This is my plan. I am waiting a week (until 3/27) and if no change in TT software or IRS policy then I plan to:
a) uncheck the K3 box (K1 form box 16) to clear the warning in TT
b) EFILE fed and state
c) see if IRS and state (IN) accept the efiled returns (should be within 1-2 days)
d) wait until I get a response from Intuit/TT or IRS (refund) (2-3 weeks)
e) go back into TT, amend the fed return to check the K3 boxes (I have 2 K1s)
f) file PAPER amended fed return by April 18 certified USPS with a cover letter to IRS saying K1-K3 exemptions are unclear whether applicable to me so this was the process I took.
I do know that various investment clubs struggled with the 1065 filing this year, as did the software accounting firm BIVIO, so a lot of paper is being sent to the IRS by investment clubs.
These steps seem like the legal and prudent steps to take.
Knowing that IRS has major backlog in processing paper returns, I do not want to wait months for responses, or refunds delayed or subsequent penalty notices for nonfiling (failure to check K3 boxes).
Anyone who cares to comment, please do so (by 3/26). CPA or TT feedback is appreciated.
