Thank you for the reply.
I think the best option for us is to opt out of the PTE-C form. There is a Nonresident Member Composite Agreement form on the Iowa web site that allows partners to opt out of the PTE-C form. This simplifies the process, eliminates the PTE-C form, and simplifies accounting. The partner liability comes out the same with or without the PTE-C. TT Business allows me to override and zero out the PTE-C amount paid for partners on line 20 of the Iowa form 1065 Schedule K, and also on part III of the partners' Iowa K-1 forms.
Iowa does not seem to allow out of state residents to efile anyway, so in any case I will have to print out and mail the forms.
