Form 1065, 2021 tax year; Answered a question incorrectly -best way to correct.

[jeffmcpa2010]

Somehow Schedule B question 14 (foreign partners) got answered YES when the correct answer is NO. (Always has been answered no as both partners are US Citizens and Residents), Just a mistake.

Client has received IRS notice CP282, saying that form 8804 - (Withholding Tax) Form 8805, foreign partners information, and form 8813, Tax Payment Voucher.

Any ideas on how to fix this mess is most appreciated. 

Amended Return? Correct the question answered incorrectly, check the amended return box on for efiling amended return on the information worksheet, and re-transmit?

Or is there a better way?

Thanks

Jeff

[PATAX]

I would send them a letter, along with a copy of that IRS CP notice, and explain to them what happened. 

[jeffmcpa2010]

I thought about that, but wondered if efiling an amended return with the correction might result in a response in less than the year plus, I would expect to wait after mailing a letter.

[PATAX]

I think it is hit or miss with sending letters in. I've sent in some via certified mail with return receipt and they were processed in a couple of months or so. 

[jeffmcpa2010]

OK here is some more detail of from the letter.(after reading it for about the 3rd time and trying to understand the requirement).

Now I think after reading again the following, that I only need to file anything if there is a foreign partner that has either ECGI or ECTI allocated to them. Since there really are no foreign partners, I don't have any that have either of those so there are no forms to file or tax due. I am thinking a letter saying so will probably cover it.

[mcnewyork]

What did you end up doing?

I just got the same notice from the IRS for 2023. Question 14 got marked as yes, as I'm not a citizen, but I am a US person and have always filed taxes as so. I'm debating not replying, as you said there are no forms to file as theres no ECGI or ECTI allocated to me. 

[jeffmcpa2010]

Well I just dug out the file to check, and I think that after reading the letter closely, I determined that they did not have any additional filing requirements, as they had no "gross income allocable to a foreign partner" . Therefore there was no additional filing requirement.