Does IRS debt impact K-1 Approval?

[bf__ 501]

Hi,

 

So, we applied for our K-1 Visa back in October and we're hopefully due approval March/April time where I will then go to the consulate here in London.

 

My question is...

My fiancée owes $20k to the IRS (not her own doing, this is due to her ex husband.. long story). She's currently working with a lawyer now who is trying to agree a settlement or hopefully make her not liable.

 

We have the current W-2s, and tax transcript for 2017, and it says on there that she owes this amount. However, she earns well over $75k a year (not going to disclose actual figures), so she could pay it if absolutely necessary through a payment plan. 

 

I'm not sure what impact this will have on my approval rates as she's reluctant to set up a payment plan right now because $20k is a lot when she's not totally responsible for this.

 

I will do my best to answer any further questions. 

 

Thank you!

[geowrian 22,335]

It is something the CO can use in determination of the public charge concern. Generally, having a payment plan setup and sufficient income/assets to compensate will work fine.

The fact that money is owed to the IRS is not an issue in itself.

 

That said, this situation is a little more unique in that there is no payment plan as it's an ongoing process to determine their liability (if any).

[bf__ 501]

9 minutes ago, geowrian said:

It is something the CO can use in determination of the public charge concern. Generally, having a payment plan setup and sufficient income/assets to compensate will work fine.

The fact that money is owed to the IRS is not an issue in itself.

 

That said, this situation is a little more unique in that there is no payment plan as it's an ongoing process to determine their liability (if any).

We’ve discussed setting up a payment plan if absolutely neccersary. But like you say, she has  assets and income to clear the debt and still be way over this 125% poverty level. 

[stacyt 209]

If she agrees on monthly payments to cover her debt with IRS and she makes enough money to be eligible for K-1 sponsorship, it will have 0 impact on the visa. That's for sure. We had a similar situation. If she refuses to go on a payment plan, I'm not sure how that will affect your visa.

[bf__ 501]

2 minutes ago, stacyt said:

If she agrees on monthly payments to cover her debt with IRS and she makes enough money to be eligible for K-1 sponsorship, it will have 0 impact on the visa. That's for sure. We had a similar situation. If she refuses to go on a payment plan, I'm not sure how that will affect your visa.

It’s not a case of refusing to go on a payment plan, it’s just that the lawyers are working this out with the IRS right now and apparently this can take a long time. 

[stacyt 209]

1 minute ago, brandonflude1 said:

It’s not a case of refusing to go on a payment plan, it’s just that the lawyers are working this out with the IRS right now and apparently this can take a long time. 

I've just checked my husband's tax transcripts and couldn't find anywhere about the debt, maybe that has to do with the fact that he's on the payment plan. Even with that, 20k is a too small of an amount to put her below the poverty level and to be honest, I don't think anybody reads the full transcript. (Don't know about the USCIS or NVC stage, but on the interview, they didn't even open them). The requirement is that income needs to meet a certain level, nothing mentions income minus IRS debts. I don't think you have anything to worry about

[bf__ 501]

7 minutes ago, stacyt said:

I've just checked my husband's tax transcripts and couldn't find anywhere about the debt, maybe that has to do with the fact that he's on the payment plan. Even with that, 20k is a too small of an amount to put her below the poverty level and to be honest, I don't think anybody reads the full transcript. (Don't know about the USCIS or NVC stage, but on the interview, they didn't even open them). The requirement is that income needs to meet a certain level, nothing mentions income minus IRS debts. I don't think you have anything to worry about

That’s good news. Maybe I will give them her statement from employer and banks before the tax transcript or W-2

[geowrian 22,335]

37 minutes ago, stacyt said:

The requirement is that income needs to meet a certain level, nothing mentions income minus IRS debts.

As a technical aside...

For a K-1 the only requirement is not being a public charge, so the CO has full discretion. But the OP will need to do AOS shortly afterward so the following tidbit is relevant as well.

 

This isn't entirely correct. There is a minimum income level that must be met to sponsor a family member for an immigrant visa or green card (via the I-864).

Below the minimum = deny. Just because one is above the minimum does not guarantee anything, though.

 

A CO or IO looks at the totality of the circumstances to determine the public charge concern (for both the K-1 visa and AOS later). This includes a large array of factors, of which mandatory debts, wage garnishments, etc., would be one factor.

 

I agree that I don't think it would be an issue in the OP's case in the end (just not sure what other documents they may ask for, if any).

[Wuozopo 4,285]

3 hours ago, brandonflude1 said:

Hi,

 

So, we applied for our K-1 Visa back in October and we're hopefully due approval March/April time where I will then go to the consulate here in London.

 

My question is...

My fiancée owes $20k to the IRS (not her own doing, this is due to her ex husband.. long story). She's currently working with a lawyer now who is trying to agree a settlement or hopefully make her not liable.

 

We have the current W-2s, and tax transcript for 2017, and it says on there that she owes this amount. However, she earns well over $75k a year (not going to disclose actual figures), so she could pay it if absolutely necessary through a payment plan. 

 

I'm not sure what impact this will have on my approval rates as she's reluctant to set up a payment plan right now because $20k is a lot when she's not totally responsible for this.

 

I will do my best to answer any further questions. 

 

Thank you!

 

London does not even require a tax return for a K1. I promise that is true. They love employer letters. 

 

The tax tax return is required for AOS. BUT I have a question. You said the transcript says she owes $20k. Is that what is due as written on Line 78 Total Tax due on the Form 1040? I am asking because you may have ordered the wrong transcript. The tax account transcript would show what is still owed the IRS.  Get a tax return transcript if that is the case. Just because my tax return says at the end that I owe $6000, doesn't indicate I didn't write a check for that amount and mail it in. 

 

I think you have a non-issue. The affidavit of support is about income. It is not about what you owe the IRS, or your mortgage company, or your MasterCard.

[Commish10 427]

Specifically to IRS issues.  If it was from a ex spouse you can file for innocent spouse. If you agree with the amount, you can set up a payment plan with the IRS. If they have already filed a lien and reported it on your credit report, after making 3 consecutive payments on a payment plan, you can apply to have both removed.

 

None of these actions require a lawyer. All form can be found on IRS.gov. 

[Carpe Vinum 2,308]

14 hours ago, Wuozopo said:

 

London does not even require a tax return for a K1. I promise that is true. They love employer letters. 

 

The tax tax return is required for AOS. BUT I have a question. You said the transcript says she owes $20k. Is that what is due as written on Line 78 Total Tax due on the Form 1040? I am asking because you may have ordered the wrong transcript. The tax account transcript would show what is still owed the IRS.  Get a tax return transcript if that is the case. Just because my tax return says at the end that I owe $6000, doesn't indicate I didn't write a check for that amount and mail it in. 

 

I think you have a non-issue. The affidavit of support is about income. It is not about what you owe the IRS, or your mortgage company, or your MasterCard.

This ^^^^