Tax payment before interview

H

htak

Registered Users (C)
Hello,
I'm new to this forum and had a question that I was hoping someone could help me with. I tried doing a search to find something by myself first but for some reason the search function isn't working for me at all so my apologies if this has already been asked and answered.

I'm applying for naturalization and my interview is scheduled for next Monday (almost exactly 5 months to the day, well done USCIS!). While getting tax receipts from the IRS, I realized that for some reason or another I didn't file a return for 2005 and I owed money (yes, I know, stupid me). I have already filed a return at the local IRS office a couple of weeks ago. When I called the IRS this morning, they told me that there was some problem (that's now been cleared) and it'll take an additional 3 to 5 weeks to process and find out exactly how much I owe.

Here's my question. I know how much I owed at the time, and I can calculate how much penalty and interest I'll owe, either on the day of the interview or in 5 weeks time. If I owe $X amount in tax+penalty+interest and pay that amount plus a little extra just in case, do you think this will cause a problem at my interview? I'll have evidence that I filed and that I paid (online with a credit card) but I won't know the exact amount I owe until way after the interview.

With a week to go, I'm starting to freak out and any advice/help/insight would be greatly appreciated!

Thanks so much in advance!
 
Well, this is a very tough situation...without IRS settlement and offer to settle.. You can try to estimate: it is penalty and interest for both failure to file and oustanding taxes, however 4-5 years of compound interest and penalties can pile up to the very material amount without settlement. I suggest you wait for IRS letter.

This means that you have to change your anwers in Part 10, additional questions 4-5 to Yes during the interview (but you need to be prepared to give an answer to mitigate the situation (settlement plan with IRS, payment plan, etc) , otherwise USCIS may deny your application

Not sure, how urgently do you need to secure the US Citizenship ?

You may want to consider postponing the interview until you settle your debt with IRS.

Another alternative is to hire compitent CPA to expedite the process.
 
DreamUSA said:
You may want to consider postponing the interview until you settle your debt with IRS.

Another alternative is to hire competent CPA to expedite the process.
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Agree with postponing. These are some of the outcomes I can think of:
a) Keep quiet. Risky if asked questions about taxes
b) Openly tell. Officer will not approve unless the issue is taken care of. If fixing takes 4 weeks, then you go to CIS, the officer might take another month
c) Postpone interview, fix it and then go to CIS. Might be the cleanest.

Hiring a CPA. From what I know, doing back taxes with IRS is a slow process. CPA will not be able to do it any faster, although he/she or a lawyer might be able to negotiate with IRS more effectively than a layperson in case financial negotiation is needed.
 
Thanks for the replies.

Seeing that the interview is next Monday and with New Year's on Friday and the short work week, do you think the request to reschedule will be processed in time if I mail it out overnight tomorrow (arrives on Wednesday)? Do you think the USCIS will be able to process the request in one day?

If they can't process the request maybe I can pay what I believe I owe (original tax owed + penalties + interest) and then bring that receipt to the local IRS office and get a letter from them saying something along the lines of I've filed and paid and am willing to pay any additional money that I may or may not owe?
 
Here are some info on penalties and interests, you can see, as time passes..they add up...esspcially for failing to file.

http://www.irs.gov/faqs/faq/0,,id=199556,00.html

Also, please keep in mind, willful failure to file a tax return is a misdemeanor pursuant to IRC § 7203. In cases where an overt act of evasion occurred, willful failure to file may be elevated to a felony under IRC § 7201, Tax Evasion.

So this is a serious, be careful. I would not hide this from USCIS. Later if USCIS finds out about this and the fact you lied in your N-400 application by not discolsing these facts in the respective section of application and during the interview under oath, they can take your citizenship away and also charge you.
sanjoseaug20, one does not need to be a lawyer to negotiate the settlement before IRS. A good CPA- tax practice can handle this.
 
Yes, I've already filed a return and it's been accepted by the IRS. They just need to process it to figure out how much I owe exactly. I did the calculation myself with the penalties and interest listed on the IRS web site and came out to roughly double the original tax owed.

Obviously, I have absolutely no intention of lying at the interview and was intending to disclose this fact to the officer without being asked. I was just wondering what my options might be if I'm unable to reschedule but have already filed and paid what I believe I owe.

Thanks!
 
htak, without IRS concurrence and settlement, it is hard to say whether self-calculated amount of prior year unpaid taxes/penalties/interest and missed return is sufficient.

My 2 cents here is that I would try to reschedule the interview, it will be easier. Here is why, disclosing these issues without IRS concurrence settlement and relief, may delay your case even than rescheduled timeline. Technically speaking, USCIS may hold up your case until you have a "clean bill" from IRS. Make sense ?
 
Thanks DreamUSA. Yes, makes perfect sense.

That brings me to my question of do you think they'll be able to process a request for rescheduling if they receive the request on Wednesday? And even if they do, that would mean that I would receive any confirmation or denial of such request (by mail, correct?) after the actual interview date. That would mean I would have to go to the office anyway just to be on the safe side so that they don't close my application because of me not showing up at the interview, which also means I'd probably be interviewed anyway....
 
Thanks Jackolantern. Yeah, I had a feeling it would take some time. I guess I'll just have to go to the interview and pray for the best...
 
You can also Call USCIS 1-800 number and explain the situation and request 2nd level officer. Another avenue is to make infopass appointment and requst rescheduling ....
 
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I just went for my interview today. When going through my N-400, when we got to the part about taxes, I truthfully explained to the officer about my situation and that I had filed and paid more than I believe I owed. I showed her the stamped copy of the filed return and the receipt for my payment and that was the end of it. Application approved and oath ceremony next week!
 
htak said:
I just went for my interview today. When going through my N-400, when we got to the part about taxes, I truthfully explained to the officer about my situation and that I had filed and paid more than I believe I owed. I showed her the stamped copy of the filed return and the receipt for my payment and that was the end of it. Application approved and oath ceremony next week!
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Great. Congratulations.
 
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