Generally, an applicant who fails to file tax returns or fails to pay taxes as required may not meet the good moral character requirement for the naturalization process. In short, this can be a reason for a denial. However, this doesn’t mean that all cases are denied. In some situations, it is possible to successfully file Form N-400, Application for Naturalization, even with overdue taxes.
This discussion is not for people who have deceitfully evaded tax collection. For the purposes of naturalization, tax evasion (over $10,000) can be considered an “aggravated felony” in the immigration context. An applicant who has been convicted of an aggravated felony on or after November 29, 1990, is permanently barred from establishing good moral character for naturalization.
Good Moral Character
In evaluating an applicant’s Form N-400 (Application for Naturalization), the USCIS officer must determine if an applicant has demonstrated good moral character during the statutory period. The statutory period is five years for most applicants and three years for those married to a U.S. citizen (and applying under INA §319). Therefore, a naturalization applicant who has failed to file a tax return or has not paid all taxes as required can receive a denial.
In evaluating your good moral character, USCIS will take a look at your tax history. The USCIS officer who reviews your case will want to make sure that you’ve filed income tax returns (if required) and have met your obligations to pay income taxes.
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Mistakes on your Form N-400 can cause costly delays or a denial.
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Good People, Bad Situation
Unfortunately, even people with the best intentions can get into tax trouble. If taxes were under paid during the year or other circumstances result in a large tax bill, many Americans find themselves unable to pay the entire bill. In short, sometimes good people end up with tax problems. This is especially common for people with small businesses.
The USCIS officer must consider the totality of the circumstances and weigh all factors, favorable and unfavorable, when considering reformation of character in conjunction with good moral character within the relevant period. The following factors may be relevant in assessing an applicant’s current moral character and reformation of character:
- Family ties and background;
- Absence or presence of other criminal history;
- Education;
- Employment history;
- Other law-abiding behavior (for example, meeting financial obligations, paying taxes);
- Community involvement;
- Credibility of the applicant;
- Compliance with probation; and
- Length of time in United States.
Filing N-400 with Overdue Taxes
If you owe back taxes, it may be possible to file Form N-400, but exercising caution is strongly advised.
Traditionally, when a lawful permanent resident owes back taxes, setting up and faithfully following an IRS payment plan has often led USCIS to continue approving naturalization (N‑400) applications. This approach suggested a practical remedy: demonstrating financial responsibility through regular payments could help satisfy the “good moral character” standard. It is even covered in the USCIS Policy Manual’s guidance on good moral character.
However, anecdotal reports indicate that under more recent administrative policies — particularly during the Trump administration — USCIS adjudicators may be taking a more stringent stance. Despite a payment plan, having any unpaid tax liability can now trigger heightened scrutiny during the naturalization eligibility review.
If you currently have any unpaid taxes, even if you’re on a payment plan, it’s strongly recommended to consult with an experienced U.S. immigration attorney before filing your N-400. A legal professional can help assess your specific tax situation, advise if bringing current or obtaining proof of payment compliance is advisable, and mitigate risk during adjudication.
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Speak to Attorney
It is possible to successfully file N-400 with overdue taxes. However, we always recommend that you speak to an immigration attorney first. Each situation is unique. Further, USCIS officers have a lot of discretion in determining good moral character. An attorney can help you make the best presentation. Find an immigration attorney >>