Form 14653 is a certification used by U.S. persons residing outside the United States to participate in the Streamlined Foreign Offshore Procedures. This form helps taxpayers report delinquent or amended income tax returns and ensures compliance with U.S. tax laws. If you need to fill out this form, click the button below to get started.
The IRS Form 14653 is a critical document for U.S. persons living abroad who wish to take advantage of the Streamlined Foreign Offshore Procedures. This form allows taxpayers to certify their compliance with U.S. tax obligations while acknowledging any past failures to report income, pay taxes, or submit required information returns, including Foreign Bank Account Reports (FBARs). It requires individuals to provide detailed information about their tax situation for the past three years, including the amount of tax owed and any interest accrued. Taxpayers must affirm that their non-compliance was due to non-willful conduct, which may include negligence or misunderstanding of the law. The form also necessitates that individuals outline their residency status, confirming they have been physically outside the United States for at least 330 full days in one or more of the recent three years. Furthermore, it requires a narrative statement detailing the reasons for any reporting failures, including personal and financial backgrounds, and an explanation of foreign financial accounts. By submitting this form, taxpayers can potentially mitigate penalties and resolve their tax issues with the IRS.
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
Filling out Form 14653 is an important step in the Streamlined Foreign Offshore Procedures. This form allows U.S. persons residing outside the United States to certify their compliance with tax obligations. Completing the form accurately ensures that all necessary information is submitted for review.
What is Form 14653 and who needs to use it?
Form 14653 is a certification form used by U.S. persons residing outside the United States who wish to participate in the Streamlined Foreign Offshore Procedures. This form is primarily for individuals who have failed to report all income, pay all taxes, or submit required information returns, including Foreign Bank Account Reports (FBARs). It allows eligible taxpayers to come into compliance with U.S. tax laws while potentially avoiding penalties.
What information do I need to provide on Form 14653?
When filling out Form 14653, you will need to provide personal details such as your name, taxpayer identification number (TIN), and contact information. Additionally, you must list the tax years for which you are submitting delinquent or amended returns, along with the amount of tax and interest owed for each year. You will also need to explain the reasons for your failure to report income and provide specific facts about your foreign financial accounts.
What are the eligibility requirements for the Streamlined Foreign Offshore Procedures?
To qualify for the Streamlined Foreign Offshore Procedures, you must meet several criteria. You need to have been physically outside the U.S. for at least 330 full days in one or more of the last three years for which the U.S. tax return due date has passed. You must also demonstrate that your failure to report income was due to non-willful conduct, such as negligence or misunderstanding of the tax requirements. Additionally, you should have filed all required FBARs electronically if applicable.
What happens if I submit Form 14653 with incorrect information?
Submitting Form 14653 with incorrect information can have serious consequences. If the IRS discovers evidence of willfulness or fraud, it may initiate an examination or investigation, which could lead to civil penalties or even criminal charges. It is crucial to ensure that all information provided is accurate and complete. If you realize that you made an error after submission, it is advisable to contact the IRS promptly to address the issue.
Filling out Form 14653 can be a daunting task, and many people make mistakes that can delay their application or even disqualify them from the Streamlined Foreign Offshore Procedures. One common mistake is failing to provide a complete narrative statement of facts. This statement is crucial, as it explains why you failed to report all income and submit required returns. Without this narrative, your submission may be considered incomplete. It is essential to include all relevant details, both favorable and unfavorable, to give a full picture of your situation.
Another frequent error involves the residency requirement. Many individuals do not accurately track their days spent outside the U.S. during the covered tax period. The form requires you to have been physically outside the United States for at least 330 full days in one or more of the last three years. If this requirement is not met, your application will not qualify. Be sure to double-check your records and provide accurate information for each year.
Additionally, some taxpayers overlook the importance of including all required documentation. If you are not a U.S. citizen or lawful permanent resident, you must attach a computation showing that you did not meet the substantial presence test. Failing to include this computation will lead to an incomplete submission. Ensure that all necessary documents are attached to avoid unnecessary delays in processing your application.
Finally, many people forget to sign the form correctly. If you are submitting a joint certification, both spouses must sign. Omitting a signature can halt the processing of your form. Always review the signature section carefully to confirm that all required signatures are present before submitting your application. Taking these steps can help ensure a smoother process and increase your chances of successfully qualifying for the Streamlined Foreign Offshore Procedures.
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. Along with this form, several other documents are commonly required to ensure a complete submission. Below is a list of these documents with brief descriptions.
Gathering these documents along with Form 14653 helps ensure a smoother process when applying for the Streamlined Foreign Offshore Procedures. Each document serves a specific purpose and contributes to a comprehensive submission to the IRS.
The Form 14653 serves a specific purpose within the realm of tax compliance for U.S. persons residing outside the United States. Several other forms share similarities with Form 14653, as they also address issues related to tax compliance, reporting of foreign assets, or eligibility for specific tax relief programs. Below are four documents that have notable similarities with Form 14653:
When completing Form 14653, it is crucial to follow specific guidelines to ensure the process goes smoothly. Below is a list of actions to take and avoid.
Understanding Form 14653 can be challenging, and several misconceptions often arise regarding its purpose and requirements. Here are five common misconceptions:
Many believe that this form is exclusively for those with large amounts owed to the IRS. In reality, it is designed for any U.S. person residing outside the United States who has failed to report foreign income, regardless of the amount.
While the form is part of the Streamlined Foreign Offshore Procedures, it does not automatically protect individuals from all penalties. If the IRS finds evidence of willful conduct or fraud, it may still impose penalties.
Some individuals think they can simply submit the form without providing context. However, a detailed statement explaining the reasons for the failure to report income is essential for qualification under the streamlined procedures.
This form is available to both U.S. citizens and lawful permanent residents (green card holders). Non-residents who meet specific criteria can also utilize this form.
Individuals must provide delinquent or amended income tax returns for the past three years when submitting Form 14653. This is a crucial requirement for qualifying under the streamlined procedures.
When filling out Form 14653, there are several important points to keep in mind to ensure proper compliance with the IRS requirements. Here are some key takeaways:
Following these guidelines can help streamline the process and minimize potential issues with the IRS.