S Election form 2553

My client just informed me that he and his brother are undocumented or illegal immigrants. Last year I prepared and submitted form 2553 electing S status for their LLC.

Does the status invalidate the S corporation? The S status was approved by IRS.

Only non-resident aliens are forbidden from being S-corp shareholders. Resident illegal aliens may be.

So, were their SSNs valid?

If they are permanent residents of the US with valid SSNs, the corp should be fine. Good question though.

there social security numbers are valid. They say there were on the DACA program but have over stayed or have not become documented yet?

Do we still think we have a valid s election?

The question isn't whether the election is valid. It's whether they are eligible shareholders of an S corp.
With valid SSNs and residency, I don't see any issues from a tax filing standpoint.
It is worth being especially clear with them that there are rather severe penalties for any late filings. I only say this because the Hispanic clients I have tend to have a more relaxed perspective on deadlines.

So, were their SSNs valid?

If they are permanent residents of the US with valid SSNs, the corp should be fine. Good question though.

To be eligible shareholders they do not need to have valid SSNs and they do not need to be permanent residents. They merely need to be residents. Illegal aliens can be tax residents and can be eligible shareholders of S corporations.

If the election is ok, are there issues with paying wages, Form I-9?