The CP216 relates to a processing issue with Schedule K-1 information on your return. K-1s report your share of income, deductions, and credits from partnerships, S-Corporations, estates, and trusts. If the K-1 information on your return doesn't match what the IRS received from the entity, or if there's a computational error in how you reported the K-1 amounts, the CP216 notifies you of the discrepancy.
Common Issues
The K-1 amounts on your return don't match the K-1 filed by the entity. You reported K-1 income on the wrong line or schedule. You omitted K-1 income entirely. Or there's a computational error in translating K-1 amounts to your individual return.
How to Respond
Compare your return to the K-1 you received from the entity. If your return is wrong, file an amended return. If the K-1 from the entity is wrong, contact the entity and request a corrected K-1, then amend your return if necessary.
If the IRS's proposed correction is incorrect, respond with a copy of the K-1 and an explanation of how the amounts were reported on your return.
If you received a CP216, call us at (813) 229-7100.