I just want to point out that even though you had minimal profit/loss, you still legally needed to report every transaction. The IRS considers each crypto sale a taxable event regardless of whether you made or lost money. My brother thought the same way - "why report if I basically broke even?" - and ended up with a much worse situation when they came after him 3 years later with compounded penalties. Don't mess around with the IRS - they have unlimited time and resources to come after you.

I went through almost exactly this situation in 2020! The panic you're feeling is totally understandable, but this is actually a pretty common issue that the IRS deals with regularly. First thing - don't ignore that letter. The 30-day response window is real, but the IRS is generally reasonable when you're being proactive about fixing genuine mistakes. Since you mentioned you basically broke even or had a small loss, you'll want to gather all your transaction records from the trading platform. Most apps let you download a complete transaction history even from years back. You'll need this to calculate your actual cost basis for each trade. The key forms you'll need are Form 8949 (to report each crypto transaction) and Form 1040-X (amended return) for 2019. When you show the IRS your actual cost basis, it should demonstrate that you didn't have the massive gains they're assuming. Pro tip: Include a brief letter explaining this was an honest oversight on your first time dealing with crypto taxes. The IRS often shows leniency on penalties for first-time mistakes, especially when there's minimal or no actual tax owed. You've got this - it's way more fixable than it feels right now!

Just wanna ask - what tax software are you using? I tried claiming standard deduction as a nonresident on TurboTax but it wouldn't let me because the software wasn't programmed to handle treaty exceptions properly! Had to switch to Sprintax which is designed for international students.

I've been dealing with similar tax software issues as an international student from Canada. After trying multiple programs, I found that FreeTaxUSA actually handles treaty benefits pretty well for nonresidents. It lets you manually override certain fields and has a section specifically for treaty-based positions where you can claim the standard deduction. The key is to file Form 8833 (Treaty-Based Return Position Disclosure) along with your 1040NR when claiming treaty benefits like the standard deduction. Most tax software won't automatically generate this form, so you might need to prepare it separately and attach it to your return. Regarding your original EITC question - I agree with the other commenters that it's unfortunately not available to nonresidents even with treaty benefits. I learned this the hard way when I tried claiming it two years ago and got the same CP11 notice that Freya mentioned. The IRS was actually pretty clear in their explanation that refundable credits have separate statutory requirements beyond what treaties can override. One thing I'd recommend is keeping detailed records of your treaty position claims in case the IRS has questions later. I keep copies of the relevant treaty articles and IRS publications that support my deductions.

Could this actually be a good thing in disguise? When I faced a similar situation, I initially panicked, but it turned out to be beneficial. The review process forced my employer to correct their reporting, which revealed they had actually underreported my wages. My refund ended up being larger than I had initially calculated. Isn't it better to have this caught now rather than years later when an audit might be more complicated?

I'm dealing with something similar right now and this thread has been incredibly helpful! My situation is a bit different though - I received my W-2 from my employer on time, but when I checked my wage and income transcript online, it shows no wage information reported for 2024. I filed my return in early February and got the dreaded CP05 notice about the 120-day review. What's frustrating is that my employer insists they submitted everything correctly, but clearly something went wrong in the transmission to the SSA. Has anyone had success getting their employer to resubmit the wage information, or do you just have to wait it out? I'm wondering if there's a specific form or process employers need to follow for corrections, since my payroll department seems confused about what steps to take next. Also, for those who went through this - did you get any updates during the 120 days, or does the IRS just stay silent until they're ready to process?

Have you tried using the desktop version of Keeper? I found that a lot of the more advanced features aren't available on the mobile app. For bulk editing percentages, you can also try: 1. Exporting your transactions to Excel 2. Making the changes there 3. Importing them back in It's not the most elegant solution but it worked for me when I needed to change all my office supply deductions from 100% to 78%.

I switched from Keeper to QuickBooks Self-Employed for exactly this reason. QBSE lets you set default percentages for each category AND bulk edit existing transactions. The migration was pretty painless and worth it for the time savings alone.

UPDATE: After 440 days (yes, over a year!), I finally received my amended refund last week. No explanation for the delay, just a check in the mail with interest added. The interest didn't come close to making up for the stress and hassle, but at least it finally arrived. If you're still waiting, don't give up. Keep calling, use the Taxpayer Advocate Service, contact your congressional rep, and utilize any of the services others have mentioned here. Sometimes persistence is the only way through the IRS bureaucracy.

Emma, I feel your pain! I went through something very similar last year with an amended return for the solar credit. What finally worked for me was getting my tax account transcript and finding the specific "freeze code" that was holding up my refund. In my case, it was code 810 which meant they needed additional documentation that I never received a notice about. Once I knew the exact issue, I was able to call the amendments department directly (not the general number) and get it resolved quickly. You can get your transcript online through the IRS website, but honestly the codes are like reading hieroglyphics. If you're comfortable spending a little money, those transcript analysis services that others mentioned really do help decode what's actually happening with your case. Sometimes knowing the specific problem is half the battle. Also, document every call you make - date, time, who you spoke with, and what they told you. If you end up escalating to the Taxpayer Advocate Service, having that detailed record really helps your case. Hang in there - 7 months is frustrating but you will eventually get your refund!