Should a managing LLC member who is a resident alien be listed in TurboTax as a member who is not a U.S. citizen even if they have no foreign income or business dealings?

Forum|Forum|6 years ago
June 1, 2019
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The managing member of the LLC is a resident alien. He receives no funds from any other country. He has no business dealings in any other country. He is married to a U.S. citizen. He has a green card. Last year he indicated that he was not a U.S. citizen and the IRS indicated that we had indicated that the LLC had a foreign partner. However, he has lived in the U.S. for over 35 years and has no property, assets, or dealings outside the U.S. Is he really a foreign partner? If not, how can we fix the filing from last year?

TurboTax Business Windows

Best answer by pk12_2

For tax purposes a resident of the USA ( green card holder ) is not a foreign person. You may have to amend the original filing. The best way would be to seek help from a tax professional or a tax attorney -- only because IRS has taken a position based on your filings and therefore would be reluctant to change. Also you could consider having the managing member of the LLC resign , induct his citizen spouse as the member and then she appoints the husband as her POA. But you really need to discuss this with an attorney.

pk12_2Answer

Employee

masonb1

This issue is due to incorrect wording in the TurboTax for Business software. When filling in the Partner information, it simply asks is the partner a US citizen. Selecting no, immediately classifies them as a Foreign person. I'm surprised this has not been caught yet, this is a major issue and causing taxes to be filed incorrectly. Where do I create a report about this?

DaveF1006

To clarify, is the partner a US person? If it isn't a US person, it is a foreign partner. If not a US or Foreign partner, how should your partner be classified?

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