So wait, if your amended return actually gets processed and accepted, you have to keep amending going forward? You can't just call the IRS and say "nevermind, use my original"? That seems weirdly inflexible.

Exactly - once the IRS processes and accepts an amended return, it becomes your official return of record. Your original return is essentially overwritten in their system. The IRS doesn't have a "just kidding, go back to the original" option. They can only move forward with processing additional amendments. It's one of those bureaucratic things that makes sense from a record-keeping perspective but is super frustrating for taxpayers who realize they made a mistake on their amendment.

I ignored a rejected amended return in 2023 and nothing bad happened. My original return remained in effect, got my refund from that with no delays, and never heard anything from the IRS about it. Just make sure you actually got a formal rejection and not just a math error notice or something else.

Terrible advice. The IRS computers automatically match ALL W-2s against your filed return regardless of amount. Skip it and you're pretty much guaranteed to get a letter demanding the additional tax plus interest and penalties. The system is fully automated for this kind of matching, it's not about them "choosing" to come after you.

You're probably right, and I wouldn't recommend anyone else do what I did. I got lucky that year, but it's not worth the risk. The IRS matching system doesn't catch everything immediately, so sometimes issues like this can surface years later with added penalties. Better to deal with it properly upfront rather than potentially having a bigger headache down the road.

Great question! The reason tax professionals generally advise reporting it is because the IRS has already received a copy of that W-2. If you don't report it, their automated systems will flag the mismatch. The ideal solution is absolutely to get the company to issue a corrected W-2, but that can take time and companies aren't always responsive. If you can't get it corrected before the filing deadline, you have two options: 1) File Form 4852 (Substitute for W-2) explaining the discrepancy, or 2) Report the income and then file an amended return later if the company issues a correction. Either way, it's important to document your attempts to resolve the issue with the employer. Keep copies of emails, names of people you spoke with, and dates of your communications. This documentation is valuable if the IRS questions the situation later.

That makes sense! So it's more about avoiding the automated flag than actually paying tax on money you never received. I guess $63 wouldn't be much tax anyway, but it's the principle of the thing. Thanks for explaining!

21 What's the typical price range for a CPA who knows about nonresident taxes? I'm worried it would be crazy expensive compared to software.

3 The cost typically ranges from $200-500 for a nonresident return with HSA components, depending on your location and the complexity of your overall tax situation. Some universities also have partnerships with local CPAs who offer discounted rates for international students. While it is more expensive than software, it can be worth it for peace of mind, especially if you have multiple complications like an HSA, investments, or multiple state filings. Many CPAs also offer free consultations where you can ask about their experience with nonresident returns before committing.

11 Did you have any issues with the state return using H&R Block? I heard some tax software can do federal ok for nonresidents but mess up the state part.

Thanks for mentioning the code M thing - I had no idea about that. Is that something I need to include in my response to the CP2000, or is that only relevant for filing my tax return?

For responding to the CP2000 notice, you don't necessarily need to reference code M specifically, but it's helpful to understand that's how it should have been reported. What's most important for your CP2000 response is to clearly show your original cost basis for the CERN shares and the conversion value. If you're disputing the amount on the CP2000, you'll want to complete the response form they provided, attach your supporting documentation from Morgan Stanley showing your purchase history and the conversion details, and provide a clear explanation of why you believe the notice amount is incorrect. If you're not disputing the amount and just paying it, you can simply follow the payment instructions.

This is really good advice. I went through a similar situation with Adobe acquiring another company and initially got a CP2000. After digging through all the paperwork, I found documentation that it qualified as a tax-free reorganization. Saved me thousands in unexpected taxes!

Thanks for mentioning VITA! I had no idea my school might offer that. Do they help with multiple years of back taxes though? And do you know if I need to make an appointment or can I just walk in during tax season?

Most VITA programs can help with back taxes, especially for relatively straightforward situations like yours. They typically handle the current tax year plus previous years. The IRS provides VITA volunteers with training for handling back tax returns. You'll definitely need to make an appointment, especially for multiple years of taxes. These services get extremely busy during tax season. I'd recommend calling your university's financial aid or student services office now to find out when their VITA program starts accepting appointments for the 2025 filing season. Some programs start booking as early as January, and slots fill up quickly!

One thing to add - if the amount you owe is under $10,000 and you can pay it off within 3 years, the IRS generally automatically approves payment plans. You can set it up online without even having to talk to anyone.