Don't forget that not all "donations" are tax deductible! I learned the hard way last year that giving money to GoFundMe campaigns and directly to individuals doesn't count for tax purposes. Has to be a qualified 501(c)(3) organization. Check before you donate if tax benefits matter to you!

One thing I haven't seen mentioned yet is that you can carry forward unused charitable deductions for up to 5 years if you exceed the AGI limits in any given year. So if you have a particularly generous year where your donations exceed 60% of your income, you don't lose those deductions - they roll over to future tax years. This is especially helpful for people who make large one-time donations or have variable income. Just make sure to keep good records of what you're carrying forward each year!

This has been such a helpful discussion! I'm dealing with a similar situation for our partnership's Form 4562, and after reading through all these responses, it sounds like Section 167 is the most appropriate code section for loan refinancing costs. What I'm still unclear on is the distinction between costs that should be amortized versus those that might be currently deductible. Mateo mentioned that some costs might qualify as currently deductible under Rev. Proc. 2020-50 - can anyone elaborate on what types of financing costs would fall under that category? Also, for those who have been through audits on this issue, did the IRS require any specific language or justification in your records beyond just using the correct code section? I want to make sure we're properly documenting our position in case we get selected for examination. Thanks to everyone who has shared their experiences - this is exactly the kind of real-world guidance that's so hard to find elsewhere!

This thread has been incredibly informative! As someone who's been wrestling with the same Form 4562 amortization issues, I want to emphasize something that several people touched on but might get lost in all the code section discussion. The most important thing I've learned from my CPA is that consistency matters more than perfection when it comes to these amortization elections. Once you choose your method and code section (whether it's Section 167, Section 163, or the OID rules under 1.446-5), you need to stick with it for the entire amortization period. You can't just switch approaches mid-stream if you find a "better" interpretation later. For partnerships specifically, I'd also add that you want to make sure your amortization approach aligns with how you're treating the costs on your books for financial reporting purposes. While book-tax differences are common, having wildly different treatments can raise red flags during an audit. One last tip: if you're still unsure after all this great advice, consider making a protective election in your tax return filing. You can note in your records that you're using Section 167 but would alternatively rely on Section 163 or the OID rules if the IRS disagrees with your primary position. This can help avoid penalties if there's a dispute about the proper treatment later on.

Has anyone tried reaching the IRS through their online account portal instead of calling? I set up an online account last year and was able to see detailed info about my return, including explanations for adjustments they made. Might save you the phone hassle altogether!

Another trick that's worked for me is calling the IRS's automated refund hotline first (800-829-1954) to get your refund transcript over the phone. Sometimes this will give you enough detail about what adjustments were made that you won't need to speak to a human at all. If you still need clarification after hearing the transcript, at least you'll have specific codes and amounts to reference when you do get through to an agent, which makes the conversation much more efficient. I've found agents are more helpful when you can reference the specific adjustment codes from your transcript.

5 I experienced almost the exact same situation after moving from Australia. I didn't file FBARs for 3 years because I had no idea they existed. When I learned about them, I used the Streamlined Foreign Offshore Procedures. The key thing that helped me was writing a really clear statement explaining why my failure to file was non-willful. I explained how tax preparation in Australia works differently, how I had always been compliant in my home country, and that I used consumer tax software that didn't prominently ask about foreign accounts. If you've been reporting all income from these accounts on your US tax returns and just missed the FBAR filing, that helps demonstrate good faith too. The IRS seems much more concerned about hidden income than about missing informational forms when the income was properly reported.

I'm in a very similar situation - been in the US for 4 years and just discovered FBAR requirements. Like you, I've been diligent about my regular tax filings but had no idea about these foreign account reporting obligations. From reading through all these responses, it sounds like the Streamlined Filing Compliance Procedures are definitely the way to go rather than just starting to file FBARs now. The fact that multiple people have mentioned that simply filing current FBARs without addressing past years could create bigger problems is really concerning. I'm particularly worried because my foreign accounts have fluctuated above and below the $10,000 threshold over the years, so I'm not even sure which years I should have filed. Has anyone dealt with a situation where you're not entirely certain which years triggered the filing requirement? I kept good records of my account balances, but I'm realizing I need to go back and calculate the maximum balances for each year using the correct Treasury exchange rates. The suggestions about getting professional help are making a lot of sense to me now. This seems too complex and high-stakes to risk getting wrong on my own.

Has anyone actually received the stimulus payments as part of their late-filed returns? I filed my 2020 return in February 2023 and claimed the recovery rebate credit but I'm still waiting. IRS "Where's My Refund" just says it's still processing.

@Abby Marshall, I was in almost the exact same situation last year! I filed my 2020 and 2021 returns super late while still having unfiled 2018 and 2019 returns. The good news is that you should still get your refunds - the IRS processes each year separately like others mentioned. One thing to watch out for though - if you end up owing money on those older unfiled returns, the IRS can and will apply your current refunds to those balances once you eventually file them. So you might get your refunds now, but if you owe for 2018/2019, they could come back later and ask for some of that money back. My advice would be to try to at least get a rough estimate of what you might owe or be owed for those missing years before spending your refund money. That way you won't get caught off guard later. The stimulus payments should definitely come through with your 2020 return though - those were processed pretty smoothly even for late filers in my experience.