This is really helpful! For the small tax case procedure, does that mean I don't need to hire a lawyer? I've been worried about the cost of legal representation on top of everything else.

For small tax cases, you don't need to hire a lawyer - many people represent themselves successfully. The process is designed to be more accessible. Judges in these cases tend to be more patient with self-represented taxpayers and will often help guide you through the process. That said, you might want to consider a consultation with a tax professional who has Tax Court experience, even if just for an hour, to review your petition before filing. Some Low Income Taxpayer Clinics (LITCs) offer free or low-cost help if you qualify based on income. Many law schools also run tax clinics where law students supervised by professors can help with Tax Court cases.

The Taxpayer Advocate Service is completely overwhelmed right now. I submitted a request in January and still haven't heard back. They're prioritizing cases where people are facing immediate financial hardship like eviction or utility shutoffs.

Wait, I do have a savings account back home with about $12,000 in it. My parents put money in there for emergencies. Do I seriously need to report that? What form would I even use for that?

Yes, if your foreign account(s) exceeded $10,000 at any point during the calendar year, you need to file a Foreign Bank Account Report (FBAR), which is FinCEN Form 114. This is separate from your tax return and filed electronically through the Financial Crimes Enforcement Network's BSA E-Filing System. This doesn't mean you owe taxes on that money - it's just a disclosure requirement. The deadline is typically April 15, but there's an automatic extension to October 15 if you miss the April deadline. The penalties for not filing can be severe, especially if they consider it a willful violation, so definitely take care of this!

This is so important! When I was at UC Berkeley, I filed my federal taxes correctly but completely forgot about California state taxes. Got a nasty letter about six months later with penalties. Don't make my mistake!

9 Does the IRS prefer e-filing or paper for prior years? Will one get processed faster?

14 For prior years, you actually don't have a choice anymore - you have to file paper returns. The IRS only allows e-filing for current year and sometimes the year immediately before (during the beginning of filing season). Paper returns for prior years do take longer to process - typically 6-8 weeks minimum, and sometimes longer if there's a backlog. Make sure you send them via certified mail so you have proof of when you submitted them. Also, file each year separately in different envelopes to avoid confusion at the processing centers.

16 Yes! I had to do this. Even if they're not in the portal, the payroll department should be able to generate a duplicate W2. I just called and explained the situation and they emailed me copies within a few days. If that doesn't work, you can also request a wage and income transcript from the IRS which shows all reported W2 info.

How do you know if you qualify for that Recovery Rebate thing? I filed in 2020 but honestly can't remember if I got all the stimulus payments or not.

The easiest way to check is to look at your 2020 tax return - there should be a Recovery Rebate Credit Worksheet or a line on the Form 1040 itself (Line 30). If that line is blank or zero, you might have missed out. You qualify if you didn't receive the full stimulus payments you were entitled to in 2020. The first payment was $1,200 per adult and $500 per qualifying child, and the second was $600 per adult and per qualifying child. If your income wasn't too high and you didn't receive these full amounts, you might be eligible for the credit.

You generally have 3 years from the original due date to claim a refund for a given tax year. Since 2020 taxes were originally due May 17, 2021 (extended due to COVID), you have until May 17, 2024 to file an amended return or respond to an IRS letter about potential additional refunds. I wouldn't wait too long though - processing times can be lengthy, especially for amended returns or responses to IRS inquiries.

Thanks for mentioning that! I do have a dependent I claim and had withholding from my paychecks. Does the 1099-C income affect my eligibility for earned income credit? That's been a big help for me in past years.

Cancelled debt income reported on a 1099-C does count toward your AGI, which can affect the amount of earned income credit you receive. However, it's not considered "earned income" for purposes of calculating the EIC itself. The higher AGI might reduce your EIC amount, but you'll still qualify if you meet the other requirements. The best approach is to enter all your information including the 1099-C into your tax software and see what happens. Many people are surprised that the impact isn't as bad as they feared once all credits and deductions are calculated.

The statute of limitations applies to their ability to sue you to collect the debt, not to their right to cancel it and issue a 1099-C. Even if they can't legally force you to pay through the courts, they can still decide to write it off and report it to the IRS. Kind of a crappy system if you ask me.