Something nobody's mentioned yet - you need to contact the seller ASAP! In my experience with a similar situation, getting the seller to file their US tax return properly was the fastest solution. If the seller can prove they had little or no gain on the sale (or even a loss), their actual tax liability could be MUCH lower than the 15% withholding amount. They can file Form 1040-NR to report the sale, pay any actual tax due, and get a refund for the difference. This becomes their problem too because the IRS will eventually come after them separately for the same transaction if nobody handles the withholding. Most foreign sellers will cooperate once they understand the situation because they want to avoid problems with the IRS too.

This is exactly why I always recommend buyers get a pre-closing checklist that specifically includes FIRPTA verification when dealing with ANY seller - you never know someone's citizenship status just by looking at them or their name. For your immediate situation, I'd suggest a three-pronged approach: 1. **Document the title company's failure**: Gather all your closing documents and highlight anywhere the seller's foreign status should have been obvious (foreign address, non-US phone number, etc.). This creates your paper trail for potential E&O claims. 2. **Contact the seller immediately**: As others mentioned, if they file Form 1040-NR showing their actual gain/loss, it could significantly reduce or eliminate the tax liability. Many foreign sellers don't realize they need to file US returns for property sales. 3. **File Form 8288-C for withholding credit**: Even though you missed the 8288-B deadline, you can still file 8288-C to claim credit for any withholding that should have been done at closing. This essentially tells the IRS "we're handling this now" and can pause collection activities. The $42K bill is scary, but remember - this is often the maximum theoretical liability. The actual amount due depends on the seller's real gain, which could be much less. Don't panic and don't ignore it, but know that there are multiple paths to resolution here.

Has anyone used H&R Block to help with this kind of problem? I'm wondering if tax prep services can help track down missing W-2s or if I need to do all the legwork myself.

I've been through this exact situation! First, definitely try calling your former employer's HR department directly - they're usually pretty good about resending W-2s to updated addresses. Most companies expect this to happen with former employees. If that doesn't work, here's a tip that saved me: check if you can still access your ADP account. Even after leaving a job, ADP often keeps your account active for tax purposes. Try logging in with your old credentials, and if that doesn't work, use their password reset function with the email you had on file when you worked there. If all else fails, you can request a wage and income transcript directly from the IRS after January 31st. You can do this online through IRS.gov if you can verify your identity, or by calling them (though expect long wait times). The transcript will have all the same information as your W-2. Don't stress too much - this is a common issue and there are several backup options available. Just start with the HR department first since that's usually the quickest solution.

Thank you for sharing such a comprehensive timeline - this is incredibly valuable for those of us currently stuck in review limbo! I'm on day 61 of my review and was starting to panic that something was seriously wrong with my case. Your detailed breakdown of the entire 9-month process gives me realistic expectations and helps me understand that these delays are unfortunately just how the system works. Your employer wage reporting issue really resonates with me because I had a similar situation last year. My company switched from a small local payroll service to ADP mid-year, and there were definitely some hiccups during the transition with pay stub formatting and timing. Based on your experience, it sounds like these backend reporting discrepancies aren't something we can easily catch ourselves by comparing documents. The information about Tax Advocate services not being available until after 120 days is crucial - I wish this was clearly stated in the IRS notices! I was planning to contact them next week, but now I know to wait and focus my energy elsewhere. Your congressman approach is definitely something I'm going to start preparing for now rather than waiting until I hit desperation mode. I'm particularly grateful for your practical advice about certified mail and detailed call documentation. I've been keeping loose notes, but after reading your experience, I'm going to create a proper tracking system with dates, times, and representative names for every interaction. One question: during those months of regular calling, did you find that different IRS agents gave you consistent information about your case, or did you get conflicting stories about what was happening and expected timelines? Thanks again for taking the time to document this entire journey. Your post should be required reading for anyone starting an IRS review - it's exactly the kind of real-world guidance we need to navigate this frustrating but apparently very common process!

This is incredibly helpful - thank you for documenting your entire experience so thoroughly! I'm currently on day 47 of my review and was starting to feel like I was trapped in some kind of bureaucratic nightmare. Your timeline shows that while this process is painfully slow, it does eventually get resolved. The employer reporting error aspect of your case is particularly concerning to me because I had a job change mid-year where my previous employer had some issues with their final payroll processing. They had to issue corrected pay stubs twice, and now I'm wondering if that created reporting discrepancies that triggered my review. Your advice about the 120-day requirement for Tax Advocate services is information that should be plastered all over the IRS website! I've been planning to contact them, but now I know to save that effort until I actually qualify. The congressman route is something I'm definitely going to start researching now rather than waiting until I'm financially desperate. The certified mail tip is brilliant - I've been sending documents via regular mail like an amateur. Going forward, everything is getting tracked with delivery confirmation. I'm also going to start keeping much more detailed records of every phone call after reading about your experience. One question: when you mention calling "repeatedly" after getting your Tax Advocate assigned, did you feel like those calls actually moved your case forward or were they more about staying informed about what was happening? I want to be persistent without being counterproductive. Thanks for giving all of us hope that this nightmare does eventually end, even when it feels endless!

This hits close to home! My spouse and I went through the exact same thing last year. What worked for us was creating a simple spreadsheet that tracked not just our tax withholdings, but also our quarterly estimated payments (I'm self-employed) and any other tax payments we made throughout the year. We found that even though our withholdings looked fairly even, I had made several large quarterly payments that really changed the proportions. Once we had all the numbers laid out, it was much easier to have a calm discussion about what felt fair. One thing that helped was also factoring in who was claiming the kids as dependents if you alternate years, or who's handling more of the tax prep work. These aren't monetary contributions but they do have value. For what it's worth, 65/35 split based on your contribution sounds completely reasonable to me, especially if you're also covering more childcare costs. Money is money, regardless of when it was paid to the IRS.

I'm dealing with something similar and honestly, the 65/35 split based on your actual contributions seems completely fair to me. My partner and I keep separate finances too, and we learned that the key is being transparent about ALL the numbers upfront. One thing that might help is calculating not just the withholdings, but also any estimated tax payments, and then looking at what each of you would have owed if you filed separately versus jointly. Sometimes the joint filing saves one spouse way more than the other. The childcare costs you mentioned are huge too - that's real money coming out of your pocket that benefits the whole family. Even if it doesn't show up directly on tax forms, it absolutely should factor into the "fairness" conversation. Have you tried sitting down with your husband and just laying out all the numbers? Like actual dollar amounts of what each of you contributed throughout the year? Sometimes seeing it all in black and white makes the discussion less emotional and more logical. You're definitely not being unreasonable - if anything, a 50/50 split when you paid 65% seems unfair to YOU.

This is such a frustrating situation that so many remote workers are dealing with! I went through the same thing last year when my company suddenly decided that working from home 3 days a week meant I couldn't claim mileage for client visits anymore. What really helped me was putting together a clear timeline showing that my home office arrangement was officially established by my employer, not just something I decided on my own. I included emails where my manager confirmed my hybrid schedule, any home office equipment they provided, and documentation of the regular work I do from home. The IRS is pretty clear that if your employer has established your home as a regular work location (which yours has by officially allowing you to work remotely 3 days a week), then travel from there to temporary work locations like client sites is business mileage, not commuting. The key word is "temporary" - if you're visiting different client sites rather than going to the same location every day, that strengthens your case. I'd suggest creating a simple presentation for your boss showing: 1) Your official remote work arrangement, 2) The varying client locations you visit, 3) The relevant IRS guidance on home-based workplaces. Sometimes employers just need to see it laid out clearly to understand they're interpreting the rules incorrectly.

This thread has been incredibly helpful! I'm dealing with the exact same issue where my employer is claiming that since I work from home, any travel to client sites is considered "commuting" and not reimbursable. One thing I wanted to add that might help others - I found that documenting the *business necessity* of each client visit really strengthened my case. I started keeping a log that included not just the mileage and destination, but also the specific business purpose (client meeting, project site visit, equipment delivery, etc.) and who requested/approved each visit. When I presented this to HR along with the IRS guidance that others have mentioned, it became much harder for them to argue that these were personal commuting expenses. The documentation showed that these weren't routine trips to a fixed workplace, but legitimate business travel to serve different clients at varying locations. I think the key is showing that your situation fits the IRS definition of travel between work locations rather than home-to-office commuting. The more specific you can be about the business nature of each trip, the stronger your case becomes.