I've seen people try this S corp/partnership arrangement and it usually doesn't end well. The IRS tends to look at the substance over form. Since you already own 100% of the S corp, and would own some percentage of the partnership, they might view it as a circular arrangement without real economic substance. If you're looking for income splitting, have you considered bringing in family members as legitimate minority shareholders in your S corp? That can be a cleaner way to distribute income if done properly.

I think a better solution might be a "brother-sister" corporate structure where you create a second, separate entity rather than a partnership between yourself and your S corp. My accountant set this up for me last year - I have an S corp for my consulting business, then a separate LLC taxed as a partnership that handles all our intellectual property and equipment. The S corp pays the LLC licensing fees, which helps optimize our total tax situation.

One thing I haven't seen mentioned yet is that you might want to check if this late 1099-DIV affects any estimated tax payments you should be making for the current year. If the nondividend distribution was substantial, it could impact your tax situation going forward, especially if you still hold stock in the parent company that might generate similar distributions. Also, when you contact the company about the late form, ask them if they filed the corresponding copy with the IRS on time (they're required to file Copy A with the IRS by February 28th for paper or March 31st for electronic filing). Sometimes companies send the taxpayer copy late but did file with the IRS on time, which could affect how the IRS handles any penalty assessment. The fact that the spin-off entity shut down before the end of the year makes this situation even messier from a compliance standpoint. The company may have been scrambling to figure out their reporting obligations as the entity was winding down, which could explain (though not excuse) the delay.

I've been following this thread and wanted to add something that might help with future planning. Since you mentioned this was equity compensation from freelance work, you should know that any future transactions involving this stock (or remaining stock in the parent company) will need to account for the adjusted cost basis from this nondividend distribution. Keep detailed records of everything - the original equity grant documentation, this late 1099-DIV, your amended return, and any correspondence with the company. If you ever sell the remaining stock, you'll need this paper trail to properly calculate your capital gains or losses. Also, since this was a startup that gave you equity as compensation, make sure you understand whether any of the original equity grant was subject to Section 83(b) elections or other special tax treatment. The nondividend distribution from the spin-off could interact with those elections in unexpected ways. Given all the complexity here, it might be worth having a tax professional review your situation, especially if the dollar amounts are significant. The cost of professional advice could be less than the potential mistakes from trying to navigate this maze alone.

I'm so glad I found this thread! I filed my amended return about 8 weeks ago after discovering I had missed reporting some dividend income from an old investment account I'd forgotten about. Classic oversight on my part - I'm usually super organized with my taxes but somehow this one slipped through the cracks. Just like everyone else here, I can see the 971 code clearly displayed on my tax transcript, but that WMAR tool keeps giving me the frustrating "no information available" message. I was honestly starting to wonder if I had filed something incorrectly or if my amendment got lost in the system somewhere! Reading through all these experiences has been such a huge relief. It's honestly ridiculous that in 2025 the IRS still has these disconnected systems that can't communicate with each other properly. You'd think they would have figured this out by now, but apparently not! I'm definitely going to stop wasting time checking that broken WMAR tool and just focus on monitoring my transcript for updates. It's so helpful to know that seeing the 971 code means everything is actually being processed normally, even if the user-facing tools don't reflect that. Thanks to everyone for sharing their stories - this community is such a valuable resource for navigating these confusing IRS system quirks!

I'm experiencing the exact same frustrating situation! Filed my amended return about 3 weeks ago after realizing I had forgotten to report some contract work income from late last year. Just like everyone else here, I can clearly see the 971 code on my tax transcript, but that WMAR tool keeps telling me it can't find any information about my amendment. This thread has been incredibly reassuring - I was honestly starting to panic thinking I had somehow messed up the filing process or that my amendment had disappeared into the IRS black hole! It's pretty disappointing that in 2025 we're still dealing with these disconnected government systems that apparently can't talk to each other properly. Based on all the experiences shared here, it sounds like the transcript with the 971 code is really what matters, and the WMAR tool is just broken for amended returns. I'm definitely going to stop checking that useless tool and focus on monitoring my transcript for updates instead. Thanks to everyone who shared their stories - this community is such a lifesaver for understanding these confusing IRS system quirks! It's so helpful to know that this disconnect is a widespread issue and not something I did wrong. Really appreciate having a place where people can share real experiences navigating these frustrating government processes.

One thing nobody mentioned yet - make sure your mileage tracking is ACCURATE before claiming it. Medicaid can check with the IRS if something seems off. I got flagged last year because I was claiming too many business miles compared to my income. Turns out I had my tracking app running sometimes when I wasn't actually working. Super embarrassing and delayed my coverage by almost 2 months while they investigated. Some tips: - Only track when you're actively working (app on, accepting rides) - Keep good records of start/end odometer readings - Be realistic about business percentage (75% business use is pretty high unless you literally only use your car for Uber

Just to add another perspective - I've been doing rideshare for 3 years and have gone through Medicaid renewals twice. The standard mileage deduction is definitely the way to go for your P&L. One thing that helped me was keeping a simple log that showed: - Date - Starting odometer reading - Ending odometer reading - Total miles driven that day - Business miles (from my tracking app) - Personal miles (difference) This backup documentation made my caseworker really happy because it showed I was being methodical about separating business vs personal use. Even though you mentioned 75% business use, just make sure you can justify that percentage if asked. For your tire situation - don't worry about it! The standard mileage rate already accounts for wear and tear, repairs, and maintenance. That's exactly why it exists - to simplify things like this. Your tire replacement is already "covered" in that 67 cents per mile. Good luck with your application!

22 A quick tip that helped me: the IRS has Form 1040-ES worksheet that helps calculate your estimated quarterly payments. It's not the most user-friendly thing, but it gives you a basic idea of what you should be paying.

As someone who just went through this exact situation last year, I can confirm that quarterly estimated taxes are indeed required for most single-member LLCs, but there are exceptions that might explain why you haven't been penalized. The general rule is that if you expect to owe $1,000 or more in taxes (including self-employment tax), you need to make quarterly payments. However, you can avoid penalties if you meet the "safe harbor" provisions - paying at least 100% of last year's total tax liability (or 110% if your prior year AGI exceeded $150,000). What likely happened in your case is that when you paid your full tax bill annually, you were inadvertently meeting this safe harbor rule. But as your photography business grows and your income increases, you might find yourself outside this protection zone. I'd strongly recommend sitting down with your tax professional to review your specific numbers. They can show you exactly where you stand and whether you need to start making quarterly payments going forward. Better to be proactive than get surprised with penalties later!