Your return is probably fine. The IRS systems have been acting up since they started the filing season. Between path act and all the new tax laws, everything's moving slower than usual. Keep checking your transcript once a day (not more or you'll get locked out again

I had the exact same thing happen to me last week! Filed 1/30, accepted same day, then suddenly WMR went blank and transcript showed verification of non-filing. I was freaking out thinking my return disappeared. But then yesterday my transcript updated with processing codes and now shows a DDD of 2/26. So Hailey is right - it's just the verification process. The system basically hides your info while they're reviewing it. Super stressful but seems to be normal this year.

I went through almost the exact same thing last year! Filed my taxes last minute and completely spaced on reporting my Uber Eats income. The panic is real, but you're going to be okay. Here's what I learned: file that amended return (1040-X) ASAP, but take time to do it right. Don't rush like you did with the original return. Since you made significantly more from delivery than your W-2 job, you'll definitely want to maximize your business deductions. Start gathering receipts and records now - phone bills, car maintenance, any gear you bought for deliveries, etc. Even if you didn't track mileage perfectly, try to reconstruct what you can from your delivery app history. I was able to piece together about 70% of my actual miles driven just from looking at my completed delivery records. The penalties and interest aren't fun, but they're manageable, especially if you can set up a payment plan. The IRS was actually pretty reasonable when I called them directly about my situation. Way better to fix it yourself than wait for them to catch it!

Hey, I know this is super stressful but you're taking the right steps by addressing it now! I went through something similar with my Instacart income a couple years back. One thing that really helped me was organizing everything before filing the amendment. Create a simple spreadsheet with all your delivery dates, estimated miles, and any expenses you can remember. Even rough estimates are better than nothing - just be conservative and reasonable. Also, don't forget about potential deductions beyond mileage. If you bought any insulated bags, phone mounts, or even had to replace worn tires more frequently because of all the driving, those can be business expenses. I was surprised how much stuff I could legitimately deduct. The IRS really does appreciate when taxpayers proactively fix their own mistakes. Yes, there will be penalties and interest, but it's way better than them finding it first. And honestly, with all the legitimate business deductions you can claim as a delivery driver, the final amount you owe might not be as scary as you think right now. You've got this! Just take it step by step and don't rush through the amendment like you did with the original return.

Quick question for anyone who knows - does this mileage depreciation add-back work for other self-employed deductions too? I'm self-employed and take a home office deduction and some equipment depreciation. Would mortgage lenders add those back too?

This is a really important topic that I think a lot of self-employed people struggle with. I've been through the mortgage process twice as a freelancer, and I want to emphasize something that some of the other commenters have touched on but bears repeating: there's a huge difference between legitimate business expenses and manufactured deductions. The math your mortgage officer explained is correct - lenders do add back depreciation components because they're non-cash expenses. But the key word here is "legitimate." If you're claiming mileage for trips you actually took for business purposes, that's fine. If you're making up miles or claiming personal trips as business trips just to qualify for a mortgage, that's fraud. I'd strongly recommend getting your actual business mileage properly documented and organized rather than trying to game the system. Keep detailed logs of business trips, save receipts, and make sure everything you claim is defensible if you're ever audited. The mortgage approval isn't worth the risk of IRS problems down the road. Also, consider working with a mortgage broker who specializes in self-employed borrowers - they understand these income calculations better than general loan officers and can help you present your financial picture accurately without cutting corners.

This has been an incredibly helpful thread! I'm relatively new to handling PTP transactions and have been wrestling with a client's sale that involves multiple years of suspended losses and some Section 754 adjustments. One question that hasn't been addressed - what's the best practice for handling the depreciation recapture portion when the PTP owns depreciable assets? I see the discussion about "hot assets" under Section 751, but I'm specifically wondering about how UltraTax handles the Section 1250 depreciation recapture that might be involved. Also, for those who have used the various online tools mentioned (taxr.ai, claimyr.com), do they provide any audit defense support if the IRS questions the treatment later? Given the complexity of these transactions, I want to make sure my clients are protected if there are any follow-up questions from the Service. Finally, has anyone dealt with situations where the PTP had international operations? My client's K-1 shows some foreign source income and I'm wondering if that adds additional complexity to the sale treatment beyond just the foreign tax credit issues mentioned earlier.

This thread has been incredibly comprehensive! As a tax professional who's dealt with numerous PTP sales, I wanted to add a few practical tips that might help others: First, always verify the character of income reported on the K-1 matches what you're expecting based on the PTP's business activities. I've seen cases where partnerships incorrectly characterized certain income, which affects the Section 751 calculation. Second, for those using UltraTax, there's a helpful diagnostic that will flag potential issues with PTP reporting. Go to Tools > Diagnostics and look for partnership-related warnings. It's not perfect, but it can catch some common errors. Third, regarding basis calculations - don't forget about any debt basis adjustments from prior years. If the client had at-risk limitations or debt basis that was reduced due to distributions, this affects the final calculation. Finally, for clients with multiple PTP investments, consider the impact on state tax returns. Some states don't conform to federal treatment of PTPs, particularly regarding the character of income from the sale. Make sure to check your state's specific rules. The resources mentioned here (taxr.ai, claimyr.com) can definitely be helpful, but nothing beats understanding the underlying tax principles. I'd encourage newer practitioners to study Pub 541 and the Section 751 regulations - complex, but essential for handling these transactions correctly.

This is a great discussion! One additional consideration that might help with your $2,600 donation decision: the "bunching" strategy. Since the standard deduction is so high now ($13,850 for single filers), many S-Corp owners find it beneficial to bunch multiple years' worth of charitable contributions into a single tax year to exceed the standard deduction threshold. For example, instead of donating $2,600 this year, you might consider donating $7,800 (three years' worth) all at once to push your total itemized deductions above the standard deduction. Then skip donations for the next two years and repeat the cycle. Whether you do this personally or through your S-Corp, the bunching strategy can maximize your tax benefit. If you go this route, a donor-advised fund can be really helpful - you get the full deduction in the year you contribute to the fund, but can distribute the money to your chosen charities over multiple years. Just make sure to coordinate this with your other potential itemized deductions (mortgage interest, state taxes, etc.) to see if bunching makes sense for your overall tax situation.

Great thread! As someone who's dealt with this exact scenario, I'd add one more consideration that hasn't been fully explored: the timing of when your S-Corp makes the donation versus when you take distributions. If your S-Corp is profitable and you're planning to take distributions anyway, having the S-Corp make the charitable contribution first can actually be beneficial from a cash flow perspective. The charitable deduction reduces the S-Corp's taxable income that flows through to you, which means you'll owe less in estimated taxes. Then when you do take distributions later in the year, you're not taking out money that would have otherwise gone to taxes. This is especially helpful if you're in a situation where you need to manage your quarterly estimated payments carefully. The charitable contribution through the S-Corp essentially gives you earlier tax relief than waiting to make a personal donation and claiming it on your year-end return. Also, for documentation purposes, make sure whichever route you choose, you get a proper acknowledgment letter from the charity that meets IRS requirements - especially important for donations over $250. The letter should state whether any goods or services were provided in exchange for the donation.