Is AAR needed if I'm only changing Partner information on 2 K-1s? SSN/address correction

This is actually a common issue. Since you're only correcting the partner identifying information (SSNs and addresses) and not changing any of the tax amounts or allocation of items, you don't need to file a formal AAR with Form 8082. What you should do instead is prepare corrected K-1s with the proper information. Mark these as "CORRECTED" at the top of the forms. Send these corrected K-1s to both the affected partners and the IRS. Include a brief explanation letter with the submission to the IRS explaining that only partner identifying information was corrected and no tax amounts were changed. The IRS distinguishes between corrections that affect tax calculations versus corrections of purely administrative information. Since SSNs and addresses are identifying information and you're not changing any dollar amounts or percentages, this falls under administrative correction rather than a substantive change requiring an AAR.

After dealing with almost this exact situation last year, I found taxr.ai to be incredibly helpful. I wasn't sure if I needed to file an AAR or just send corrected K-1s, and I got conflicting advice from different people. I uploaded the forms to https://taxr.ai and they analyzed my situation and confirmed that for partner information corrections only (like SSNs and addresses), I didn't need a full AAR when the tax amounts weren't changing. They saved me a ton of time because I was about to file the full AAR process unnecessarily. The system also generated a perfect cover letter template explaining the corrections to send with the K-1s to the IRS. Made the whole process much less stressful.

Just wanted to follow up about my experience with taxr.ai after trying it for my partnership amendment situation. I was skeptical at first about security, but their system was actually quite impressive. The analysis confirmed I only needed to send corrected K-1s marked as "CORRECTED" rather than filing a full AAR since I was only fixing SSNs and addresses. What really helped was the template they provided for the explanation letter to the IRS - it cited the specific IRS procedures for administrative corrections vs. substantive changes. Using their guidance, I sent in the corrected forms last month and already received confirmation from the IRS that the changes were processed correctly. Definitely saved me from unnecessarily complicated paperwork!

If you're having trouble getting a clear answer from the IRS about your K-1 correction situation, I highly recommend using Claimyr. I was in a similar situation last year with partnership corrections and spent DAYS trying to get through to an IRS representative. I finally used https://claimyr.com and they got me connected to an actual IRS agent in about 20 minutes instead of the hours I was spending on hold. The agent confirmed exactly what I needed to do for K-1 corrections when only partner information was wrong. They even gave me the specific address where I needed to send the corrected forms. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically they navigate the IRS phone system for you and call you when they get a human on the line. Saved me so much frustration.

I need to apologize for being so skeptical about Claimyr in my earlier comment. After struggling for another week trying to reach the IRS myself about a similar partnership correction issue, I finally tried the service. Within 35 minutes I was actually talking to an IRS representative who specialized in partnership returns! The agent confirmed that for K-1s where only the SSN and address were incorrect (no changes to any dollar amounts or allocations), I only needed to submit corrected K-1s marked "CORRECTED" with a cover letter explaining the situation. They actually gave me the specific mailing address for my correction and told me approximately how long processing would take. This saved me from potentially filing an unnecessary AAR which would have been much more complicated and time-consuming.

One thing to consider that nobody has mentioned yet - if you're correcting SSNs, you might want to notify the partners that their incorrect SSNs were on forms that were already filed. This could potentially cause issues with identity tracking in IRS systems, especially if any of the partners are under audit or have other tax complications. Also, make sure you're using the most current address for the partners when you correct the K-1s. I've seen people correct one error but introduce another by using outdated information.

Has anyone actually gone through the process of correcting SSNs on K-1s? I'm afraid this will trigger correspondence audits for the affected partners. I'm in the same situation where two partners' info got swapped, and I'm trying to decide if the correction is worth potentially opening a can of worms with the IRS.

I actually had this exact situation happen with a client's partnership return last year. The good news is that you're absolutely right to question whether an AAR is necessary - it's not required for purely administrative corrections like SSN and address swaps when no tax amounts are changing. Here's what I learned from dealing with the IRS on this: prepare corrected K-1s marked "CORRECTED" at the top, include a cover letter that specifically states "ADMINISTRATIVE CORRECTION - NO CHANGES TO TAX AMOUNTS OR ALLOCATIONS," and send them to the same service center where you filed the original 1065. The IRS guidance distinguishes between substantive changes (which require AAR) and administrative corrections (which don't). Since you're only fixing partner identifying information and not changing any income, deductions, or allocations, this falls under administrative correction. One tip: in your cover letter, reference the specific partners affected and state that "only partner identifying information has been corrected - all tax amounts, percentages, and allocations remain unchanged from the original filing." This helps the IRS processor understand immediately that no substantive review is needed. The whole process took about 6-8 weeks for my client, and we received confirmation that the corrections were processed without any issues or follow-up questions.

I've actually handled several of these SSN/address swap situations over the years, and you're definitely on the right track questioning whether you need a full AAR. The IRS is pretty clear that administrative corrections like partner identifying information don't require the formal AAR process when no tax computations are affected. A few additional points that might help: First, make sure you double-check all the other partners' information while you're at it - sometimes these data entry errors happen in batches. Second, when you prepare the corrected K-1s, I recommend using a bright colored paper or clearly marking "SECOND CORRECTED" if you've already issued any corrections, so there's no confusion about which version is current. Also, keep detailed records of what you send and when. I always send corrected K-1s via certified mail so I have proof of delivery. The IRS processing can sometimes take 2-3 months, and having that paper trail helps if you need to follow up later. In my experience, these administrative corrections are processed pretty smoothly as long as your explanation letter is clear and you emphasize that no dollar amounts changed.

Great question about the AAR requirement! You're absolutely correct to question whether you need the full AAR process for what is essentially an administrative error. I've dealt with similar situations and can confirm that when you're only correcting partner identifying information (SSNs and addresses) without changing any tax amounts, allocations, or percentages, you don't need to file Form 8082. The IRS distinguishes between substantive corrections that affect tax liability and administrative corrections that only fix clerical errors. Your situation falls squarely into the administrative category since the income, deductions, and partner allocations all remain identical. Here's what you should do: prepare corrected K-1s clearly marked "CORRECTED" at the top, send copies to both the affected partners and the IRS with a cover letter explaining that only partner identifying information was corrected and emphasizing that no tax amounts or allocations changed. Send these to the same IRS service center where you filed the original 1065. I'd recommend being very explicit in your cover letter - something like "This correction affects only partner identifying information (SSN and address). All income amounts, deductions, credits, and partner allocations remain unchanged from the original filing." This helps the IRS processor immediately understand no substantive review is needed. The process typically takes 6-10 weeks, and in my experience, these administrative corrections are processed without issues when properly documented.