This is such a helpful thread! I'm dealing with a similar situation where my LP ended up with just one member after my business partner withdrew last year. One thing I haven't seen mentioned yet is the potential impact on your LP's operating agreement. Even if you treat it as disregarded for tax purposes, you might want to update your partnership agreement to reflect the current ownership structure, especially if you're planning to add partners in the future. Also, regarding the EIN issue - I kept my LP's EIN active by filing a final Form 1065 for the last year it operated as a true partnership, then included a statement explaining the change to single-member status. My CPA said this creates a clear paper trail for the IRS and helps avoid any future questions about why returns stopped being filed under that EIN. Has anyone here had experience with bringing new partners into an LP that was previously treated as disregarded? I'm curious if there are any special considerations when you transition back to partnership status.

This thread has been incredibly helpful! I'm a tax preparer who sees this situation fairly often, and I wanted to add a few practical considerations that might help others: First, if you're planning to eventually add partners anyway, you might want to consider the timing strategically. Adding a partner mid-year can complicate your tax filings since you'll need to file Form 1065 for the portion of the year you operated as a partnership, with special allocations for the pre-partnership period. Second, regarding the EIN issue - even though you have an EIN for the LP, the IRS won't penalize you for not filing if the entity is properly treated as disregarded. However, I always recommend sending a letter to the IRS Business Master File department explaining the situation and requesting they update their records to show the entity is disregarded. This prevents automated notices asking where your partnership returns are. Finally, don't forget about your state's franchise tax or annual report requirements. Many states will still require filings even if the entity is federally disregarded, and missing these can result in administrative dissolution of your LP. One last tip: if you do decide to add a partner later, make sure they contribute actual cash or property - not just services - to establish a valid partnership for tax purposes. The IRS scrutinizes partnerships where one partner contributes only services.

I had almost the exact same situation happen to me two years ago! I'm also a freelancer (web development) and accidentally selected 1099-MISC instead of 1099-NEC for about $28,000 in contractor income. I was panicking about whether to amend or not. After researching and talking to other freelancers, I decided not to amend since I had reported the correct income amount and paid all my self-employment taxes properly. It's been two years now and I've never received any notices or issues from the IRS about it. The key thing is that you reported the right dollar amount and handled your self-employment taxes correctly. The IRS matching system is really focused on making sure the income amounts line up between what your clients reported and what you filed. The specific form type you selected in your tax software is much less important than getting those numbers right. I think you can breathe easy on this one - it sounds like you did everything correctly where it actually matters!

I'm dealing with a very similar situation right now! I'm a freelance photographer and I also mixed up my 1099 forms when filing. Reading through all these responses has been incredibly reassuring - it sounds like this is way more common than I thought, especially with the relatively recent switch from 1099-MISC to 1099-NEC for contractor payments. What really stands out to me from everyone's experiences is that the IRS systems are primarily designed to match income amounts rather than get hung up on which specific form type you selected in your tax software. As long as you reported the correct income and paid your self-employment taxes properly, it seems like you're in good shape. I think the key takeaway here is that this type of form mix-up is a common technical error that doesn't typically cause issues when the underlying tax calculations are correct. The fact that multiple people have shared similar experiences with no negative consequences is really encouraging. Thanks everyone for sharing your stories - it's helping me (and I'm sure the original poster) feel much less anxious about what initially seemed like a major mistake!

Whatever you decide, if you're going to try to deduct fitness expenses, PLEASE make sure you have good documentation. I tried deducting my gym membership as a stunt performer a few years ago (also 1099 work) and got audited. It was a nightmare. In the end I couldn't prove it was "ordinary and necessary" to the IRS's satisfaction. If I could do it over, I would have: 1) Gotten something in writing from the production companies about fitness requirements 2) Kept a log of exactly which gym equipment I used for work vs personal 3) Maybe even taken photos documenting my training for specific stunts Don't just claim it and hope for the best. That's what I did and regretted it.

As someone who's dealt with similar 1099 contractor deduction questions, I'd suggest being really careful with gym memberships. The IRS is particularly strict about these because they see inherent personal benefit in fitness expenses, even when fitness is job-required. However, you might have a stronger case than most because soccer refereeing has very specific, measurable fitness standards. US Soccer likely has documented fitness requirements for different levels of certification - if you can get that documentation, it would be huge for your case. A few practical suggestions: - Contact US Soccer directly to get written fitness standards for your referee level - Keep detailed logs of your gym usage specifically for referee conditioning - Consider splitting your approach: deduct specialized referee training equipment/apps separately from the general gym membership - If you do claim the gym membership, maybe only claim the portion you can directly tie to referee-specific training (like 60-70% if you use it for other personal fitness too) The key is being able to prove it's not just "staying in shape generally" but meeting specific job requirements that you wouldn't need to meet otherwise. Good luck!

Just wanted to add - I'm a dental practice consultant, and this situation is actually pretty common. One thing to watch for: if you purchased any specialized dental equipment for the practice that you're taking to the new location, make sure you document the transfer carefully. The IRS might consider this a "sale" from one business to another, which could trigger depreciation recapture if not handled correctly. Your new business would likely need to purchase these assets at fair market value from the old business. Also, don't forget about any security deposits for office space, insurance premiums, etc. Some of these might be partially refundable, which would offset some of your losses.

I went through a similar situation when I had to dissolve my consulting LLC before it generated any revenue. One thing that really helped was keeping detailed records of everything - not just receipts, but also documentation showing the business purpose of each expense and dates when they were incurred. For the IRS filing, since you elected S-corp status, you're absolutely required to file that final 1120-S even with zero income. The IRS computer system is expecting that return based on your election. Miss it and you could face penalties. Regarding your startup expenses, the good news is that dental practice expenses from one location can generally be carried over to another dental practice since it's the same line of business. The key is proper documentation and making sure your new Colorado practice is set up to properly inherit these costs. One tip: consider whether any of your equipment purchases might qualify as assets that can be directly transferred rather than treated as startup costs. Things like dental chairs, computers, or other equipment might be handled differently for tax purposes than purely startup expenses like licensing fees.

One thing nobody has mentioned yet - with income at your level, you should also consider hiring a financial advisor alongside a CPA. I'm a neurosurgeon who tried the DIY approach for both taxes and investments my first two years and realized I was making costly mistakes in both areas. A good financial advisor who works specifically with physicians can help coordinate your overall financial strategy - student loan repayment approach (PSLF vs refinancing vs aggressive paydown), disability insurance (crucial for surgeons), retirement planning, tax-efficient investing, and eventual practice buy-in strategies if that's on your horizon.

Congratulations on finishing your fellowship! You're absolutely right to be thinking about this now rather than after your first year of 1099 income. I'm a tax attorney who works with physicians, and I'd strongly recommend getting professional help for at least your first year. At your income level ($750-850k), the potential tax savings from proper planning will far exceed the cost of hiring someone. Here's why: 1. **Entity Structure**: You'll likely benefit from an S-Corp election, which could save you $15-25k annually in self-employment taxes alone. But timing and setup matter - you want this done correctly from day one. 2. **Retirement Planning**: As 1099, you can contribute much more to retirement accounts than you could as W-2. With proper planning (Solo 401k, defined benefit plans, etc.), you could potentially shelter $100k+ annually while aggressively paying down your student loans. 3. **Quarterly Estimates**: These aren't just about avoiding penalties - strategic timing of income and expenses can optimize your overall tax situation. 4. **Business Deductions**: Medical practices have unique deduction opportunities that general tax software often misses. Look for a CPA who specifically works with physicians and understands medical practice finances. The investment (typically $3-5k annually) will pay for itself many times over. Once you're established and understand the complexities, you can always reassess whether to continue using professional help.