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Back taxes owed, HELP DESPERATELY NEEDED!

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  • Back taxes owed, HELP DESPERATELY NEEDED!

    Hello all,

    Here is our situation, my fiancé (USC) and I are living in Germany at the moment because I am doing an internship here. We were previously living in France together for over a year. He is having trouble renewing his visa for France (Schengen zone, so OK for Germany too) because they're asking papers that he cannot possibly give them (they told him at the last minute that he needs 3 months of French bank statements and refuse to accept American ones, French immigration is a whole 'nother ordeal than in the US... <_<).

    Anyway, since the prospects of his status in the Schengen zone are unclear, we are thinking of moving back to the US with a K1 visa. The only problem we might encounter is with his taxes. So my fiancé has never worked, he receives money from a settlement fund since he was a child, which has provided him with sufficient revenue to not need to work. But he didn't know that these revenues were TAXABLE, so he never filed for taxes (yes, never... ). The income is around $25,000/year + a lump sum he received when he was very young. It is actually by looking into the K1 requirements that he realised he probably owes a lot of back taxes today!

    So now, we want to file for the K1 and we can have his mother who has well over 125% of the poverty limit, as a co-sponsor if necessary.
    - But when can he file for taxes, and more importantly, when are we going to receive the tax return as proof?
    - Does it take months to process?
    - We are already in May and if I'm correct, tax season just ended. Does that mean we have to wait until next year, April 2016?
    - Is it even realistic that they're going to accept our K1 application with these back taxes?

    This seems like a huge hurdle to overcome, but any help will me inmensly appreciated!

  • #2
    Originally posted by beckyshew View Post
    So now, we want to file for the K1 and we can have his mother who has well over 125% of the poverty limit, as a co-sponsor if necessary.
    - But when can he file for taxes, and more importantly, when are we going to receive the tax return as proof?
    - Does it take months to process?
    - We are already in May and if I'm correct, tax season just ended. Does that mean we have to wait until next year, April 2016?
    - Is it even realistic that they're going to accept our K1 application with these back taxes?
    For what it is worth, I do not consider this a large hurdle to overcome.

    1) He can file his taxes at anytime. A tax transcript from the IRS will reflect his filed returns after the filed returns are processed.
    2) It takes 6 to 8 weeks to process a paper return. He can electronically file his 2014 taxes until October 15th 2015. Prior year returns must be filed on paper.
    3) No.
    4) K-1 sponsorship is not affected by petitioners debt.

    I am curious how he has determined that the settlement payment is taxable. Not all such payments are taxable, and a knowledgeable tax professional can help him with that analysis.

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