Table of Contents
The 14653 form, officially titled "Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures," is a crucial document for U.S. taxpayers living abroad who need to rectify past tax reporting issues. This form allows individuals to certify their eligibility for the Streamlined Foreign Offshore Procedures, a program designed to help those who have not reported foreign income or financial assets due to non-willful conduct. Key aspects of the form include providing personal information such as the taxpayer's name, taxpayer identification number, and contact details. Taxpayers must also disclose any delinquent or amended tax returns for the past three years and outline the amount of tax and interest owed. Additionally, the form requires individuals to explain their failure to report income and submit necessary information returns, including Foreign Bank Account Reports (FBARs). It emphasizes the importance of providing a detailed narrative that includes personal and financial backgrounds, as well as the sources of foreign financial assets. By signing the form, taxpayers declare the accuracy of their statements under penalties of perjury, ensuring compliance with U.S. tax laws while seeking relief from potential penalties.
Sample - 14653 Form
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
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
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
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
Note: Both spouses filing a joint certification must meet the
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. |
Page of
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
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
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.
Catalog Number 67042A |
www.irs.gov |
Form 14653 (Rev. |
Page of
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 |
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Signature of Taxpayer (if joint certification) |
Name of Taxpayer (if joint certification) |
Date |
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For Estates Only
Signature of Fiduciary |
Date |
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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 |
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Date |
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Firm’s name |
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Firm’s EIN |
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Firm’s address |
City |
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State |
ZIP code |
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Telephone number |
PTIN |
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Check if |
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Do you want to allow another person to discuss this form with the IRS |
Yes (complete information below) |
No |
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Designee’s name |
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Telephone number |
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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
Catalog Number 67042A |
www.irs.gov |
Form 14653 (Rev. |
File Specs
| Fact Name | Description |
|---|---|
| Form Title | Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures. |
| Governing Law | Internal Revenue Code (I.R.C.) sections 6001, 6109, 7801, and 7803. |
| OMB Number | 1545-2241. |
| Eligibility Requirements | Taxpayers must provide delinquent or amended returns for the last three years and meet non-willful conduct criteria. |
| FBAR Filing | Taxpayers must electronically file any delinquent FBARs for the last six years. |
| Record Retention | Taxpayers must retain records related to income and assets for three years and FBAR records for six years. |
| Non-Residency Requirement | Taxpayers must have been physically outside the U.S. for at least 330 full days in any of the last three years. |
| Joint Certification | If married, both spouses must meet all requirements and provide separate reasons for any discrepancies in reporting. |
14653 - Usage Guidelines
Filling out Form 14653 requires attention to detail and accuracy. After completing the form, you will submit it along with any required documentation to the IRS. Ensure that all information is correct to avoid delays or complications with your submission.
- Gather your personal information, including your name, taxpayer identification number (TIN), telephone number, mailing address, city, state, and ZIP code.
- If applicable, determine if you are submitting a joint certification with your spouse. If so, both spouses must provide individual reasons for any failures to report income or file returns.
- List the years for which you are providing delinquent or amended income tax returns. Include the amount of tax owed, the form used (Form 1040 or Form 1040X), and any interest due for each year.
- Indicate whether you were physically outside the United States for at least 330 full days during any of the last three years. Answer "Yes" or "No" for each year.
- If you are not a U.S. citizen or lawful permanent resident, prepare an attachment showing your computation of days present in the U.S. for the required years.
- Write a detailed narrative statement explaining your failure to report income, pay taxes, and submit required information returns. Include your personal and financial background, and the source of funds in your foreign financial accounts.
- Sign and date the form. If it is a joint certification, both spouses must sign.
- If applicable, include the signature of a fiduciary if the submission involves an estate.
- If you used a paid preparer, ensure they sign and include their information.
- Decide if you want to allow another person to discuss this form with the IRS and provide their contact information if so.
Your Questions, Answered
What is Form 14653?
Form 14653 is a document used by U.S. persons residing outside the United States to certify their eligibility for the Streamlined Foreign Offshore Procedures. This form is part of a program designed to help individuals who have failed to report income from foreign financial assets and have not submitted required tax returns, including FBARs (Foreign Bank Account Reports). By completing this form, taxpayers can come into compliance with U.S. tax laws without facing significant penalties.
Who needs to file Form 14653?
U.S. citizens and lawful permanent residents (green card holders) who have not reported all income or filed required tax returns related to foreign financial assets should consider filing Form 14653. This form is particularly relevant for those who meet the non-residency requirements and have been living outside the U.S. for an extended period.
What are the eligibility requirements for the Streamlined Foreign Offshore Procedures?
To qualify for the Streamlined Foreign Offshore Procedures, taxpayers must meet several criteria. They must have been physically outside the United States 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 has passed. Additionally, they must not have had a U.S. abode during that time. Taxpayers must also demonstrate that their failure to report income and file returns was due to non-willful conduct, such as negligence or misunderstanding of tax obligations.
What information must be included in Form 14653?
Form 14653 requires taxpayers to provide personal information, such as their name, taxpayer identification number (TIN), and contact details. Additionally, they must list the years for which they are submitting delinquent or amended tax returns, along with the amounts of tax and interest owed. A narrative statement explaining the reasons for their failure to report income and file returns must also be included. This statement should detail personal and financial circumstances relevant to the situation.
What happens if I do not include a narrative statement?
Failure to include a narrative statement of facts will render the submission incomplete. This omission can result in the application being rejected, meaning that the taxpayer would not qualify for the streamlined penalty relief intended by the Streamlined Foreign Offshore Procedures.
Can I file Form 14653 jointly with my spouse?
Yes, spouses can file Form 14653 jointly. However, both spouses must meet the non-residency requirements and provide individual reasons for any failures to report income or file required returns if their circumstances differ. The form allows for joint certification, but specific details must be provided for each spouse where applicable.
What is the significance of the non-willful conduct requirement?
The non-willful conduct requirement is crucial for taxpayers seeking relief under the Streamlined Foreign Offshore Procedures. Non-willful conduct refers to mistakes or misunderstandings rather than intentional wrongdoing. Taxpayers must affirm that their failure to comply with tax obligations was not deliberate. If the IRS finds evidence of willfulness or fraud, the case may be subject to further examination and potential penalties.
How long do I need to keep records related to my foreign financial accounts?
Taxpayers must retain all records related to their income and assets for three years from the date of the certification. If they were required to file delinquent FBARs, they must keep those records for six years. This retention period ensures that the taxpayer can provide documentation if requested by the IRS in the future.
What should I do if I believe I am beyond the assessment limitations period?
If a taxpayer believes they are beyond the assessment limitations period for any tax owed, they should be cautious. Seeking a refund for any tax or interest paid may result in forfeiting the favorable terms of the Streamlined Procedures. Taxpayers should carefully consider their options and may benefit from consulting a tax professional for guidance.
What are the potential consequences of providing false information on Form 14653?
Providing false information on Form 14653 can lead to serious consequences. The IRS may impose penalties, and in severe cases, the matter could be referred for criminal investigation. It is essential for taxpayers to ensure that all information provided is accurate and truthful to avoid these risks.
Common mistakes
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Incomplete Information: Failing to provide all required details, such as taxpayer names, TINs, and addresses, can lead to delays or rejection of the form.
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Incorrect Tax Calculations: Miscalculating the total tax and interest owed can result in a balance due notice or refund complications.
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Missing Narrative Statement: Not including a narrative statement of facts explaining the failure to report income can render the submission incomplete.
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Joint Certification Errors: If filing jointly, both spouses must meet non-residency requirements. Failing to disclose differing residency statuses can cause issues.
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Failure to Attach Required Documents: Not attaching the computation for the substantial presence test if not a U.S. citizen or lawful permanent resident can lead to disqualification.
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Neglecting Record Retention: Not agreeing to retain necessary records related to foreign financial accounts and assets can jeopardize compliance.
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Omitting Advisor Information: If relying on a professional advisor, failing to provide their contact information and advice summary can weaken the submission.
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Ignoring Willfulness: Misunderstanding the implications of willful conduct and failing to address it appropriately can lead to severe penalties.
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Signature Issues: Not signing the form or having both spouses sign a joint certification can invalidate the submission.
Documents used along the form
When navigating the Streamlined Foreign Offshore Procedures, the Form 14653 is just one piece of the puzzle. Alongside this form, there are several other important documents that you may need to submit. Each of these documents plays a crucial role in ensuring your application is complete and compliant with IRS requirements. Here’s a brief overview of four key forms that often accompany Form 14653.
- Form 1040: This is the standard individual income tax return form used by U.S. citizens and residents to report their income, claim tax deductions, and calculate their tax liability. When filing under the Streamlined Procedures, you’ll need to include your delinquent or amended tax returns for the past three years using this form.
- Form 1040X: If you are amending a previously filed tax return, you’ll use Form 1040X. This form allows you to make corrections to your original tax return, such as reporting additional income or claiming deductions that were missed. It’s essential for accurately reflecting your tax situation for the years you are addressing.
- FBAR (FinCEN Form 114): If you have foreign financial accounts that exceed certain thresholds, you must file the FBAR. This form is crucial for disclosing your foreign bank accounts to the U.S. Treasury and is often required to be filed electronically. It’s an important part of your compliance under the Streamlined Procedures.
- Form 8854: If you are relinquishing your U.S. citizenship or terminating your long-term residency, Form 8854 is necessary. This form helps the IRS determine your tax obligations as you exit the U.S. tax system. While not always required for all applicants, it’s important for those making significant changes to their residency status.
Having these forms ready and understanding their purpose can streamline your submission process. Each document contributes to a comprehensive picture of your tax history and compliance, helping to facilitate a smoother interaction with the IRS. Remember, being thorough and accurate is key to successfully navigating these procedures.
Similar forms
Form 8854, known as the Initial and Annual Expatriation Statement, is similar to Form 14653 in that it serves to report certain tax obligations for U.S. citizens residing outside the United States. Both forms require detailed personal information, including taxpayer identification numbers and residency status. While Form 14653 focuses on compliance under the Streamlined Foreign Offshore Procedures, Form 8854 is specifically aimed at individuals who have expatriated and need to certify their compliance with U.S. tax obligations prior to and after their expatriation. Both forms emphasize the importance of accurate reporting and the potential consequences of non-compliance.
Form 1040, the U.S. Individual Income Tax Return, shares similarities with Form 14653 as both are essential for reporting income and tax liability to the IRS. Taxpayers using Form 14653 must provide amended tax returns for the past three years, which would typically be reported on Form 1040. The requirement to disclose income sources and any foreign financial assets on both forms highlights the IRS's focus on transparency and compliance. Moreover, both forms underscore the need for taxpayers to be aware of their obligations and the potential penalties for failing to meet them.
Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, is another document that aligns with Form 14653. Both forms are aimed at U.S. persons with foreign financial interests, requiring them to disclose information about their foreign assets and income. Form 5471 specifically targets U.S. citizens or residents who are officers, directors, or shareholders in foreign corporations, while Form 14653 is for individuals seeking to rectify prior non-compliance. The emphasis on reporting foreign financial interests in both documents reflects the IRS's commitment to ensuring compliance with international tax laws.
Form 8938, Statement of Specified Foreign Financial Assets, also bears similarities to Form 14653. Both forms require U.S. taxpayers to report foreign financial assets, which can include bank accounts, stocks, and other investments. Form 8938 is part of the Foreign Account Tax Compliance Act (FATCA) requirements, while Form 14653 is designed for those seeking to come into compliance with U.S. tax laws after failing to report such assets. The parallel focus on foreign financial assets in both forms highlights the IRS's ongoing efforts to combat tax evasion and ensure that U.S. taxpayers fulfill their reporting obligations.
Dos and Don'ts
When filling out Form 14653, it's essential to approach the task with care. Here are five key actions to take and avoid:
- Do: Ensure all personal information is accurate, including names, TINs, and contact details.
- Do: Provide a complete narrative statement of facts explaining your failure to report income and file required returns.
- Do: Retain all relevant records related to your income and foreign financial accounts for the required retention periods.
- Do: Clearly indicate your residency status and the number of days spent outside the U.S. for the relevant years.
- Do: Review the completed form for accuracy before submission to avoid delays.
- Don't: Leave any sections blank; incomplete submissions may be rejected.
- Don't: Provide misleading or false information, as this can lead to penalties.
- Don't: Forget to attach any required documentation, such as computations for the substantial presence test.
- Don't: Assume that your submission will be accepted without thorough review; double-check your calculations and details.
- Don't: Neglect to sign the form, as missing signatures can result in processing delays.
Misconceptions
Understanding Form 14653 is crucial for U.S. persons residing outside the country who are seeking to rectify their tax reporting obligations. However, several misconceptions can lead to confusion. Here are four common misconceptions about this form:
- Misconception 1: Form 14653 is only for individuals with significant tax liabilities.
- Misconception 2: Filing Form 14653 guarantees immunity from penalties.
- Misconception 3: All spouses must have the same reasons for failing to report income.
- Misconception 4: Submitting Form 14653 is a one-time solution.
This form is applicable to any U.S. person residing abroad who has failed to report income, regardless of the amount owed. It is designed for those who have not met their tax obligations, whether the amounts are large or small.
While the form allows for streamlined procedures, it does not automatically protect individuals from penalties. If the IRS discovers evidence of willfulness or fraud, penalties may still apply.
In joint certifications, each spouse can provide individual reasons for their failure to report income. It is essential to clearly state these reasons separately if they differ.
This form is part of an ongoing compliance process. Individuals must retain records for several years and may need to provide additional documentation if requested by the IRS.
Key takeaways
When filling out and using Form 14653, there are several important points to keep in mind to ensure a smooth process. Below are key takeaways to consider:
- Eligibility Requirements: Ensure you meet all eligibility criteria for the Streamlined Foreign Offshore procedures. This includes being a U.S. person residing outside the United States.
- Complete Information: Provide accurate and complete details about your tax situation, including any delinquent or amended returns for the past three years.
- Residency Status: Clearly indicate your residency status and confirm that you were physically outside the U.S. for at least 330 days during the relevant years.
- Statement of Facts: Include a comprehensive narrative explaining your failure to report income or file required returns. This should cover both favorable and unfavorable circumstances.
- Retain Records: Keep all related records for at least three years from the date of certification, especially if you filed delinquent FBARs.
- Non-Willful Conduct: Affirm that your failure to comply with tax obligations was due to non-willful conduct, which can include negligence or misunderstandings about the law.
By following these guidelines, you can better navigate the complexities of Form 14653 and fulfill your tax obligations effectively.