N-400 Application - Part 10 - IRS Audit

[vicky79]

Hi All,

I am completing 5 years on a GC, and was planning to apply for US Citizenship. As I looked through Form N-400, I am confused on how to answer Question 5 in Part 10 " Do you owe any Federal, State or Local Taxes that are overdue?"

I am being audited by NY State and IRS for 2010. I have responded to their query with additional information, but their Letter says that I "Owe them $XX and if I disagree I should file an appeal and provide additional documentation"

I am working with my Tax Attorney on responding and he says that this will take approx 6 months to be resolved.

So, at the moment, this is a in-process case given that I am providing them additional information. However, from their perspective, they have sent me a Letter stating I owe them additional taxes.

How do I respond to Question 5? Some people advise waiting to resolve IRS queries, but that may take a long time. Thank you!

[JoeF]

You should discuss this with an immigration lawyer. Whenever there is something unusual, the best thing is to talk with an immigration lawyer.

[pontevecchio]

How much money is involved./

[vicky79]

Hi, the IRS has denied deductions for my C-Corp that totals about $80K...so am guessing $20K-$25K in additional taxes, if they do not find my documentation satisfactory...plus interest/penalty. I will consult an Immigration Attorney, but wanted to get the members' thoughts.

Also, can anyone recommend a good Imm Att in NYC. Thanks!

[pontevecchio]

I would suggest giving the firm of Murthy a call and then go from there. the Lawyer does not need to be from NY.

[t75]

It is unlikely that postponing naturalization until this is resolved is a significant problem. IMO, a question on $80K on tax returns is a really BIG problem.

[GcLLC]

It is unlikely that postponing naturalization until this is resolved is a significant problem. IMO, a question on $80K on tax returns is a really BIG problem.

Hard to say. First of all, the amount of tax involved is only about 30K max. Whether it is big or not, depends on what the total taxes are. The bigger question is the audit and what might be the possible outcome. Tax disputes with IRS are not uncommon and if its only a small percentage of total taxes owed, usually it is no big deal. As ponte mentioned, do give Murthy a call.