Do you pay your taxes?

When the USCIS officer asks whether the applicant pays his or her taxes, the answer should be "Yes" with documentation showing that all required federal, state, and local tax returns have been filed and any taxes owed have been paid or are subject to a current payment plan with the IRS. The N-400 application Part 12 asks specifically: have you ever not filed a Federal, state, or local tax return since you became a permanent resident? Have you called yourself a non-U.S. resident on a Federal, state, or local tax return since you became a permanent resident?

Failure to file required tax returns is a basis for finding lack of good moral character under section 101(f)(6) and as a general matter under the catch-all provision. Calling oneself a non-resident for tax purposes (claiming foreign residency to avoid U.S. tax obligations) while holding a green card is particularly problematic because it conflicts with the basic premise of permanent residence. United States tax law requires permanent residents to file federal income tax returns each year reporting worldwide income, even if the income was earned outside the United States.

The Foreign Earned Income Exclusion (Form 2555) allows excluding up to a certain amount of foreign earned income from U.S. tax, but the applicant must still file the return. State and local tax obligations vary; states with no income tax (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, plus New Hampshire which taxes only investment income) do not require state returns, but most other states do.

The applicant should bring federal tax returns (Form 1040 or 1040-EZ, plus all schedules) for the past 5 years (or 3 years for spouses of U.S. citizens). State tax returns for the same period should also be available. Tax transcripts can be obtained directly from the IRS through the IRS website (irs.gov/transcripts) and serve as official confirmation of filing.

Applicants who owe back taxes should establish a payment plan with the IRS through Form 9465 (installment agreement). A current payment plan typically does not bar naturalization, but unpaid tax liability without a plan can. Applicants who cannot recall whether they filed should obtain IRS transcripts to confirm.

Applicants whose situations are complicated (foreign income, self-employment, multiple states) should consider professional tax help. The officer cannot resolve tax disputes during the naturalization interview, but the applicant must demonstrate that filing obligations are met. Applicants who have not filed should file all delinquent returns before the interview if possible.