This has been an incredibly thorough and helpful discussion! As someone who's worked in international business compliance for several years, I wanted to add a few additional considerations that might help @480c2ca235f2 and others in similar situations. The electronic signature acceptance for SS-4 forms that everyone has documented here aligns with what I've seen in practice. The IRS has been quietly more flexible with international applications since COVID, though they haven't updated all their official guidance to reflect this reality. A couple of additional tips based on my experience helping clients with similar situations: **Timing strategy**: If you're trying the international phone line (+1-267-941-1099), Tuesday-Thursday mornings 8-10 AM EST typically have the shortest wait times. Avoid Mondays and Fridays if possible. **Documentation backup**: Keep a detailed record of your submission (fax confirmation, dates, reference numbers) in case you need to follow up. The IRS occasionally loses paperwork, and having documentation helps expedite reprocessing. **Banking preparation**: While waiting for your EIN, start gathering other documents your bank will need (business formation documents, beneficial ownership information, etc.). The EIN is often just one piece of a longer account opening process. The success rate everyone has reported here with the electronic signature method is really encouraging. It shows that while the official process might seem unclear, the practical implementation is working well for international applicants who document their circumstances properly. Thanks to everyone for sharing such detailed experiences - this kind of community knowledge is invaluable for navigating these bureaucratic processes!

This thread has been absolutely incredible - thank you to everyone who shared their detailed experiences! As someone currently going through this exact situation with my French tech startup's US expansion, reading all these success stories has given me the confidence to move forward. What really stands out to me is how consistent the results have been across so many different countries and business types. The fact that everyone who used the electronic signature fax method got their EIN approved (with processing times of 4-6 business days) shows this is clearly a reliable approach, even if the IRS website doesn't explicitly state it. I'm planning to follow the proven formula that's emerged from this discussion: 1. Try the international phone line (+1-267-941-1099) first, calling Tuesday-Thursday 8-10 AM EST 2. If that doesn't work, fax electronically signed SS-4 to 855-641-6935 with professional cover letter explaining international circumstances 3. Include passport copy and keep detailed records of submission The banking preparation advice from LunarLegend is also really valuable - I'll start gathering those additional documents while waiting for the EIN to avoid further delays in account opening. For @480c2ca235f2 (Mei Liu) - based on all this feedback, it seems like you have multiple proven paths forward for your urgent situation. The international phone line might be your fastest option given the banking deadline, with the fax method as a reliable backup. This community knowledge sharing is exactly what makes these forums so valuable when official guidance falls short!

This is a really important question that a lot of people struggle with. I've seen so many folks get into trouble by claiming exempt when they shouldn't. The key thing to understand is that claiming exempt doesn't make you exempt from taxes - it just stops the withholding. You're still responsible for paying what you owe. The IRS generally won't come after you immediately, but you could face underpayment penalties if you owe more than $1,000 and haven't paid at least 90% of your current year tax liability (or 100% of last year's). The penalty is calculated monthly on the unpaid amount. For your situation making $58K, claiming exempt for just November/December probably won't trigger major penalties since you're withholding most of the year. But your coworkers doing it all year are playing with fire - they could end up with a massive tax bill plus penalties like some others have mentioned here. If you need extra cash for holidays, consider adjusting your withholding instead of claiming exempt entirely. It's a safer middle ground that still gives you more take-home pay without the risk.

I appreciate everyone sharing their experiences here - it's really eye-opening to see the range of outcomes people have had with W-4 exempt claims. What strikes me most is how the consequences seem to scale with the duration and amount. Claiming exempt for a month or two like the original poster might result in manageable penalties, but doing it all year (like some mentioned) can create serious financial stress. One thing I'd add is that if you're considering claiming exempt or adjusting withholding, it's worth calculating your actual tax liability first. The IRS withholding calculator on their website is free and can help you figure out if you're having too much or too little withheld without having to guess. Also, for those who've gotten into trouble with this - don't panic. The IRS offers payment plans and penalty relief options in certain situations. If you're proactive about fixing the issue and communicating with them, they're often more willing to work with you than if you just ignore the problem. Thanks for the honest discussion everyone. These real-world examples are way more helpful than just reading the technical rules.

Just wondering if anyone has gone through the whole process? What happened after you reported your employer? Did the IRS actually do anything? Did you get any money back?

Document EVERYTHING right now before you take any other steps. Take photos of your pay stubs, bank deposit records, the fraudulent W2, and your IRS transcript. Make copies and store them somewhere safe outside of work. You're absolutely right to be concerned - this is wage theft AND tax fraud. Your employer is likely keeping the difference between what they paid you and what they reported, plus they're probably not paying their fair share of employment taxes on your actual wages. Don't let fear of losing your job stop you from reporting this. What they're doing is illegal and they're stealing from you AND the government. You have legal protections against retaliation, and frankly, do you really want to keep working for someone who's been stealing from you for over a year? File that Form 4852 and Form 3949-A as soon as possible. The longer you wait, the harder it gets to fix. You deserve every penny of that missing income and the correct tax treatment.

I went through this exact same confusion when I sold my primary residence last year! The key thing to understand is that typically only ONE entity is actually required to file the official 1099-S with the IRS - usually the title company since they're considered the "person responsible for closing the transaction." The realtor's 1099-S might just be their internal tracking or a courtesy copy they provide. The "Substitute for 1099-S" from the title company is likely just their record-keeping document for you, while they would have filed the official version with the IRS. That $2,000 difference is super common - it's usually due to how closing costs, commissions, or transfer taxes are being calculated. One form might include these in the gross proceeds while the other subtracts them out. Here's what I'd recommend: Call both the title company and realtor directly and ask which one actually filed the 1099-S with the IRS. Most of the time it will be the title company. If you can't get a clear answer, you can request your 2023 Wage and Income Transcript from irs.gov to see exactly what forms were filed under your SSN. You're absolutely right that you still need to report the sale on Form 8949 and Schedule D even though you qualify for the Section 121 exclusion. The IRS computers automatically match 1099-S forms to tax returns, so omitting it could trigger a notice. Just show the sale details and note "Section 121 exclusion applied" to demonstrate you properly calculated everything. Don't stress too much - as long as you report it correctly and show your exclusion calculation, minor discrepancies in amounts are usually not a big deal!

I've been through this exact scenario twice now (sold my primary residence in 2021 and a rental property in 2023), so I can definitely relate to the confusion! The key thing to understand is that the "Substitute for 1099-S" is typically just a summary document the title company provides for your records, while the actual 1099-S is what gets officially filed with the IRS. In most cases, the title/closing company has the legal responsibility to file since they're the "person responsible for closing the transaction." That $2,000 difference you're seeing is super common - it usually comes down to how different entities calculate the gross proceeds. One might include the full sale price while the other has already subtracted certain closing costs, transfer taxes, or real estate commissions. Here's what I'd recommend doing: 1. Call both your realtor and title company directly and ask who actually filed the official 1099-S with the IRS 2. If you can't get a clear answer, request your 2023 Wage and Income Transcript from irs.gov - it will show exactly which forms were filed under your SSN 3. Use the numbers from whichever form was actually submitted to the IRS for your tax return You're absolutely right that you still need to report the sale on Form 8949 and Schedule D even with the Section 121 exclusion. The IRS computers automatically match 1099-S forms to returns, so omitting it entirely could trigger a notice. Just show the sale details, calculate your actual gain (if any), and note "Section 121 exclusion applied" in the description. Don't stress too much about this - as long as you report the transaction and properly show your exclusion, you'll be fine!

I'm going through this exact same situation right now! Got a CP2000 notice for my 2019 FanDuel activity and I'm totally confused about the calculations. From what I'm understanding in this thread, I need to report my gross winnings as income on Schedule 1, then deduct my total wagers as losses on Schedule A if I itemize. But here's what's confusing me - my FanDuel record shows I deposited $3000 throughout the year, had total stakes of $15000, winnings of $14200, and only withdrew $2200. So I'm out $800 in real money, but according to the calculation method described here, my gambling loss would be $800 (stakes minus winnings). The part that's really frustrating is that I never received any tax documents from FanDuel, so I had no idea I was supposed to report anything. Now the IRS is saying I owe taxes on $14200 in unreported income when I actually lost money overall! Has anyone successfully resolved a CP2000 notice for this type of situation? I'm worried about getting hit with penalties and interest on top of taxes I shouldn't even owe.

I just went through this exact same situation with my 2020 FanDuel activity and successfully resolved my CP2000 notice! The key thing that helped me was understanding that the IRS gets reports of your gross winnings but has no visibility into your losses or total wagers. Here's what worked for me: I gathered my complete FanDuel Player Win/Loss Record for the entire tax year and created a simple spreadsheet showing: - Total Stakes: $22,500 - Total Winnings: $21,800 - Net Loss: $700 I then filed an amended return (Form 1040X) reporting the $21,800 as gambling income on Schedule 1, and deducted the full $22,500 in wagers as gambling losses on Schedule A. Since I was itemizing anyway due to other deductions, this worked out perfectly. The most important part was including a cover letter explaining the situation clearly - that FanDuel reported my gross winnings to the IRS but I actually had net losses for the year. I attached my complete FanDuel statement as supporting documentation. The IRS accepted my response within about 6 weeks and sent me a letter showing $0 additional tax owed. Don't panic about the CP2000 - as long as you have proper documentation and respond correctly, they'll resolve it in your favor if you truly had net losses.