dismissed EB-3 Case: Information Technology

identifying data deleted to 
prevent ddy unwarrmted 
invasion of personal privacy 
U.S. Department of Homeland Security 
20 Mass. Ave., N.W., Rm. 3000 
Washington, DC 20529 
U. S. Citizenship 
and Immigration 
Services 
WAC 04 068 5301 6 
PETITION: 
 Petition for Alien Worker as a Skilled Worker or Professional Pursuant to Section 203(b)(3) 
of the Immigration and Nationality Act, 8 U.S.C. tj 1153(b)(3) 
ON BEHALF OF PETITIONER: 
INSTRUCTIONS : 
This is the decision of the Administrative Appeals Office in your case. All documents have been returned to 
the office that originally decided your case. Any further inquiry must be made to that office. 
Administrative Appeals Office 
Page 2 
DISCUSSION: The employment-based preference visa petition was initially approved by the Director, 
California Service Center. In connection with the beneficiary's Application to Register Permanent Resident or 
Adjust Status (Form I-485), the director served the petitioner with notice of intent to revoke the approval of the 
petition (NOR). In a Notice of Revocation (NOR), the director ultimately revoked the approval of the Immigrant 
Petition for Alien Worker (Form 1-140). The matter is now before the Administrative Appeals Office (AAO) on 
appeal. The appeal will be dismissed. 
Section 205 of the Act, 8 U.S.C. 4 1155, provides that "[tlhe Attorney General [now Secretary, Department of 
Homeland Security], may, at any time, for what he deems to be good and sufficient cause, revoke the 
approval of any petition approved by him under section 204." The realization by the director that the petition 
was approved in error may be good and sufficient cause for revoking the approval. Matter of Ho, 19 I&N 
Dec. 582,590 (BIA 1988). 
The petitioner is an information technology consulting business. It seeks to employ the beneficiary 
permanently in the United States as a network and computer systems administrator. As required by statute, a 
Form ETA-750, Application for Alien Employment Certification approved by the Department of Labor, 
accompanied the petition. As set forth in the director's July 15, 2005 decision revoking the approval of the 
petition, the director determined that the petitioner had not established that it had the continuing ability to pay 
the beneficiary the proffered wage beginning on the priority date of the visa petition and continuing until the 
beneficiary obtains lawful permanent residence, or that the beneficiary would be employed in a permanent, 
full-time position. The director revoked the approval of the petition accordingly. 
The record shows that the appeal is properly filed and timely and makes a specific allegation of error in law or 
fact. The procedural history of this case is documented in the record and is incorporated into this decision. 
Further elaboration of the procedural history will be made only as necessary. 
Section 203(b)(3)(A)(i) of the Immigration and Nationality Act (the Act), 8 U.S.C. 4 1 153(b)(3)(A)(i), 
provides for the granting of preference classification to qualified immigrants who are capable, at the time of 
petitioning for classification under this paragraph, of performing slulled labor (requiring at least two years 
training or experience), not of a temporary or seasonal nature, for which qualified workers are not available in 
the United States. 
Section 203(b)(3)(A)(ii) of the Act, 8 U.S.C. 5 1 153(b)(3)(A)(ii), provides for the granting of preference 
classification to qualified immigrants who hold baccalaureate degrees and who are members of the 
professions. 
Section 203(b)(3)(A)(iii) of the Act, 8 U.S.C. 5 1153(b)(3)(A)(iii), provides for the granting of preference 
classification to qualified immigrants who are capable, at the time of petitioning for classification under this 
paragraph, of performing unskilled labor, not of a temporary or seasonal nature, for which qualified workers 
are not available in the United States. 
The regulation at 8 C.F.R. 4 204.5(g)(2) states: 
Ability of prospective employer to pay wage. Any petition filed by or for an employment-based 
immigrant which requires an offer of employment must be accompanied by evidence that the 
prospective United States employer has the ability to pay the proffered wage. The petitioner 
must demonstrate this ability at the time the priority date is established and continuing until the 
beneficiary obtains lawful permanent residence. Evidence of this ability shall be either in the 
form of copies of annual reports, federal tax returns, or audited financial statements. In a case 
WAC 04 068 53016 
Page 3 
where the prospective United States employer employs 100 or more workers, the director 
may accept a statement from a financial officer of the organization which establishes the 
prospective employer's ability to pay the proffered wage. In appropriate cases, additional 
evidence, such as profifloss statements, bank account records, or personnel records, may be 
submitted by the petitioner or requested by [Citizenship and Immigration Services (CIS)]. 
The petitioner must demonstrate the continuing ability to pay the proffered wage beginning on the petition's 
priority date, which is the date the Form ETA-750 was accepted for processing by any office within the 
employment system of the Department of Labor. See 8 C.F.R. 9 204.5(d). The priority date in the instant 
petition is June 27,200 1 .I The proffered wage as stated on the Form ETA-750 is $78,541 .OO annually. 
The AAO reviews appeals on a de novo basis. See Dor v. I.N.S. 891 F.2d 997, 1002, n. 9 (2d Cir. 1989). The 
AAO considers all pertinent evidence in the record, including any new evidence properly submitted on 
appeal. 
In the instant appeal, counsel submits a statement and a copy of his response to the director's NOIR. 
On the I-290B, signed by counsel on July 30, 2005, counsel checked the block indicating that he would be 
sending a brief and/or evidence to the AAO within six months. As no further documents were received by the 
AAO, a courtesy reminder was sent to counsel on December 27, 2006. No further documents, however, have 
been received by the AAO to date. 
It is noted that CIS records show that another 1-140 immigrant petition was approved for the beneficiary on 
November 9, 2006 for a full-time position as a software engineer for the petitioner. On January 10, 2007, the 
director served the petitioner with a NOIR for this petition as well. The outcome of this action is pending. 
Relevant evidence in the instant record includes copies of the following: counsel's response to the director's 
NOR; the beneficiary's earnings statements and W-2 Wa e and Tax Sta 
. andB 
itioner; a 
subcontracting agreement, dated February 4, 2005, between 
 ; a memo 
explaining the differences between cash basis of accounting and accrual basis of accounting, and a financial 
spreadsheet from the petitioner's accountant; the petitioner's DE-6 Quarterly Wage and Withholding Reports 
for 2001, 2002, 2003, and 2004; and the petitioner's federal income tax returns for 2001, 2002, 2003, and 
2004. In his response to the director's NOIR, counsel submits as legal authority, as opposed to evidentiary 
documentation, copies of the following: a synopsis of an Interoffice Memorandum, dated May 4, 2004, from 
William R. Yates, Associate Director of Operations, CIS, to Service Center Directors and other CIS officials, 
titled Determination of Ability to Pay under 8 CFR 204.5(g)(2); a synopsis of an article by Romulo E. 
Guevara, titled Strengthening 1-140 Financial Ability Evidence In The Dawn Of Denials Without RFEs, 
Copyright O 2004, American Lawyers Association; and 11 AAO decisions. Other evidence submitted in 
response to the director's NOR includes: payroll records of the petitioner's employees; a list of 75 approved 
1-140 petitions for the petitioner from 2001 to 2005; and a contract showing that the beneficiary is 
subcontracted by the petitioner to work at Toyota. 
The instant beneficiary is being substituted for the initial recipient of the certified alien labor certification 
application. An 1-140 petition for a substituted beneficiary retains the same priority date as the original 
ETA-750. Memo. fi-om Luis G. Crocetti, Associate Commissioner, Immigration and Naturalization Service, 
to Regional Directors, et al., Immigration and Naturalization Service, Substitution of Labor Certification 
Beneficiaries, at 3, http://ows.doleta.gov/dmstree/fm~fm96/fm28-96a.pdf (March 7, 1996). 
Page 4 
On appeal, counsel states, in part, that the proffered position and the financial commitment to pay the 
proffered wage are permanent in nature. Counsel states further that the petitioner's net available funds 
"calculated through a combination of its income reported on federal tax returns, its available lines of credit, its 
bank balances and its statement of assets, minus the wages already paid to the [beneficiary] . . ." clearly 
demonstrate the petitioner's ability to pay the proffered wage. 
The petitioner must establish that its job offer to the beneficiary is a realistic one. Because the filing of an 
ETA-750 labor certification application establishes a priority date for any immigrant petition later based on 
the ETA-750, the petitioner must establish that the job offer was realistic as of the priority date and that the 
offer remained realistic for each year thereafter, until the beneficiary obtains lawful permanent residence. The 
petitioner's ability to pay the proffered wage is an essential element in evaluating whether a job offer is 
realistic. See Matter of Great Wall, 16 I&N Dec. 142 (Acting Reg. Comm. 1977). See also 
8 C.F.R. 5 204.5(g)(2). For each year at issue, the petitioner's financial resources generally must be sufficient 
to pay the annual amount of the beneficiary's wages, although the totality of the circumstances affecting the 
petitioning business will be considered if the evidence warrants such consideration. See Matter of Sortegawa, 
12 I&N Dec. 612 (Reg. Comm. 1967). 
In determining the petitioner's ability to pay the proffered wage, CIS will first examine whether the petitioner 
employed the beneficiary at the time the priority date was established. If the petitioner establishes by 
documentary evidence that it employed the beneficiary at a salary equal to or greater than the proffered wage, this 
evidence will be considered prima facie proof of the petitioner's ability to pay the proffered wage. In the instant 
case, on the Form ETA-750B, signed by the beneficiary on September 15,2003, the beneficiary claimed to have 
worked for the petitioner fiom August 1999 through June 2001. It is noted that this information conflicts with the 
information reflected on Form G-325A, signed by the beneficiary on October 10, 2003, which reflects that the 
beneficiary worked for the petitioner from October 1999 through August 2001, and again fiom August 2003 to 
the present. It is also noted that in his February 11, 2005 letter, the petitioner's manager does not mention the 
beneficiary's employment fiom 1999 to 2001, but states rather that the beneficiary was employed fi-om 
September 2 1, 2003 until November 21, 2004, and would resume his work with the petitioner on February 14, 
2005. The record, however, contains no explanation for these deficiencies and inconsistencies. It is incumbent on 
the petitioner to resolve any inconsistencies in the record by independent objective evidence, and attempts to 
explain or reconcile such inconsistencies, absent competent objective evidence pointing to where the truth, in fact, 
lies, will not suffice. Matter of Ho, 19 I&N Dec. 582, 591-592 (BIA 1988). Doubt cast on any aspect of the 
petitioner's proof may, of course, lead to a reevaluation of the reliability and sufficiency of the remaining 
evidence offered in support of the visa petition. Matter oflo, 1 9 I&N Dec. 582,59 1 (BIA 2 988). 
If the instant petition were the only petition filed by the petitioner, the petitioner would be required to produce 
evidence of its ability to pay the proffered wage to the single beneficiary of the instant petition. However, 
where a petitioner has filed multiple petitions for multiple beneficiaries which have been pending 
simultaneously, the petitioner must produce evidence that its job offers to each beneficiary are realistic, and 
therefore that it has the ability to pay the proffered wages to each of the beneficiaries of its pending petitions, 
as of the priority date of each petition and continuing until the beneficiary of each petition obtains lawful 
permanent residence. See A4atter of Great Wall, 16 I&N Dec. 142, 144-145 (Acting Reg. Comm. 
1977)(petitioner must establish ability to pay as of the date of the Form MA 7-SOB job offer, the predecessor 
to the Form ETA-750). See also 8 C.F.R. 5 204.5(g)(2). 
has filed a total of 259 1-140 petitions since 1995, over 35 of which were received in 2004 and 200;, and are 
WAC 04 068 53016 
Page 5 
currently pending. CIS records also show that the petitioner has also filed 2,537 1-129 nonimmigrant petitions 
since 1995. Therefore, the petitioner must show that it had sufficient income to pay all the wages at the priority 
date. It is noted, however, that the record does not contain a list of the proffered wage commitments to the 
beneficiaries of the petitioner's other immigrant and nonimmigrant petitions. 
It is also noted that even if a petition has been withdrawn by the petitioner, the petitioner has the right to 
substitute a new beneficiary on an ETA-750 labor certification application by filing a new 1-140 petition, 
supported by a new ETA-750B for the beneficiary. The ETA-750s underlying any withdrawn petitions remain 
valid, with the same priority dates. Memo. from Luis G. Crocetti, Associate Commissioner, Immigration and 
Naturalization Service, to Regional Directors, et al., Immigration and Naturalization Service, Substitution of 
Labor Certzpcation BeneJiciaries, at 3, htt~:llows.doIeta.go~-/dinstree/fdfm96lfm 28-96a.pdf (March 7, 
1996); see Charles Gordon, Stanley Mailman & Stephen Yale-Loehr, Immigration Law and Procedure, vol. 
4, €j 43.04 (Mathew Bender & Company, Inc. 2004)(available at "LexisNexis" Mathew Bender Online). 
Therefore, the certified ETA-750s underlying any withdrawn petitions retain potential relevance to the 
petitioner's total proffered wage commitments for a given year. Similarly, for any petitions which have been 
denied, the underlying approved ETA-750 would remain available for a new 1-140 petition for the same 
beneficiary or for a substituted beneficiary, provided that the reason for the earlier 1-140 denial was one which 
could be cured by a new petition for the same beneficiary, or for a substituted beneficiary. 
The instant 1-140 petition states that the petitioner was established in 1993 and currently has "234 approx." 
employees. In general, 8 C.F.R. €j 204.5(g)(2) requires annual reports, federal tax returns, or audited financial 
statements as evidence of a petitioner's ability to pay the proffered wage. That regulation provides further: "In 
a case where the prospective United States employer employs 100 or more workers, the director may accept a 
statement from a financial officer of the organization which establish the prospective employer's ability to 
pay the proffered wage." The language "may accept" in the above regulation indicates that CIS is not required 
to accept such as statement, but rather may exercise its discretion not to accept such a statement. See 8 C.F.R. 
§ 204-5(g)(2). 
The record contains a copy of a letter, dated November 10, 2003, from the petitioner's president, who states, 
in part, as follows: 
Ace Technologies, Inc. employs approx. 234 employees; and 
Ace Technologies, Inc.'s annual revenues in Year 2002 were approx. $10.62 million; 
This clearly evidences our ability to pay [the beneficiary] the aforementioned salary of 
$66,967* per year . . . 
In support of the above, copies of Certified Federal Tax Returns for 2002 are attached herewith 
in the supporting documents. 
Given the record as a whole and the petitioner's history of filing petitions, we find that CIS need not exercise 
its discretion to accept the November 10, 2003 statement from the petitioner's president. As discussed above, 
CIS electronic records show that the petitioner has filed a total of 259 1-140 petitions since 1995, over 35 of 
which were received in 2004 and 2005, and are currently pending, and also has filed 2,537 1-129 
nonimmigrant petitions since 1995. Consequently, CIS must also take into account the petitioner's ability to 
2 
 Presumably this was an error, as the petitioner's president attests in the same letter that the beneficiary will 
be compensated $78,541 .OO per year. 
Page 6 
pay the petitioner's wages in the context of its overall recruitment efforts. Presumably, the petitioner has filed 
and obtained approval of the labor certifications on the representation that it requires all of these workers and 
intends to employ them upon approval of the petitions. Therefore, it is incumbent upon the petitioner to 
demonstrate that it has the ability to pay the wages of all of the individuals it is seeking to employ. 
Information on the Form 1-140 reflects that the petitioner has "234 approx." employees. Given that the 
number of immigrant and nonimmigrant petitions reflects an increase of more than one thousand percent of 
the petitioner's workforce, we cannot rely on a letter from the petitioner's president referencing the ability to 
pay the beneficiary. 
As we decline to rely on the letter from the petitioner's president, we will examine the other financial 
documentation submitted. These documents do not clearly support the president's contention. It is further 
noted that the November 10, 2003 letter does not state that the petitioner's president is the petitioner's 
financial officer, as required by the regulation at 8 C.F.R. 5 204.5(g)(2). 
The record contains copies of the beneficiary's Form W-2 Wage and Tax Statement for 2003 and 2004. These 
forms reflect compensation received from the petitioner, as shown in the table below. 
Wage increase 
Beneficiary's actual needed to pay 
Year compensation Proffered wage the proffered wage. 
Counsel requests that CIS prorate the proffered wage for the portion of the year that occurred after the priority 
date. We will not, however, consider 12 months of income towards an ability to pay a lesser period of the 
proffered wage any more than we would consider 24 months of income towards paying the annual proffered 
wage. While CIS will prorate the proffered wage if the record contains evidence of net income or payment of 
the beneficiary's wages specifically covering the portion of the year that occurred after the priority date (and 
only that period), such as monthly income statements or pay stubs, the petitioner has not submitted such 
evidence. 
The above information is insufficient to establish the petitioner's ability to pay the beneficiary's proffered 
wage in 2003 and 2004. 
As another means of determining the petitioner's ability to pay the proffered wage, CIS will next examine the 
petitioner's net income figure as reflected on the petitioner's federal income tax return for a given year, 
without consideration of depreciation or other expenses. Reliance on federal income tax returns as a basis for 
determining a petitioner's ability to pay the proffered wage is well established by judicial precedent. Elatos 
Restaurant Corp. v. Sava, 632 F. Supp. 1049, 1054 (S.D.N.Y. 1986) (citing Tongatapu Woodcraft Hawaii, Ltd. v. 
Feldman, 736 F.2d 1305 (9" Cir. 1984)); see also Chi-Feng Chang v. Thornburgh, 719 F. Supp. 532 (N.D. Tex. 
1989); K. C.P. Food Co., Inc. v. Sava, 623 F. Supp. 1080 (S.D.N.Y. 1985); Ubeda v. Palmer, 539 F. Supp. 647 
(N.D. Ill. 1982), afd., 703 F.2d 571 (7" Cir. 1983). In K.C.P. Food Co., Inc., the court held that the Immigration 
and Naturalization Service, now CIS, had properly relied on the petitioner's net income figure, as stated on the 
petitioner's corporate income tax returns, rather than the petitioner's gross income. 623 F. Supp. at 1084. The 
court specifically rejected the argument that the Service should have considered income before expenses were 
paid rather than net income. Finally, there is no precedent that would allow the petitioner to "add back to net cash 
the depreciation expense charged for the year." See Chi-Feng Chang v. Thornburgh, 7 1 9 F. Supp. 532 (N.D. Tex. 
1 989); see also Elatos Restaurant Corp., 632 F. Supp. at 1 054. 
WAC 04 068 53016 
Page 7 
The evidence indicates that the petitioner is an S corporation. The record contains copies of the petitioner's Form 
1120s U.S. Income Tax Returns for an S Corporation for 2001, 2002, 2003, and 2004. The record before the 
director closed on June 16,2005, with the receipt by the director of the petitioner's submissions in response to the 
director's notice of intent to revoke. The petitioner's tax return for 2004 is the most recent return provided by the 
petitioner. 
Where an S corporation's income is exclusively from a trade or business, CIS considers net income to be the 
figure for ordinary income, shown on line 2 1 of page one of the petitioner's Form 1 1205. The instructions on the 
Form 1 120s U.S. Income Tax Return for an S Corporation state on page one, "Caution: Include only trade or 
business income and expenses on lines la through 21 ." Where an S corporation has income from sources other 
than from a trade or business, that income is reported on Schedule K. An S corporation's total income fi-om its 
various sources are reported on lines 1 through 6 of the Schedule K, Shareholders' Shares of Income, Credits, 
Deductions, etc. For example, an S corporation's rental real estate income is carried over from the Form 8825 to 
line 2 of Schedule K. Similarly, an S corporation's income fi-om sales of business property is carried over fi-om 
the Form 4979 to line 5 of Schedule K. See Internal Revenue Service, Instructions for Form 1120s (2003), 
available at http://www.irs.gov/pub/irs-priorli 1 120s--2003 .pdf; Instructions for Form 1 120s (2002), available at 
http://www.irs.gov/pub/irs-priorli 1 120s--2002 .pdf. 
Similarly, some deductions appear only on the Schedule K. The cost of business property elected to be treated as 
an expense deduction under Section 179 of the Internal Revenue Code, rather than as a depreciation deduction, is 
carried over from line 12 of the Form 4562 to line 8 of the Schedule K. See Internal Revenue Service, Instructions 
for Form 4562 (2003), at 1, available at http://www.irs.gov/pub/irs-prior/i4562--2003.pdf; Internal Revenue 
Service, Instructions for Form 1120s (2003), at 22, available at http://www.irs.gov/pub/irs-prior/i1120s-- 
2003 .pdf. 
Where the Schedule K has relevant entries for either additional income or additional deductions, net income is 
found on Line 23 of the Schedule K, for income. 
In the instant petition, the petitioner's tax returns indicate income fi-om activities other than from a trade or 
business or additional relevant deductions. Therefore the figures for ordinary income on line 21 of page one of the 
petitioner's Form 1120s tax returns do not include portions of the petitioner's income or all of its relevant 
deductions. For this reason, the petitioner's net income must be considered as the total of its income from various 
sources as shown on the Schedule K, minus certain deductions which are itemized on the Schedule K. The results 
of these calculations are shown on Line 23 of the Schedule K, for income. 
In the instant case, the petitioner's tax returns show the following amounts for income on line 23, Schedule K for 
2001, and on line 21 of page one for 2002,2003, and 2004, as shown in the table below. 
Tax 
year 
Net income Wage increase needed Surplus or 
or (loss) to pay the proffered wage (deficit) 
of the beneficiary only 
WAC 04 068 53016 
Page 8 
* Crediting the petitioner with the compensation actually paid to the 
beneficiary in that year. 
The above information is insufficient to establish the petitioner's ability to pay the beneficiary's proffered 
wage in 2002. Further, when considering the record as a whole, that the petitioner has filed a total of 259 
I- 140 petitions since 1995, over 35 of which were received in 2004 and 2005, and are currently pending, and 
also has filed 2,537 1-129 nonimmigrant petitions since 1995, the above information is insufficient to 
establish the petitioner's ability to pay its proffered wage commitments in any of the years at issue in the 
instant petition. 
As an alternative means of determining the petitioner's ability to pay the proffered wages, CIS may review 
the petitioner's net current assets. Net current assets are a corporate taxpayer's current assets less its current 
liabilities. Current assets include cash on hand, inventories, and receivables expected to be converted to cash 
within one year. A corporation's current assets are shown on Schedule L, lines 1 through 6. Its current 
liabilities are shown on lines 16 through 18. If a corporation's net current assets are equal to or greater than 
the proffered wage, the petitioner is expected to be able to pay the proffered wage out of those net current 
assets. The net current assets are expected to be converted to cash as the proffered wage becomes due. Thus, 
the difference between current assets and current liabilities is the net current assets figure, which if greater 
than the proffered wage, evidences the petitioner's ability to pay. 
Calculations based on the Schedule L's attached to the petitioner's tax returns yield the amounts for year-end 
net current assets as shown in the following table. 
Net 
Tax current Wage increase needed Surplus or 
year assets to pay the proffered wage (deficit) 
of the beneficiary only 
The above information is insufficient to establish the petitioner's ability to pay the proffered wage in 2002, 
2003, and 2004. Again, when considering the record as a whole, that the petitioner has filed a total of 259 
. I- 140 petitions since 1995, over 35 of which were received in 2004 and 2005, and are currently pending, and 
also has filed 2,537 1-129 nonimmigrant petitions since 1995, the above information is insufficient to 
establish the petitioner's ability to pay its proffered wage commitments in any of the years at issue in the 
instant petition. 
The record also contains a copy of a letter, dated May 5, 2005, from the petitioner's accountant, who states, in 
part, as follows: 
Because [the petitioner] has used the Cash Basis as a method of accounting, this is the reason 
that the accounts receivable of the company at the end of the Tax Year are not considered in the 
Tax return. For the purposes of determining the employer's ability to pay the wages, this can be 
misleading and hence we are providing a detailed explanation and a comparison of the finances 
of the company when prepared using Accrual Basis. 
WAC 04 068 53016 
Page 9 
The ability of the company to pay in future can be best ascertained by Accrual Basis because it 
is the method of recording the earnings and expenses as they occur or are incurred without 
regard to actual date of collection or payment. 
The petitioner's tax returns were prepared pursuant to cash convention, in which revenue is recognized when it is 
received, and expenses are recognized when they are paid. This office would, in the alternative, have accepted tax 
returns prepared pursuant to accrual convention, if those were the tax returns the petitioner had actually submitted 
to the IRS. 
This office, however, is not persuaded by an analysis in which the petitioner, or anyone on its behalf, seeks to 
rely on tax returns or financial statements prepared pursuant to one method, but then seeks to shift revenue or 
expenses from one year to another as convenient to the petitioner's present purpose. If revenues are not 
recognized in a given year pursuant to the cash accounting then the petitioner, whose taxes are prepared 
pursuant to cash rather than accrual, and who relies on its tax returns in order to show its ability to pay the 
proffered wage, may not use those revenues as evidence of its ability to pay the proffered wage during that 
year. Similarly, if expenses are recognized in a given year, the petitioner may not shift those expenses to some 
other year in an effort to show its ability to pay the proffered wage pursuant to some hybrid of accrual and 
cash accounting. The amounts shown on the petitioner's tax returns shall be considered as they were 
submitted to the IRS, not as amended pursuant to the accountant's adjustments. If the accountant wished to 
persuade this office that accrual accounting supports the petitioner's continuing ability to pay the proffered 
wage beginning on the priority date, then the accountant was obliged to prepare and submit audited financial 
statements pertinent to the petitioning business prepared according to generally accepted accounting 
principles. 
For an S corporation, however, there are other considerations. The sole shareholder of a corporation has the 
authority to allocate expenses of the corporation for various legtimate business purposes, including for the 
purpose of reducing the corporation's taxable income. Compensation of officers is an expense category explicitly 
stated on the Form 1120s U.S. Corporation Income Tax Return. For ths reason, the petitioner's figures for 
compensation of officers may be considered as additional financial resources of the petitioner, in addition to its 
figures for ordinary income. 
The documentation presented here indicates that 
 lheld 100 percent of the company's stock in 
2001, 2002, 2003, and 2004. According to IS Form i 120s compensation bf Officers, 
reported on Line 7 of page 1, he elected to pay himself $199,477.00 in 2001, $168,259.00 in 2002, $ 150,000.00 
in 2003, and $150,000.00 in 2004. 
CIS (legacy INS) has long held that it may not "pierce the corporate veil" and look to the assets of the 
corporation's owner to satisfy the corporation's ability to pay the proffered wage. It is an elementary rule that a 
corporation is a separate and distinct legal entity from its owners and shareholders. See Matter of M, 8 I&N Dec. 
24 (BIA 1958), Matter of Aphrodite Investments, Ltd., 17 I&N Dec. 530 (Cornm. 1980), and Matter of Tessel, 17 
I&N Dec. 63 1 (Act. Assoc. Cornm. 1980). Consequently, assets of its shareholders or of other enterprises or 
corporations cannot be considered in determining the petitioning corporation's ability to pay the proffered wage. 
In the present case, however, CIS would not be examining the personal assets of the petitioner's owner, but, 
rather, the financial flexibility that the employee-owner has in setting his salary based on the profitability of 
his corporation. It is noted that the officer's compensation for 2002 is $120,025.00 greater than the proffered 
wage minus the ordinary income. The record of proceeding, however, does not contain evidence that would 
demonstrate that the sole officer could or would forego approximately 29 percent of his officer's 
compensation in 2002 that could be redistributed towards having sufficient funds to pay the proffered wage in 
Page 10 
that year. Further, as discussed above, when considering the record as a whole, the total of 259 1-140 petitions 
filed since 1995, over 35 of which were received in 2004 and 2005, and are currently pending, and also the 
2,537 1-129 nonimmigrant petitions filed since 1995, the above information is insufficient to establish the 
petitioner's ability to pay its proffered wage commitments in any of the years at issue in the instant petition. 
In his response to the director's NOR, counsel paraphrases the language in Mr. Yates' memorandum. The 
Yates' memorandum provides guidance to adjudicators to review a record of proceeding and make a positive 
determination of a petitioning entity's ability to pay if, in the context of the beneficiary's employment, "[tlhe 
record contains credible verifiable evidence that the petitioner is not only is employing the beneficiary but 
also has paid or currently is paying the proffered wage." The AAO consistently adjudicates appeals in 
accordance with the Yates memorandum. The regulation at 8 C.F.R. tj 204.5(g)(2), however, requires that a 
petitioning entity demonstrate its continuing ability to pay the proffered wage beginning on the priority date. 
The petitioner must demonstrate its continuing ability to pay the proffered wage beginning on the priority 
date, which in this case is June 27, 2001, and continuing until the beneficiary obtains lawful permanent 
residence. As discussed above, in this case the petitioner has failed to establish its ability to pay the proffered 
wage, in addition to its other proffered wage commitments, in any of the years at issue in the instant petition. 
Counsel also submits a synopsis of an article by Romulo E. Guevara regarding a totality of circumstances test. 
Although CIS will not consider gross income without also considering the expenses that were incurred to 
generate that income, the overall magnitude of the entity's business activities should be considered when the 
entity's ability to pay is marginal or borderline. See Matter of Sonegawa, 12 I&N Dec. 612 (Reg. Comm. 
1967). The petitioner was incorporated in 1993 and employs approximately 234 employees. The petitioner's 
gross income for 2001, 2002, 2003, and 2004 was above $15 million each year and the petitioner paid more 
than $7 million in salaries and wages each of those years. When considering the record as a whole, and 
assessing the totality of circumstances, the total of 259 1-140 petitions filed since 1995, over 35 of which were 
received in 2004 and 2005, and are currently pending, and also the 2,537 1-129 nonirnrnigrant petitions filed 
since 1995, the above information is insufficient to establish the petitioner's ability to pay its proffered wage 
commitments in any of the years at issue in the instant petition. 
In his response to the director's NOR, counsel also states that the petitioner had in place a line of credit 
agreement with a California bank. In calculating the ability to pay the proffered salary, however, CIS will not 
augment the petitioner's net income or net current assets by adding in the corporation's credit limits, bank 
lines, or lines of credit. A "bank line" or "line of credit" is a bank's unenforceable commitment to make loans 
to a particular borrower up to a specified maximum during a specified time period. A line of credit is not a 
contractual or legal obligation on the part of the bank. See Barron's Dictionaly of Finance and Investment 
Terms, 45 (1998). Since the line of credit is a "commitment to loan" and not an existent loan, the petitioner 
has not established that the unused funds from the line of credit are available at the time of filing the petition. 
As noted above, a petitioner must establish eligibility at the time of filing; a petition cannot be approved at a 
future date after the petitioner becomes eligible under a new set of facts. See Matter of Katigbak, 14 I&N Dec. 
45,49 (Cornrn. 1971). Moreover, the petitioner's existent loans will be reflected in the balance sheet provided 
in the tax return or audited financial statement and will be fully considered in the evaluation of the 
corporation's net current assets. Comparable to the limit on a credit card, the line of credit cannot be treated as 
cash or as a cash asset. However, if the petitioner wishes to rely on a line of credit as evidence of ability to 
pay, the petitioner must submit documentary evidence, such as a detailed business plan and audited cash flow 
statements, to demonstrate that the line of credit will augment and not weaken its overall financial position. 
Finally, CIS will give less weight to loans and debt as a means of paying salary since the debts will increase 
the petitioner's liabilities and will not improve its overall financial position. Although lines of credit and debt 
are an integral part of any business operation, CIS must evaluate the overall financial position of a petitioner 
WAC0406853016 
Page 11 
to determine whether the employer is making a realistic job offer and has the overall financial ability to 
satisfy the proffered wage. See Matter of Great Wall, 16 I&N Dec. 142 (Acting Reg. Comm. 1977). 
Counsel's reliance on the balances in the petitioner's bank accounts is misplaced. First, bank statements are not 
among the three types of evidence, enumerated in 8 C.F.R. 5 204.5(g)(2), required to illustrate a petitioner's 
ability to pay a proffered wage. While this regulation allows additional material "in appropriate cases," the 
petitioner in this case has not demonstrated why the documentation specified at 8 C.F.R. 5 204.5(g)(2) is 
inapplicable or otherwise paints an inaccurate financial picture of the petitioner. Second, bank statements show 
the amount in an account on a given date, and cannot show the sustainable ability to pay a proffered wage. Third, 
no evidence was submitted to demonstrate that the hnds reported on the petitioner's bank statements somehow 
reflect additional available fimds that were not reflected on its tax return, such as the petitioner's taxable income 
(income minus deductions) or the cash specified on Schedule L that was considered herein in determining the 
petitioner's net current assets. 
Based on the foregoing analysis, the evidence in the record fails to establish the petitioner's ability to pay the 
proffered wage as of the priority date and continuing until the beneficiary obtains lawful permanent residence. 
With respect to the permanent nature of the proffered position, cou 
 contract showing 
that the beneficiary "works at Toyota through a vendor called 
 [with] whom [the 
petitioner] (and its related sister entity, ) has a contract." Counsel states, in part, the following in 
-. - . - 
his brie-t-: 
The position offered to [the beneficiary] was and remains permanent at the time the 1-140 
petition was filed and the labor certification was filed. [The beneficiary] is still employed with 
[the petitioner]. 
Each and every position for which an alien labor certification is filed and 1-140 is filed is a 
permanent position with respect to the beneficiary, given that while this is a consulting position, 
whether this 1-140 Beneficiary works at an end client site "A" or a client site "B", the 
beneficiary's position is permanent with respect to the Petitioner. It is the nature of the 
Petitioner's business to provide permanent employment and the Petitioner makes sure that the 
Beneficiary is constantly working on a permanent basis whether at one given project or another. 
This is inherent nature of consulting work and this is consistent with the business practices of 
IT Consulting companies all over the United States. 
Fixed-term contracts were considered in Matter of Smith, 12 I&N Dec. 772 (Dist. Dir. 1968). In Smith, a 
secretarial shortage resulted in the petitioner providing a continuous supply of temporary secretaries to 
third-party clients. The petitioner in Smith guaranteed a British secretary permanent, full-time employment 
with its firm for 52 weeks a year with "fkinge benefits." The district director determined that the petitioner 
was the beneficiary's actual employer because it was doing the following: providing benefits; directly paying 
the beneficiary's salary; making contributions to the employee's social security, workmen's compensation, 
and unemployment insurance programs; withholding federal and state income taxes; and providing paid 
vacation and group insurance. Id. at 773. Additionally, the petitioner in Smith guaranteed the beneficiary a 
minimum 35-hour work week, even if the secretary was not assigned to a third-party client's worksite, and an 
officer of the petitioning company provided sworn testimony that the general secretarial shortage in the 
United States resulted in the fact that the petitioner never failed to provide full-time employment over the past 
three years. Id. 
Page 12 
Two cases falling under the temporary nonimmigrant H-1B and H-2B visa programs also provide guidance 
concerning the temporary or permanent nature of employment offers. In Matter of Ord, 18 I&N Dec. 285 
(Reg. Comm. 1992)' a firm sought to utilize the H-1B nonimmigrant visa program and temporarily outsource 
its aeronautical engineers on a continuing basis with one-year contracts. The regional commissioner 
determined that permanent employment is established with a constant pool of employees are available for 
temporary assignments. Id. at 287. Additionally, Ord held that the petitioning firm was the beneficiary's 
actual employer because it was not an employment agency merely acting as a broker in arrangng 
employment between an employer and job seeker, but retained its employees for multiple outsourcing 
projects. Id. at 286. Likewise, Matter ofdrtee, 18 I&N Dec. 366 (Comm. 1982), also addresses the issue of an 
employment offer's temporary or permanent nature. The commissioner held that the nature of the petitioner's 
need for duties to be performed must be assessed in order to ascertain the temporary or permanent aspect of 
an employment offer. In Artee, the petitioner was seeking to utilize the H-2B program to employ machinists 
temporarily to be outsourced to third-party clients. The commissioner referenced the occupation shortage of 
machinists in the U.S. economy to determine that the nature of the employment offered was permanent and 
not temporary. Id. at 366. The commissioner stated the following: 
The business of a temporary help service is to meet the temporary needs of its clients. To do 
this they must have a permanent cadre of employees available to refer to their customers for the 
jobs for which there is frequently or generally a demand. By the very nature of this 
arrangement, it is obvious that a temporary help service will maintain on its payroll, more or 
less continuously, the types of skilled employee most in demand. This does not mean that a 
temporary help service can never offer employment of a temporary nature. If there is no 
demand for a particular type of skill, the temporary help service does not have a continuing and 
permanent need. Thus a temporary help service may be able to demonstrate that in addition to 
its regularly employed workers and permanent staff needs it also hired workers for temporary 
positions. For a temporary help service company, temporary positions would include positions 
requiring skill for which the company has a non-recurring demand or infrequent demand. Id. at 
367-368. 
Noted in the record is the petitioner's November 10, 2003 job offer to the beneficiary, and the statement by 
the petitioner's president that the petitioner will have complete control and direction over the terms of the 
beneficiary's employment. Also noted are the subcontracting agreement, dated February 4, 2005, between 
- - 
and counsel's assertion that the beneficiary works atp ~o~ota through 
itioner and its related entity PureSoft Inc. have a contract. The record, 
however, does not contain a work order and comprehensive description of the beneficiary's proposed duties 
from an authorized representative of Toyota, or evidence that Toyota is a client of the petitioner. Without such 
evidence, the petitioner has not demonstrated that the petitioner would employ the beneficiary in a permanent, 
full-time position. As such, the petitioner has not met its burden of proof in these proceedings. The assertions 
of counsel will not satisfy the petitioner's burden of proof. The unsupported assertions of counsel do not 
constitute evidence. Matter of Obaigbena, 19 I&N Dec. 533, 534 (BIA 1988); Matter of Ramirez-Sanchez, 17 
I&N Dec. 503,506 (BIA 1980). Further, as discussed above, when considering the record as a whole, the total 
of 259 1-140 petitions filed since 1995, over 35 of which were received in 2004 and 2005, and are currently 
pending, and also the 2,537 1-129 nonimmigrant petitions filed since 1995, the petitioner has not provided 
evidence that it has met its past contractual obligations to place its information technology employees at its 
client companies. As such, the petitioner has not established that the position offered is a permanent full-time 
position. 
The decision of the director to revoke the approval of the petition was correct, based on the evidence in the 
record before the director. 
WAC 04 068 53016 
Page 13 
For the reasons discussed above, the assertions of counsel on appeal and the evidence submitted on appeal fail 
to overcome the decision of the director. 
Beyond the decision of the director, the evidence fails to establish that the beneficiary has met the petitioner's 
qualifications for the position as stated in the Form ETA 750 as of the petition's priority date.) On the ETA 750A 
submitted with the instant petition, block 14 describes the requirements of the offered position as "Master's oP 
equivalent" in computer science, electrical engineering, or equivalent. Block 15 describes the equivalent 
requirements as "Bachelor's degree in Computer Science, Electrical Enpeering or academic equivalent, and 5 
years of progressive work experience will substitute for Master's degree in Computer Science, Electrical 
Engineering or academic equivalent." The record contains a copy of the beneficiary's Bachelor of Engineering 
degree from Bangalore University in Bangalore, India. The record also contains a copy of an academic 
evaluation, dated July 16, 2003, by Multinational Education & Information Services, Inc. for the beneficiary. 
The evaluator concludes, in part, that the beneficiary's bachelor's degree "is equivalent to a four-year 
program of academic studies in Electronics Engineering and transferable to an accredited university in the 
United States." It is noted that in this case, the beneficiary's transcripts reflect that he failed and was absent 
from many of his college courses. As the evaluator does not address these issues, it is not clear how he 
reaches his conclusion that the beneficiary's foreign degree "is equivalent to a four-year program of academic 
studies in Electronics Engineering and transferable to an accredited university in the United States." CIS uses 
an evaluation by a credentials evaluation organization of a person's foreign education as an advisory opinion 
only. Where an evaluation is not in accord with previous equivalencies or is in any way questionable, it may 
be discounted or given less weight. Matter of Sea, Inc., 19 I&N Dec. 81 7 (Comm. 1988). For this additional 
reason, the petition may not be approved. 
In visa petition proceedings, the burden of proving eligibility for the benefit sought remains entirely with the 
petitioner. Section 29 1 of the Act, 8 U.S.C. 5 136 1. Here, that burden has not been met. 
ORDER: The appeal is dismissed. 
3 
 An application or petition that fails to comply with the technical requirements of the law may be denied by 
the AAO even if the Service Center does not identify all of the grounds for denial in the initial decision. See 
Spencer Enterprises, Inc. v. United States, 299 F. Supp. 2d 1025, 1043 (E.D. Cal. 2001), afyd. 345 F.3d 683 
(9th Cir. 2003); see also Dor v. INS, 891 F.2d 997, 1002 n. 9 (2d Cir. 1989)(noting that the AAO reviews 
appeals on a de novo basis). 
4 
Presumably this was a typo, and should be "or."