Filing Form N-400:no tax returns - are they really necessary?

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bubuka4

New Member
Hello:

I am filing for citizenship under the special three-year rule for a spouse of a U.S. citizen. I heard I may be asked to supply tax returns for the last 3 years; however, I did not file taxes during that time (I was a full-time student, but was also self-employed:rolleyes:). Can my application for naturalization (N-400) be denied based on my failure to file taxes? What other information can I provide instead of tax returns? Or is there a good way to explain to Immigration why I haven't filed taxes?

I'd highly appreciate any advice, and thank you for your time:p
 
bubuka4 said:
Hello:

I am filing for citizenship under the special three-year rule for a spouse of a U.S. citizen. I heard I may be asked to supply tax returns for the last 3 years; however, I did not file taxes during that time (I was a full-time student, but was also self-employed:rolleyes:). Can my application for naturalization (N-400) be denied based on my failure to file taxes? What other information can I provide instead of tax returns? Or is there a good way to explain to Immigration why I haven't filed taxes?

I'd highly appreciate any advice, and thank you for your time:p
Click to expand...

When you say self employed as a student, was that legally or illegally? (ie did you have a work permit at the time). As for tax returns, if you were a student and officially had no income you're not expected to file a tax return and therefore I can't see why USCIS would deny citizenship on this basis in your case (unless they questioned the self employment thing). I believe USCIS asks for tax return in cases where continual residence or living arrangements come into question.

There's more information on taxation for foreign students at the IRS site:

http://www.irs.gov/businesses/small/international/article/0,,id=129239,00.html
 
N-400 Part 10 Question 4:
"Since becoming a Lawful Permanent Resident, have you ever failed to file a required Federal, state or local tax return?"

Seems rather black and white to me. If you answer truthfully, the next question from the IO will probably be "do you owe any taxes", followed by "show me your tax transcripts".

Even if you didn't owe any tax (i.e. had no income), the burden of proof remains with you to prove it.
 
While a student, I was legally self-employed till 2005 (then my work permit expired and I didn't not aply for a new one); however, my income was so tiny I never reported it.

In general, for the last 3 years (since I became a permanent resident):
-I was a full-time student until I graduated with honors in fall 2006
-I was occasonally self-employed
-I did not make any significant income
-I did not report my income to IRS or file taxes
-my spouse did not file his own taxes
-I do NOT have ANY documents to evidence my income/tax information

Considering all this, what should I show and say to the Immigration Officer in case he requests my tax information and asks me tax-related questions?
Also, how damaging is it to have failed to file taxes in my situation for "showing good moral character"?
 
bubuka4 said:
While a student, I was legally self-employed till 2005 (then my work permit expired and I didn't not aply for a new one); however, my income was so tiny I never reported it.

In general, for the last 3 years (since I became a permanent resident):
-I was a full-time student until I graduated with honors in fall 2006
-I was occasonally self-employed
-I did not make any significant income
-I did not report my income to IRS or file taxes
-my spouse did not file his own taxes
-I do NOT have ANY documents to evidence my income/tax information

Considering all this, what should I show and say to the Immigration Officer in case he requests my tax information and asks me tax-related questions?
Also, how damaging is it to have failed to file taxes in my situation for "showing good moral character"?
Click to expand...

Failing to file taxes is generally considered a disqualifying problem. At the very least you should file retrospective returns for the years you missed. If you income was as low as you suggest, chances are you won't owe any tax, but you will at least have something to show the IO if he asks.

Remember that every LPR is supposed to file tax returns as a resident every year on their worldwide income. The IRS may take a different view (i.e. no need to file if income is less than some threshold), however thats not really the point of debate here.
 
Thank you for your input:)

I would highly appreciate if someone could suggest me a good accountant or tax specialist I could talk to about retrospective tax filing and the whole problem.

Thanks again
 
What about state taxes? If you were in a state that has an income tax, you probably owe them something even if you only made $1000 or $2000. State income tax thresholds are usually lower than the Federal threshold.

The "retrospective" aspect isn't a big deal, as that is a common problem that every tax accountant sees regularly. However, if you have other complications, such as having to also file taxes with your original country of citizenship and use tax treaties to minimize/avoid the double taxation, or you worked in multiple states and have similar double taxation issues to deal with, you'll have to look harder for an individual or firm that specializes in multi-country or multi-state returns.
 
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USCIS don't seem particularly concerned with state taxes. Probably if you asked them, they would say you needed to pay it, but I've not heard of them actually asking people to prove they are up to date with state or local taxes.
 
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