I Owe Back Taxes: Can I Still Apply for U.S. Citizenship?

Let's say you have been a U.S. lawful permanent resident (with a green card) for many years, and always meant to apply for U.S. citizenship, but got too busy with work, family and the like. Then you lose your job and become unable to afford your U.S. income taxes, which leads you to not file the required tax returns at all. Or maybe you spent some months living overseas, had no job in the United States, received U.S. income only in the form of interest on savings or investments, and didn't realize that that this money counted toward your U.S. tax obligations (and that your worldwide income needed to be reported to the IRS).

Will failure to pay U.S. taxes bar you from applying for naturalized U.S. citizenship? That's what this article will discuss, namely:

• why nonpayment of taxes raises good moral character concerns
• the possibility that you didn't owe taxes, and
• how to potentially cure the issue by paying back taxes and penalties.

Nonpayment of Taxes Raises "Good Moral Character" Concerns With Regard to Citizenship

One of the important requirements for U.S. citizenship is that the applicant show "good moral character." This doesn't mean showing that you're better than the average person, but it does involve showing that you have behaved well and abided by U.S. laws and norms, including by paying your taxes.

The naturalization application Form N-400 issued by U.S. Citizenship and Immigration Services (USCIS) specifically asks about whether you have paid the taxes that you owe, including any federal, state, and local obligations. (See When Visa or Green Card Holders Must Pay Taxes if in doubt about your obligation.) If you owe taxes, you must answer "yes" to the question about it. This is Question 3 in Part 9 of the 2025 version of the form.

However, missing a tax payment does not mean you are forever barred from U.S. citizenship. Nonpayment is a discretionary concern, which the USCIS officer will weigh into the decision of whether you have shown good moral character. The important thing now is that you do everything possible to evaluate and fix the situation, as described next.

Make Sure You Actually Owed Taxes

If your household taxable income was low enough, it's possible that you didn't owe taxes at all for some years. With regard to federal taxes, this IRS page can help: Do I Need to File a Tax Return?. The range of who is exempt is usually between around $14,000 and $25,000 depending on age, whether you are filing singly or jointly, and so on. You will need to add up not only your salaried income, but any interest or dividend income, or other income from passive sources, with the possible exception of some Social Security payments.

Of course, you will need to make sure to follow the exact applicable minimum for any years you failed to file. The numbers can change year by year, based on inflation.

How to Remedy Past Nonpayment of U.S. Taxes

In order to deal with a nonpayment situation, you will most likely need to file your back tax returns, or a portion thereof. Be sure to include payments for the basic amount plus any applicable penalties.

Or, if you still can't afford the full tax bill, you might be able to work out an "offer in compromise" (to pay less than what's owed in view of your financial hardship) or a payment plan with the IRS as well as with the relevant state or local taxing authorities. In some states, what's known as a tax "amnesty" program might offer you a way to resolve your tax debt with lowered penalties.

Evidence that the applicant is complying with such a payment plan has, in some cases, been accepted by USCIS as sufficient proof of good moral character.

Once you've taken care of these payments and filings, be sure to get copies of your IRS tax transcripts for the relevant years, and provide these to USCIS with your N-400 application for citizenship or at the USCIS interview. Beyond the basic transcript, you might want to get a "tax account transcript," which helps show that you actually paid any outstanding debts shown on the "tax return transcript." And it's best to explain the situation in a cover letter or attached statement, in order to explain why you answered "yes" to the question about owing taxes and what you've done to remedy matters.

Bring USCIS's Attention to Extenuating Circumstances Explaining Your Failure to File

If you can show that "extenuating circumstances" (some reasonable justification) were behind your failure to file or pay taxes, this can help establish your good moral character. By way of example, the USCIS Policy Manual (Chapter 5) describes a situation where a divorced citizenship applicant mistakenly claims a child as a dependent on their tax return not realizing that, by the terms of the divorce, only their former spouse was entitled to make this claim.

Prepare to Answer Questions About Your Taxes at Your USCIS Interview

Every naturalization applicant must attend an interview at a USCIS office. There, an officer will review your entire application, and discuss any areas of concern. Be open about your history of nonpayment and the steps you have taken to remedy it. As mentioned, the USCIS officer might ask you for photocopies of your tax returns or other relevant tax paperwork, covering the last three to five years.

Get Professional Help

Though not hopeless, this is a tricky situation. Your best bet is to get expert help from both a tax professional and an immigration attorney.

The immigration attorney, for example, can help you by writing a persuasive letter to accompany your N-400 application, explaining why your failure to pay taxes does not indicate a lack of good moral character. The attorney can also help you collect and present other evidence of your good moral character, for example by presenting letters and documents showing your community involvement, dedication to family, participation in religious worship activities, and so forth.