14653 Template

14653 Template

The 14653 form is a certification document used by U.S. persons residing outside the United States to declare their participation in Streamlined Foreign Offshore Procedures. By filing this form, individuals can rectify their non-compliance with U.S. tax obligations, specifically related to income reporting and tax payment. Ensuring accurate completion is crucial to obtaining the benefits of the streamlined process, making it essential to follow the instructions carefully.

To proceed with the 14653 form, simply click the button below to begin the process.

Content Overview

The 14653 form, officially titled "Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures," is a critical document for individuals navigating their tax responsibilities while living abroad. Designed by the IRS to facilitate compliance under the Streamlined Foreign Offshore procedures, it provides taxpayers an opportunity to correct past failures in reporting income, filing returns, and submitting required documents like FBARs. Key sections of the form require taxpayers to identify their residency status, disclose the nature of their previous tax oversights, and summarize any income owed for the last three years. It emphasizes the need for a clear narrative that outlines individual circumstances surrounding tax reporting issues, whether due to negligence or misunderstandings of the law. Additionally, filers must acknowledge their eligibility for the program by meeting specific residency requirements and must outline their efforts to rectify their tax filings. By completing this form, U.S. persons residing outside the country can move towards resolving their tax obligations while minimizing potential penalties under U.S. tax law.

14653 Sample

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.

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)

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.

Catalog Number 67042A

www.irs.gov

Form 14653 (Rev. 10-2017)

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

 

 

 

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

Yes (complete information below)

No

 

 

 

 

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

Catalog Number 67042A

www.irs.gov

Form 14653 (Rev. 10-2017)

Document Attributes

Fact Name Detail
Form Purpose This form is used by U.S. persons living outside the U.S. to certify eligibility for the Streamlined Foreign Offshore Procedures.
Version Date The latest version of Form 14653 was released in October 2017.
IRS OMB Number The OMB Number for this form is 1545-2241.
Eligibility Requirement Applicants must provide delinquent or amended tax returns for the past three years.
FBAR Filing If applicable, the taxpayer must have filed all required Foreign Bank Account Reports (FBARs) electronically.
Non-Willful Conduct The applicant's failure to report income must be due to non-willful conduct, such as negligence or misunderstanding.
Retention of Records Taxpayers must retain all records related to their income and assets for three to six years.
Joint Certification For joint filers, both spouses must meet all non-residency requirements and provide individual reasons for any discrepancies.
Penalty Risks Submitting false information may lead to penalties or further IRS investigations.
Application Requirements Incomplete submissions that do not include narratives explaining failures in reporting will not qualify for penalty relief.

14653: Usage Instruction

Filling out Form 14653 is an important step for individuals who are U.S. persons residing outside the United States and wish to participate in the Streamlined Foreign Offshore Procedures. To ensure your submission is complete, it is essential to gather the required information and follow the instructions carefully. Below is a detailed guide to assist in filling out this form efficiently.

  1. Gather Personal Information: Collect your full name, taxpayer identification number (TIN), telephone number, mailing address, city, state, and ZIP code.
  2. Specify Taxpayer Status: Indicate if this certification is for a joint filing and ensure both spouses’ details are included where necessary.
  3. Attach Delinquent Returns: Prepare and include delinquent or amended income tax returns for the past three years.
  4. Calculate Tax Owed: For each year, list the amount of tax owed, the corresponding form (1040 or 1040X), and the total interest due in the specified sections.
  5. Confirm FBAR Filing: Confirm whether you have electronically filed the required FBARs for any of the last six years.
  6. State Non-Willfulness: Agree and certify that your failure to report income was due to non-willful conduct, defining the situation contextually.
  7. Residency Information: Complete one of the residency sections based on whether you are a U.S. citizen or lawful permanent resident or not.
  8. Document Specific Reasons: Provide a detailed explanation of why income was unreported and any relevant financial background or personal details.
  9. Sign the Certification: Ensure that the taxpayer’s signature (and the second signature if filing jointly) is obtained, along with the date.
  10. Include Additional Information: If utilizing a paid preparer, enter their details, including signature, firm name, and any designee's information if applicable.

Once the form is completed, carefully review for accuracy. Incorrect or incomplete submissions could delay processing or lead to qualification issues under the Streamlined Foreign Offshore Procedures. It is vital to keep copies of everything for your records.

Frequently Asked Questions

  1. What is Form 14653?

    Form 14653 is a certification required by the IRS for U.S. persons residing outside the United States who want to participate in the Streamlined Foreign Offshore Procedures. This form enables eligible taxpayers to come into compliance with U.S. tax obligations without facing penalties for prior failures to report foreign income or assets.

  2. Who needs to file Form 14653?

    U.S. citizens and lawful permanent residents (green card holders) living abroad must file Form 14653. Furthermore, both spouses must meet the eligibility requirements if submitting a joint certification. If you haven’t reported foreign income or filed required forms (like FBARs), you need to complete this form to avoid penalties.

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

    You must meet several criteria, including:

    • You have failed to report foreign income or file necessary returns due to non-willful conduct.
    • You have not previously been notified about an IRS examination.
    • You must have been physically present outside the U.S. for at least 330 days in one or more of the past three tax years.
  4. What should I include in the statement of facts?

    Your statement of facts should explain why you failed to report all income, pay taxes, or submit the required forms. Be thorough and detail your personal and financial background. Discuss each foreign financial account, including how it was funded, any transactions made, and interactions with financial advisors if applicable. Make sure to mention anything that could impact your case.

  5. How can I demonstrate non-willful conduct?

    Non-willful conduct means that your failure to comply with tax obligations was not intentional. It can arise from negligence, misunderstandings, or mistakes. In your certification, you should describe the circumstances that led to your non-compliance to establish that your actions were not willful.

  6. What happens if I don’t provide all the required information on Form 14653?

    Failure to provide complete information may result in your submission being deemed incomplete. This could prevent you from qualifying for the Streamlined Foreign Offshore Procedures, potentially leaving you liable for penalties and interest on unpaid taxes.

  7. Can I seek a refund for taxes paid on omitted income?

    Yes, but be cautious. If you wish to pursue a refund for any taxes linked to omitted income reported in your amended returns, you must understand that seeking a refund may result in losing the favorable terms of the Streamlined Procedures. This could lead to additional scrutiny from the IRS.

  8. How long should I keep my documents related to my tax filings?

    It's essential to maintain all records concerning your income and foreign financial assets for at least three years from the date of your certification. If you had delinquent FBARs, retain those records for six years. This ensures you have everything you need if the IRS requests further information.

Common mistakes

Filling out Form 14653 can be a straightforward process, but many people make common mistakes that can complicate their submissions. One common error is leaving out required personal information. When you do not include all the necessary details, such as your Taxpayer Identification Number (TIN) or mailing address, your form may be deemed incomplete. Always check that you have filled in every field correctly before submission.

Another frequent mistake occurs in the residency status section. Some filers incorrectly assume they meet the non-residency requirements without providing the necessary documentation. Any misunderstanding regarding the substantial presence test can lead to rejection. Make sure to attach a clear computation of days you were present in the U.S. for the required tax years.

People often forget to explain their failures to report income or file tax returns. Simply stating you failed to report income is not enough. The IRS requires a narrative statement detailing your circumstances. Without a complete account, including favorable and unfavorable facts, your submission may not qualify for penalty relief.

Moreover, failing to sign the form is a simple yet significant oversight. Your certification is not valid without signatures from all relevant parties, especially in cases of joint submissions. Don’t overlook the importance of this step.

Another key issue arises when taxpayers incorrectly calculate the total tax and interest owed. Make sure your totals match the amounts listed on your tax forms. Inaccurate calculations can lead to further inquiries from the IRS, complicating your streamlined process.

Some people also neglect to state their reasons for non-willful conduct clearly. Vague statements about negligence or misunderstanding the law can be insufficient. Specificity is crucial; describe your circumstances and any advisor input accurately.

A common mistake is submitting a narrative that is too brief. Providing detailed explanations, including your personal and financial background, helps build your case. A thorough narrative allows the IRS to understand your situation, making it easier for them to grant the streamlined relief.

Additionally, taxpayers sometimes fail to attach the necessary documentation for their foreign financial accounts. Information about account types and transactions must be clear. Incomplete details can result in processing delays or denials.

Lastly, many filers do not check for updates or changes related to the form. Tax laws and requirements can change, impacting your submission. Regularly check the IRS website for the latest instructions and updates regarding Form 14653.

Documents used along the form

The Form 14653 is an important document used by U.S. citizens and lawful permanent residents residing outside the United States to certify their eligibility for the Streamlined Foreign Offshore Procedures. However, additional forms and documents might be required to complete your submission, ensuring compliance with IRS regulations. Below is a list of commonly associated forms and documents.

  • Form 1040: This is the U.S. Individual Income Tax Return. Taxpayers use this form to report their annual income, calculate their tax liability, and claim deductions or credits. It's essential for establishing your compliance for the years involved.
  • Form 1040X: This is the Amended U.S. Individual Income Tax Return. Taxpayers file this form to correct errors on their previously submitted Form 1040, including income, deductions, credits, or filing status errors.
  • FinCEN Form 114 (FBAR): This form is used to report foreign bank and financial accounts. U.S. persons must file it if they have foreign accounts exceeding a certain threshold, and it’s critical for revealing foreign assets that were not reported previously.
  • Form 8854: This is the Initial and Annual Expatriation Statement. This form is typically required for individuals who have expatriated or given up their citizenship, detailing their assets and liabilities to evaluate tax obligations.
  • Statement of Facts: This is a document that provides a detailed narrative explaining why the taxpayer failed to report all income, pay taxes, and submit necessary information returns. This explanation must encompass personal and financial backgrounds and any relevant circumstances.

Completing the Form 14653 along with these additional documents helps ensure you provide a comprehensive submission, which is crucial for successfully qualifying for the Streamlined Foreign Offshore Procedures. Be thorough and accurate to facilitate a smoother processing experience with the IRS.

Similar forms

  • Form 1040: The standard individual income tax return form used by U.S. citizens and residents. Like Form 14653, it requires information on income and tax due. It serves the purpose of reporting income and obligations for tax liabilities, aligning with the emphasis on accurate financial disclosure.
  • Form 1040X: This form is used for amending previously filed tax returns. Similar to Form 14653, it allows taxpayers to correct mistakes in income reporting or calculations. Both forms reinforce the importance of rectifying errors in financial records for compliance purposes.
  • FBAR (Foreign Bank Account Report): Required for U.S. persons with foreign financial accounts exceeding certain thresholds, FBAR shares a common goal with Form 14653 in ensuring transparency about foreign income and financial holdings. Both require careful reporting of international financial activity to avoid penalties.
  • Form 8938: This form reports specified foreign financial assets and is part of the Foreign Account Tax Compliance Act (FATCA). Like Form 14653, it aims to ensure that U.S. taxpayers disclose foreign income and assets accurately, contributing to compliance with U.S. tax law.
  • Form 3520: This form is used to report transactions with foreign trusts and receipt of foreign gifts. Similar to Form 14653, it compels taxpayers to disclose pertinent financial information regarding foreign entities, highlighting the necessity of comprehensive reporting to adhere to tax regulations.

Dos and Don'ts

  • Do read the form instructions carefully before starting.
  • Do ensure that all personal information is accurate and up to date.
  • Do specify your reasons for failing to report income clearly and thoroughly.
  • Do include all necessary supporting documentation with your submission.
  • Do maintain copies of your completed forms and any relevant records.
  • Don't submit the form without thorough proofreading to avoid errors.
  • Don't ignore the deadline for filing; timely submission is crucial.
  • Don't provide vague or incomplete explanations in your statement of facts.
  • Don't forget to sign and date the form where required.
  • Don't expect the IRS to process your application without all necessary information submitted; incomplete forms could lead to delays.

Misconceptions

  • Misconception 1: The 14653 form is only for individuals with significant assets.
  • This is not true. The form serves any U.S. taxpayer residing outside the United States who has not reported foreign income, regardless of the value of their assets. The streamlined procedures aim to help a broad range of taxpayers rectify their filing status.

  • Misconception 2: Filing the 14653 form guarantees forgiveness of all taxes owed.
  • While the form provides a pathway to resolve issues without penalties for non-willful conduct, it does not automatically absolve taxpayers of their tax liabilities. Taxpayers must pay any taxes and interests owed for the years they are submitting.

  • Misconception 3: Only U.S. citizens can use this form.
  • The form is available for anyone designated as a U.S. person, which includes lawful permanent residents (green card holders). Citizens and residents both qualify as long as they meet the eligibility criteria.

  • Misconception 4: Submitting the form means no further IRS scrutiny.
  • While the streamlined procedures offer relief from penalties, the IRS retains the right to review submissions. If they find indications of willfulness or fraud, further investigation may occur.

  • Misconception 5: The residency requirement is flexible.
  • This is false. To qualify, you must physically be outside the U.S. for at least 330 days within any 12-month period during the three years for which you are submitting returns. Specific residency requirements must be strictly adhered to.

  • Misconception 6: You can submit the form without a detailed explanation of your non-compliance.
  • A complete and truthful narrative explanation is essential. Without it, the IRS considers the submission incomplete. Providing specific reasons helps demonstrate your non-willful failure and is critical for qualifying for the streamlined procedures.

Key takeaways

Key Takeaways for Using Form 14653:

  • Ensure that you include delinquent or amended tax returns for at least the most recent three years where the due date has passed. This is a critical requirement for submission.
  • Be aware that the total payment you submit must match the combined tax and interest owed for all three years. Inaccurate calculations may result in notices from the IRS.
  • Non-willful conduct must be demonstrated. This means your failure to report income or file correctly should be attributed to mistakes or misunderstandings, not intentional disregard.
  • All spouses filing jointly must meet the non-residency criteria. Details of each spouse’s time spent outside the U.S. must be clearly documented.
  • A comprehensive narrative is essential. Explain the circumstances surrounding your failure to report accurately, including both favorable and unfavorable aspects, and provide a complete background on foreign financial accounts.

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