Form 14653 is a certification used by U.S. persons living outside the United States to participate in the Streamlined Foreign Offshore Procedures. This form helps taxpayers disclose previously unreported income and comply with U.S. tax obligations. If you need to fill out this form, please click the button below to get started.
Form 14653 is a certification document used by U.S. persons residing outside the United States who wish to participate in the Streamlined Foreign Offshore Procedures. This form allows individuals to report previously unreported income, pay any owed taxes, and avoid penalties for non-compliance. It is particularly relevant for those who may have inadvertently failed to file required tax returns or information returns, including Foreign Bank Account Reports (FBARs).
This form is intended for U.S. citizens and lawful permanent residents who have been living outside the United States. If you have not reported all your income or filed the necessary tax returns and are eligible for the Streamlined Foreign Offshore Procedures, you will need to complete and submit this form.
To qualify for the Streamlined Foreign Offshore Procedures, you must meet several criteria. Primarily, you need to have been physically outside the U.S. for at least 330 full days during one of the last three tax years. Additionally, your failure to report income and file tax returns must be due to non-willful conduct, which can include negligence or a misunderstanding of tax obligations.
Your statement of facts should provide a comprehensive narrative explaining your failure to report income and file required returns. This includes personal and financial background information, the source of funds in foreign accounts, and any relevant interactions with financial advisors. If you and your spouse have different reasons for non-compliance, each individual should provide their own explanation.
If you do not meet the non-residency requirement, your submission of Form 14653 will be considered incomplete, and you will not qualify for the streamlined penalty relief. It is essential to accurately document your residency status and provide any necessary computations to demonstrate your eligibility.
If the IRS discovers evidence of willful conduct, such as fraud or intentional failure to report income, it may initiate an examination or investigation. This could lead to severe civil penalties, including FBAR penalties, or even criminal charges. Therefore, it is crucial to ensure that your submission accurately reflects your situation and intentions.
You are required to retain all records related to your income and assets for three years from the date of your certification. If you have filed delinquent FBARs, you must keep records related to those accounts for six years. This includes account statements and any documentation related to your foreign financial accounts.
Yes, you can authorize another person to discuss your Form 14653 with the IRS. You will need to provide their name and contact information on the form. This can be helpful if you prefer to have a tax professional or advisor handle communications with the IRS on your behalf.
The Form 14653 is essential for U.S. persons residing outside the United States who wish to certify their eligibility for the Streamlined Foreign Offshore Procedures. Several other documents may accompany this form to ensure a comprehensive submission. Below is a list of these documents along with brief descriptions of each.
These accompanying documents help clarify the taxpayer's situation and support their request for streamlined procedures. Properly completing and submitting all required forms can facilitate a smoother resolution process with the Internal Revenue Service.
Form 14653
(October 2017)
Department of the Treasury - Internal Revenue Service
Certification by U.S. Person Residing Outside of the United
States for Streamlined Foreign Offshore Procedures
OMB Number
1545-2241
Name(s) of taxpayer(s)
TIN(s) of taxpayer(s)
Telephone number
Mailing address
City
State
ZIP code
Note: If this certification is a joint certification, the statements will be considered made on behalf of both spouses, even though the pronoun "I" is used. If spouses submitting a joint certification have different reasons for their failure to report all income, pay all tax, and submit all required information returns, including FBARs, they must state their individual reasons separately in the required statement of facts.
Certification
I am providing delinquent or amended income tax returns, including all required information returns, for each of the most recent 3 years for which the U.S. tax return due date (or properly applied for extended due date) has passed. The tax and interest I owe for each year are as follows
Year
(list years in order)
Amount of Tax I Owe Shown On
(Form 1040 or Form 1040X)
Interest
Total
Note: Your payment should equal the total tax and interest due for all three years. You may receive a balance due notice or a refund if the tax or interest is not calculated correctly.
I failed to report income from one or more foreign financial assets during the above period.
I meet all the other eligibility requirements for the Streamlined Foreign Offshore procedures.
If I failed to timely file correct and complete FBARs for any of the last six years, I have now electronically filed those FBARs.
I agree to retain all records related to my income and assets during the period covered by my delinquent or amended returns until three years from the date of this certification. If I was required to file delinquent FBARs in accordance with these procedures, I also agree to retain all records (including, but not limited to, account statements) related to my foreign financial accounts until six years from the date of this certification. Upon request, I agree to provide all such records to the Internal Revenue Service.
My failure to report all income, pay all tax, and submit all required information returns, including FBARs, was due to non-willful conduct. I understand that non-willful conduct is conduct that is due to negligence, inadvertence, or mistake or conduct that is the result of a good faith misunderstanding of the requirements of the law.
I acknowledge the possibility that amended income tax returns I am submitting under the Streamlined Foreign Offshore Procedures may report income for tax years beyond the three-year assessment limitations period under I.R.C. § 6501(a). Other assessment limitations periods in I.R.C. § 6501 may allow the Internal Revenue Service to assess and collect tax. If I seek a refund for any tax or interest paid for the omitted income that I am reporting on my amended income tax returns because I feel that my payments were made beyond the assessment limitations period, I understand that I will forfeit the favorable terms of the Streamlined Procedures.
I recognize that if the Internal Revenue Service receives or discovers evidence of willfulness, fraud, or criminal conduct, it may open an examination or investigation that could lead to civil fraud penalties, FBAR penalties, information return penalties, or even referral to Criminal Investigation.
I meet the non-residency requirements for the Streamlined Foreign Offshore procedures as disclosed below.
Note: Both spouses filing a joint certification must meet the non-residency requirements.
Complete one of the following (two) sections regarding your residency status
If you are a U.S. citizen or lawful permanent resident (i.e., “green card holder”), complete this section:
For the covered tax period, indicate whether you were physically outside the United States for each year. You must have been physically outside the U.S. for at least 330 full days in any one or more of the most recent three years for which the U.S. tax return due date (or properly applied for extended due date) has passed, and you must not have had a U.S. abode. For more information on the meaning of “abode” see IRS Publication 54.
Catalog Number 67042A
www.irs.gov
Form 14653 (Rev. 10-2017)
Page of
I was physically outside the United States for at least 330 full days (answer Yes or No for each year)
Yes
No
Both spouses filing a joint certification must meet the non-residency requirement. If the number of days physically outside of the U.S. differs for each spouse, disclose that on the chart above or in an attachment to this certification.
If you are not a U.S. citizen or lawful permanent resident, complete this section:
If you are not a U.S. citizen or a lawful permanent resident, please attach to this certification your computation showing that you did not meet the substantial presence test under I.R.C. sec. 7701(b)(3). Your computation must disclose the number of days you were present in the U.S. for the three years included in your Streamlined Foreign Offshore Procedures submission and the previous two years. If you do not attach a complete computation showing that you did not meet the substantial presence test, your submission will be considered incomplete and your submission will not qualify for the Streamlined Foreign Offshore Procedures.
Both spouses filing a joint certification must meet the non-residency requirement. If the number of days inside the U.S. differs for each spouse, disclose that on the chart above or in an attachment to this certification.
Note: You must provide specific facts on this form or on a signed attachment explaining your failure to report all income, pay all tax, and submit all required information returns, including FBARs. Any submission that does not contain a narrative statement of facts will be considered incomplete and will not qualify for the streamlined penalty relief.
Provide specific reasons for your failure to report all income, pay all tax, and submit all required information returns, including FBARs. Include the whole story including favorable and unfavorable facts. Specific reasons, whether favorable or unfavorable to you, should include your personal background, financial background, and anything else you believe is relevant to your failure to report all income, pay all tax, and submit all required information returns, including FBARs. Additionally, explain the source of funds in all of your foreign financial accounts/assets. For example, explain whether you inherited the account/asset, whether you opened it while residing in a foreign country, or whether you had a business reason to open or use it. And explain your contacts with the account/asset including withdrawals, deposits, and investment/ management decisions. Provide a complete story about your foreign financial account/asset. If you relied on a professional advisor, provide the name, address, and telephone number of the advisor and a summary of the advice. If married taxpayers submitting a joint certification have different reasons, provide the individual reasons for each spouse separately in the statement of facts. The field below will automatically expand to accommodate your statement of facts.
Under penalties of perjury, I declare that I have examined this certification and all accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete.
Signature of Taxpayer
Name of Taxpayer
Date
Signature of Taxpayer (if joint certification)
Name of Taxpayer (if joint certification)
For Estates Only
Signature of Fiduciary
Title of Fiduciary (e.g., executor or administrator)
Name of Fiduciary
For Paid Preparer Use Only (the signature of taxpayer(s) or fiduciary is required even if this form is signed by a paid preparer)
Signature of Preparer
Name of Preparer
Firm’s name
Firm’s EIN
Firm’s address
PTIN
Check if
Self-Employed
Do you want to allow another person to discuss this form with the IRS
Yes (complete information below)
Designee’s name
Privacy Act and Paperwork Reduction Notice
We ask for the information on this certification by U.S. person residing in the United States for streamlined domestic offshore procedures to carry out the Internal Revenue laws of the United States. Our authority to ask for information is sections 6001, 6109, 7801, 7803 and the regulations thereunder. This information will be used to determine and collect the correct amount of tax under the terms of the streamlined filing compliance program. You are not required to apply for participation in the streamlined filing compliance program. If you choose to apply, however, you are required to provide all the information requested on the streamlined certification. You are not required to provide the information requested on a document that is subject to the Paperwork Reduction Act unless the document displays a valid OMB control number. Books or records relating to a document or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. Section 6103, however, allows or requires the Internal Revenue Service to disclose or give this information to others as described in the Internal Revenue Code. For example, we may disclose this information to the Department of Justice to enforce the tax laws, both civil and criminal, and to cities, states, the District of Columbia, and U.S. commonwealths or possessions to carry out their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. Failure to provide this information may delay or prevent processing your application. Providing false information may subject you to penalties. The time needed to complete and submit the streamlined certification will vary depending on individual circumstances. The estimated average time is: 8 hours
Completing Form 14653 can be a daunting task, and mistakes are common among those seeking to certify their eligibility for the Streamlined Foreign Offshore Procedures. One frequent error involves failing to provide a comprehensive narrative statement of facts. This statement is crucial, as it explains the reasons for any failures to report income, pay taxes, or submit required information returns. Without this detailed account, the submission may be deemed incomplete, jeopardizing the opportunity for penalty relief.
Another common mistake is neglecting to accurately calculate the total tax and interest owed. The form requires taxpayers to list the amounts due for each of the last three years. If these figures are not calculated correctly, the IRS may issue a balance due notice or a refund, which can complicate the process further. It is essential to ensure that the total payment equals the sum of the tax and interest due for all three years.
Additionally, many individuals overlook the residency requirements outlined in the form. Taxpayers must confirm that they were physically outside the United States for at least 330 full days during one or more of the most recent three years. Failure to meet this criterion, or inaccurately reporting residency status, can lead to disqualification from the streamlined procedures. If spouses are filing jointly, both must satisfy the non-residency requirement, and any discrepancies should be clearly disclosed.
Finally, some taxpayers do not provide sufficient details regarding their foreign financial accounts. It is important to explain the source of funds and the nature of the accounts, including whether they were inherited or opened for business purposes. This level of detail is necessary for the IRS to understand the context of the accounts and to assess the situation accurately. Incomplete or vague explanations can lead to further inquiries or penalties.
Form 1040: This is the standard individual income tax return form used by U.S. citizens and residents. Similar to Form 14653, it requires taxpayers to report income, deductions, and credits, but it does not specifically address foreign assets or streamlined procedures.
Form 1040X: This is the amended U.S. individual income tax return form. Like Form 14653, it allows taxpayers to correct previously filed returns, but it does not focus on non-residency or foreign asset reporting.
FBAR (FinCEN Form 114): This form is used to report foreign bank accounts. Similar to Form 14653, it addresses the reporting of foreign financial assets, but it is specifically for reporting accounts rather than income tax filings.
Form 8938: This form is used to report specified foreign financial assets. Like Form 14653, it is aimed at U.S. taxpayers with foreign assets, but it has different reporting thresholds and requirements.
Form 3520: This form is used to report transactions with foreign trusts and receipt of certain foreign gifts. Similar to Form 14653, it deals with foreign financial matters, but focuses on trusts and gifts rather than income tax compliance.
Form 3520-A: This is the annual information return of a foreign trust with U.S. owners. Like Form 14653, it involves reporting for U.S. persons with foreign interests, but it specifically pertains to trusts.
Form 5471: This form is used by U.S. citizens and residents who are officers, directors, or shareholders in certain foreign corporations. Similar to Form 14653, it requires detailed reporting of foreign interests, but focuses on corporate ownership.
Form 8865: This form is for U.S. persons who have an interest in a foreign partnership. Like Form 14653, it requires reporting of foreign financial interests, but it specifically addresses partnerships.
Form 8838: This form is used to make an election for a foreign partnership to be treated as a domestic partnership. Similar to Form 14653, it relates to foreign entities but focuses on tax elections rather than compliance.
Form 1116: This is used to claim a foreign tax credit. Similar to Form 14653, it deals with international tax issues, but it specifically allows taxpayers to reduce their U.S. tax liability based on foreign taxes paid.
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