Category Archives: Investors And Entrepreneurs

Changes to the EB-5 Immigrant Investor Program Coming on November 21, 2019

By:  Coleman Jackson, Attorney, Certified Public Accountant
October 11, 2019

Changes to the EB-5 Immigrant Investor Program Coming on November 21, 2019

The United States Congress first established the EB-5 immigrant visa classification in 1990 by enacting Public Law 101-649, 104 Stat. 4978.  The stated purpose of the law was to encourage foreign investors to make capital investments in the United States to grow the economy and employ Americans and others authorized to work in the United States.  In return the foreign investor could apply to become a Lawful Permanent Resident of the United States.  The basic fundamentals of the EB-5 Immigrant Investor Program have not materially changed since its inception; until now!

 

EB-5 Immigrant Investor program

On Wednesday, July 24, 2019, the Department of Homeland Security published rules that will materially change the EB-5 Immigrant Investor program.  The changes go into effect on November 21, 2019.  Department of Homeland Security’s stated reasons for implementing the changes to the EB-5 Immigrant Investor program:  the rule changes “amends the Department of Homeland Security (DHS) regulations governing the employment based fifth preference (EB-5) immigrant investor classification and associated regional centers to reflect statutory changes and modernize the EB-5 program.”  The overall goal of the EB-5 Immigrant Investor Program is the same as they were in 1990; the Final Rule states;

“In general, under the EB-5 program, individuals are eligible to apply for lawful permanent residence in the United States if they make the necessary investment in a commercial enterprise in the United States and create or, in certain circumstances, preserve 10 full-time jobs for qualified United States workers.”

 

EB-5 Immigrant Investor program

Some of the more significant changes to the EB-5 Immigrant Investor Program are as follows:

  • An EB-5 immigrant petitioner can use the priority date of an approved and unrevoked prior petition in the same classification for which the investor qualifies.
  • The standard minimum investment is raised to $1.8 million from the $1.0 million set in 1990.
  • The minimum investment is raised to $900,000 from the $500,000 set in 1990 for TEA (rural areas or areas with unemployment of at least 150% of the national average).
  • TEA areas are no longer to be defined by the States; and DHS is taking a more active role in the methodology in TEA designations.

These are a summary of the major changes to the EB-5 Immigrant Investor Program that will take effect on November 21, 2019.

 

This law blog is written by the Taxation | Litigation | Immigration Law Firm of Coleman Jackson, P.C. for educational purposes; it does not create an attorney-client relationship between this law firm and its reader.  You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business. 

Coleman Jackson, P.C. | Taxation, Litigation, Immigration Law Firm | English (214) 599-0431 | Spanish (214) 599-0432

New Opportunity Zone Tax Incentive and Foreign Investors

By:  Coleman Jackson, Attorney, Certified Public Accountant
November 24, 2018

Investors from around the globe have long made substantial investments in the United States.

 

Investors from around the globe have long made substantial investments in the United States.  Immigrants have come as builders U.S. infrastructure, such as, railroads, waterways, highways.  Foreign investors have contributed as serial entrepreneurs in high technology, in biosciences, in health, in fitness and in wellness;  and  foreign investors have created other cutting edge businesses in such fields such as nanotechnologies and artificial intelligence.  Name the industry or economic space and you will find foreign investors building and contributing to America’s growth specifically and to global prosperity generally.  Favorite visa classifications sought by foreign investors for years have been the L Series Visa or one of the many E Series Visa Classifications.  The L-1A Intracompany Transferee Executive or Manager Nonimmigrant visa category is designed for foreign investors wishing to transfer, on a temporary basis, executives and managers from their foreign affiliated offices to one of its offices or plants within the United States for the purpose of managing its U.S. investment; or for the purpose of setting-up a new affiliate, office, plant or business venture within the United States.  In recent years the L-1 Series Visa Classification has been a favorite nonimmigrant visa vehicle, especially when the E-Series Visa Classification were less attractive or impossible due to E-2 visa requirements.  For example,   the E-2 Visa requires that the nonimmigrant investor be a citizen of a country with an E1 or E2 Treaty with the United States.  Many aspiring investors come from countries that do not have an investor treaty with the United States; for example, citizens of Vietnam, Brazil, and Russia; to name just a few countries of the world who are not Treaty Countries.  Citizens from those countries and other none Treaty Countries might apply for an L-Series Nonimmigrant Visa if all of the specific requirements are satisfied.  Further if citizens from Non-Treaty Countries can invest over one million dollars, $500,000 in economic high unemployment areas or distressed areas, they can apply for the E-5 Immigrant Visa which is designed to increase economic development in the United States by attracting foreign investors giving them an opportunity to obtain permanent residency in the United States for themselves, their wives and husband and their children under 21 years of age.  The 2017 Tax Cuts and Jobs Act may have provided another incentive to spur foreigners and others to invest in new Opportunity Zones.

 

Opportunity Zones were created by the 2017 Tax Cuts and Jobs Act under Internal Revenue Code Section 1400Z-1 and 1400Z-2

 

Opportunity Zones were created by the 2017 Tax Cuts and Jobs Act under Internal Revenue Code Section 1400Z-1 and 1400Z-2.  An opportunity Zone is a designated economically distressed community.  The Internal Revenue Service is the U.S. Agency delegated with the authority to designate and administer the Opportunity Zone nomination and designation process under IRC 1400Z-1.  Under a nomination process completed in early June 2018, the IRS designated opportunity zones in all 50 states, the District of Columbia and five U.S. territories.  These designated opportunity zones maintain their status for ten years and are not subject to redetermination within the states or within DC or the five territories.    A list of the Opportunity Zones can be found in IRS Notice 2018-48.  State and local governments where designated Opportunity Zone communities are located cannot reassign or otherwise choose other locations within their state or municipalities to replace the designations.

 

IRS Form 8996

 

Designated Opportunity Zones are designed to spur economic development within these American cities and communities by giving investors within the Opportunity Zones tax credits.  Investors in Opportunity Zones are not required to be from or even reside in the zones where they invest.  Residence is not a requirement to qualify for the new Opportunity Zone Tax Credit.  State business entity structuring laws could require residency with the State and other State specific requirements  on those forming business entities or operating within their State; State business codes are different from State to State.   A tax credit, unlike a tax deduction, is a dollar for dollar reduction of a taxpayer’s taxable income.  Investors desiring to invest in an Opportunity Zone must timely file IRS Form 8996, Qualified Opportunity Fund.  This form can be filed by any eligible Partnership, Limited Liability Company (for tax purposes LLC must be classified as a partnership or corporation), or Corporation.  Investors, whether foreign or domestic, must ensure that they engage in proper business or entity structuring to classify the entity as an opportunity fund business entity.  Opportunity Zone Fund requirements must be satisfied when filing organizing documents establishing the entity under State business entity laws.  The mechanics or implementation of the Opportunity Zone tax incentive economic development plan of the 2017 Tax Cuts and Jobs Act are still being developed by the Internal Revenue Service who issued proposed rules and proposed regulations on October 19, 2018.  Watch our blog posts for further developments in the Opportunity Zones Tax Incentive Program and other tax and immigration topics of interest to United States citizens, permanent residents and foreign investors.

This law blog is written by the Taxation | Litigation | Immigration Law Firm of Coleman Jackson, P.C. for educational purposes; it does not create an attorney-client relationship between this law firm and its reader.  You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.

Coleman Jackson, P.C. | Taxation, Litigation, Immigration Law Firm | English (214) 599-0431 | Spanish (214) 599-0432

Responsible Party Liability for Willfully Failing to Pay Payroll Taxes

June 12, 2017
Coleman Jackson, Attorney, CPA

Responsible Party Liability for Willfully Failing to Pay Payroll Taxes

The Internal Revenue Code, 26 U.S.C. § 6672 authorizes the Internal Revenue Service to demand collection of unpaid payroll taxes from persons responsible for paying those taxes if those persons willfully fail to pay the payroll taxes in the normal course of running a business.  This statutory duty is imposed on “an officer or employee of a corporation, or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act” imposed by the satute.  See 26 U.S.C. §6671(b) (2000).  Similarly, a member or employee of a limited liability company, or any other form of business entity, with a duty to perform under the statute can likewise be deemed a responsible party under 26 U.S.C. §6672.

Liability for willfully failing to pay payroll taxes is imposed under 26 U.S.C. §6672 on “a person required to collect, truthfully account for, and pay over any payroll tax if the person willfully fails to collect such tax, or truthfully account for and pay over the payroll tax or willfully attempts to in any manner to evade or defeat any such tax or the payment thereof”.  A person with responsibility under the statute who fails to perform this duty is subject to a 100% tax penalty, which is a penalty equal to the amount of payroll tax evaded, or not collected or not properly accounted for or not paid over to the Internal Revenue Service.  See 26 U.S.C. §6672(a).  These officers, members and employees are known as responsible parties under 26 U.S.C. §6672. 

 The meaning of this tax statute, like all laws in the United States is ultimately determined by the judiciary.  Courts are the final governmental body in the U.S. who says what the law is.  In a practical sense- what does 26 U.S.C. §6672 mean to businesses, those who own them and those who work for them?  It depends upon where in the United States the taxpayer resides because the United States is divided into several federal courts of appeal’s jurisdictions.  The laws in the circuits are not always the same, even though, as it is here, the same federal statute is being interpreted.  The fifth circuit is the federal circuit where our law firm is located.  Anyone outside of the fifth circuit must be abundantly careful because the law where they are could be drastically different with respect to responsible party litigation under 26 U.S.C. §6672.

This blog will discuss the law in the Fifth Circuit Court of Appeals which includes Texas, Mississippi and Louisiana.  The taxation, litigation and immigration law firm of Coleman Jackson, P.C. is located in Dallas, Texas.  For a long time now, the Fifth Circuit Court of Appeals have said that willfulness under 26 U.S.C. §6672 can be established in two ways:  (1)  the Internal Revenue Service can prove willful violation of the statute by presenting credible evidence that the responsible person had knowledge that payroll taxes were due the United States and other creditors were being paid; and (2) The Internal Revenue Service can prove willful violation of the statute by presenting credible evidence that the responsible person acted with reckless disregard that the payroll taxes were not being collected, or paid or turned over to the Internal Revenue Service.  There is no requirement of ill will or evil intent here.  The reckless disregard of risk standard is met when the responsible party clearly ought to have known that there was a grave risk that withholding taxes were not being paid and was in the position to find out with little or no effort.  Intentional ignorance or willful ignorance is enough in the fifth circuit to impose the 100% penalty on a responsible party; but negligence is not enough to find a person a responsible party under 26 U.S.C. §6672.  See Morgan v. United States, 937 F.2d 281 (5th Cir. 1991) and its long line of progeny that basically governs the responsible party analysis for taxpayers located in the States within the Fifth Circuit Court of Appeal’s jurisdiction.

Another fifth circuit federal case known as Conway establishes the contours of a potential reasonable defense argument where an officer, member or employee can produce evidence that they relied on professional advice or counsel under certain circumstances.  In tax law, reasonable defense arguments must be based in fact and circumstances demonstrating that an owner or member or employee is not responsible, after all, for the business’ failure to collect and timely turn over payroll withholding taxes to the Internal Revenue Service.  See Conway v United States, 647 F.3d 228 (5th Cir. 2011).

This blog only addresses the law in the fifth circuit as it stands today; the law can change without notice.  When a Judge sits on the bench and makes a ruling, that ruling is the law in its jurisdiction- and sometimes nationwide, unless that Judge reverses, or until some higher court in its jurisdiction reverses, or the United States Supreme Court rules.

This law blog is written by the Taxation | Litigation | Immigration Law Firm of Coleman Jackson, P.C. for educational purposes; it does not create an attorney-client relationship between this law firm and its reader.  You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.

Coleman Jackson, P.C. | Taxation, Litigation, Immigration Law Firm | English (214) 599-0431 | Spanish (214) 599-0432

The Substantial Presence Test

May 08, 2017
By Coleman Jackson, Attorney, CPA

An Immigrant is Considered a Resident of the U.S. for Federal Tax Purposes When They Meet this Test

The Substantial Presence Test

Except for certain exempt individuals, such as teachers, trainees, students, professional athletes and certain foreign government individuals, immigrants physically in the United States who meet the substantial presence test as depicted in the diagram below are considered an U.S. Resident for federal tax purposes.

(a) (b) (c) (d)
Year Number of Days Immigrant Physically Present in United States  During Period Multiplier Substantial Present Days (Multiply (b) times (c))
Current Year   1.00  
First Prior Year   .333  
Second Prior Year   .167  
Total  Days Immigrant Present in U.S. (add column (d)  

tax status of immigrants

It is critical to determine the tax status of immigrants because immigrants who are Green Card Holders and those who meet the substantial presence test are taxed just like United States Citizens.  United States Citizens are taxed on their world wide income no matter where the income is earned.  Generally speaking, immigrants meet the substantial presence test when all of the following statements are true:

  1. The immigrant was physically present in the United States for at least 31 days during the current calendar year; and
  2. The immigrant was physically present in the United States for 183 days during the three year period for which residency is being determined.

In the event that both of these conditions are met and none of the exemptions apply, the immigrant is treated as a Resident of the United States for tax purposes.  But as is typical in American law, there are exceptions even if an immigrant meets the substantial presence test.  The ‘closer connection to a foreign country exception’ is just such an exception.    Also what constitutes a day in the United States can be affected by whether the immigrant is a regular commuter from Mexico or Canada, or whether the immigrant is in transit between two foreign points outside of the U.S., or simply whether the immigrant is in the U.S. in one of the ‘exempt person statuses’ that we mentioned at the top of this blog.  Even the medical condition of the immigrant could impact whether time in the United States is counted toward the term ‘day’ in the United States for the substantial presence test.  Any time in the United States due to a medical condition that arose while the immigrant was in the U.S. is not counted in the substantial presence test calculus.

This law blog is written by the Taxation | Litigation | Immigration Law Firm of Coleman Jackson, P.C. for educational purposes; it does not create an attorney-client relationship between this law firm and its reader.  You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.

Coleman Jackson, P.C. | Taxation, Litigation, Immigration Law Firm | English (214) 599-0431 | Spanish (214) 599-0432

EB-5 区域中心 地平线上有暴风雨吗?

Coleman Jackson,律师,注册会计师
2017 年 4月 11日

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2017年3月20日,美国公民及移民服务局公布《EB-5区域中心合规审计计划》的启动。将实施E-B-5合规审计计划核实区域中心是根据《EB-5移民投资者区域中心计划》遵守适用法律和归类管理他们的区域中心资格的当局。

美国公民及移民服务局的声明说 EB-5 审计小组的任务将包括以下内容:

  • 审查申请、认证和相关记录;
  • 审查区域中心的公共记录和信息;
  • 核实信息,包括连同申请书和在年度认证里提交的支持文件;
  • 进行现场视察;
  • 审查和分析文件;
  • 面试人员以确认与申请及年度认证一起提供的信息。

2017年3月20日的公告也就EB-5区域中心合规审计他们的区域中心的准备程序向EB-5区域中心提供具体的指导。

EB-5区域中心合规审计结果将在审计报告中定稿,该报告会成为EB-5投资者区域中心记录的一部分。审计将用于衡量或确定EB-5区域中心是否遵守指导《EB-5移民投资者区域中心计划》的法律、法规和政策。欺诈迹象可能导致EB-5区域中心的额外调查和审查。

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区域中心的创始人、建议确定他们和与登记和归档区域中心申请相关的其他人的专业人士受许多法律的约束,包括但不限于联邦和州安全法、移民法、税法等等。请看美国诉奥康纳,158 F.附录2d 697 (E.D. 弗吉尼亚州 2001);在这起刑事案件中,一位EB-5移民投资者区域中心的创始人被判犯有移民欺诈、骗税和其他严重犯罪的同谋罪。州 法律也适用于EB-5投资者不受欢迎的投资,取决于投资、由区域中心向公众提供的产品、商品和服务的性质。一些法律实践纪律将可能牵涉到EB-5区域中心 -移民法只是区域中心创 始人和那些代表其向美国移民局提出申请的人可能出现法律危险的一个方面。即使区域中心能够完好无损地幸免于最近公布的E5-5区域中心合规审计,这种调查可能会发现其他由联邦和州当局提出的适用联邦和州法律出生要求的违反以及甚至由移民投资者基于违约、欺诈等等而提出的诉讼。这种州法律要求已经在德克萨斯州发生。

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《德克萨斯商业和商务法案》§27.01 实行投资者在进入房地产或股票交易时所依赖的事实的虚假陈述的民事责任。美国Quest公司诉基蒙斯,228 F 3rd 399, 406 (5th Cir. 2000)。近年来,普通法欺诈、违约、过失虚假陈述、引诱性的欺诈及其他有关索偿时而已经在德克萨斯联邦和州法院就EB-5投资成功地进行辩论。例如,Zhang诉Monroe,民事诉讼编号6:13-CV-811 于2017年1月11日在美国德克萨斯泰勒区东区区法院对Lihua Zhang(EB-5投资者)做出有利的决定。Zhang是本案的原告;她在联邦法院的本多样性诉讼中提出了许多州法院主张 – 而且她赢了- 涉及不受欢迎的“EB-5移民投资者计划”冒险行动。Lake诉 Cravens 488 S.W. 3rd 867(德克萨斯附录,- 沃斯堡2016,本人)中;原告没有恰当地提出联邦问题或宣称多样性,然后被扔出了法庭。在诉讼中陈述实质事实和适当辩护需要技巧。在与案情无关的程序上,诉讼可能和是迷失的。该诉讼Lake诉 Cravens关注了EB-5移民投资者区域中心投资。

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尽职调查可能拯救EB-5移民投资者的法院之旅;或当他们去法院时帮助他们。考虑投资EB-5区域中心的移民投资者必须在把他们的钱交给区域中心之前进行适当的尽职调查。重要的是要清楚地了解谁拥有和经营区域中心;他们的经济记录是怎样(不仅限于特定的推广中的区域中心,还有在大体上管理团队在业务上的整体商业头脑、声誉和成功率);和区域中心投资回报是什么,如果有的话。

本法律博客是由教育目的的专业公司Coleman Jackson 的税收|诉讼|移民法律公司撰写;它不在法律公司与读者之间创建律师客户关系。你应该在你的地理地点就任何影响你、你家人或企业的法律问题咨询法律顾问。

专业公司Coleman Jackson |税收、诉讼、移民法律公司| 英文 (214) 599-0431 |西班牙语(214) 599-0432 | http://www.cjacksonlaw.com.

 

EB-5 REGIONAL CENTERS Are there Storms on the Horizon?

By Coleman Jackson, Attorney, CPA
April 05, 2017

EB-5 REGIONAL CENTERS - Are there Storms on the Horizon?

On March 20, 2017, USCIS announced the launch of an EB-5 Regional Center Compliance Audit Program.  The E-B-5 Regional Center Compliance Audit will be conducted to verify that the regional center is in compliance with applicable laws and authorities governing their eligibility for classification as a regional center under the EB-5 Immigrant Investor Regional Center Program.

The USCIS announcement stated that the EB-5 Audit Team’s Tasks will include the following:

  • Review applications, certifications, and associated records;
  • Review public records and information on the regional center;
  • Verify the information, including supporting documents, submitted with the application(s) and in the annual certification(s);
  • Conduct site inspection;
  • Review and analyze documents;
  • Interview personnel to confirm the information provided with the application(s) and annual certification(s).

The March 20, 2017 announcement also provided specific guidance to EB-5 Regional Centers with respect to preparation procedures for an EB-5 Regional Center Compliance Audit of their regional center.

The results of the EB-5 Regional Center Compliance Audit will be finalized in an audit report that becomes part of the EB-5 Investor Regional Center’s record.  The audit will be used to gage or determine whether the EB-5 Regional Center is in compliance with the laws, regulations and policies governing the EB-5 Immigrant Investor Regional Center Program.  Indicia of fraud could lead to additional investigations and scrutiny of the EB-5 Regional Center.

EB-5 Regional Center Compliance Audit Program

Founders of Regional Centers, professionals advising in establishing them and others connected with registering and filing regional center applications are subject to a host of laws, including but not limited to, federal and state securities laws, immigration laws, tax laws and more.  See United States v. O’Connor, 158 F. Supp. 2d 697 (E.D. Va. 2001); in this criminal case, an EB-5 Immigrant Investor Regional Center’s founder was found guilty of conspiracy to commit immigration fraud, tax fraud and other serious crimes.    State laws could also apply to EB-5 investor ventures gone sour depending upon the nature of the investment, the products, goods and services provided to the public by the regional center.  A number of legal practice disciplines could be implicated with respect to EB-5 Regional Centers—immigration law is only one area where legal jeopardy could arise for regional center founders and those who file applications with USCIS on their behalf.  Even if a regional center can survive the recently announced E5-5 Regional Center Compliance Audit without-a-scratch, such investigations could uncover violations of other applicable federal and state laws birthing claims by federal and state authorities and even lawsuits by immigrant investors based on breach of contract, fraud and more.   Such state law claims are already occurring in Texas.

EB-5 Regional Center  are Subject to Civil Liability

Texas Business & Commerce Code §27.01 imposes civil liability for false representations of material facts that are relied on by an investor in entering into a real estate or stock transaction.  U.S. Quest Ltd. V. Kimmons, 228 F 3rd 399, 406 (5th Cir. 2000).  In recent years, common law fraud, breach of contract, negligent misrepresentation, fraud in the inducement and other related claims have been sometimes successfully argued in federal and state courts in Texas with respect to EB-5 investments.  For example, Zhang v. Monroe, Civil Action No. 6:13-CV-811 was decided in favor of Lihua Zhang an EB-5 Investor on January 11, 2017 in the United States District Court for the Eastern District of Texas, Tyler Division.    Zhang was the Plaintiff in this court case; she raised numerous state court claims in this diversity action in federal court -and she won- involving a soured EB-5 Immigrant Investor Program venture.  In Lake v. Cravens 488 S.W. 3rd 867 (Tex. App., – Fort Worth 2016, no pet); the Plaintiff did not properly plead a federal question or allege diversity and got thrown out of Court.  Alleging material facts and properly pleading in a lawsuit requires skill.  Lawsuits can and are lost on procedural grounds that has nothing to do with the merits of the case.  That case, Lake v. Cravens concerned a soured EB-5 Immigrant Investor Regional Center venture.

Due diligence could possibly save an EB-5 immigrant investor

Due diligence could possibly save an EB-5 immigrant investor a trip to the courthouse; or help them when they go to court.  Immigrant investors considering investing in an EB-5 Regional Center must engage in proper due diligence before turning their money over to a regional center.  It is important to have a clear understanding as to who owns and operates the regional center; what their economic track record is (not only with respect to the specific regional center being marketed, but, the management teams’ overall business acumen, reputation and success rate in business in general); and what are the return on the regional center investment, if any.

This law blog is written by the Taxation | Litigation | Immigration Law Firm of Coleman Jackson, P.C. for educational purposes; it does not create an attorney-client relationship between this law firm and its reader.  You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.

Coleman Jackson, P.C. | Taxation, Litigation, Immigration Law Firm | English (214) 599-0431 | Spanish (214) 599-0432

Check Your ITIN because it could be Expired or Expiring Soon

By: Coleman Jackson, Attorney, CPA
November 21, 2016

Check Your ITIN because it could be Expired or Expiring Soon

Individual Taxpayer Identification Number, otherwise known as (ITIN) allows taxpayers to meet their tax filing obligations who cannot obtain a Social Security Number.  An ITIN is typically used by nonresident foreigners , undocumented resident foreigners, dependents and spouses of U.S. Citizens and resident foreigners who cannot get a social security number, and nonresident students, professors or researchers filing a U.S. federal tax return or claiming an exception, and anyone else who has a tax reporting obligation but cannot obtain a social security number.  The ITIN, like a social security number, is a nine digit code.  The ITIN begins with the number 9 and has fourth and fifth digits ranging from 50-65, 70-88, 90-92, and 94-99.   These are the middle digits of the ITIN.   The ITIN does not grant the holder any legal rights to reside in the United States.  The ITIN does not grant the holder any right to work in the United States.  The ITIN is issued by the United States Treasury (IRS).  The ITIN is only used for tax reporting purposes.

ITIN holders beware!  Section 203 of the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), which became law on December 18, 2015 made critical changes to U.S. Tax Law, 26 U.S.C. Section 6109 as it relates to the Individual Taxpayer Identification Number (ITIN) Program.  Because of these PATH Act changes, every ITIN holder must check their ITIN to determine whether it is expired or expiring soon.  The PATH Act made major changes in the ITIN Program which requires holders of ITINs to renew their ITIN.

Holders of unused ITINs must renew them or they will expire.  Any ITIN not used on a federal tax return for the last three (3) years.  Count back from the current year to the previous three tax reporting periods.  If it has been three years since the ITIN was used; it expires on January 1, 2017.  That means that if you hold an ITIN that was not used in 2015, 2014 or 2013; your ITIN is no longer valid and cannot be used when you file your 2016 federal tax return; unless, you timely renew it.  The IRS began accepting ITIN renewal applications on October 1, 2016 for taxpayers affected by the PATH Act.

ITINs issued before 2013 began expiring in 2016 on a rolling basis.  The mandatory renewal period for these ITINs is on what the IRS is calling a rolling basis.  The key numbers that triggers the expiration and mandatory renewal schedule as to when the pre-2013 ITIN renewal period began are the middle two digits of the ITIN.  For example, beginning October 1, 2016, ITIN holders with middle digits of 78 and 79 began renewing their ITIN. Every ITIN holder must examine their ITIN and the ITIN of family members (household members) to determine when their ITIN expires or expired based on the IRS rolling renewal schedule.

Holders of expired ITINs could have difficulty complying with U.S. tax laws.  They could be prohibited from claiming exemptions and dependents and so forth with expired ITINs.  Moreover, failure to timely file required federal tax returns carry serious consequences under U.S. tax laws, such as, civil negligence penalties, fraud penalties and potential criminal prosecution.  There could also be serious consequences under the Immigration and Nationality Act (INA) for failure to comply with U.S. federal tax laws (Internal Revenue Code).  Federal tax law abuse violates the terms of immigrant visas under the INA in certain circumstances.   ITIN holders must check their ITIN because the ITIN could be expired or expiring soon.

This law blog is written by the Taxation | Litigation | Immigration Law Firm of Coleman Jackson, P.C. for educational purposes; it does not create an attorney-client relationship between this law firm and its reader.  You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.

Coleman Jackson, P.C. | Taxation, Litigation, Immigration Law Firm | English (214) 599-0431 | Spanish (214) 599-0432

U.S. Immigration Petition Prices Set to Increase this December

October 27, 2016
By:  Coleman Jackson, Attorney

U.S. Immigration Petition Prices Set to Increase this December 2016

Have everybody heard?  It is official.  United States Citizenship and Immigration Services (USCIS) fees are set to increase effective December 23, 2016.  Applications and immigration petitions postmarked or filed on or after December 23, 2016, must include the new fees or be rejected by USCIS.  Some examples of the fee increase effect on some of the more popular applications and petitions are as follows:

Form Number

Form Title

Fee-Effective 12-23-2016

Current Fee

I-90

Application to Replace Permanent Resident Card

$455

$365

I-102

Application for Replacement/Initial Nonimmigrant Arrival-Departure Document

455

330

I-129/129CW

Petition for a Nonimmigrant Worker

460

325

I-129F

Petition for Alien Fiancé(e)

535

340

I-130

Petition for Alien Relative

535

420

I-131 /I-131A

Application for Travel Document

575

360

I-140

Immigrant Petition for Alien Worker

700

580

I-212

Application for Permission to Reapply for Admission into the U.S. After Deportation or Removal

903

585

I-360

Petition for Amerasian Widow(er) or Special Immigrant

435

405

I-485

Application to Register Permanent Residence or Adjust Status

1,140

985

I-485

Application to Register Permanent Residence or Adjust Status (certain applicants under the age of 14 years)

750

635

I-526

Immigrant Petition by Alien Entrepreneur

3,675

1,500

I-539

Application to Extend/Change Nonimmigrant Status

370

290

I-600/600A

Petition to Classify Orphan as an Immediate Relative /Application for Advance Petition Processing of Orphan Petition

775

720

I-800/800A

Petition to Classify Convention Adoptee as an Immediate Relative /Application for Determination of Suitability to Adopt a Child from a Convention Country

775

720

I-601

Application for Waiver of Ground of Excludability

930

585

I-601A

Application for Provisional Unlawful Presence Waiver

630

585

I-690

Application for Waiver of Grounds of Inadmissibility

715

200

I-694

Notice of Appeal of Decision

890

755

I-698

Application to Adjust Status From Temporary to Permanent Resident (Under Section 245A of the INA)

1,670

1,020

I-751

Petition to Remove Conditions on Residence

595

505

I-765

Application for Employment Authorization

410

380

I-824

Application for Action on an Approved Application or Petition

465

405

I-829

Petition by Entrepreneur to Remove Conditions

3,750

3,750

I-924

Application for Regional Center Designation Under the Immigrant Investor Program

17,795

6,230

I-924A

Annual Certification of Regional Center

3,035

0

I-929

Petition for Qualifying Family Member of a U-1 Nonimmigrant

230

215

N-336

Request for Hearing on a Decision in Naturalization Proceedings

640

595

N-400

Application for Naturalization

640

595

N-470

Application to Preserve Residence for Naturalization Purposes

355

330

N-565

Application for Replacement Naturalization/Citizenship Document

555

345

N-600/N-600K

Application for Certification of Citizenship/Application for Citizenship and Issuance of Certificate under INA Section 322

1,170

600/550

USCIS Immigrant Fee

220

165

Biometric Fee

85

85

The table of fees above does not list the names or filling fees for all immigrant petitions and applications.  Filing fee increases take effect on or after December 23, 2016.  New submissions must be submitted to the Department of Homeland Security (USCIS) with the payment associated fees attached.

This law blog is written by the Taxation | Litigation | Immigration Law Firm of Coleman Jackson, P.C. for educational purposes; it does not create an attorney-client relationship between this law firm and its reader.  You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.