly, but they reduce your overall tax bill. The EITC is even refundable, meaning you can get money back even if you don't owe income tax (though you'd still owe the SE tax).

My accountant advised against S-Corp until hitting at least $80k in profit consistently because the added costs of payroll services and additional tax forms can eat up the savings at lower income levels. Worth getting professional advice on this one!