I have not filed taxes every year I have been a Permanent Resident. Does this mean I am ineligible for citizenship?
You are not automatically ineligible for citizenship, however, one of the important factors of obtaining approval for citizenship is displaying “good moral character.” One of the ways good moral character is determined is by paying taxes each year you were required to do so. Therefore, it is strongly advised to seek a tax expert to file your back taxes before applying for citizenship. This shows USCIS that you have continued efforts to display good moral character. If you owe back taxes, you can enter into a payment plan with IRS and show proof of such payment plan to the USCIS.