If the spouse who is sponsoring the green card applicant (or any joint sponsor) didn’t file taxes in the previous year, they will need to provide an exemption letter. This letter should explain why taxes were not filed for that year.
However, the spouse who is applying for the green card does not need to submit an exemption letter if no U.S. federal taxes were filed. They also do not need to include foreign tax returns as part of their application.
If you’re in a situation where either you or your spouse didn’t file taxes, it’s important to understand the correct steps to take.
What is Continuous Physical Presence?
When applying for U.S. citizenship, one of the requirements is that the applicant must have continuously lived in the United States as a green card holder. This means the applicant must have lived in the U.S. for a certain number of years without taking any long trips abroad.
Here’s the breakdown:
- For most applicants, you must have lived in the U.S. as a green card holder for at least five years.
- If you’re married to a U.S. citizen, the requirement is reduced to three years.
So, what does “continuously” mean? It means that the applicant cannot have taken trips outside the U.S. that lasted six months or longer during the required period of 3 to 5 years, plus the time it takes for the U.S. Citizenship and Immigration Services (USCIS) to process their citizenship application.
Can You Apply for a Green Card If You Haven’t Filed Taxes?
Applying for a green card without having filed taxes can complicate the process, particularly when it comes to demonstrating financial stability and meeting the requirements of the Affidavit of Support (Form I-864). This guide explores the implications of not filing taxes during the green card application process and outlines potential options for applicants and sponsors.
Continuing the Green Card Process Without Tax Returns
- Possibility of Proceeding: It is technically possible to continue with the green card application process without having filed taxes, but this can lead to significant complications. The primary concern is that sponsors must demonstrate adequate income to support the applicant, which is usually verified through tax returns.
- Options if Taxes Haven’t Been Filed:
- If you or your sponsor have not filed taxes, you should file any outstanding returns as soon as possible. This demonstrates compliance with U.S. tax laws and strengthens your application.
- If your sponsor has not filed taxes due to low income, they may not be required to file, but they must provide an explanation and supporting documentation.
- Potential Delays or Denials: Failing to provide necessary tax documentation can lead to delays in processing or even denial of the application. USCIS may issue a Request for Evidence (RFE) if they find tax documentation lacking.
How Missing Tax Returns Impact the Affidavit of Support (Form I-864)
- Importance of Tax History: The sponsor’s income and tax history are critical components of Form I-864, which is required for family-based green card applications. This form ensures that the applicant will not become a public charge.
- What to Do if Taxes Haven’t Been Filed:
- If your sponsor has not filed taxes in previous years, they should gather any relevant documentation that explains their situation (e.g., income below taxable thresholds).
- They may need to submit a signed affidavit explaining why they did not file taxes and affirming their commitment to support the applicant financially.
Addressing Missing Taxes When Applying for Immigration Benefits
- Catching Up on Missing Tax Returns:
- It is advisable to file any overdue tax returns immediately. This can be done online through the IRS website or by submitting paper forms.
- Ensure that you include all necessary supporting documents, such as W-2s or 1099s.
- Filing Past Due Taxes:
- When filing late, penalties may apply. The IRS typically charges a failure-to-file penalty and interest on any unpaid taxes.
- In some cases, taxpayers can request penalty relief by providing a reasonable cause for their failure to file on time.
Penalties for Not Filing Taxes and Their Impact on Immigration
- IRS Penalties: The IRS imposes penalties for failing to file taxes, which can accumulate quickly:
- The failure-to-file penalty is usually 5% of the unpaid tax amount for each month your return is late, up to a maximum of 25%.
- Interest on unpaid taxes also accrues daily until the balance is paid in full.
- Impact on Immigration Case: While tax penalties do not directly affect immigration status, they can raise concerns about an applicant’s financial responsibility and reliability, potentially impacting USCIS’s decision-making process.
Can You Submit Your Green Card Application Without Tax Returns?
- Submitting Form I-485 Without Tax Returns: It is generally not advisable to submit your green card application (Form I-485) without including relevant tax returns from your sponsor:
- USCIS typically requires proof of income through tax documentation when evaluating Form I-864.
- If your sponsor has not filed their most recent tax return, it may result in an RFE or delays in processing.
- Explaining Late Tax Submissions: If you need to submit your tax returns late:
- Include a cover letter explaining why the returns are being submitted after the deadline.
- Provide any supporting documentation that validates your situation (e.g., proof of income).
The Impact of Not Filing Taxes on the U.S. Sponsor’s Financial Support
Not filing taxes can significantly affect a U.S. sponsor’s ability to demonstrate financial support during the green card application process. This guide explores the implications of unfiled taxes, alternative methods for proving financial eligibility, and steps to take if you haven’t filed taxes but are eligible for a green card.
How Not Filing Taxes Affects the Sponsor’s Financial Support
- Demonstrating Income: When sponsoring a relative for a green card, the U.S. sponsor must submit Form I-864 (Affidavit of Support). This form requires proof of income, typically through tax returns. If a sponsor has not filed taxes, they cannot provide the necessary documentation to demonstrate their financial capability to support the applicant.
- Financial Support Requirements: USCIS requires sponsors to show an income level at least 125% above the federal poverty guidelines. Without tax returns, it becomes challenging to prove that the sponsor meets this requirement, potentially leading to delays or denials of the application.
- Alternative Ways to Demonstrate Financial Eligibility: If taxes have not been filed, sponsors can:
- Provide an exemption letter if their income is below the filing threshold.
- Use alternative documentation such as pay stubs, bank statements, or employment verification letters to demonstrate current income.
What to Do If You Didn’t File Taxes But Are Eligible for a Green Card
- Steps to Take: If you haven’t filed taxes but are eligible for a green card:
- File Back Taxes: Immediately file any overdue tax returns with the IRS. This demonstrates compliance and strengthens your application.
- Gather Documentation: Collect any supporting documents that can help establish your financial situation, such as W-2s or 1099s.
- Filing Back Taxes: To file back taxes:
- Use IRS Form 1040 for each year you missed.
- Include all required schedules and forms.
- Consider using tax software or consulting a tax professional for assistance.
- Submit to USCIS: Once your back taxes are filed, include copies of these returns with your green card application to avoid delays.
Does Not Filing Taxes Affect the U.S. Sponsor’s Citizenship or Naturalization Application?
- Impact on Naturalization: Failure to file taxes can affect a sponsor’s eligibility for U.S. citizenship or naturalization:
- USCIS requires applicants for naturalization to demonstrate good moral character, which includes complying with tax obligations.
- Not filing taxes may raise questions about an applicant’s character and responsibility.
- Consequences for Sponsors: A U.S. citizen sponsor who hasn’t filed taxes may face:
- Delays in their naturalization process due to additional scrutiny.
- Possible denial of their application if USCIS determines that failing to file indicates poor moral character.
Can You File Back Taxes If You Haven’t Filed in Years?
- Filing Process: Yes, you can file back taxes even if you haven’t filed in several years:
- Gather all necessary documents for each year you missed.
- Complete and submit Form 1040 for each year along with any required schedules.
- Fees and Penalties: While there may be penalties for late filing (typically 5% of unpaid taxes per month), it is still possible to file without incurring criminal charges as long as you are not willfully evading taxes.
- Interest Accrual: Be aware that interest will accrue on any unpaid tax balances from the original due date until payment is made.
What Happens if You or Your Spouse Have Unfiled Taxes and the IRS Audits You?
- Understanding an Audit: An IRS audit means that your tax returns are being reviewed for accuracy and compliance:
- For immigration applicants and their sponsors, an audit could complicate the green card process by drawing attention to financial discrepancies.
- Resolving Tax Issues During Audits:
- If audited, gather all relevant documentation and cooperate fully with IRS requests.
- Consult a tax professional or attorney who specializes in both tax law and immigration issues to navigate potential complications effectively.
- Impact on Immigration Applications: While an audit itself does not directly impact immigration status, unresolved tax issues could lead USCIS to question your financial responsibility and moral character during the green card application process.
That said, you can leave the United States during this time, but each trip should not last more than six months to avoid interrupting your continuous physical presence. If your trips exceed this time frame, you may risk losing eligibility for citizenship.
In short, you are allowed to travel outside the U.S. — just be sure to return within six months every time!
How Law and Visas Can Help?
At Law and Visas, our team of expert immigration consultants is here to make your travel to the U.S. straightforward and successful. Whether you’re applying for an F-1 Visa or a 0-1 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 and coordinate 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. You can call us today at +234 812 5505 986 to learn how we can help you
