Even if you have already passed scrutiny from the USCIS when you were approved for lawful permanent resident status, your track record since living in the United States is still critical when you are applying for citizenship. USCIS will review your situation to determine whether you have followed the laws since you have been in the country and are of good moral character. Whether you have filed all tax returns, paid taxes in full and have not had issues with the IRS can be a consideration when USCIS is determining whether to approve your petition for naturalization.
Always consult an NYC tax lawyer to ensure that taxes are not a reason why your citizenship application is rejected.
You Do Not Want Unexpected Surprises When Applying for Citizenship
USCIS is going to review your tax filing history along with everything else they analyze in determining whether to approve your citizenship petition. The overall requirement is that you are of “good moral character.” If you have had significant issues with taxes during your green card period, or any tax controversies that remain unresolved, you could end up being rejected for citizenship, and your status in the country may be in danger. The last thing that you want is to find out about tax issues that you either did not know about at all, or had no idea were a problem that is serious enough to result in a rejected application. Accordingly, you should perform a “tax healthcheck” before you submit a citizenship application to USCIS.
Tax Issues That Can Complicate a Citizenship Application
There are some potential red flags that USCIS may use as a reason to deny your petition for citizenship. You must review your own situation before you file a citizenship application to either ensure that none of these apply to you or that you are taking steps to address the situation.
- The failure to file tax returns by their due date or seek an extension to file
- Tax liens or wage garnishment that the IRS has sought from you
- Your filed tax returns compared to your lifestyle is not plausible
- Significant errors on your tax return, such as failure to report all of your income
- Issues with foreign bank accounts and failure to make full reporting to the IRS
Remember that the USCIS case officer may be using their own discretion on what constitutes good moral character within the confines of the law. They may not be tax experts, but they will certainly pay close attention to the IRS’s opinion and any action that the agency may have taken against you.
Make Sure that All of Your Returns Have Been Filed
The willful failure to file a tax return is in of itself a crime under federal law, which can result in jail time if you are convicted. Even if you have not been charged with any crime, not filing your tax return on time can cause you serious issues in other areas of your life. If you have not filed a tax return at all, USCIS will learn about it, and it will cause them to reject your application.
If you have not filed returns for all tax years, you should go back and do it immediately, even if it means that you owe the IRS a significant amount of money. If you are late on a return, and you cannot file it right away, try to seek an extension from the IRS. Gaps in your filing history are going to be red flags for USCIS.
Address All Tax Debts with the IRS
Tax debt alone is not always a reason why USCIS will reject a citizenship application, although it could lead to denial if you have done nothing to address your situation with the IRS. The agency views unfiled returns or large tax debts that you owe as signs that you may not have good moral character.
You could end with a tax debt because you failed to report all of your income, or you did not have enough withheld from your pay. Alternatively, the IRS may have reviewed your return and disallowed some of your deductions and credits. Then, the agency may have applied interest and penalties to the amount that you owe.
You may still be able to have your citizenship application approved when you owe the IRS money. You can strengthen your petition and reduce the chances of a denial when you reach a tax resolution with the IRS. Here, making an offer in compromise that has been accepted, or agreeing to a payment plan, are signs that you intend to pay the money you owe. While you may still owe money, you have taken steps to address the issue, which is a sign of good moral character. A tax lawyer can communicate with the IRS to resolve your tax issues, potentially negotiate a settlement with them that can result in you paying less than the full amount of taxes that you owe.
Get Help from a New York Tax Lawyer
If you have had tax issues in the past, or you know that you have them now, it may be helpful to speak to a tax lawyer. Your immigration lawyer may not have the knowledge and skillset to handle tax law matters, and they may advise you to first speak with a tax attorney before you either apply for citizenship or address concerns raised by USCIS in response to your application. You can help yourself by being proactive and dealing with issues before they can derail your citizenship application and your dreams of being naturalized in the United States.
Contact a New York Tax Attorney
If you are an immigrant navigating U.S. taxes, it is crucial to get it right. Mistakes or unpaid taxes can impact your citizenship application. Our experienced tax lawyers know how to help immigrants understand their obligations, file accurately, and resolve any outstanding issues with the IRS. Don’t risk complications that could delay or derail your path to citizenship. Contact us today online or call us at (212) 490-0704 to begin work to protect your status and stay compliant with U.S. tax laws.
