This is such a common source of confusion! I went through the exact same thing last year. The key thing to remember is that the IRS often sends identical Letter 6475 forms to both spouses on a joint return, but this doesn't mean you received double payments. Here's what I did to figure it out: I pulled up my bank statements from March-April 2021 (when the third stimulus payments were issued) and searched for deposits from the IRS or U.S. Treasury. I found exactly ONE deposit that matched the amount on both our letters - not two separate deposits. So even though we both got letters showing the same $2,800, we only received one household payment of $2,800. When I entered the Recovery Rebate Credit info on our tax return, I only used that amount once. The letters are basically just the IRS's way of documenting what they sent to your household, but they send copies to both spouses for record-keeping purposes. If you're still unsure, definitely check your bank records first - that will give you the definitive answer about how much you actually received.

I went through this exact same confusion with my spouse last year! We both received Letter 6475 with identical amounts ($1,400 each), and I initially thought we should add them together for $2,800 total. But after checking our bank statements from March 2021, I found only ONE deposit from the IRS for $1,400 - not two separate payments. The IRS basically sends duplicate letters to both spouses on joint returns as a record-keeping measure, but the payment itself is made once to the household. So definitely don't double-count it on your tax return! Pro tip: Look for deposits labeled "IRS TREAS" or similar on your bank statements from the stimulus payment dates. That will give you the clearest picture of what you actually received versus what the letters show. In our case, the letter amount matched our single deposit perfectly, confirming we should only report it once.

I'm going through the EXACT same situation right now! My transcript shows a 971 notice issued on August 15th but it's been over 6 weeks and nothing has arrived. My refund of $3,180 has been stuck in processing since April and I'm getting really anxious about what this notice could be about. I've tried calling the IRS multiple times but can never get past the automated system - it's incredibly frustrating! Reading through everyone's experiences here is actually giving me some hope that it's probably just routine verification stuff. I'm definitely going to try calling first thing Monday morning at 7am like some people suggested, and if that doesn't work I might look into that claimyr service that several people have had success with. It's reassuring to know I'm not the only one dealing with IRS mail delivery issues. The not knowing is honestly driving me crazy - I just want to find out what they need so I can get this resolved and finally get my refund!

I've been through this nightmare too! Had a 971 notice code show up in July but never received the actual notice. After 2 months of frustration and countless failed phone attempts, I finally broke down and used one of those callback services (claimyr) that people keep mentioning here. Best decision I made - got connected to an actual IRS agent within 45 minutes who told me it was just a routine income verification request. She was able to verify everything over the phone and my $2,800 refund was released 12 days later. The whole experience taught me that the IRS mail system is basically broken right now. Don't waste months like I did trying to guess what the notice is about. Pay for a callback service or keep trying the early morning calls until you reach someone. Your sanity is worth more than the stress of not knowing!

Do high income celebrities ever leave California to move to states with no income tax? If I was paying millions in state taxes alone, I'd seriously consider moving to Texas or Florida.

This is a fascinating discussion! As someone who works in tax preparation, I can confirm that celebrities like Tom Hanks face incredibly complex tax situations. One aspect that hasn't been mentioned yet is the Alternative Minimum Tax (AMT), which often kicks in for high earners and can actually increase their effective tax rate even further. Also, don't forget about self-employment taxes! If Tom Hanks is operating through a loan-out corporation as mentioned earlier, he might avoid some SE taxes, but if he's treated as self-employed, that's an additional 15.3% on the first $160,200 of income (for 2023). The timing of income recognition is huge too - many actors negotiate to defer portions of their compensation to future years when they might be in lower tax brackets or have moved to more tax-friendly states. It's really a chess game between their financial advisors and the tax code!

Has anyone dealt with this for an installment sale? I'm selling my rental property with owner financing (buyer paying me over 10 years), and I'm confused about how the bulk sales withholding works in this case. Do they withhold from each payment I receive or just the down payment?

Just wanted to add something that might help others - timing is crucial with bulk sales withholding exemptions. I learned this the hard way when selling my duplex in Illinois last year. Most states require you to submit exemption applications 10-30 days before your scheduled closing date. I waited until 5 days before closing to apply and my exemption was still being processed when we were supposed to close. We had to delay the closing by two weeks, which cost me extra carrying costs and almost killed the deal when the buyer got frustrated. The lesson: start the exemption process as soon as you have a signed purchase agreement, not when you're getting close to closing. Even if you think you might not qualify for an exemption, it's worth applying early because the worst case is they deny it and you're back to the standard withholding anyway. Also, some states have emergency or expedited processing for exemptions if you're close to closing, but they usually charge extra fees (mine was $150 for expedited processing in Illinois). Much better to plan ahead!

Just to share my experience - I run a Mexican manufacturing company that sells products to US distributors. We file both forms every year. The 1120-F reports our US-connected income (even though we claim it's exempt under the treaty), and the F8833 specifically details which treaty articles we're relying on. Our tax advisor said the 1120-F is mandatory regardless of treaty benefits, while F8833 is what actually substantiates our treaty position. Last year we almost didn't file F8833 thinking it was unnecessary paperwork, but then learned about the $10,000 penalty. Not worth the risk!

As someone who's dealt with similar international tax complexities, I want to emphasize the importance of getting this right from the start. The interaction between Forms 1120-F and 8833 can be tricky, especially when you're trying to claim treaty benefits. From my experience with foreign corporations doing business with US clients, here's what I've learned: even if you believe you're fully exempt under the Singapore-US treaty, filing both forms creates a clear paper trail that demonstrates compliance and good faith. The 1120-F establishes your filing history and starts the statute of limitations clock, while the 8833 provides the specific legal justification for your treaty position. One thing to watch out for - make sure you understand the "permanent establishment" rules under the current treaty. With digital services and remote work becoming more common, the definition of what constitutes a PE has been evolving. If any of your consulting work involves ongoing projects or regular clients, you'll want to carefully analyze whether this creates a taxable presence in the US. I'd strongly recommend getting professional guidance for at least your first filing to establish the correct approach, then you might be able to handle subsequent years yourself once the pattern is established.