Notice CP282 for erroneously putting a partner as a "foreign partner" on Form 1065.

[MFA0202]

Situation: I e-filed my partnership's Form 1065 with TurboTax Business, which has been accepted by the IRS. I subsequently received a Notice CP282. That notice says that I may have additional filling requirements for having a foreign partner.

My Filing Error: My partner is a US resident/green card holder. The internet research that I have done indicates that I should have listed her as a "domestic partner" instead of a "foreign partner" on Form 1065 Schedule K-1, Line H-1.  All of the numbers are accurate on the original filing. The only error was that I listed her as a "foreign partner".

How do I fix this?:  I am a novice so suggestions are greatly appreciated. I think that I have two steps to fix this.

1. Reply to Notice CP282. Write "not liable" across the top of the notice and mail it back to the address on notice. Reference: https://www.irs.gov/individuals/understanding-[product key removed]e?utm_source=OTC&utm_medium=Mail&...

2. File either a superseded or amended Form 1065, marking the partner as a "domestic partner".

Superseded. There is one month until the filing deadline, which makes me think a superseded filing is the correct fix. However, I cannot find a lot of information on filling a superseded Form 1065 and that worries me. Can I print out a corrected Form 1065 with attached Schedules, write "superseded" across the top and mail it in to replace the erroneous original filing? Where do I mail it? I e-filed the original.

Amended. Since the original Form 1065 has already been accepted, must I amend the filing with Form 1065X and attached Schedules? Must I wait until after the filing deadline to do this?

*For the correspondence I will use certified mail with receipt requested.

All help is greatly appreciated! 

[Critter-3 · Accepted solution]

I would simply respond to the notice and tell them it was a simple data entry error ... that they were not a foreign partner and no further forms are required.  That the return is correct as filed except for that one box on the K-1 form.  Then promise to not make that mistake again and thank them for pointing out the error. 

[RobertB4444]

And mail it to the address on the letter that you received.

@MFA0202 

[brichm01]

Did you find out the official way to respond?  I did this exact same thing.  Turbotax for Business asks if the partner is a citizen and then assumes if you check no that the partner is not a green card holder.  It took quite a bit of research to figure it out.

[MFA0202]

I followed Critter-3's advice and responded to the letter, with certified mail, by simply and briefly explaining the mistake. I did nothing else.

I got a response letter back a few months later that said they understand the mistake. It appears to be resolved.