I thought the same thing but when client talked to them by phone, that's what they wanted. I advised the client to pay the additional tax billed on the notice, without submitting an amended return, until I could figure out how to get the program to handle correctly, if in fact an amended return was needed. Regardless of the outcome, am I missing something on how to enter the information, so the K-1 income is shown on the investment income worksheet and ultimately exceeds the $11,000 threshold?