Working while unauthorized...what to do now?

[CarlosAndSveta 808]

OK, husband entered on F-1 visa, overstayed now for 9-10 years. He has worked the past 4 years unauthorized. He was paid cash and didn't file taxes. We DON'T want to lie on the forms. I know that working while unauthorized and overstay are both overlooked with marriage-based AOS. We want to get our packet in ASAP before fees go up. So basically I need to know what to do about correcting his taxes. And can we go ahead and file our AOS showing unauthorized work and take care of taxes after? Or other suggestions for what we need to do...Thanks very much! The other thing is he is concerned that his employer will get in trouble because they didn't pay taxes. Personally I really doubt they are going to get into that detail-there are just too many people and secondly he needs to be concerned with himself and not his employer's mistakes. But, is there any truth to the fact that basically they are more concerned with the fact if he's able to adjust, rather than if his employer paid taxes...if you know what I mean.

Your husband is considered a Resident Alien for U.S. Income tax purposes. See Publication 519 - U.S. Tax Guide for Aliens. Resident Aliens are treated the same as U.S. citizens by the Internal Revenue Code. The income from the business overseas is still taxable for U.S. Income tax purposes. It is foreign sourced income but that is usually only relevant for purposes of detemining foreign tax credits. I would suggest you consult with a CPA or an accountant, that specializes in taxes, in preparing the returns that your husband needs to file.

[limbo 0]

my thoughts to you is to consult a lawyer that said, if you want to proceed on your own make sure that at least you file your

taxes jointly or file amended taxes to include him. My situation was way more complicated than your husband's.

Just stay focused on the ultimate goal and have faith. Read my first posting GIVE ME A REASON TO BE HOPEFUL

[Dakine10 5,452]

Your husband is considered a Resident Alien for U.S. Income tax purposes. See Publication 519 - U.S. Tax Guide for Aliens. Resident Aliens are treated the same as U.S. citizens by the Internal Revenue Code. The income from the business overseas is still taxable for U.S. Income tax purposes. It is foreign sourced income but that is usually only relevant for purposes of detemining foreign tax credits. I would suggest you consult with a CPA or an accountant, that specializes in taxes, in preparing the returns that your husband needs to file.

That's true. Unlike USCIS, the IRS is a very inclusive club. With few exceptions, for the time that he was a US resident, he will owe taxes to the IRS on all income. If he already paid taxes to the foreign country, there are IRS tax credits available, so he may not actually owe any additional tax, but he will have to include the foreign income when filing.

Edited November 19, 2010 by Dakine10

[Brother Hesekiel 2,235]

Let me simplify this: in order to avoid potential problems and just to make AOS less of a risky proposition, I would go to a tax professional (the Block people won't charge more than $150-or-so for the whole gig), and tell 'em: I would like to file tax returns for 2007, 2008, and 2009 . . . late. Here is what I made; can we list this as a subcontractor income on 1099 basis?

If the tax professional agrees, you give 'em the information needed, he enters it into the computer, and a day or two later you return for the printout of the IRS's receipt. Done.

[CarlosAndSveta 808]

I would just like to point out that every year that you and your husband were married the only correct filing statuses for your U.S. Tax Returns would be either Married Filing Jointly or Married Filing separately. If you (the wife) filed as Single or Head of Household for 2007, 2008 or 2009 then those returns need to be amended.

[katgrl 14]

Thanks everyone for your help. Just FYI I don't want to avoid paying taxes hence the question. Also we have only been married since July and in fact I was previously married. Point is there is nothing I need to do to amend my taxes but thanks for the input. And from now on he'll be paying taxes. Well I know he does anyway for his citizenship but anyway again I do appreciate everyones input.