I am a permanent resident of US (Not a Citizen). I am a partner in multi-member LLC. Am I a "domestic partner" or "Foreign partner" in schedule K-1, part II, item H?

[de-navar]

I am a permanent resident of US (Not a Citizen). I am a partner in multi-member LLC. Am I a "domestic partner" or "Foreign partner"  in schedule K-1, part II, item H? 

[CarolynM · Accepted solution]

You are a domestic partner since you reside in the US.

[MOD5]

The input for this has to be corrected in TurboTax Business.  The question asks if the partner a US Citizen.  This is not correct.  It should be a US "person", which is citizen or permanent resident.  This created an incorrect filing and I have to correct with the IRS - please clarify this in the program.

[user42303090]

YOU are right

[inviktor]

Hi MOD5,

Would you mind explaining to us how did you correct this issue? I have the same problem. Due to the wrong question in Turbotax business, the IRS sent us a letter saying that our LLC have a foreign partner, and we don't.

Thanks a lot in advance 🙂