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14653 Template

The Form 14653 is a document utilized by U.S. persons living outside the United States to certify compliance with the Streamlined Foreign Offshore Procedures, laying out a comprehensive path for taxpayers who have failed to report foreign financial assets and income. It requests detailed information regarding the taxpayer's identity, residency, and an explanation of their failure to meet tax obligations, designed to facilitate the process of rectifying past non-compliance. If you believe you meet the criteria outlined in Form 14653 and need to regularize your tax status, ensure you thoroughly understand its requirements and consider clicking the button below to start the process of filling out the form.

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Table of Contents

Understanding the complexities of Form 14653, a crucial document for U.S. persons residing outside the United States who wish to participate in the Streamlined Foreign Offshore Procedures, is essential. Issued by the Department of the Treasury - Internal Revenue Service, this form enables eligible individuals to certify that their failure to report income, pay the necessary tax, and submit required information returns, including FBARs (Foreign Bank and Financial Accounts), was due to non-willful conduct. With an emphasis on clarifying the participant's tax situation for the most recent three years for which the U.S. tax return due date (or properly applied for extended due date) has passed, Form 14653 requests detailed information on unpaid taxes and interest, as well as a comprehensive explanation of the reasons behind the reporting failures. Additionally, it outlines the need for documentation retention and the potential consequences of failing to meet the stipulated requirements or providing false information, highlighting the gravity of the certification process. This form also stipulates specific residency criteria for eligibility, requiring detailed records of physical presence outside the United States or, for those not holding U.S. citizenship or permanent residency, proof of failing the substantial presence test. With penalties of perjury, filers affirm the truthfulness and completeness of their submissions, underscoring the form's role in facilitating compliance with U.S. tax laws while providing a pathway for rectifying past omissions in reporting foreign financial assets.

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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)

Year

Yes

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
				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)

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Form Breakdown

Fact Name	Description
Form Title	Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures
Form Number	14653
Revision Date	October 2017
Issuing Agency	Department of the Treasury - Internal Revenue Service
OMB Number	1545-2241
Purpose	To certify eligibility for the Streamlined Foreign Offshore Procedures by U.S. persons who reside outside the United States
Joint Certification	The form allows for joint certification by spouses but requires individual statements if their reasons for failure to comply differ.
Non-Willful Conduct	The taxpayer must certify that their failure to report was due to non-willful conduct.
Non-Residency Requirement	Both U.S. citizens/Lawful Permanent Residents and non-citizens/persons must meet specific non-residency requirements.
Documentation Retention	Taxpayers must agree to retain records related to income and foreign financial accounts for a specified period.

Guidelines on Filling in 14653

After deciding to use the Streamlined Foreign Offshore Procedures, the next step involves completing Form 14653. This form is essential for individuals living outside the United States who need to certify that their failure to report foreign financial assets and pay taxes was non-willful. Below are detailed instructions to correctly fill out this form, ensuring that the process goes smoothly.

Begin with your Name and TIN (Taxpayer Identification Number) at the top. If joint certification, include names and TINs for both spouses.
Provide your Telephone number and Mailing address, including city, state, and ZIP code.
In the section titled "Certification," list each of the most recent 3 tax years for which U.S. tax returns were due and indicate the amount of tax and interest owed for each year.
Confirm your failure to report income from foreign financial assets and your eligibility for the Streamlined Foreign Offshore Procedures.
If applicable, confirm that you have now electronically filed delinquent FBARs for the past six years.
Agree to retain all records related to your foreign income and assets for three years from the date of this certification and, if required, all records related to foreign financial accounts for six years.
Acknowledge your understanding that any amended tax returns submitted may cover years beyond the three-year assessment limitation period.
For the non-residency section, if you are a U.S. citizen or lawful permanent resident, indicate whether you were physically outside the United States for at least 330 full days in any of the specified years. If not a U.S. citizen or lawful permanent resident, attach your computation showing that you did not meet the substantial presence test.
On a signed attachment (if necessary), provide a detailed statement explaining the specific reasons for your failure to report all income, pay all tax, and submit required information returns, including FBARs. Ensure to include personal and financial background, and the source of funds in foreign financial accounts or assets.
Sign and date the form. If filing a joint certification, both spouses must sign and date. If the form is being submitted on behalf of an estate, the fiduciary should also sign and date, providing their title.
If a paid preparer is used, ensure they complete the "For Paid Preparer Use Only" section.
Lastly, decide if you want to authorize another person to discuss this form with the IRS by completing the designated section, if applicable.

Once Form 14653 is properly completed and signed, it should be attached to your amended tax returns and submitted according to the instructions provided for the Streamlined Foreign Offshore Procedures. This careful compliance will help facilitate the correction of past tax and reporting errors and bring your tax obligations up to date.

Learn More on 14653

What is Form 14653?

Form 14653 is a document used by the Internal Revenue Service (IRS) titled "Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures." It is designed for U.S. taxpayers living abroad to certify that they have complied with U.S. tax laws regarding reporting foreign assets and income. It's a critical component of the Streamlined Foreign Offshore Procedures, which aim to facilitate tax compliance for U.S. persons who may not have been fully aware of their filing obligations.

Who needs to file Form 14653?

This form is necessary for any U.S. citizen or resident alien (including a green card holder) living outside the United States who wishes to take advantage of the IRS's Streamlined Foreign Offshore Procedures. These individuals must certify that their failure to report income, pay taxes, and file required information returns was due to non-willful conduct. Spouses filing a joint certification must each meet the non-residency requirements and may have to provide individual reasons for their failure to comply if their reasons differ.

What information is required on Form 14653?

Form 14653 requires a comprehensive range of information, including:

The taxpayer's name, Social Security Number (or TIN), telephone number, and mailing address.
A detailed statement of facts explaining the reasons for the taxpayer's failure to report all income, pay all tax, and submit all required information returns, including FBARs.
A list of the tax years involved and the amounts of tax and interest owed for each of those years.
Certification of non-residency status by detailing the physical presence outside the United States or proving non-meeting of the substantial presence test for non-U.S. citizens or residents.
A declaration under penalties of perjury that the information provided is true, correct, and complete.

What are the consequences of not filing Form 14653?

Failure to file Form 14653 when participating in the Streamlined Foreign Offshore Procedures may result in the IRS considering your submission incomplete, potentially disqualifying you from the streamlined procedures. This could expose you to standard IRS audit, penalties, and interest procedures for failure to report foreign income and file required information returns. If the IRS finds evidence of willful non-compliance, more severe consequences like civil fraud penalties, FBAR penalties, or criminal investigation could follow.

How do I submit Form 14653?

You must submit Form 14653 as part of a package, along with delinquent or amended income tax returns for the last three years and any required information returns. This package needs to be mailed to the IRS. Always ensure to also electronically file FBARs for the last six years, if you haven't done so already. Remember, it's important to keep copies of all forms submitted, as well as records of your income and foreign financial accounts, for at least six years after the date of your certification. This will be crucial if the IRS requests these documents for review.

Common mistakes

Filling out Form 14653 can be a crucial step for U.S. persons residing outside the United States who seek to participate in the Streamlined Foreign Offshore Procedures. However, applicants often make errors that can delay the process or impact their eligibility. Here are some common mistakes to avoid:

Not meeting the non-residency requirement: A critical mistake is failing to accurately document or miscalculating the number of days one has resided outside the U.S., leading to disqualification from the streamlined procedures.
Omitting information on joint certifications: When filing jointly, each spouse must individually meet the non-residency requirements and provide separate explanations for their failure to comply with tax obligations if reasons differ, a requirement often overlooked.
Failure to accurately report all income from foreign financial assets: Individuals sometimes inaccurately report or completely overlook income derived from foreign assets, leading to incorrect filings.
Miscalculating tax and interest owed: Incorrectly calculating the amount of tax and interest for each year can result in an incorrect payment amount, which complicates the process.
Not filing FBARs electronically: The Form 14653 certification requires that any delinquent Foreign Bank and Financial Accounts Reports (FBARs) for the last six years be filed electronically, a step sometimes missed by filers.
Failure to retain records: Applicants must agree to retain all necessary records related to income and foreign financial accounts for a specified period. Neglecting this can lead to issues if the IRS requests these documents.
Incomplete narrative statement: Not providing a complete narrative statement of facts regarding the failure to report income, pay tax, and submit information returns, including FBARs, is a common error. This narrative is critical for the IRS to understand the circumstances of the non-compliance.
Not seeking professional advice: Attempting to navigate the complexities of the Streamlined Foreign Offshore Procedures without professional guidance can lead to mistakes in filling out Form 14653, potentially resulting in penalties or delays.

Filling out Form 14653 requires attention to detail and a thorough understanding of one’s tax obligations and eligibility for the Streamlined Foreign Offshore Procedures. Avoiding these common mistakes can help ensure a smoother process and compliance with the IRS.

Documents used along the form

When individuals residing outside the United States undertake the process of becoming compliant with U.S. tax laws through the Streamlined Foreign Offshore Procedures, submission of Form 14653 plays a crucial role. However, this form often necessitates the inclusion of additional forms and documents to ensure a comprehensive and compliant submission. The following are important documents frequently used alongside Form 14653:

Form 1040 or Form 1040X: These forms are essential for reporting individual income tax. Form 1040X is specifically tailored for amending previously filed returns, which is a common requirement for those utilizing the Streamlined Foreign Offshore Procedures to correct errors or omissions in past tax filings.
FBAR (FinCEN Form 114): The Report of Foreign Bank and Financial Accounts is mandatory for taxpayers who have foreign financial accounts exceeding certain thresholds. As part of the streamlined procedures, delinquent FBARs need to be electronically filed for the last six years if the filing requirement applies.
Form 8938: Statement of Specified Foreign Financial Assets is another crucial document for individuals who need to report certain foreign financial assets to the IRS. This form is often required in conjunction with Form 14653 to provide a detailed account of the taxpayer's foreign assets.
Form 8854: Initial and Annual Expatriation Statement must be filed by individuals who have renounced their U.S. citizenship or terminated their long-term residency. Although not always directly linked with the streamlined procedures, this form may be relevant for individuals who are settling their U.S. tax obligations as part of their expatriation process.
IRS Publication 54: Tax Guide for U.S. Citizens and Resident Aliens Abroad provides valuable guidance for understanding tax obligations and benefits for U.S. citizens living abroad. This publication can offer helpful context and additional information necessary for correctly completing Form 14653 and associated documentation.

This short list includes documents often used with Form 14653, helping taxpayers ensure their submission is thorough and compliant with the streamlined procedures. Providing complete and accurate documentation is crucial for successfully navigating the IRS's streamlined compliance program for foreign offshore accounts.

Similar forms

The Form 14653 is part of the IRS's streamlined procedures for taxpayers residing outside the United States, aimed at facilitating compliance for those who have failed to report foreign financial assets and income. This form, in essence, allows individuals to come into compliance without facing the stiff penalties that typically apply to such oversights, provided their actions were non-willful. Here are seven documents related to or resembling Form 14653 in their utility or requirements, each playing a unique role in the tax reporting landscape:

Form 1040 or Form 1040X: These are the U.S. individual income tax return forms. Form 14653 requires the taxpayer to provide tax and interest owed as shown on these forms. The similarity lies in their fundamental role in reporting individual income, with Form 1040X being particularly relevant for those amending previously filed returns, an action central to the streamlined procedure.
FBAR (FinCEN Form 114): The Foreign Bank and Financial Accounts Report, now filed via the FinCEN's electronic system, is necessary for U.S. taxpayers with foreign financial accounts exceeding certain thresholds. Like Form 14653, which addresses the failure to timely file FBARs as part of the streamlined process, both forms are integral to disclosing foreign financial assets.
Form 8938, Statement of Specified Foreign Financial Assets: Similar to Form 14653's objective, Form 8938 requires taxpayers to report their foreign financial assets if they exceed the reporting threshold. Both forms are geared towards transparency and compliance regarding foreign assets, although through different compliance mechanisms.
Form 8821, Tax Information Authorization: This form allows taxpayers to authorize any individual, corporation, firm, organization, or partnership to inspect and/or receive confidential information in any office of the IRS for the type(s) of tax and the periods specified. Like the agreement found in Form 14653 to provide records upon request, Form 8821 facilitates the sharing of taxpayer information with the IRS, albeit more broadly.
Form 2555, Foreign Earned Income: Used by taxpayers to exclude a certain amount of foreign earned income and/or housing cost amount from their U.S. taxable income. Form 14653's relevance to those residing outside the United States and potentially earning foreign income creates an intersection with Form 2555, highlighting the international aspect of taxpayer obligations.
Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts: This form is required for transactions with foreign trusts, and the receipt of large gifts from non-U.S. persons. There is a thematic coherence with Form 14653, as both involve reporting foreign financial transactions or associations, although Form 3520 has a more specific focus.
Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations: Required for certain U.S. citizens and residents who are officers, directors, or shareholders in certain foreign corporations. The similarity with Form 14653 arises from the obligation to report foreign financial assets and activities, aiming to enhance transparency and compliance with U.S. tax law.

Each document listed plays a part in the broader picture of U.S. taxpayers' obligations regarding foreign income and assets. Form 14653 serves as a crucial tool for those who have inadvertently failed to meet these obligations, offering a route to rectify their situation with potentially reduced penalties.

Dos and Don'ts

When completing Form 14653, it's important to approach the process carefully to ensure compliance with IRS requirements under the Streamlined Foreign Offshore Procedures. Here are some essential dos and don'ts to guide you through the process:

Do:

Review your eligibility: Before filling out the form, ensure you meet all the eligibility criteria for the Streamlined Foreign Offshore Procedures, including the non-residency requirements and the definition of non-willful conduct.
Provide accurate and complete information: Ensure all the information you provide, such as your name, tax identification number (TIN), and contact details, is accurate. Fill out each required section meticulously, avoiding any omissions.
Explain your circumstances clearly: In the narrative section, provide a comprehensive statement explaining your failure to report all income, pay all tax, and submit all required information returns, including FBARs. Include both favorable and unfavorable facts.
Include documentation: Attach any required documents, such as computations showing you did not meet the substantial presence test, if applicable. Ensure all attachments are well-organized and relevant to your submission.
Sign and date the form: Ensure that you (and your spouse, if filing a joint certification) sign and date the form. Unsigned forms may lead to processing delays or rejection of your submission.

Don't:

Ignore the residency status questions: Both spouses filing a joint certification must individually meet the non-residency requirements. Ensure you accurately complete the relevant sections regarding your residency status.
Submit incomplete information: An incomplete form or missing documentation can significantly delay the processing of your submission or disqualify you from the Streamlined Foreign Offshore Procedures.
Forget to explain the source of funds: Thoroughly explain the source of funds in all of your foreign financial accounts or assets. Detail how you came to own or control these assets to support your certification.
Overlook professional advice: If you relied on a professional advisor's counsel regarding your foreign financial activities, provide their name, address, telephone number, and a summary of the advice received.
Use vague language: Be precise in your explanations. Vague or ambiguous statements can lead to misunderstandings or suggest a lack of transparency, potentially complicating your case.

Misconceptions

Understanding the Form 14653, designated for the Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures, is crucial for accurate compliance. However, several misconceptions exist about the form, which can lead to mistakes in the filing process. Here are four common misconceptions clarified:

Joint Certification Means Joint Reasons for Non-Compliance: While it's true that spouses can submit a joint certification, it's a misconception that their reasons for failing to report income and information must be the same. Each spouse is required to state their individual reasons if they differ, ensuring clear communication of each party's circumstances.
Only Income Tax Returns Are Required: A common misconception is that only delinquent or amended income tax returns need to be provided. However, the form clearly stipulates that all required information returns, including FBARs (Report of Foreign Bank and Financial Accounts), must also be submitted for the specified period. Failing to include these could lead to an incomplete submission.
Non-Residency is Broadly Defined: Another misunderstanding involves the non-residency requirement. The specificity of the form's instructions reveals that simply living outside the U.S. isn't enough. For U.S. citizens or lawful permanent residents, physical presence outside the United States for at least 330 full days in any one or more of the specified years is required, without having a U.S. abode.
Penal Consequences are Always Avoided: There's a false sense of security that once Form 14653 is submitted, any penal consequences are completely avoided. While the streamlined procedures do offer favorable terms, they do not grant immunity against all penalties, especially if the Internal Revenue Service (IRS) discovers evidence of willfulness, fraud, or criminal conduct. It's essential to acknowledge that adherence to the streamlined process and honesty in disclosure can mitigate, but not entirely remove, the risk of penalties.

By dispelling these misconceptions, individuals can approach the filing of Form 14653 with a clearer understanding, ensuring that their submission is complete, accurate, and acknowledges the potential for review and penalties by the IRS. Compliance with the detailed requirements of this form is crucial in taking advantage of the streamlined foreign offshore procedures.

Key takeaways

Understanding the requirements and accurately completing Form 14653 is crucial for U.S. persons residing outside of the United States who wish to participate in the Streamlined Foreign Offshore Procedures. Here are seven key takeaways:

Form 14653 serves as a certification by U.S. persons who live outside the United States, aiming to catch up on their tax obligations and reporting requirements for foreign financial assets under the Streamlined Foreign Offshore Procedures.
Joint filers must note that the statements made within the form are considered to apply to both spouses. However, if each spouse has different reasons for not complying with tax filings, they must provide their separate explanations within the form.
The form requires the filer to list and substantiate tax liabilities and interest for the most recent 3 years for which the tax return due date (or the extended due date) has passed, including details on taxes owed, interest, and total amounts for each year.
Applicants must disclose any failure to report income from foreign financial assets during the specified period and confirm their eligibility for the Streamlined Foreign Offshore Procedures, including the electronic filing of delinquent FBARs for the last six years, if applicable.
Certification requires the filer to assert that their previous non-compliance was non-willful, stemming from negligence, inadvertence, a mistake, or a misunderstanding of legal requirements in good faith.
U.S. citizens or lawful permanent residents must demonstrate non-residency by proving they were physically outside the United States for at least 330 full days in any one of the three most recent years for which the U.S. tax return due date (or extended due date) has passed without having a U.S. abode. For those not a citizen or lawful permanent resident, they must attach evidence showing that they did not meet the substantial presence test.
The form mandates a narrative statement of facts explaining the reasons behind the failure to report all income, pay all taxes, and submit all required information returns, including FBARs. This comprehensive statement should cover personal and financial backgrounds and any other relevant information, including details about foreign financial accounts or assets, and if professional advice was sought, details of such advice must also be included.

Adherence to these guidelines ensures the correct completion of Form 14653, facilitating participation in the Streamlined Foreign Offshore Procedures and helping filers resolve past non-compliance issues.

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