TurboTax accepted my e-file even though Form 7217 was required and unsupported. Do I still need to paper file federal and CA?

[seanyin]

Hello,

I am filing my 2025 federal and California tax returns using TurboTax Premium Online.

I received a Schedule K-1. My K-1 reports Box 19, Code C for distributed property. The K-1 tax package states that this was a complete liquidation related to the merger, not a section 751(b) sale or exchange, and that no cash or marketable securities were distributed as part of the merger. It also states that Form 7217 may be required and may affect my ability to e-file.

After I entered my K-1 information, TurboTax told me that Form 7217 is required, that TurboTax does not currently support this form, and that I would need to complete Form 7217 manually and file by mail.

However, at the final step, TurboTax still allowed me to e-file both my federal and California returns. I have now received emails confirming that both returns were accepted.

Can anyone please confirm what I should do next?

1. Since both e-files were accepted, do I still need to paper file anything?
2. If Form 7217 must still be submitted, should I mail only the federal return, or both the federal and California returns?
3. If a mailed filing is still required, would that replace the accepted e-filed returns, or would it be treated as an amendment or supplemental filing?

I want to make sure I handle this correctly and avoid filing duplicate returns.

Thank you.

[CatinaT1 · Accepted solution]

Since you efiled and the returns were accepted do not mail them. 

Since Form 7217 is required, one your original returns are completely processed you will want to amend your return to include it. See this community thread.

If you want to make changes or add a document to a tax return that has already been filed and accepted by the taxing agency, you should follow these guidelines. 

• You must first wait until the initial return is completely processed. 
• You will have to use the same TurboTax account that you used for the original tax return. 
• Once you begin your amendment, you'll see your original return.  
• The refund calculator will start new at $0 and only reflect the changes in the refund or tax due 
• Only make changes to the areas of your return that need to be corrected. 
• You have three years from the date you filed your return or two years after you paid the tax due (whichever is later) to file an amendment 

Select your product below and follow the instructions. 

Amend TurboTax Online 

Amend TurboTax CD/Download