What about retirement accounts in foreign countries? I have something similar to a 401k in Australia, and I've heard conflicting things about how the US treats these accounts.

Foreign retirement accounts are one of the trickiest areas for US expats. Unfortunately, unless there's a specific provision in the tax treaty between the US and your country (like there is for Canadian RRSPs), the US often doesn't recognize the tax-deferred status of foreign retirement accounts. For Australian superannuation accounts, they exist in a gray area. Some tax professionals treat them as equivalent to US retirement accounts, others report them as foreign trusts requiring complex reporting, and others treat them as regular investment accounts. Recent IRS guidance has leaned toward treating them as foreign pension plans, but it depends on your exact situation. I recommend getting specific advice on this issue from a tax professional who specializes in US-Australia tax matters, as getting it wrong can have significant consequences.

Thank you for sharing your experience! It's reassuring to hear from someone who's been through the same situation. I was definitely imagining scenarios where I'd be pulled into secondary inspection and questioned about my tax situation! Did you use the Streamlined Filing Procedures that others mentioned? And how long did the whole process take from starting to get compliant until you were fully caught up with the IRS?

Yes, I used the Streamlined Filing Procedures - it was fairly straightforward but took about 3 months from start to finish. I gathered all my foreign tax documents, bank statements, and employment records first (that was the most time-consuming part). Then I worked with a tax preparer who specialized in expat issues to complete the necessary forms. The actual filing involved submitting 3 years of back tax returns along with a statement explaining why I failed to file (I just honestly explained I didn't understand my obligations as a dual citizen living abroad). For the FBAR forms (reporting foreign accounts), I had to file 6 years worth. About 4 months after submission, I received notices confirming everything was processed. I didn't owe any taxes thanks to the Foreign Earned Income Exclusion and Foreign Tax Credits for taxes I'd already paid in the UK.

For the stepped-up basis and acquisition date reporting, REITs work the same way as other inherited investments. The special tax treatment for REITs mainly affects how dividends are taxed while you own them, not the capital gain/loss when you sell. That said, if your inherited REIT paid any dividends during the brief period you owned it, you'll need to report those according to how they're characterized on the 1099-DIV (ordinary dividends, qualified dividends, return of capital, etc.). REITs often have distributions that aren't qualified dividends, so they may be taxed at ordinary income rates.

Thanks for clarifying! I did receive one dividend payment before I sold it, and it looks like most of it is being taxed as ordinary income on the 1099-DIV. At least the capital gains part will be straightforward with the stepped-up basis.

Is Form 8822 really the right form for this? I thought that was just for address changes, not for correcting a name spelling error. Wouldn't I need to file an amendment (1040-X) instead?

You're absolutely right that Form 8822 is specifically for address changes, not name corrections. I apologize for the confusion. For a name correction, you generally wouldn't need to file an amendment (1040-X) just for a spelling error if the return was accepted and the first four characters match. If you want to create documentation of the correction, you could send a signed statement to the IRS explaining the error, including your taxpayer information, but most tax professionals would advise that this specific error is minor enough not to warrant additional paperwork.

What tax software did you use when this happened? I've noticed some programs have better error checking than others before submission.

Thanks for these suggestions! Is the Bittker book still relevant with all the recent tax changes? And I've tried looking at some IRS publications but found them a bit hard to navigate - any tips on how to use them effectively?

The core principles in Bittker's book remain relevant as they explain the foundational concepts that don't change much. For the newest regulations, you'll want to pair it with current IRS publications. For navigating IRS publications, start with the table of contents rather than reading straight through. They're designed as reference materials. Publication 17 has a great index - identify what topics you're interested in and jump to those sections. Also, the IRS website has a "Tax Topics" section that organizes publications by subject matter which makes finding relevant information much easier.

Free resources are great, but they're often overwhelming for beginners. I tried starting with the free stuff and got lost quickly. Sometimes a well-organized book that builds concepts systematically is worth the money.

I actually tried this already but unfortunately the company I worked for in 2018 was bought out in 2020 and the new owner purged a lot of the old records. They told me they only kept the "legally required minimum" which apparently didn't include my 2018 W-2. Really frustrating since this would've been the easiest solution!

That's definitely frustrating! In that case, your next best option is to request a Wage and Income Transcript from the IRS, which will show all reported W-2 information. This is different from the Tax Return Transcript you tried to access online. You can request this specific transcript using Form 4506-T (check box 8 on the form). Even though the online system only goes back to 2020, the IRS can provide Wage and Income Transcripts going back 10 years when requested via mail or fax using this form. This would show exactly what was reported to them on your W-2, including state withholding information.

This is not entirely accurate. While the burden of proof does shift in certain circumstances, the general rule is that taxpayers bear the burden of proving their income, deductions, and credits. If the state is claiming you had income but paid no tax, they usually have some evidence of the income (like W-2 reporting) but are claiming you never filed or paid. The statute of limitations point is valid though - worth checking your state's specific rules.