I came to the US with a J1 visa for 3 years, I've been exempted to pay my taxes for the first 2 years and, on my 3rd year I tarted paying my taxes. I stayed in the US after my 3 year contract because. I got married to a US citizen and I also had a son. I'm nearly on my 5 year here on the US now. My question is, I received a "Notice of Deficiency" from the IRS and they are showing me that I owe them taxes with penalties. Is there any article that says I am exempted to pay these taxes? They also explained that my income is not exempt under Article 21 (US-Philippines Tax Treaty) and that the expected time was more than 2 years. What facts should I rely that I am exempted on the first two years of my stay as a teacher in the US under J1 visa? And that on the 3rd year I paid my taxes but it is still showing that I owe them.

If you have not yet resolved this problem, contact me at [email protected] for professional tax assistance.

I see no retroactive tax provision in the U.S.-Philippine Tax Treaty, so the IRS may be in error in their interpretation that you owe taxes for the first two years.

The IRS should be able to explain to you why you owe, that's their job. Are they saying that you owe for the third year only? or all the years?

Once you have an understanding of why, then you can determine how to respond.