The 49-year-old actor called Obama "Barry Satera Kenya", reported Ace Showbiz.
"Barry Satera Kenya you won't attend a soldier's funeral across the street that you killed yet you have time for brackets? sad," Sheen tweeted.
Barry Satera Kenya refers to Obama's African heritage, as his father Barack Obama Sr came from Rachyuonyo District in Kenya even though Obama himself was born in Hawaii. The meaning of word "Satera" is still left unexplained.
His anger appeared to be fuelled by Obama's appearance at the bracket on ESPN, an annual tradition during his presidency, instead of attending a soldier's funeral.
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However, his accusation that the funeral had been ignored by the administration was incorrect since the ceremony was attended by the US Defence Secretary, Chuck Hagel.
The tweet sparked an outburst from other Twitter users. One of the comments from a user who responded to Sheen's tweet read, "He can't attend every funeral, grow up."
Others said that mentioning Kenya in his tweet was racist.