How long did the audit take to resolve? I'm in a similar situation where I claimed some required software and textbooks that weren't on my 1098-T. Now I'm worried I might get flagged too!

The whole process took about 3 months from the initial letter to resolution. The key was having documentation ready - I had kept my course syllabi showing the required materials and receipts for everything I purchased. For your situation, make sure you have documentation from your professors or course descriptions stating that the software and textbooks were required for the course, not just recommended. Also keep proof of payment for everything. If you have that documentation, you'll be fine even if you get audited. The IRS just wants to verify that you're claiming legitimate expenses, not that you're doing anything wrong.

Yes! I claimed LLC for a coding bootcamp last year. The key is that the program has to be from an eligible educational institution that can participate in federal student aid programs. You can check if your program qualifies by looking up the school in the Federal School Code List: https://fafsa.ed.gov/spa/fsc/ If your school/program isn't on that list, you probably can't claim it. Also, you can only claim what you paid yourself, not what your employer covered.

Do you remember how long it took to process everything? I'm concerned because one of my returns has a refund I really need.

My entire process took about 3.5 months from submission to receiving the ITIN and having both returns processed. The first return (older one) was processed about 2 weeks after I received my ITIN letter, and the second return was processed about 2 weeks after that. If you're counting on that refund, just be prepared for the wait. Unfortunately, there's no way to expedite the process unless you qualify for one of the very specific expedite criteria (which most people don't).

There's no official limit to how many years you can attach to a W7 application, but I typically don't recommend more than three years at once. The package gets unwieldy, and the more complex your submission, the higher the chances of processing errors.

The Qualified Principal Residence exclusion has been extended again, right? I thought it expired but then Congress renewed it. Do you know what the current status is?

Yes, you're right about the Qualified Principal Residence Indebtedness exclusion. It has gone through several extensions. The Consolidated Appropriations Act extended it through December 31, 2025, but reduced the maximum amount of excluded debt from $2 million to $750,000 ($375,000 for married filing separately). This is definitely good news for homeowners facing foreclosure, but it only applies to debt used to buy, build, or substantially improve your principal residence. If the mortgage included cash-out refinancing used for other purposes (like credit card debt or vacations), that portion wouldn't qualify for the exclusion.

Oh man, this might actually be what he's talking about! He mentioned something about "filing" the 1099-C himself, which confused me because I thought only banks could issue those. He said he found some guy online who helps people "eliminate mortgage debt" this way for a fee. I'm definitely going to warn him - last thing he needs on top of losing his house is getting in trouble with the IRS!

You absolutely need to warn him immediately. This is a well-known scam that the IRS actively pursues. These "debt elimination specialists" typically charge thousands of dollars for worthless advice that can lead to serious consequences. The IRS has specifically identified these self-filed 1099-C schemes in their "Dirty Dozen" tax scams list. People who follow this advice can face penalties for filing fraudulent tax documents, back taxes with interest, and in serious cases, criminal prosecution. Some victims have ended up owing even more money than they started with after penalties and interest were applied.

Thanks for mentioning the Certificate of Mailing option! I didn't know that was a thing. Did you have to request the interest removal specifically or did they do it automatically once they saw your documentation?

We definitely had to request the interest removal specifically - nothing happens automatically with the IRS! We had to call (took forever to get through) and explain the situation, then fax the Certificate of Mailing to the number they provided. It took about 3 weeks after sending the fax for them to process the adjustment and remove the interest charges. The key was getting a specific reference number for our request when we called, so we could follow up if needed.

This is such an important point. The IRS has like a dozen different addresses, and they change sometimes too! I always double-check the address on the actual notice rather than using a general IRS address.

10 How difficult is the paperwork for having your S-Corp own the vehicle? I'm considering this approach for my next car purchase.

3 The paperwork isn't particularly difficult. The vehicle is purchased and registered in the company name, and you'll need commercial auto insurance rather than personal insurance. Your S-Corp makes the payments directly. The main ongoing requirement is diligent record-keeping. You must maintain a mileage log distinguishing between business and personal use. At year-end, your accountant will calculate the value of your personal use based on IRS rules (there are a few different methods), and this amount gets added to your W-2 as taxable compensation. The company can still deduct all vehicle expenses and take depreciation (potentially including Section 179 if applicable). The biggest considerations are making sure this approach makes financial sense based on your business use percentage and having the discipline to maintain proper documentation. Many business owners find it worthwhile, but it's definitely something to discuss with your tax advisor based on your specific circumstances.

9 What kind of mileage log did the IRS accept? Is a spreadsheet enough or do you need something more official?