It certainly does! The IRS has taken the position that an LLC owned by a married couple who do not live in a community property state must file as a partnership with Schedules K-1 distributing the income and deductions to the individual taxpayers.
I'll post next the technically accurate response to the question of how to file an LLC when the partners are married but do not live in a community property state, but I would first want to say that I can understand your CPA taking the "short cut" that was done of assuming the LLC would be considered as an SMLLC and disregarded. However, as you may read the full post below, that is not correct.
So the question goes to whether you want to continue that practice of filing, with the possibility, low I grant you, of an IRS inquiry at some future time, or whether you want to alter the process to that accepted by the IRS.
In reading the next post, please do note that even the IRS is inconsistent as to whether or not you, living in a state that is not community property, can treat your LLC as a disregarded SMLLC
If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67
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