N-400 tax question

[Desi4ever]

Dear Friends,

I made a mistake in my 2007 tax return and received a CP2000 notice from the IRS last month. I did not agree with the notice and I responded to the IRS with a schedule-D and that has been acknowledged by the IRS saying that IRS is still reviewing my CP2000 and would take upto 60 days to send me a revised statement.

N-400 Part 10 asks the following question

Do you owe any federal,state or local taxes that are overdue ?

Is it sufficient if I answer answer "Yes" to the above question and attach a copy of letter from the IRS stating that they are still reviewing my schedule-D ?

 

[WhichWay2Go]

Is it sufficient if I answer answer "Yes" to the above question and attach a copy of letter from the IRS stating that they are still reviewing my schedule-D ?

This has been recently covered in several other threads here. The consensus is to wait until you get an all clear from the IRS before lodging the N-400. If the IRS thing has not been cleared up you could be put on hold until it is or possibly denied and have to reapply.

Unless your need to get Citizenship is urgent, I would suggest clearing up the IRS thing first.

 

[Desi4ever]

Can you please post a link to the threads ? I searched the forum and could not find any threads related to my situation. Anyways my point is since IRS is reviewing my taxes and by the time I go to the interview , I would have cleared all my taxes.

 

[eltoro]

http://forums.immigration.com/showthread.php?t=299573

 

[Desi4ever]

Thanks guys!

It turns out that IRS has already sent me the payment details by mail and it should arrive by 7/6. I can definitely wait for another week before I send my N-400

 

[WhichWay2Go]

I can definitely wait for another week before I send my N-400

Glad to hear that Desi4, and good luck with the N-400 and make sure you send it in with a green return receipt card in case it gets lost.

 

[spmunuku]

Hi ,

I am in the same boat like you. I received a letter from Tax year 2007 and still awaiting a response from IRS. Only difference is I submitted my application of N-400 and during the process I received the IRS letter and unfortunately my lawyer asked me withdraw it as it could be cited as a reson for denial. Now awaiting a response from IRS and acknowledgement from USCIS for my withdrawal.

My advise dont go through this pain. wait till your IRS is cleared.

 

[Jackolantern]

Hi ,

I am in the same boat like you. I received a letter from Tax year 2007 and still awaiting a response from IRS. Only difference is I submitted my application of N-400 and during the process I received the IRS letter and unfortunately my lawyer asked me withdraw it as it could be cited as a reson for denial. Now awaiting a response from IRS and acknowledgement from USCIS for my withdrawal.

You really withdrew it for that reason? Did you owe a huge amount of money or something?

 

[spmunuku]

Hi Jack,

Yeah Tax was only a minor issue less than 2k, but my main concern was the property which i had back in my home country which needs to be transfered on to my name prompted me to withdraw. I would able to afford 500 times to pay the 675$ fees if the property changes on to my name, if not I stand to loose +300k. tell me now, did i do the right thing or wrong?

 

[Jackolantern]

I see. But your prior message made it seem like you withdrew it because of the tax issue.

 

[SunnyJ]

Is the tax obligation any less if you are PR vs Citizen as far as property transfers are concerned ?

Yes. However, it depends on the country you are from and what type of treaty they have for its citizens to avoid dual taxation. As I understand, as a US Citizen, you have to pay tax to US Govt. where ever you earn the money..unless the country singed the treaty. However, if you are a PR, you dont have to pay US tax if you are working abroad for a foreign company, I believe. I know some folks delayed becoming a US Citizen to avoid that tax burden.

 

[Jackolantern]

Yes. However, it depends on the country you are from and what type of treaty they have for its citizens to avoid dual taxation. As I understand, as a US Citizen, you have to pay tax to US Govt. where ever you earn the money..unless the country singed the treaty. However, if you are a PR, you dont have to pay US tax if you are working abroad for a foreign company, I believe.

The US taxation of PR's and US citizens is the same, with very few exceptions. PR's are subject to US taxation on worldwide income, although tax treaties and other credits and deductions are usually available to negate most or all of the US tax liability.