Notice CP282 "foreign partner" on Form 1065

[ISWF]

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. On the K-1 I indicated she was a foreign partner as TurboTax indicated that for non-citizens.

My wife is my sole partner in the business but she is considered a Non-Resident Spouse, has a Valid Social, and we've filed jointly for our Individual Tax Forms since we got married back in 2017. For our individual returns, she is considered US Resident as I am a US Citizen. Does the same methodology apply to our partnership? She has no ties to her origin country.

[JotikaT2]

Since you marked her as being a foreign partner, the IRS has a requirement that any income earned by the foreign partner should have a withholding tax.  

Based upon what you have described above, your wife is not a foreign person as she resides within the United States and has a Social Security number.  You can reply to this notice by writing "not liable" on the notice and sending the notice back to the address at the top of the notice.  

Please see this link from the IRS for additional information.