14653 PDF Template

Form 14653 is a certification form used by U.S. persons residing outside the United States to participate in the Streamlined Foreign Offshore Procedures. This form allows individuals to declare their delinquent or amended income tax returns while meeting specific eligibility requirements. Completing this form accurately is essential for compliance and to avoid potential penalties.

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Article Guide

The Form 14653 serves as a crucial tool for U.S. persons residing outside the United States who wish to participate in the Streamlined Foreign Offshore Procedures. This form facilitates the certification process for individuals who have failed to report income, pay taxes, or submit required information returns, including FBARs, due to non-willful conduct. It requires taxpayers to provide delinquent or amended income tax returns for the past three years and to disclose any foreign financial assets that were not reported. Importantly, the form mandates that both spouses, if filing jointly, must meet specific non-residency requirements, and it includes sections to detail each spouse's residency status. Taxpayers must also outline the reasons for their failure to comply with tax obligations, ensuring that the narrative captures both favorable and unfavorable facts. This comprehensive approach aims to provide the IRS with a complete picture of the taxpayer's situation while allowing for potential penalty relief under the streamlined procedures. By signing the form, taxpayers declare under penalties of perjury that the information provided is accurate and complete, emphasizing the importance of honesty in the certification process.

14653 Preview

Catalog Number 67042A www.irs.gov

Form

14653 (Rev. 10-2017)

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

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.

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Form 14653 (Rev. 10-2017)

www.irs.govCatalog Number 67042A

I was physically outside the United States for at least 330 full days (answer Yes or No for each year)

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.

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Form 14653 (Rev. 10-2017)

www.irs.govCatalog Number 67042A

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) Date

For Estates Only

Signature of Fiduciary Date

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 Date

Firm’s name Firm’s EIN

Firm’s address City State ZIP code

Telephone number PTIN

Check if

Self-Employed

Do you want to allow another person to discuss this form with the IRS No

Yes (complete information below)

Designee’s name Telephone number

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

↓ 14653

File Properties

Fact Name	Details
Purpose	Form 14653 is used by U.S. persons residing outside the United States to certify eligibility for the Streamlined Foreign Offshore Procedures.
Eligibility	To qualify, individuals must have failed to report income due to non-willful conduct and must meet specific residency requirements.
Joint Certification	If both spouses submit a joint certification, they must each meet the non-residency requirements, and individual reasons for non-compliance should be provided separately.
Retention of Records	Taxpayers must retain all records related to income and assets for three years after certification and FBAR records for six years.
Governing Law	This form is governed by the Internal Revenue Code, particularly sections related to tax compliance and penalties for failure to report.

Instructions on Utilizing 14653

Completing Form 14653 is a crucial step in your journey towards compliance with U.S. tax obligations while residing outside the United States. This form requires detailed information about your tax situation, residency status, and reasons for any reporting failures. Ensure that you gather all necessary documents and information before you begin filling out the form.

Begin by entering your name(s) in the designated field for taxpayer(s).
Provide your Tax Identification Number(s) (TIN) in the appropriate section.
Fill in your telephone number and mailing address, including city, state, and ZIP code.
If applicable, indicate whether this is a joint certification. If so, be aware that both spouses must provide individual reasons for any reporting failures.
In the certification section, confirm that you are providing delinquent or amended income tax returns for the last three years.
List the years for which you owe tax, along with the amount of tax owed, interest, and total for each year.
Indicate whether you failed to report income from foreign financial assets and confirm your eligibility for the Streamlined Foreign Offshore procedures.
Check the box to confirm that you have electronically filed any delinquent FBARs, if required.
Acknowledge your agreement to retain all records related to your income and assets for the specified periods.
State that your failure to report income and pay taxes was due to non-willful conduct.
Complete the residency status section based on whether you are a U.S. citizen or lawful permanent resident, or not. Answer the questions about your physical presence in the U.S. for the past three years.
Provide specific reasons for your failure to report all income and pay taxes. Include personal and financial background information.
Detail the source of funds in your foreign financial accounts/assets and any relevant transactions.
If you relied on a professional advisor, include their contact information and a summary of the advice received.
Sign and date the form, ensuring all required signatures are included if it is a joint certification.
If applicable, have your paid preparer complete their section, including their signature and contact information.
Indicate if you want to allow another person to discuss this form with the IRS by providing their name and telephone number, if applicable.

Important Facts about 14653

What is Form 14653?

Form 14653 is a certification form used by U.S. persons residing outside the United States to participate in the Streamlined Foreign Offshore Procedures. This form allows individuals to report previously unreported income and submit delinquent tax returns without facing penalties, provided they meet certain eligibility requirements.

Who should use Form 14653?

This form is intended for U.S. citizens and lawful permanent residents who have failed to report income from foreign financial assets. It is also applicable to individuals who meet the non-residency requirements for the Streamlined Foreign Offshore Procedures. Both spouses must meet these requirements if submitting a joint certification.

What information is required on Form 14653?

Form 14653 requires personal information such as the taxpayer's name, taxpayer identification number (TIN), and contact details. Additionally, it asks for a detailed explanation of the reasons for failing to report income, pay taxes, and submit required information returns, including FBARs. Taxpayers must also disclose their residency status and provide information about their foreign financial accounts.

What are the eligibility requirements for the Streamlined Foreign Offshore Procedures?

To qualify, individuals must have been physically outside the U.S. for at least 330 full days during one or more of the last three years for which the tax return due date has passed. They must also demonstrate that their failure to report income was due to non-willful conduct, which can include negligence or misunderstanding of the law's requirements.

What happens if I do not provide all required information on Form 14653?

If the form is incomplete or lacks the necessary narrative statement of facts, the submission will not qualify for streamlined penalty relief. It is crucial to provide specific details about the failure to report income and the circumstances surrounding it to ensure eligibility.

Can I submit Form 14653 for multiple years?

Yes, Form 14653 allows taxpayers to report delinquent or amended income tax returns for each of the most recent three years. Taxpayers must list the years and the corresponding amounts of tax and interest owed for each year. The total payment should equal the combined tax and interest due for all three years.

What are the potential consequences of willful conduct when submitting Form 14653?

If the IRS discovers evidence of willfulness, fraud, or criminal conduct, it may initiate an examination or investigation. This could result in civil penalties, including FBAR penalties, or even criminal charges. It is essential to accurately represent the situation to avoid these serious consequences.

Common mistakes

Filling out Form 14653 can be a daunting task, and many individuals make mistakes that can complicate their application for the Streamlined Foreign Offshore Procedures. One common error is failing to provide complete and accurate personal information. This includes not only the taxpayer's name and TIN but also the correct telephone number and mailing address. Incomplete contact information can lead to delays in processing and may result in missed communications from the IRS.

Another frequent mistake is the omission of required statements of fact. The form explicitly states that taxpayers must provide a narrative explaining their failure to report income and submit necessary returns, including FBARs. Without this detailed explanation, the submission may be deemed incomplete, jeopardizing eligibility for streamlined penalty relief.

Many people also overlook the requirement to disclose the reasons for their failure to report income. It is crucial to include both favorable and unfavorable facts that pertain to the situation. A lack of transparency can raise red flags with the IRS, potentially leading to further scrutiny or penalties.

Incorrect calculations of tax and interest owed are another common pitfall. Taxpayers must ensure that the amounts listed for each year are accurate and reflect the correct forms, such as Form 1040 or Form 1040X. Mistakes in this section can result in balance due notices or refunds, complicating the process further.

Some individuals fail to properly document their residency status. The form requires taxpayers to indicate whether they were physically outside the United States for at least 330 full days in any of the three most recent years. Misunderstanding or misrepresenting residency status can lead to disqualification from the streamlined procedures.

Another mistake involves the failure to attach necessary computations for those who are not U.S. citizens or lawful permanent residents. If individuals do not provide the required documentation showing they did not meet the substantial presence test, their submission will be considered incomplete. This can result in the loss of eligibility for the streamlined process.

Additionally, some taxpayers neglect to include information about their foreign financial accounts. It is essential to explain the source of funds in these accounts, as well as any relevant transactions. This lack of detail can hinder the IRS's understanding of the taxpayer's situation, potentially leading to complications.

Joint filers often make the mistake of not clearly delineating their individual reasons for failing to report income. Each spouse must provide separate explanations if their circumstances differ. Failing to do so can create confusion and may result in both spouses being held accountable for the same issues.

Finally, taxpayers may forget to sign the form or include the date of signature. An unsigned form is not valid and will be returned to the taxpayer, causing delays in processing. Ensuring that all required signatures are present is a simple yet crucial step that should not be overlooked.

Documents used along the form

The Form 14653 is a crucial document for U.S. persons residing outside the United States who wish to participate in the Streamlined Foreign Offshore Procedures. This form serves as a certification that the taxpayer meets specific eligibility requirements and provides necessary information regarding their tax compliance. Alongside this form, several other documents may be required or beneficial to support the taxpayer's submission. Below is a list of these documents, along with brief descriptions of each.

Form 1040: This is the standard individual income tax return form used by U.S. citizens and residents to report their income, calculate taxes owed, and claim refunds. Taxpayers must submit their completed Form 1040 for the years they are amending.
Form 1040X: This is the amended U.S. individual income tax return form. Taxpayers use this form to correct errors or make changes to previously filed Form 1040 submissions, including adjustments to income or deductions.
FBAR (FinCEN Form 114): The Report of Foreign Bank and Financial Accounts (FBAR) is required for U.S. persons with foreign financial accounts exceeding certain thresholds. Taxpayers must file this form to report their foreign accounts for the years in question, especially if they failed to do so previously.
Statement of Facts: This is a narrative document that explains the reasons for the taxpayer's failure to report income, pay taxes, and submit required information returns. It should include personal and financial backgrounds, as well as any misunderstandings about tax obligations.
Foreign Financial Account Records: Taxpayers must retain and be prepared to provide records related to their foreign financial accounts. This includes account statements, transaction histories, and documentation regarding the source of funds in these accounts.
Substantial Presence Test Calculation: If the taxpayer is not a U.S. citizen or lawful permanent resident, they must provide a computation demonstrating that they did not meet the substantial presence test. This document outlines the number of days spent in the U.S. over the relevant years.
Power of Attorney (if applicable): If a taxpayer wishes to authorize someone else to represent them before the IRS, they must submit a power of attorney form. This document allows a designated representative to discuss the taxpayer's case and handle communications with the IRS.
Professional Advisor Statement: If the taxpayer relied on a professional advisor for guidance regarding their tax obligations, they should include a statement detailing the advisor's name, contact information, and a summary of the advice received.

Each of these documents plays a significant role in ensuring that the taxpayer's submission is complete and accurate. By providing the necessary information and context, individuals can better navigate the complexities of tax compliance while seeking relief under the Streamlined Foreign Offshore Procedures. It is essential to approach this process with care and thoroughness to avoid potential issues with the Internal Revenue Service.

Similar forms

The Form 14653 is used by U.S. persons residing outside the United States to certify their eligibility for the Streamlined Foreign Offshore Procedures. It is similar to several other forms and documents that serve related purposes in tax compliance and reporting. Here are five documents that share similarities with Form 14653:

Form 1040: This is the standard individual income tax return form used by U.S. citizens and residents. Like Form 14653, it requires taxpayers to report their income and calculate taxes owed. Both forms emphasize the importance of accurate reporting and compliance with U.S. tax laws.
Form 1040X: This form is used to amend a previously filed Form 1040. Similar to Form 14653, it allows taxpayers to correct errors or omissions in their tax returns. Both forms require detailed explanations of changes made and the reasons for those changes.
FBAR (FinCEN Form 114): The FBAR is required for U.S. persons with foreign financial accounts exceeding certain thresholds. Like Form 14653, it focuses on reporting foreign assets and accounts, emphasizing the importance of compliance to avoid penalties.
Form 8938 (Statement of Specified Foreign Financial Assets): This form is part of the Foreign Account Tax Compliance Act (FATCA) and requires taxpayers to report specified foreign financial assets. Both Form 14653 and Form 8938 deal with foreign financial reporting, but Form 8938 has different thresholds and reporting requirements.
Form 8854 (Initial and Annual Expatriation Statement): This form is used by individuals who are expatriating from the U.S. It requires reporting of assets and liabilities, similar to the asset disclosures in Form 14653. Both forms emphasize the importance of accurate reporting for compliance with U.S. tax obligations.

Dos and Don'ts

When filling out Form 14653, it is crucial to follow specific guidelines to ensure your submission is complete and accurate. Here are four things you should and shouldn't do:

Do provide accurate personal information, including your name, TIN, and contact details.
Don't leave any sections blank; incomplete forms may be rejected.
Do include a clear narrative explaining your reasons for failing to report income and submit returns.
Don't submit the form without verifying that all calculations for tax and interest owed are correct.

Adhering to these guidelines will help streamline the process and reduce the likelihood of complications with the IRS.

Misconceptions

Understanding Form 14653 can be challenging, and several misconceptions often arise. Here are ten common misunderstandings about this form, along with clarifications.

Form 14653 is only for wealthy individuals. Many believe that only high-income earners need to file this form. In reality, it applies to any U.S. person living abroad who has failed to report foreign income, regardless of income level.
Filing Form 14653 guarantees no penalties. Some think that submitting this form automatically protects them from penalties. While it does offer a streamlined process, it does not guarantee immunity from all penalties, especially if willful conduct is discovered.
You cannot file Form 14653 if you have filed tax returns before. Many assume that prior filings disqualify them from using this form. However, it is designed for those who have not reported foreign income correctly, regardless of previous filings.
Only U.S. citizens can use Form 14653. This form is also available to lawful permanent residents (green card holders). Non-citizens who meet the eligibility requirements can also benefit from it.
All foreign income must be reported on the form. Some believe that every single foreign income source must be listed in detail. Instead, the form requires a certification of non-willful conduct and a general acknowledgment of unreported income.
Form 14653 is the same as the FBAR. While both forms deal with foreign financial assets, they serve different purposes. Form 14653 focuses on tax compliance, whereas FBAR specifically addresses foreign bank account reporting.
Submitting Form 14653 is the end of the process. Many think that once they submit the form, their responsibilities end. In fact, taxpayers must retain records and may need to provide additional information if requested by the IRS.
You can ignore the residency requirements. Some individuals believe that they can submit the form without meeting the non-residency requirements. However, both spouses in a joint certification must meet these criteria.
Form 14653 is a one-size-fits-all solution. It is a common misconception that this form applies equally to all situations. Each taxpayer's circumstances are unique, and specific facts must be provided to support the certification.
Professional help is unnecessary for filing Form 14653. Many think they can handle the process alone. While some may successfully navigate it, consulting a tax professional can provide valuable guidance and help avoid potential pitfalls.

By understanding these misconceptions, individuals can better navigate the complexities of Form 14653 and ensure compliance with U.S. tax laws.

Key takeaways

Understanding Form 14653 is essential for U.S. taxpayers living abroad who wish to participate in the Streamlined Foreign Offshore Procedures. Here are five key takeaways to keep in mind when filling out and using this form:

Eligibility Requirements: Ensure you meet all eligibility criteria for the Streamlined Foreign Offshore Procedures. This includes being physically outside the U.S. for at least 330 days in one or more of the last three years.
Accurate Reporting: Provide accurate information about your tax liabilities, including the amount of tax owed and any interest. Double-check your calculations to avoid discrepancies that could lead to notices from the IRS.
Detailed Narrative: Include a comprehensive narrative statement explaining your failure to report income and file required returns. This should encompass both favorable and unfavorable facts, as well as any relevant background information.
Record Retention: Commit to retaining all records related to your income and foreign financial assets for the specified periods. This is crucial for compliance and may be requested by the IRS.
Non-Willful Conduct: Clearly state that your failure to comply was due to non-willful conduct, which can include negligence or misunderstanding of the law. Be prepared to support this claim with evidence if necessary.

By keeping these points in mind, you can navigate the complexities of Form 14653 more effectively and enhance your chances of successful compliance with IRS requirements.