Why immigrants should file taxes

In my Consulta Migratoria® column this week I explain why immigrants should file taxes.

This is the column:

A new year has begun and very soon we will be filing our tax returns. The law dictates that we have to pay taxes if we live in the United States.

Everyone, including undocumented immigrants, must file a tax return every year, unless they qualify for an exception. Not only can evading taxes get you in trouble with the law and the Internal Revenue Service (IRS), it can affect your future immigration status.

If you are undocumented, failure to pay taxes could be grounds for denying you permanent residency if you ever qualify for the benefit. This is because one of the requirements for obtaining residency is good moral character. Evading taxes is considered not to be of good moral character and therefore disqualifies the person applying for residency.

To file your taxes, you must first apply for an Individual Taxpayer Identification Number (ITIN). The IRS issues ITINs to people who need an identification number for tax purposes but are not eligible for a social security number. Obtaining an ITIN does not authorize you to work in the U.S. or provide social security benefits.

To obtain an ITIN, you must fill out Form W-7SP, available in Spanish at IRS website. The instructions for Form W-7SP can be found at here.

You must include a valid federal declaration, unless you qualify for an exception, and original documents or certificates proving your identity and alien status. For assistance, you may go to a local IRS office.

You can also call the IRS toll-free at 1-800-829-1040 for information and assistance in completing Form W-7SP and your federal income tax return.

Be sure to get proper advice before you send in your tax return. Your goal is to pay no more and no less than the tax you are entitled to. If you have questions about tax laws, consult with a tax attorney, certified public accountant, enrolled agent, or IRS representative.

If you qualify for an ITIN, the IRS will send you a letter with your identification number, usually within four to six weeks after you apply. If you do not hear from them after that time, call 1-800-829-1040 to find out the status of your application.

If you are a permanent resident, tax evasion can also affect you if you want to become a citizen. The U.S. Citizenship and Immigration Services (USCIS) may deny you citizenship for lack of good moral character.

If you receive a refund from the IRS when you file your taxes, save as much of the refund as you can for your immigration legal fund. This will help you defray the costs of applying for citizenship or permanent residency or paying for legal defense in immigration court.

For more information and immigration tips, read my blog inmigracionhoy.com.

Send your questions to preguntas@consultamigratoria.com. Include detailed information about your situation to better answer your questions.

Nelson A. Castillo, Esq. is an immigration attorney and author of La Tarjeta Verde: Cómo Obtener la Residencia Permanente en los Estados Unidos (Green Card: How to Obtain Permanent Residence in the United States). He is a past President of the Hispanic National Bar Association and current President of the Los Angeles Westlake South Neighborhood Council. To contact Mr. Castillo's office, please call (213) 537-VISA (8472).