In this detailed guide, we’ll look at the effect of back taxes and the steps you can take to handle this issue while staying on track toward U.S. citizenship.
The Significance of “Good Moral Character” for U.S. Citizenship
Becoming a citizen through naturalization is significant for immigrants, but it comes with requirements and duties, including proving “good moral character” (GMC). This standard encompasses meeting IRS tax obligations. If you owe back taxes, you may still be able to become a citizen.
GMC doesn’t require perfection but does demand responsible and ethical behavior, including fulfilling tax responsibilities. Form N-400, the naturalization application from U.S. Citizenship and Immigration Services (USCIS), specifically asks about your tax history, including any unpaid federal, state, or local taxes. For those seeking citizenship, understanding the implications of unpaid taxes and taking appropriate action is essential.
Unpaid Taxes
The good news for those dealing with unpaid taxes is that it’s not a permanent roadblock to U.S. citizenship. Instead, it’s a challenge that can be tackled through the right steps and solutions. Here are some key considerations:
Clarify Your Tax Obligation
Before making any moves, it’s essential to confirm whether you genuinely owe taxes. In some instances, individuals with low incomes might not owe any taxes at all. You can consult the IRS’s guidance to determine if you need to file a tax return, which will clarify your obligations for the years when you missed filing.
Resolving Past Tax Debt
Dealing with unpaid taxes typically involves two crucial steps which are filing your overdue tax returns and making the necessary payments, including any penalties. If you’re unable to cover the full tax amount upfront, you can consider setting up a payment plan with the IRS and your state or local tax authorities.
Demonstrating Good Moral Character
Once you’ve begun addressing your unpaid taxes, it’s important to remain committed to compliance. USCIS acknowledges efforts to rectify your tax situation and may view evidence of a payment plan or consistent payments as proof of good moral character.
What steps should I take to set up an IRS payment plan
Setting up an IRS payment plan can help you manage your tax debt effectively. Here are the steps to establish a payment plan:
1. Determine Your Eligibility
Before applying, assess your tax liability:
- Short-term Payment Plan: If you owe less than $100,000 in combined taxes, penalties, and interest, and can pay off your debt within 180 days.
- Long-term Payment Plan: If you owe $50,000 or less and need more than 180 days to pay off your balance.
2. Choose Your Application Method
You can apply for a payment plan in several ways:
- Online: Use the IRS’s Online Payment Agreement Tool.
- By Phone: Call the IRS at 800-829-1040 for individuals or 800-829-4933 for businesses.
- By Mail: Complete Form 9465 (Installment Agreement Request) and send it to the appropriate address listed for your state.
- In Person: Visit a local IRS office.
3. Complete the Application
When applying online or by phone, ensure you have:
- Your Social Security number or Individual Taxpayer Identification Number.
- Access to your email and phone for verification.
- Relevant tax information from previous returns.
4. Pay Any Required Setup Fees
Depending on the type of plan:
Short-term plans typically have no setup fee.
Long-term plans have varying fees based on payment method:
- $31 for online applications with direct debit.
- $130 for online applications with other payment methods.
- Higher fees apply for applications submitted by mail.
5. Review Your Payment Plan Terms
Understand the terms of your agreement:
- Confirm the monthly payment amount and due dates.
- Be aware that penalties and interest will continue to accrue until the balance is paid in full.
6. Make Payments
You can make payments through various methods:
- Direct Debit: Automatic withdrawals from your bank account (recommended).
- Direct Pay: Payments made directly from your bank account via the IRS website.
- EFTPS: Electronic Federal Tax Payment System for scheduled payments.
- Manual payments via check or credit card are also options but may incur additional fees.
7. Monitor and Revise Your Plan if Necessary
Regularly review your payment plan and adjust as needed if your financial situation changes. You can contact the IRS to discuss modifications or use their online tools to make adjustments.
In summary, owing back taxes raises concerns about your eligibility but it doesn’t automatically disqualify you and by taking proactive measures to settle your tax obligations, you can demonstrate your dedication to meeting the criteria for naturalization.
The journey to U.S. citizenship is achievable, even in the face of challenges. Owing back taxes should serve as a reminder to address your financial responsibilities promptly, ensuring that you not only meet IRS standards but also uphold the integrity of your naturalization process. With determination and adherence to tax obligations, you can continue pursuing your dream of becoming a U.S. citizen while forging a brighter future for yourself and your loved ones.
How Law and Visas Can Help?
At Law and Visas, our team of expert immigration consultants is here to make your U.S. citizenship application straightforward and successful. Whether you’re applying for an Immigrant Visa or a T Visa, we handle every step—from preparing your application to gathering the required documents.
Our Immigration Consultants and Lawyers ensure that your application meets the highest standards, with no details missed. We’ll also keep you informed throughout the process, coordinating with the immigration office or embassy on your behalf.
Law and Visas has a strong record of helping clients secure the visas/permits they need to visit the United States. Call us today at +234 812 5505 986 to learn how we can assist you.
