Non payment of taxes: effect on naturalization application

Nardo has been a permanent resident since 2019. Early this year, he thought that it would be a smart decision for him to apply for naturalization as he wanted to work at a federal agency and was disappointed that he was not able to vote in last year's election. He figured out that since he has lived in the US for more than five years now as a green card holder, this year is the right time to become an American citizen.

As he prepared his paperwork, a certain question made him stop and think whether he goes ahead to file his application. Part 9, Question number 3 in the current version of Form N400 asks if he currently owes any overdue federal, state or local taxes in the United States. Nardo admits that he does owe to the IRS a few thousand dollars in unpaid tax payments from the previous year, including interests and penalties. If he answers "yes" which he should, would there be an adverse effect on his naturalization application?

One of the requirements for applicants in naturalization is that he/she must be of good moral character. Good moral character is defined as the character that measures up to the standards of average citizens of the community in which the applicant resides. The applicant must show that he has and continue to possess good moral character during the required period. In Nardo's case, he must be of good moral character for five years since his application is based on five years of lawful permanent residency.

Non-payment of overdue taxes could be a ground for USCIS to determine that Nardo lacks good moral character. The general standard of average citizens is that they file tax returns and pay taxes due. In Nardo's case, he acknowledges that he still has unpaid back taxes and that in itself presents a huge problem for him as his naturalization application may be denied for lack of good moral character.

What he could do is that he may choose to pay the IRS for all the tax dues. That cures the problem once and for all. If he cannot make a one-time payment due to financial hardship, he can make arrangements with the IRS that he pays through a payment plan. The IRS is always amenable to such an arrangement. Nardo just has to make sure that he has the receipts and is making payments timely and according to the agreed plan. He might also want to forgo filing his naturalization application until such time that he has either made substantial payment or has completely paid all that is due. By then, he would have a much better chance at securing a favorable decision.