Tax question

[mrincognito]

I am about to apply for naturalization, and while gathering my tax returns for the last 5 years I've noticed a possible problem.

For the tax year 2004 I filed joint tax return, while I later discovered that my wife divorced me. The marriage and the divorce happened abroad. I received the divorce certificate in February 2006 when visiting home - that's when I discovered this. My wife always signed the returns by mail while living away, no questions asked, as she did not understand the stuff. The certificate I received in 2006 says that the divorce was final on December 27th, 2004. The date that I received it on is also on the certificate. At the time I received the divorce certificate I did not put two and two together, that I should amend that return.

If I recalculate the return now and put my status as single for 2004, that would make me owe the IRS several thousand in federal taxes, and a few hundred in state taxes.

All tax returns were always filed on time, and dues paid.

A tax law attorney who specializes in IRS problems resolution told me that from the tax law point of view he advises me to do nothing as the IRS never contacted me about this, and this is past the three years statute of limitations. He advised me to not touch this.

Tax returns for the past 5 years are required at the interview, and the N-400 form has the date of the divorce. So I don't know what to think...

I would appreciate any thoughts or advices.

 

[formerf1]

I am about to apply for naturalization, and while gathering my tax returns for the last 5 years I've noticed a possible problem.

For the tax year 2004 I filed joint tax return, while I later discovered that my wife divorced me. The marriage and the divorce happened abroad. I received the divorce certificate in February 2006 when visiting home - that's when I discovered this. My wife always signed the returns by mail while living away, no questions asked, as she did not understand the stuff. The certificate I received in 2006 says that the divorce was final on December 27th, 2004. The date that I received it on is also on the certificate. At the time I received the divorce certificate I did not put two and two together, that I should amend that return.

If I recalculate the return now and put my status as single for 2004, that would make me owe the IRS several thousand in federal taxes, and a few hundred in state taxes.

All tax returns were always filed on time, and dues paid.

A tax law attorney who specializes in IRS problems resolution told me that from the tax law point of view he advises me to do nothing as the IRS never contacted me about this, and this is past the three years statute of limitations. He advised me to not touch this.

Tax returns for the past 5 years are required at the interview, and the N-400 form has the date of the divorce. So I don't know what to think...

I would appreciate any thoughts or advices.

Are you filing under the five year rule? Probably so. I wouldn't worry much about tax returns as long as they show nothing due. USCIS and IRS are separate agencies. USCIS is generally more concerned with determining your eligibility for whatever immigration status you are seeking, not caluculating your taxes. IRS agrees nothing is due and that should be enough.

 

[mrincognito]

Yes, I am filing under the 5-year rule. I am sure that the transcripts would show that the IRS doesn't have an issue with me.

On the other hand, the IRS could not have discovered this problem by itself, as it could not really know when the divorce had actually happened abroad. And it looks like I am under obligation to amend the return if I owe additional tax, and pay the additional tax plus interest. In my case the total would come to at least $7K.

What I am afraid of is that as the IO looks over the tax return transcripts, it will be obvious that I filed joint return for 2004, while the N-400 form would show that I was divorced on December 31, 2004 which means that I should had filed the return as single.

I would appreciate all insights on this.

 

[Usher]

The way I see it, the Tax attorney was giving you advice from a tax situation standpoint. However, if this situation comes to light in the future, you run the risk of losing your citizenship, since you weren't 100% truthful on your N-400.