What is the difference between a 540NR long form and a 540NR short form for 2007. My parents had an interest in my CA LLC but live in NM. The LLC made a profit in 2007 but the money went back into the company to run it- they never received a cash payment. I did issue them a K1 showing their share of the profit at about $7300. They filed with the Fed and NM State but did not file in CA. Now they received a notice they need to go back and file. I am trying to help them file this but am not sure which form to use. Any help is appreciated.

julia@<hidden>

I believe you need to use the Form 540NR to report Schedule K-1 income.