Does Owing Taxes Affect Citizenship?: Your Questions Answered
Thousands of immigrants are naturalized each year and become fully-fledged US citizens; in the last decade, the US has welcomed more than 7.4 million new Americans. It’s a long, arduous process, and those who apply must meet several criteria.
And despite what some people think, US immigrants pay billions in taxes each year, whatever their legal status. But does immigration check your taxes when deciding whether or not to approve your application?
We’ll explain factors in citizenship, if you can file for citizenship if you owe taxes, how tax returns affect the citizenship interview, and how many years of tax returns are required for citizenship.
Factors in granting citizenship
While the process of becoming a US citizen is strenuous, the requirements are pretty simple:
Be at least 18 years old
Reside continuously in the US for five years (three years for spouses of US citizens)
Be of “good moral character”
Demonstrate the ability to read, write, speak, and understand English
Pass an exam on US government and history
Be willing and able to pledge an Oath of Allegiance to the US
Citizenship and owing taxes
While being current on taxes is not explicitly listed in the factors required for citizenship, owing taxes may affect your likelihood of being granted US citizenship. If USCIS (US Citizenship and Immigration Services) finds that an applicant owes back taxes to the IRS (Internal Revenue Service), the application is likely to be denied on the grounds that it violates the policy of being of “good moral character.”
Owing taxes, though, is not an automatic bar to becoming naturalized. Deliberately not paying taxes you can afford to pay can is an indicator of poor moral character but not immediately having the funds to pay your entire tax bill is not.
If the applicant is working to resolve their tax debt, they may still qualify for naturalization. The IRS is actually very willing to work with those who owe tax debt and will work out a suitable payment plan that isn’t burdensome. But it’s essential to go to the IRS as soon as you know you can’t afford your entire tax bill. Waiting for them to come to you will make your tax situation and path toward citizenship more difficult.
Tax returns and the citizenship interview
You are required to bring certain documents to your citizenship interview, including:
The original appointment letter
Your Green Card
A government-issued photo ID
Your current and previous passports and any travel documents (Reentry permits, Advance Parole, and/or Refugee Travel documents) you used in connection with any entries into the US)
Marriage/divorce-related documents for you and your spouse
Your Form N-400, the form you filled out to apply for citizenship
Certified tax returns for the last five years (three years for an applicant married to a US citizen)
A signed agreement between you and any tax agency, federal, state, or local, that you owe taxes to showing you have arranged to pay what you owe and the current status of your payments
The USCIS officer conducting the interview will ask you questions about the information provided on your Form N-400 and the supporting documentation you brought, which can include questions about your tax returns and any payment arrangements you have to pay a tax bill.
Citizenship and your credit
USCIS may look at an applicant’s credit report, credit score, and debts when determining whether or not to grant citizenship. The process helps ensure that an applicant won’t become a “public charge,” meaning someone who needs to access social programs because they don’t earn enough to meet their basic needs.
This is where Upwardli comes in! We can help you build the credit history and credit score you need to become a citizen. And we can help you learn about the American personal finance system so you can thrive in your new home. Whenever you’re ready, Upwardli is here to help you get started!