"Because Christ died for all we are to no longer identify anyone according to the flesh" (2 Corinthians 5:16).
Our identity is our spirit, that is how God identifies us and how God wants us to identify ourselves.
"For those who are in Christ the old spirit has gone" (2 Corinthians 5:17).
"Your new spirit has been created in the likeness of God. You truly are right with God. You were made righteous, pure, guiltless, innocent, faultless, and holy" (Ephesians 4:24).
"All wrongdoing is sin. We know that no one who is born of God sins." (1 John 5:17-18)
The only part of you that is born of God is your spirit, Jesus makes that clear in John 3. Now remember God only identifies you by your spirit. So essentially what this scripture says is, "You can do no wrong in God's eyes!"