Unfiled returns for non-citizen

[DaveO]

This is a strange case. New client is from Brazil, mid 20’s, who is engaged to a long term client. New client has both an ITIN and a SSN. They have worked since 2009 and earned $30k to $80k per year reported on a 1099 as non-employee compensation. Even after they obtained the SSN they continued to use the ITIN so all the income is reported under the ITIN. Now they want to apply for citizenship but they have to show all taxes are filed and paid. No tax returns have ever been filed under ITIN or SSN. So question 1 is do I use the SSN or ITN on the returns? I’m thinking SSN since that is what they will use going forward but it will result in a mismatch leaving the 1099’s un-cleared from the system. Question 2, which is more legal in nature, will the fact that they will likely have to file an OIC to resolve the issue have a negative impact on their citizenship application? I can’t imagine it won’t but have no basis for that opinion.

[TAXNJ]

Vist local office

Refer to half way down the page on attached link

http://www.irs.gov/Individuals/Additional-ITIN-Information

[Roberts]

I believe the form for applying for citizenship specifically asks if you have any outstanding tax debt owed the government. It has to do with their "good moral character" position. I'm pretty certain this won't be THE determining factor in whether they get rejected for citizenship but it will be a consideration. Doing an OIC or instituting a payment plan and sticking to it should mitigate most / all of those negatives.

[DaveO]

Refer to half way down the page on attached link

http://www.irs.gov/Individuals/Addit...IN-Information

Good information, thanks.

[TAXNJ]

Consider

This is a strange case. New client is from Brazil, mid 20’s, who is engaged to a long term client. New client has both an ITIN and a SSN. They have worked since 2009 and earned $30k to $80k per year reported on a 1099 as non-employee compensation. Even after they obtained the SSN they continued to use the ITIN so all the income is reported under the ITIN. Now they want to apply for citizenship but they have to show all taxes are filed and paid. No tax returns have ever been filed under ITIN or SSN. So question 1 is do I use the SSN or ITN on the returns? I’m thinking SSN since that is what they will use going forward but it will result in a mismatch leaving the 1099’s un-cleared from the system. Question 2, which is more legal in nature, will the fact that they will likely have to file an OIC to resolve the issue have a negative impact on their citizenship application? I can’t imagine it won’t but have no basis for that opinion.

Question #1 - see prior post

Question #2 - consider an Immigration Attorney for an answer

http://www.immigrationpolicy.org/just-facts/facts-about-individual-tax-identification-number-itin

[DaveO]

I gave them the numbers of two local immigration attorneys I have worked with. Instead they called one of the "pennies on the dollar" law firms. I can see this case is going to be a tough slog.

[TAXNJ]

Hope

I gave them the numbers of two local immigration attorneys I have worked with. Instead they called one of the "pennies on the dollar" law firms. I can see this case is going to be a tough slog.

Hope you received payment for your services