caleyjag

Hey,

So.... I am currently a postdoc on a J1. My 2-year contract ends in April, after the tax stuff is all due for this year.

I've been claiming the federal tax waiver, which is all well and good.

However, here's where things get complicated.



I have landed a nice job in industry in California. I am in the process of applying for an O-1 visa. This is a longshot of course. If we don't get it they will go for an H1-b, with a view to me starting here in October (I'll be relocated to Europe in the meantime).

Either way, I should be in California before the end of the year.

My understanding is that I will now owe the IRS a sizeable chunk of change from the taxes I haven't paid.

A payment plan will be necessary I think - I have no savings. I have heard on here before that it is possible to negotiate the payment setup. Is this true? Can you haggle them down on how much you owe?

Some people have suggested on here that it's just a matter of picking up the phone and having a chat with them. Should I employ an accountant? Can they save me money in this case?

Thanks!
There is no point of contacting them until I get the visa

Bob

I don't think you can haggle them down, but you can arrange a payment plan and yes, just call them up, it's one of the few government agencies that do have helpful people on the phone.

But just a thought, why not blag it for your employer to pay it as a sign on bonus? Might get lucky and worst they can say is no.

SamuearlJackson

Hi caleyjag,

You could talk to someone from the IRS in general terms about your situation - you do not need to give your name, address etc...

I think this issue depends on what the IRS definition of exceeding the two year period is. Certainly staying on a J1 past two years is extending your stay. How about leaving the US before the end of the two year period and then reentering on a H1B visa a few months later? Does this count as a new stay that doesn't count as extending your old stay? These are questions for the IRS/a tax expert.

Have you gone back over what you would have paid had you not applied the treaty? My advice is to not try and use one of those companies that advertise their services to help reduce your IRS tax burden. These are almost all scams.

Hope this helps,
Sam

caleyjag

My understanding is that you need to go back to the UK for two whole years before the owed tax is waived.

My solution is rather unsubtle - get a new job with a much bigger salary so that I can pay the fines and not stress too much.

However the new job, which I have secured, still needs a visa. Without a visa I will be off back to Blighty the month before my 2 years is up and will avoid paying anything.

I just read on a thread here last year that it is possible to negotiate the total amount to pay back, not just the timescale it is paid over.

That's what I wanted to clarify.

Ultimately I estimate I owe about $8000 in taxes, plus fines and interest.

I'm hoping I can negotiate to pay this back at a rate of no more than $500 a month.

And yeah, those tax assistance ads do look really sketchy. However I am willing to go to a respectable accountant if it can save me some cash.

meauxna

caleyjag, if you can find one, a consult with a CPA who knows this stuff might be worth an hour of your time.

e3visa

I am actually curious under what circumstances your J1 visa is working. Is it US Federal government sponsored program.

J1 visa holders in the main are meant to pay ALL Federal and State (and City where applicable) taxes but are EXEMPT from Social Security and Medicare.

Also remember with your H1B case it is not just a matter of applying and all will be OK, it is always oversubscribed and there is a fair chance even if you and your company tick all the right boxes you still may not get it.

Good Luck!
CJ

caleyjag

No, if you are a UK scholar on a J1 you are exempt from federal withholding tax for two years, however if you stay a day longer than two years you have to pay it all back with interest and fines. Hence the reason for this thread.

I am applying for an O-1 which is even harder to get than an H1b. I'm cautiously optimistic - I have a good case, we'll just have to see how it goes.