K1, no fed income tax returns, living abroad

[nutsmunkey2000 3]

Hi,

What was the outcome of this?

I am in a similar position in that we have received an RFE for failure to submit my U.S wife's federal income tax return for the most recent year however she has been living in London with me for the past 4 years an therefore didnt file taxes here. She wrote a statement which explained why she didnt file taxes last year (because she didnt earn anything in the U.S) and even qouted the IRS guidelines which explain the minimum threshold on taxable earnings.

I'm unsure as to what they actuall want from us and I dont want to submit another statement just to get another RFE. The USCIS helpline couldn't offer any explanation or guidance so I have scheduled an infopass appointment however the first available appointment isn't for almost a month.

Any help you guys can offer would be greatly appreciated

[VanessaTony 3,567]

Hi,

What was the outcome of this?

I am in a similar position in that we have received an RFE for failure to submit my U.S wife's federal income tax return for the most recent year however she has been living in London with me for the past 4 years an therefore didnt file taxes here. She wrote a statement which explained why she didnt file taxes last year (because she didnt earn anything in the U.S) and even qouted the IRS guidelines which explain the minimum threshold on taxable earnings.

I'm unsure as to what they actuall want from us and I dont want to submit another statement just to get another RFE. The USCIS helpline couldn't offer any explanation or guidance so I have scheduled an infopass appointment however the first available appointment isn't for almost a month.

Any help you guys can offer would be greatly appreciated

Did she work at ALL? USC's and LPRs are required to file taxes every year, regardless of where they live. If they earn foreign income a certain amount is except but taxes still need to be filed.

Your wife needs to prove she didn't work at all, even in the UK (an Affidavit should be fine, maybe proof of your joint UK taxes showing 0 income for her). If she DID work in the UK then she needs to file back taxes in the US.

Edited February 16, 2012 by Vanessa&Tony

[nutsmunkey2000 3]

Thanks for the reply.

No, she hasn't worked in the U.S for 4 years and has only just started a new job here. We were told by the IRS that she didn't need to file taxes for last year as she made less than the minimum threshold?(i.e. nothing) in the U.S and that overseas earnings didn't apply as she was paying UK taxes on those earnings.

The RFE we received is asking for her federal tax returns for last year however she didn't file any as the IRS didn't require her to. She has details of the taxes she paid in the UK although I'm certain that the USCIS doesn't want them.

Do you have experience of the same issue?

[VanessaTony 3,567]

Thanks for the reply.

No, she hasn't worked in the U.S for 4 years and has only just started a new job here. We were told by the IRS that she didn't need to file taxes for last year as she made less than the minimum threshold?(i.e. nothing) in the U.S and that overseas earnings didn't apply as she was paying UK taxes on those earnings.

The RFE we received is asking for her federal tax returns for last year however she didn't file any as the IRS didn't require her to. She has details of the taxes she paid in the UK although I'm certain that the USCIS doesn't want them.

Do you have experience of the same issue?

Your wife is a US. She DOES need to file taxes on her UK earnings. As I said no matter where in the world she lives and works she MUST file taxes yearly, unless she doesn't earn any income at all (no US income ANY income at all).

You have verified that you wife has worked. She will need to file taxes in the US. She will file the exemption form for the overseas income so she won't need to pay tax on it, but she DOES need to file. I think you must have misunderstood them and they say she doesn't need to pay tax on it but she DOES need to file.

Here is proof she MUST file: http://www.irs.gov/businesses/small/international/article/0,,id=97324,00.html especially this part:

If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside.

Here is info from the IRS on the exclusion (exclusion from paying, not from filing): http://www.irs.gov/newsroom/article/0,,id=108276,00.html

Here's some other random links verifying she MUST file, regardless of where she lives:

- http://www.overseastaxservices.com/index.php?option=com_content&view=article&id=53&Itemid=57

- http://www.taxmeless.com/IRS593Publication.htm

- http://blog.dangerzonejobs.com/managing-your-contracting-career/why-americans-working-overseas-should-file-a-us-tax-return/

So, have your wife file her back taxes and she will be fine. SHE earned money so she MUST file. If she hadn't earned money, or hadn't earned enough (to meet US requirements for a minimum) then she would show proof of her low income.

Edited February 16, 2012 by Vanessa&Tony

[Harpa Timsah 13,258]

Vanessa is correct: Your wife needs to file taxes on her UK income. She probably won't have to pay, but she must file. You're in trouble for the RFE though, because there are only so many days to respond, and they will want proof from IRS, not just photocopies of the return.

[nutsmunkey2000 3]

great, thanks for the help. We are meeting with our accountant next week to get it all sorted, lets hope it can be resolved within the 87 days that we have to answer the RFE.

[JessicaS 0]

I was in the exact situation a few years ago. I'm not saying its the right thing, but out of ignorance I never filed taxes on income earned overseas (lived abroad for 10 yrs). Our lawyer advised us that my overseas income didn't count towards sponsoring my husband but getting another sponsor would be fine. My dad ended up being my husband's sponsor and it worked out fine. Do you have someone that could sponsor you in the U.S. to avoid all that backfiling now (and perhaps do it later)?

Good luck!

Jessica

[VanessaTony 3,567]

I was in the exact situation a few years ago. I'm not saying its the right thing, but out of ignorance I never filed taxes on income earned overseas (lived abroad for 10 yrs). Our lawyer advised us that my overseas income didn't count towards sponsoring my husband but getting another sponsor would be fine. My dad ended up being my husband's sponsor and it worked out fine. Do you have someone that could sponsor you in the U.S. to avoid all that backfiling now (and perhaps do it later)?

Good luck!

Jessica

That would mean lying and saying that she was NOT required to file when she clearly WAS supposed to file. Lying is never good (it worked for you but it was a lie and lying to USCIS is never a good thing). A joint sponsor would be well and good but it doesn't negate the primary sponsor's requirement of filing taxes (if legally required to do so)

[himher 634]

How the hell do you file K1 living abroad and already married?

[VanessaTony 3,567]

The above poster has a valid point. You mean Cr-1 yes? Please change your profile and I will report this to be moved and the title corrected.

[Penguin_ie 5,986]

Nope, this is a K1 AOS- if you check the OP's timeline, they had their K1 interview in October 2011 and entered the US the same month, then files AOS in January 2012.

Edited February 17, 2012 by Penguin_ie

[himher 634]

Your RFE was sent after the end of a new tax year.

Based on your timeline you are (1) year out of date. You filed before the end of 2011.

They want 2011 tax year, either they want to see 2011 taxes filed based on being in the US for 3-4 months or a statement that you don't have to file taxes in 2012 for 2011.

You need the same statement of why taxes were not filed for 2012 as was filed for not filing taxes in 2011.

This will satisfy the RFE. Your statement otherwise was prepared correctly.

Hi,

What was the outcome of this?

I am in a similar position in that we have received an RFE for failure to submit my U.S wife's federal income tax return for the most recent year however she has been living in London with me for the past 4 years an therefore didnt file taxes here. She wrote a statement which explained why she didnt file taxes last year (because she didnt earn anything in the U.S) and even qouted the IRS guidelines which explain the minimum threshold on taxable earnings.

I'm unsure as to what they actuall want from us and I dont want to submit another statement just to get another RFE. The USCIS helpline couldn't offer any explanation or guidance so I have scheduled an infopass appointment however the first available appointment isn't for almost a month.

Any help you guys can offer would be greatly appreciated

Edited February 19, 2012 by himher

[VanessaTony 3,567]

Your RFE was sent after the end of a new tax year.

Based on your timeline you are (1) year out of date. You filed before the end of 2011.

They want 2011 tax year, either they want to see 2011 taxes filed based on being in the US for 3-4 months or a statement that you don't have to file taxes in 2012 for 2011.

You need the same statement of why taxes were not filed for 2012 as was filed for not filing taxes in 2011.

This will satisfy the RFE. Your statement otherwise was prepared correctly.

This makes no sense and is wrong. 2011 taxes aren't required until after April 15, 2012.

[himher 634]

It might not make sense but the answer is based on our experience and you are politely advised to specifically share why or why not you think the answer is wrong (along with the genius/geniuses who voted your post up) other than the April 15th deadline.

We filed AOS in late Jan, 2008 and they asked for the same thing (current tax year /2007 information) from us, April deadline or not. I didnt really look at the OP's timeline because the topic/OP's situation didnt really match but I suspect, based on what the OP posted they filed, that they are asking for the same thing from them that they asked from us.

NOTE: This is our (second) trip through. We already navigated the waters through K3/AOS/ROC once......in fact we were part of the "fee increase" group in 2007

This makes no sense and is wrong. 2011 taxes aren't required until after April 15, 2012.

Edited February 20, 2012 by himher

[Harpa Timsah 13,258]

The RFE is because the OP did not file tax return. They didn't think they had to because they were working abroad. The year is not the issue here.