Remember that LLC registration and tax filing are two different things! I kept my Wyoming LLC registration even after moving to Oregon because Wyoming has better asset protection laws. But I still have to file and pay Oregon taxes as that's where I physically operate the business. You might want to consider maintaining your LLC registration in whichever state has more favorable business laws while still complying with tax filing requirements based on where you actually operate and have clients. Texas has some good liability protections for LLCs that Colorado doesn't.

Great discussion here! As someone who went through a similar LLC relocation from Nevada to Washington state, I wanted to add a few practical tips that helped me navigate this process. First, regarding the $78k income split - document EXACTLY when you moved and what income was earned where. The IRS and state tax agencies love clear documentation. I created a simple spreadsheet tracking income by client, date earned, and location where I performed the work. Second, don't overlook estimated tax payments! If you were making quarterly payments to Colorado and now need to make them elsewhere, you'll want to adjust your payment schedule mid-year to avoid penalties. Third, consider consulting with a tax professional who specializes in multi-state businesses before making any final decisions about dissolving your Colorado LLC registration. Sometimes maintaining registration in both states can be beneficial depending on your specific business structure and future plans. The tools mentioned above (taxr.ai and claimyr.com) sound helpful, but also make sure you're working with someone who understands the nuances of your specific industry and client relationships. State tax laws can be surprisingly specific about what constitutes "doing business" in a state. Good luck with your filings!

One aspect that hasn't been fully explored here is the state-specific implications of different business structures for royalty income. I've been managing royalties from my documentary work for several years, and the state you're in can dramatically change the math on whether LLC vs S-Corp makes sense. For example, some states don't recognize S-Corp elections and will tax you as a regular C-Corp (looking at you, New Hampshire). Others have franchise taxes that kick in at different revenue thresholds. California's $800 minimum franchise tax for LLCs means you're paying that even if you make $1 in royalties, which changes the breakeven calculation significantly. Also worth considering - if your royalties come from work that might generate income in multiple states (like music that gets licensed for films shot in different locations), you could face multi-state filing requirements regardless of your business structure. I learned this when one of my documentaries was used in a commercial that aired nationally. My advice would be to research your specific state's tax treatment before deciding on structure. What works in Texas might be terrible in California or New York. The SBA's local SCORE chapters often have retired accountants who understand state-specific business tax implications and offer free consultations. At your current income level Diego, I'd lean toward LLC in most states, but definitely verify the state-specific math first!

As someone who's been navigating royalty taxation for my indie game soundtracks, I wanted to add a perspective on international considerations that might be relevant as your income grows. If your music starts getting picked up internationally (which streaming makes increasingly common), you'll need to understand tax treaties and withholding. Many countries withhold taxes on royalty payments to U.S. residents, but treaty rates are often lower than standard withholding rates. For example, the U.S.-UK treaty reduces withholding on royalties from 30% to 0% in many cases. The key is getting the proper documentation (like Form W-8BEN) submitted to foreign payers upfront. I learned this after having 30% withheld from several European game licensing deals that should have been 0% under treaty provisions. Getting refunds from foreign tax authorities is possible but incredibly time-consuming. Also, once you hit certain thresholds of foreign-source income, you may need to file Form 8938 (FATCA reporting) in addition to your regular returns. The thresholds are higher for business entities versus individuals, which is another factor to consider in your structure decision. At your current income level this might not be immediate concerns, but given how quickly streaming royalties can scale globally, it's worth understanding these rules before you need them. The IRS has some good resources on treaty benefits, and definitely consider this complexity when choosing between individual reporting versus business entity structures.

I work at a CPA office and we see this all the time with class action settlements. Here's a simple explanation: 1. Box 10 on the 1099-MISC is for reporting attorney fees paid directly from your settlement 2. These fees are NOT taxable to you 3. You DO need to report the full 1099-MISC including Box 10 4. You then take an adjustment to exclude the Box 10 amount from your taxable income Most tax software struggles with this because it's an unusual situation. In FreeTaxUSA, as others have mentioned, look for the option that says you received the form but didn't engage in business activity. The most common mistake people make is either paying tax on the attorney fees (which you shouldn't) or not reporting the 1099-MISC at all (which will trigger a notice from the IRS).

I went through this exact same headache with FreeTaxUSA last year! The key is knowing that Box 10 attorney fees create a "phantom income" situation - the IRS sees the full 1099-MISC amount but you're only taxable on your portion. Here's what worked for me: When FreeTaxUSA forces you into the Schedule C section because of Box 10, don't panic. Enter the 1099-MISC normally, then look for the section about "miscellaneous adjustments" or "other deductions." You'll want to create a negative adjustment equal to the Box 10 amount with a description like "Attorney fees from settlement - not taxable to recipient per IRC Section 62(a)(20)." The W-2 you received is straightforward - that's your actual taxable settlement amount with proper withholdings. The 1099-MISC Box 3 plus Box 10 should equal your gross settlement before attorney fees were deducted. One tip: Print out everything and keep good records. The IRS computer matching system will see that 1099-MISC and you want clear documentation showing you handled the attorney fees correctly. This is one of those situations where being thorough upfront saves you from potential notices later.

I'm currently going through this exact same situation and it's so frustrating! Filed in early April, been stuck with a 570 code for about 3 weeks now with that same unhelpful "additional account action pending" message. No letters, no communication, just silence from the IRS. Reading through all these experiences is actually really comforting though - seems like most people are getting their 846 codes after 6-8 weeks of waiting, even without having to provide any additional documentation. I've been obsessively checking my transcript daily but I think I need to follow the advice here and limit it to weekly checks to preserve my sanity. It's reassuring to know that the 570 code doesn't necessarily mean there's a problem with my return, just that they're backed up and taking their time to review things. Thanks everyone for sharing your timelines - it helps to know this nightmare eventually ends!

I'm in the exact same situation! Filed early April and got hit with the 570 code about 3 weeks ago. That "additional account action pending" message is so vague and unhelpful - it tells you absolutely nothing about what they're actually doing or how long it might take. I've been checking my transcript obsessively every few days hoping to see it change to 846. Reading through all these responses is actually really reassuring though. It seems like most people are seeing their 570 codes resolve after 6-8 weeks without having to do anything on their end. The lack of communication from the IRS is incredibly frustrating when you're depending on that money, but at least now I know this is a common issue this year and not something specific to my return. Going to try to limit myself to checking the transcript just once a week to preserve what's left of my sanity! Thanks for posting this - it's comforting to know we're all in the same boat.

I've been following this thread closely since I'm dealing with the same IP PIN issues, and I wanted to add a few things that might help based on my recent experience: First, I can confirm that the 6 AM EST system refresh tip actually works! I tried it yesterday morning after reading Daniel's post and was able to successfully access the IP PIN tool on my first attempt. The key seems to be logging in right at 6:00 AM - not 6:05 or 6:10, but exactly at the refresh time. Second, for those waiting on mail delivery, I received mine yesterday after exactly 6 weeks and 2 days from my initial request. This aligns with what others are reporting about the 6-7 week timeframe. One additional tip that helped me: if you're still having online issues, try using an incognito/private browsing window AND clearing your cookies specifically for irs.gov before attempting access. Sometimes the site stores corrupted session data that causes the "Something went wrong" error to persist even after clearing your general browser cache. For anyone approaching the April 15th deadline, definitely file that Form 4868 extension as a backup plan. It's free and gives you peace of mind while you wait for your PIN to arrive. You can always file your actual return early once you get the PIN, even if you've already filed the extension. The IRS systems are definitely struggling this year, but there are multiple paths to success if you stay persistent!

I've been dealing with IP PIN issues for the past month and wanted to share what finally worked for me after trying almost everything mentioned in this thread! Like many of you, I was getting the dreaded "Something went wrong" error constantly. I tried the 6 AM refresh method that @Alicia mentioned, but my timing was apparently off because it didn't work the first few attempts. However, I kept trying different variations and here's what ultimately succeeded: 1. I used a completely different device (borrowed my neighbor's laptop) 2. Cleared all cookies and used incognito mode as suggested 3. Instead of 6:00 AM exactly, I tried 6:03 AM EST and got through immediately 4. The whole process took less than 2 minutes once I was in The key insight was that the system refresh might take a couple minutes to fully propagate, so trying at 6:03 AM instead of exactly 6:00 AM seemed to hit that sweet spot. For those still waiting on mail delivery - I can confirm it's running about 6.5 weeks based on what I'm hearing from others in my tax preparation group. If you requested yours in early March, you should be seeing it any day now. One more tip: if you're using a tax software like TurboTax or H&R Block, you can actually input a placeholder PIN (like 123456) to complete your return preparation, then go back and update it with the real PIN once you receive it. This way you're completely ready to submit the moment your PIN arrives. Hope this helps someone avoid the frustration I went through!