naturalization LPR Mistakenly Filed Taxes As A Non-Resident

[Royeed 0]

I am kindly seeking assistance from the forum on how to go about my situation as I am preparing my N-400 application.

 

On reviewing the N-400 form I noticed the question below which will be  a "Yes" for me:

“Have you called yourself a “non-U.S. resident” on a Federal, State, or local tax return since you became a Permanent Resident?”

 

My 2018 tax return was filed with Form 1040-NR (Nonresident Aliens). My CPA used same form (Form 1040-NR) that he has used for previous years returns before I became LPR. It was part oversight and part ignorance of appropriate tax filling form. I have filed an amended Form 1040 for 2018 which is pending to be processed by IRS. There was no tax benefit on filling with Form 1040-NR as oppose to Filling with 1040, it was a mere mistake and partly ignorance.

 

Some Background Information:

I own rental properties and have been filing returns on rental income using Form 1040-NR since 2014.

I got my IR1 on 01/06/2018

I became eligible to apply for naturalization on 10/08/2022 (using 5 years rule and 90 days to 5th anniversary of becoming LPR). I have NOT applied yet.

Filed amended return for 2018 using Form 1040 (IRS processing still pending)

No difference in tax benefits for both forms (no refund)

Only income for 2018 is from rental properties (Unemployed for the whole 2018)

 

Does anyone have similar situation or know someone that does and may know how best to provide explanation to what I will call an innocent mistake? Are there consequences? Please let me know if you need additional information. Thank you.

 

[Royeed 0]

Please is there anyone here that can assist with how to go with this situation and if there are any consequences. Thank you.

[SoCal2021 201]

On 10/11/2022 at 4:41 PM, Royeed said:

I am kindly seeking assistance from the forum on how to go about my situation as I am preparing my N-400 application.

 

On reviewing the N-400 form I noticed the question below which will be  a "Yes" for me:

“Have you called yourself a “non-U.S. resident” on a Federal, State, or local tax return since you became a Permanent Resident?”

 

My 2018 tax return was filed with Form 1040-NR (Nonresident Aliens). My CPA used same form (Form 1040-NR) that he has used for previous years returns before I became LPR. It was part oversight and part ignorance of appropriate tax filling form. I have filed an amended Form 1040 for 2018 which is pending to be processed by IRS. There was no tax benefit on filling with Form 1040-NR as oppose to Filling with 1040, it was a mere mistake and partly ignorance.

 

Some Background Information:

I own rental properties and have been filing returns on rental income using Form 1040-NR since 2014.

I got my IR1 on 01/06/2018

I became eligible to apply for naturalization on 10/08/2022 (using 5 years rule and 90 days to 5th anniversary of becoming LPR). I have NOT applied yet.

Filed amended return for 2018 using Form 1040 (IRS processing still pending)

No difference in tax benefits for both forms (no refund)

Only income for 2018 is from rental properties (Unemployed for the whole 2018)

 

Does anyone have similar situation or know someone that does and may know how best to provide explanation to what I will call an innocent mistake? Are there consequences? Please let me know if you need additional information. Thank you.

 

As you have explained, this is simply a mistake.  You are trying to fix the error by amending your 2018 taxes.  

 

When you apply for your N-400, be honest and answer "yes" to that question and then provide a written statement and explain in full details on what happened.  I would also provide a copy of amended 2018 tax returns to support your statment. Furthermore, if your CPA can provide a statement that they made a mistake, it would help to attach their statement as well (I doubt your CPA will do this).  Again, mistakes happen and your are dealing with it.  Good luck.

 

Edited October 17, 2022 by SoCal2021

[Royeed 0]

@SoCal2021 - Thanks much for the feedback, well appreciated. You are right, not sure if my CAP will wanna do a write up, but will try anyways and see how it goes.

[Eric-Pris 1,606]

37 minutes ago, Royeed said:

@SoCal2021 - Thanks much for the feedback, well appreciated. You are right, not sure if my CAP will wanna do a write up, but will try anyways and see how it goes.

He works for you. He messed up, he's supposed to be the professional.  You should be expected to tell HIM what forms to use.  The least he can do is write a note.  If he's not willing, he wouldn't be my CPA next year.

[Royeed 0]

1 minute ago, Eric-Pris said:

He works for you. He messed up, he's supposed to be the professional.  You should be expected to tell HIM what forms to use.  The least he can do is write a note.  If he's not willing, he wouldn't be my CPA next year.

Totally agree with you. 

[Chancy 6,241]

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