Thanks for the suggestion! How did you find your EA? Did you just google local tax professionals or is there a specific directory I should look at?

I found mine through the National Association of Enrolled Agents directory (naea.org). You can search by location and even by specialties like "back taxes" or "IRS representation." I'd recommend calling at least 3-4 of them for quotes and asking specifically about their experience with unfiled returns. Some will also offer free initial consultations where they can give you a ballpark estimate of what you might owe before you commit to hiring them.

This is a really important point. The failure-to-file penalty is 5% of unpaid taxes per month up to 25%, while failure-to-pay is only 0.5% per month. So filing even if you can't pay saves you 4.5% per month!

Thanks for sharing your experience from the management side. Do you think I should start reporting my tips to my employer anyway, even though he specifically told us not to? I'm worried about creating conflict but also don't want to be part of something illegal.

I would absolutely start reporting your tips properly despite what your boss says. Create a simple spreadsheet or use a tip tracking app to document everything. Then submit a monthly tip report to your employer (you can find Form 4070 templates online) and keep a copy with proof of submission. If your boss pushes back, you can simply say that you're following IRS requirements to protect yourself. Frame it as something you need to do for your own tax compliance rather than suggesting he's doing something wrong. Most importantly, document everything in case questions arise later. The reality is that the IRS holds both parties responsible, but you can protect yourself by following proper reporting procedures even if your employer doesn't.

Do you have to report credit card tips too? I thought those were automatically tracked since they go through the POS system. My manager only tells us to track cash tips.

Are you saying I should just avoid French investment options entirely? That seems extreme just to avoid some paperwork. Are there any decent investment options that are compatible with both French and US tax systems?

I'm not saying avoid French options entirely, but you should be selective. The main investments to avoid are foreign mutual funds and similar pooled investments that get classified as PFICs. Look into individual stocks, bonds, or ETFs that are listed on US exchanges even if bought through a French broker (though finding one that accepts US citizens can be challenging). Some French banks have created US-compliant investment products specifically for Americans living in France. Another option is to use a US brokerage while living abroad. The paperwork is much simpler for US tax purposes, though you'll still need to report the investment income on your French taxes. The US-France tax treaty prevents double taxation in most cases.

This isn't relevant to the OP's situation. They said they were born in France and have lived there their whole life. There's no prior state residency to worry about.

That's interesting! How did you handle the "reasonable salary" determination? I've heard the IRS can be picky about that with S-Corps. And did you have to register as a foreign entity in other states where you were physically working?

For reasonable salary, I researched what someone would make in a similar role in my industry and documented my justification. It's generally accepted that 40-60% of your business income as salary is reasonable, but it varies by industry and circumstances. Yes, technically you're supposed to register as a foreign entity in states where you're physically working. However, many digital nomads don't do this for temporary stays (risky but common). I registered in states where I stayed more than 2-3 months to be safe. Some states have thresholds before registration is required, but they vary widely.

Wyoming works great if you truly don't have physical presence elsewhere AND your sales don't trigger economic nexus in multiple states. I went this route for my consulting business that primarily works with clients in just 2 states, and it's been manageable.

That makes sense. My mistake was having customers spread across too many states and exceeding those economic nexus thresholds. Looking back, I should have incorporated in the state where I spend most of my time and just dealt with being a resident there for tax purposes. The complexity of multi-state compliance wasn't worth the theoretical tax savings.

Did you get your full refund eventually? And did they contact you during those 3 months or was it just radio silence while they were verifying?

Yes, I did get my full refund including the excess Social Security tax amount. They didn't adjust anything once they verified my information. During those 3 months, it was mostly radio silence. I kept checking the "Where's My Refund" tool, and it just said "Your refund is being processed" the entire time. I called once after about 2 months and was told it was in the verification department and I just needed to wait. Then one day the status suddenly changed to approved, and I got the deposit a few days later.

Thanks so much for this! I just checked my tax software and found the Schedule 3 section. You're right - there's a specific line for "Excess social security tax withheld" and it was really straightforward to enter. I was definitely overthinking this. After entering the information, my refund increased by the exact amount of my excess withholding. No need for Form 843 or contacting employers at all!

Just to add - make sure you keep good records showing your calculation of the excess amount. A friend of mine got audited for this (bad luck I guess) and needed to show how she calculated the excess amount from her multiple W-2s.