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Failing to fully report taxable income under AZ or federal law is this considered a criminal or civil crime

Phoenix, AZ |

I have filed tax return every year. However, I did not report foreign income because I did not know that I was required to report them.
Those income are from stock sales, dividends, and interests on some banking account. (all principles were established before my immigration. I am a greencard holder.)

Although I didn't get any notice from IRS, I voluntarily amended unpaid tax and it comes up to about $8,000. IRS has taken out checks.

Now I am just waiting to hear from them. I am wondering what IRS would do in a case of voluntary tax correction. I am aware of paying penalty and interest. Is this considered as a criminal/civil conviction? Would they charge me for tax evasion? Also, what can be done at a state level?

Thank you very much.

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Attorney answers 1


I presume that when you filed your application to become a Lawful Permanent Resident all of the information you supplied to the USCIS was true and correct to the best of your information, knowledge and ability. If and when you may apply for naturalization, you will need to respond to questions about having filed tax returns, having identified yourself as a resident of the U.S. in those tax returns and about not owing past-due taxes to the government. If at the time you file a naturalization application you have not paid all of your tax obligations, it would be wise to include a notation in your application that states you have a payment plan approved by the IRS and you are complying with it, and be prepared at your interview/examination to provide copies of the IRS payment plan and evidence that you are complying.

In connection with reaching a payment plan arrangement with the IRS, I recommend engaging a local tax attorney to help you.

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David N. Soloway
Frazier, Soloway & Poorak, PC
1800 Century Place, Suite 100
Atlanta, Georgia 30345