Would the IRS still send a check refund if the overpayment was not listed on line 35a of form 1040? Would the overpayment be listed on the where’s my refund so that TP can track the status of the refund? I never had this type of overpayment so would appreciate to get some comments. Thanks again for your time.

Thanks for your advice. TP wants to avoid any further correspondence with the IRS. TP paid the IRS via direct pay $13,500 as a balance due but Line 37 Form 1040 only has amount owed $13,100. Would the IRS send TP a refund of $400 as the overpayment even it is not reflected on Line 35 of Form 1040? Or Should the $13,500 be entered on Line 26 Form 1040 ( even though direct pay type of payment is balance due ) so that Line 35 has an overpayment? Thanks again for your valuable time and comment.

@George4Tacks Thank so much for your comment and the Lacerte article. Do you agree that there is no “a Reporting a loss” as per the Lacerte article if the 2020 K-1 only has Line 13 Code W-other deductions $40 and Line 20 Code B-Investment expenses $40? I am asking this because K-1: Part 1 section L-Partner's Capital Account Analysis has Current year net income (loss) in the amount of ($40). Again thanks for your time!

You might want to visit:  https://www.irs.gov/forms-pubs/covid-19-relief-for-form-2555-filers 3rd para: You may still be able to meet requirements of the bona fide residence or physical presence test for 2019 or 2020 for purposes of determining the foreign earned income exclusion and housing cost exclusion or deduction. For more information and examples see Revenue Procedure 2020-27.

@George4Tacks  Apologies! My intention is to click solution for @sjrcpa's awesome answer.  It was definitely not my solution.  it was all hers.  Sorry to have clicked the wrong button and to have provoked you to such a response.  I have no intention to snub her at all!