Immigrants who fraudulently file taxes could face deportation, according to the Supreme Court's ruling
In a landmark decision, the US Supreme Court ruled that lawful permanent residents who commit tax fraud resulting in revenue loss exceeding $10,000 can be deported for committing "aggravated felonies" under the Immigration and Nationality Act (INA). The case, Kawashima v. Holder, has significant implications for foreign entrepreneurs and lawful permanent residents (LPRs) seeking to expand their business horizons in the United States.
Akio and Fusako Kawashima, LPRs, pled guilty to filing false tax returns and were tried for deportation under the INA clause for committing an "aggravated felony." The US Supreme Court affirmed the decision of the Ninth Circuit, ruling that tax crimes resulting in revenue loss exceeding $10,000 are "aggravated felonies" under Clause (i) because such crimes entail deceitful conduct and Congress did not intend to remove these crimes from the broad umbrella of Clause (i) crimes.
The Kawashima case emphasizes the importance of compliance with tax laws for LPRs. Committing tax crimes causing losses over $10,000 can be grounds for denying naturalization, stripping citizenship for naturalized citizens, and initiating removal proceedings.
Under the INA, commission of certain crimes, including aggravated felonies and crimes involving moral turpitude, can make LPRs removable. Significant tax fraud may be classified as a crime involving moral turpitude or an aggravated felony, depending on the nature and amount of the fraud, thus exposing LPRs to deportation.
The US Department of Justice (DOJ) prioritizes denaturalization cases involving financial fraud, including tax violations. If a naturalized citizen committed tax fraud or significant tax misreporting—particularly if it was not disclosed during naturalization—this can be grounds for stripping citizenship under civil proceedings requiring only "clear, convincing, and unequivocal evidence." While denaturalization directly applies to naturalized citizens, such conditions suggest serious immigration risks for LPRs as well.
For LPRs, being barred from naturalization or losing citizenship if naturalized, and facing removal under the INA, underscores the need for diligence in tax compliance. Staying informed about evolving regulations is vital for compliance with cryptocurrency taxes, as the Cryptocurrency Tax Implications Analyzer, a tool that helps users understand their tax obligations related to cryptocurrency activities such as trading, mining, and staking, demonstrates.
Establishing a Limited Liability Company (LLC) in the United States can be a strategic move for foreign entrepreneurs seeking to expand their business horizons. The US offers a robust economic environment, a well-established legal system, and a wealth of opportunities for growth and expansion. However, it is crucial to navigate the complexities of the US tax system and immigration laws to avoid potential pitfalls.
References: 1. USCIS Policy Manual, Naturalization: Requirements for Good Moral Character (GMC) (PDF) 2. Immigration and Nationality Act (INA) § 101(a)(43)(M) 3. Trump Administration Expands Immigration Enforcement Using Financial and Tax Fraud as Key Grounds 4. Government Enforcement Agencies Increasingly Use Tax and Financial Records to Identify Immigration Violations 5. Denaturalization: The Trump Administration’s New Push to Revoke Citizenship
- The Kawashima case highlights the critical role of compliance with tax policies and legislation for lawful permanent residents (LPRs), since committing tax fraud leading to revenue loss exceeding $10,000 can potentially result in the denial of naturalization, stripping of citizenship, and deportation under policy-and-legislation related to immigration and nationality (INA).
- In the realm of politics and general news, the focus on denaturalization cases involving financial fraud, such as tax violations, underscores the importance of LPRs navigating the complexities of the US tax system and immigration laws, especially given the focus of the US Department of Justice (DOJ) on such cases, to avoid potential pitfalls and ensure long-term residency in the United States.
