All Immigration Laws Have a Direct Bearing on Tax Laws in United States

The immigration rules of the United States are always conjoined to its tax structure. In a way the immigration in USA is merit driven and looks at a person’s ingenuity to contribute to the economy by way of skills, knowledge and entrepreneurship.  Therefore those seeking U.S. immigration must know rules of taxation affecting different types of immigrants’ especially undocumented aliens.

Under the provisions of the new Immigration Reform Bill the immigration tax laws will be sharpened to absorb the illegal immigrants numbering 11 million into a pathway of citizenship by way of more back taxes and the addition of more taxpayers to the tax base. This will progressively offset any wasteful expenditure at the social security front in a few years. 

Tax Laws and Citizenship

The treatment of aliens under the internal revenue and social security laws of the United States is contingent on the status of aliens under the immigration laws of the United States. The immigration laws classify aliens into three:

• Immigrants
• Non-immigrants
• Illegal aliens

Immigrants can reside permanently in the United States and get the green card.  The green card holder can enter and leave the United States without a visa or re-entry permits at will and earn income in the United States. citizen.

Back Tax Issues

Under the new Immigration Bill citizenship for 11 million undocumented immigrants would be a long drawn process with tax tests.

• Gaining Provisional legal status after passing background checks and paying back taxes
• Applying for green cards after PLS in 10 years
• Applying for citizenship three years into getting green cards

In tax matters, the tax laws speak of only resident aliens and nonresident aliens.  While resident aliens are taxed as U.S. citizens nonresident aliens are taxed as per the Internal Revenue Code.