Hello,

I am on F-1 status (Indian Citizen), I was recently made aware that I have been filing the wrong tax form for the past 5 years(1040 instead of 1040NR). The following are the tax forms that I have filed out over the past 5 years and the tax summary

2001: 1040A
Gross Income: $1398.00 ; Federal Refund: $0.00 (None owed)MI taxRefund: $356.00 & Home heating Credit: $142.00

2002: 1040EZ
Gross Income: $2327.00 ; Federal Refund: $96.00; MI tax refund: $954.00 & Home heating credit: $131.00

2003: 1040EZ
Gross Income: $2605.00 ; Federal Refund: $99.00 IA taxRefund: $1.00

2004: 1040EZ
Gross Income: $4731.00 ; Federal Refund: $58.00 IA taxRefund: $49.00

2005: 1040EZ
Gross Income: $6212.00 ; Federal Refund: $188.00 AZ taxRefund: $25.00 IA taxRefund: $15.00

This grave error was made because I have been using TurboTax over the past 5 years.

I am now set to graduate and have been offered a full time job with a organization that will be filing for my H-1B visa in April 2006.
I am terribly worried now since I have filed erroneously for the past 5 years. I am aware now that this year 2006, I can file as a 'resident' since I have been on F-1 status for 5 years now.

I want to make things right with my tax returns, is there anyway I can do so at this point? How bad of mistake did I actually make and will this affect my H-1B visa application process?

Any help would be appreciated.

Thanks!

Stephen

Stephen:

You DID make a mistake, but it's easy to correct.

You need do NOTHING about the state tax returns. Those were filed correctly.

Just prepare Form 1040NR-EZ for each year in question. Since you are an Indian citizen, you CAN claim the standard deduction, though for 2001 through 2003 you dod not need it. You may need to go to 1040.com Website (http://www.1040.com) to get the Form 1040NR-EZ for those years. Print the word 'AMENDED' on the top of each Form 1040NR-EZ.

Then prepare a Form 1040X for each year, listing the old and new tax data. No additional tax will be due. On Page of the 1040X, explain your error to the IRS and ask that your non-resident alien status be re-instated. Send all the amended returns in ONE envelope with a cover letter explaining what you are doing.

It will take a month or two, but eventually the IRS will respond with a letter stating that they have accepted your amended returns as filed. Once that happens, you will then be back in compliance with the tax law.

Then