In 16 years of practice I haven't had this happen and I have done some research and can't find much on the topic.

My client bought the building that there business is currently in. I received a copy of the state registration and the SS-4. I filed the 1065 for 2019. Last week she got a notice from the IRS stating that we had filed the wrong tax form. It said that a Form 8832 and 2553 had also been filed for an S-Corporation. Apparently she also thought she was supposed to file an 8832 and a 2553 for a partnership. It said we would need to file a S-Corporation tax return because they were rejecting the 1065 9 months later.

Do I respond to the letter with an S election termination and tell them the S-Corporation paperwork was filed by mistake and they want to be a partnership or switch them to an S-Corp and redo the s-corp and personal tax returns?!?! Thoughts?