Conditional permanent residence

As part of immigration reform under the Immigration Reform and Control Act of 1986 (IRCA), as well as further reform enacted in the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRAIRA), persons who are eligible and properly apply for permanent residence based on either a recent marriage to a U.S. citizen or as an investor are granted permanent residence on a conditional basis for two years.

An exception to this rule is the case of a U.S. citizen legally sponsoring a spouse in which the marriage at the time of the adjustment of status (I-485) is more than two years old. In this case, the conditional status is waived and a 10-year Permanent Resident Card is issued upon USCIS approval of the case. A permanent resident under the conditional clause may receive an I-551 stamp as well as a Permanent Resident Card. The expiration date of the conditional period is two years from the approval date. The immigrant visa category is CR (conditional resident).

When this two-year conditional period is over, the permanent residence automatically expires and the applicant is subject to deportation and removal. To avoid this, 90 days or less before the conditional residence expires, the applicant must file form I-751 Petition to Remove Conditions on Residence (if conditional permanent residence was obtained through marriage) or form I-829 Petition by Entrepreneur to Remove Conditions (if conditional permanent residence was obtained through investment) with USCIS to have the conditions removed.

Once the application is received, permanent residence is extended for 1-year intervals until the request to remove conditions is approved or denied. The USCIS requires that the application provide both general and specific supporting evidence that the basis on which the applicant obtained conditional permanent residence was not fraudulent.

For an application based on marriage, birth certificates of children, joint financial statements, and letters from employers, friends and relatives are some types of evidence that are accepted. A follow-up interview with an immigration inspector is sometimes required but usually waived if the evidence is sufficient. This is to ensure that the marriage was in good faith and not one of fraudulent means with a sole intention of obtaining a green card. Both husband and wife must attend both interviews under most circumstances. The applicant receives an I-551 stamp in their foreign passport upon approval of their case. The applicant is then free from the conditional requirement once the application is approved. The applicant's new Permanent Resident Card arrives via mail to their residence several weeks to several months later and replaces the old two-year conditional residence card.

This new card must be renewed after 10 years, however permanent resident status is now granted for an indefinite term provided that residence conditions are satisfied at all times. USCIS may request to renew the card earlier due to security enhancements of the card or as a part of a revalidation campaign to exclude counterfeit green cards from circulation.

It is important to note that this two-year conditional residence period counts towards time as a permanent resident for all purposes including naturalization. However, the application for the removal of conditions must be adjudicated before naturalization can be granted to the applicant.

Abandonment or loss of permanent residence status

A green card holder may abandon permanent residence by filing form I-407, with the green card, at a U.S. Embassy.

Under certain conditions, permanent residence status can be lost involuntarily. This includes committing a criminal act that makes a person removable from the United States. A person might also be found to have abandoned their status if he or she moves to another country to live there permanently, stays outside the USA for more than 365 days (without getting a re-entry permit before leaving), or does not file an income tax return. Permanent resident status can also be lost if it is found that the application or grounds for obtaining permanent residence was fraudulent. The failure to renew the permanent resident card does not result in the loss of status, except in the case of conditional permanent residents as noted above.

A person who loses permanent residence status is immediately removable from the United States and must leave the country as soon as possible or face deportation and removal. In some cases the person may be banned from entering the country for three or seven years, or even permanently.

Tax costs of green card relinquishment

Due to the Heart Act foreign workers who have owned a green card in eight of the last 15 years and choose to relinquish it will be subject to taxation on unrealized gains above $600,000. However this will only apply to those people who have a federal tax liability greater than $139,000 a year or have a worth of more than $2 million or have failed to certify to the IRS that they have been in compliance with U.S. federal tax obligations for the past five years.

If the green card is not relinquished then the holder is subject to double taxation when living or working outside of the United States, whether or not within their home nation, although double taxation may be mitigated by foreign tax credits.

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