Hello, I am very worried and any advice would be greatly appreciated. I am an international research scholar from the UK here on a J-1 visa. I started a position here in April 2025, and my taxes were filed in March by the University I'm working at for the 2025 year. As in, because I am international and have little knowledge of tax laws, they have a dedicated group of volunteers who come in and help all the internationals file their taxes each year. We just go along for an hour or two and give all our information and they work through it.
I've just received a letter (actually, it was sent on Oct 1st and I only just checked our joint mailbox - it's hard to open at our apartment complex) from the IRS saying that I have submitted a frivolous tax return. I have 30 days from then (so less than a week now) so submit a corrected tax return. I obviously didn't intend to do anything wrong.
One thing that I believe may have caused this was that I was told during my tax-filing appointment that because I am an international, the UK (where I'm from) and the USA have an agreement whereby anyone here for less than 2 years is exempt from paying taxes. I'm guessing it's just not worth their while to process it all for someone only here temporarily? Anyway, my position is actually likely to extend beyond 2 years, but I was given the option to either pay the tax each year, and if I'm here <2 years, I guess they will pay it back to me when I leave. OR, I can not pay any tax now, and if I stay beyond the 2 years, I must pay it ALL back in a lumpsum during my third year. I chose the latter: to not pay any tax now, and thought I will pay it later, if I stay beyond 2 years. Now I'm concerned this is the cause of me receiving this letter.
ANY advice would be VERY appreciated! Thank you.