Unpaid taxes could jeopardise US green card applications, warn immigration lawyers

USCIS's tougher discretionary approach to adjustment of status (to a green card) puts applicants and in some cases, their financial sponsors under greater scrutiny. Tax compliance could also affect future citizenship applications.A policy memorandum issued by US Citizenship and Immigration Services (USCIS). in May has reframed adjustment of status (AOS), which is the process through which eligible foreign nationals already in the US apply for permanent residence – it is now treated as a ‘discretionary benefit’. The policy calls for USCIS officers to weigh positive and negative factors in deciding whether an applicant merits approval.Unpaid taxes, unfiled returns and even partial payments under an agreed tax repayment plan could complicate an immigrant's application for a green card, immigration lawyers are warning. The implications could extend to both family-based and employment-based green-card applicants, as well as US citizens sponsoring relatives.Karin Wolman, a New York-based immigration attorney, says anyone preparing to apply for AOS whether family-based or employment-based should pay particular attention to their tax records before filing for adjustment of status."As the policy memo reframes AOS as a rare discretionary benefit, USCIS officers have been routinely denying cases in situations that used to be acceptable. One of these is where the applicant or sponsoring US citizen owes back taxes: if you haven’t filed a return yet because it’s under extension, or you are making partial payments under a payment plan with the Internal Revenue Service (IRS) or the state, that can now result in denial of a green card application. Get your house in order, file the tax return and pay the balance owed. It is best if you can do so before filing the application, but definitely before the interview," she said.USCIS's discretionary framework requires officers to consider the totality of an applicant's circumstances. Compliance with tax laws and a record of paying taxes count in an applicant's favour, while failure to meet tax obligations can weigh against approval.The issue is also relevant where a sponsoring US citizen has outstanding tax liabilities. In family-based immigration cases, sponsors must generally submit an ‘Affidavit of Support’ in the required form, demonstrating that they meet the prescribed financial requirements. Tax returns and payment history are among the documents used to establish the sponsor's financial position.Tax history can matter at naturalisation tooTax compliance can have consequences even after an immigrant obtains permanent residence. Applicants seeking US citizenship through naturalisation must generally demonstrate good moral character.USCIS considers failure to pay taxes as a negative when assessing good moral character. Applicants with overdue federal, state or local taxes may be required to submit evidence that they have filed the necessary returns and entered into a repayment agreement with the relevant tax authority.Wolman also underlines the connection between tax compliance and naturalisation. "Timely payment of taxes is also a 'good moral character' factor when applying for naturalisation," she said.The tougher approach to adjustment of status is currently facing a legal challenge. A coalition of immigration advocacy organisations, unions and individual applicants filed a lawsuit against the Department of Homeland Security and USCIS in a district court in Massachusetts on Oct 5.The lawsuit states that the policy violates the Administrative Procedure Act, the Immigration and Nationality Act and constitutional due-process protections. The plaintiffs are seeking an injunction to block their implementation while the case is heard. As of date, the case remains pending, with no court order blocking the policies.You use AI every day. Now get your AI Quotient. Take the AIQ test.