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  • Writer's pictureLewis Grunfeld, CPA

The Complete Guide to IRS Form 14653 Submission

Updated: Feb 29

Form 14653 is a critical document for U.S. taxpayers living abroad, enabling them to come into compliance with the IRS through the Streamlined Foreign Offshore Procedures (also known as the IRS amnesty program). This form is essential for those who have inadvertently failed to report foreign assets and income, offering a way to rectify these oversights without facing severe penalties. Understanding how to properly complete and file Form 14653 is vital for expatriates aiming to clear up their tax obligations with the IRS.

Executive Summary

  • Understanding Form 14653: Learn what this form is and why it's a critical component of the IRS amnesty program.

  • "Non-Willful" Conduct: Discover what the IRS considers non-willful when it comes to foreign financial non-compliance.

  • Taxpayer Certification: Find out how to certify your non-willfulness on Form 14653.

Overview of Form 14653

Form 14653, titled "Certification by U.S. Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures," is a mandatory document for participants in the Streamlined Filing Compliance Procedures. This form serves to confirm that any failure to comply with tax obligations was due to non-willful behavior—a key condition for resolving past tax issues through the Streamlined program without incurring penalties. If you've opted for the Streamlined approach to update your tax filings, submission of Form 14653 is an essential step.


Qualifying for the Streamlined Foreign Offshore Procedures

To participate in the Streamlined Foreign Offshore Procedures there are specific eligibility requirements you must meet:

  • Non-Willful Conduct: Your failure to file tax returns, report foreign income, or submit FBARs must be non-willful. This means your actions were due to a misunderstanding, inadvertence, or neglect of the tax laws, rather than an attempt to evade them.

  • Tax Compliance Timeline: You are required to file the last three years of overdue tax returns and six years of FBARs to address any foreign account reporting deficiencies.

  • Residency Requirement: The amnesty program is tailored for U.S. taxpayers who live abroad. You must have spent at least 330 full days outside of the U.S. in one or more of the last three years to qualify.

  • Certification of Non-Willfulness: On Form 14653, you must certify that your previous non-compliance was non-willful.

Definition of "Non-Willful" Conduct

The IRS defines non-willful conduct as a violation resulting from negligence, inadvertence, or mistake due to a good faith misunderstanding of the requirements of the law. It's the linchpin of the amnesty program; only those who can certify their conduct as non-willful can participate. This distinction is critical, as willful violations fall outside the scope of the program and may lead to stiffer penalties.


The Taxpayer's Certification

Certifying non-willfulness on Form 14653 requires a narrative that explains the reasons for the previous failure to report all income, pay all tax, and submit all required information returns, including FBARs. This narrative is the taxpayer's story, laying bare the facts and circumstances that led to their non-compliance.


Detailed Instructions for Completing Form 14653

Personal Details

Begin by providing your full name, Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), and your address abroad. Accuracy here is paramount, as these details anchor your submission to your tax identity.

Certification Statement

The certification statement is where you articulate the specific reasons for your past non-compliance. It's not enough to state that you were non-willful; you must convincingly explain how your misunderstanding or oversight occurred.

Certification Under Penalties of Perjury

This section is a legal attestation that the information you've provided is true. It underscores the gravity of the certification and the need for honesty in your disclosures.

Signature and Date

Your signature and the date serve as the final seal on your certification. They represent your acknowledgment of the information's veracity and your understanding of the SFOP's implications.

Submission to the IRS

Once completed, Form 14653 should be attached to your tax returns for the three most recent years and submitted to the IRS. It's crucial to ensure that all accompanying documentation is accurate and complete to avoid delays or questions from the IRS.


Example

Consider Simon Moss, an engineer from Houston, Texas, who took a job in Germany in 2015. Unaware of his obligation to report his overseas income and foreign bank accounts, he neglected to file his tax returns and FBARs. In 2023, John learns about the IRS amnesty program and uses Form 14653 to explain his oversight, which stemmed from a misunderstanding of the tax laws due to his reliance on non-specialist advice. By submitting this form along with his tax returns, Simon is able to come into compliance without facing penalties that typically Simon could have overwise been subject to.


Need Help With IRS Form 14653?

At CPAs for Expats, we specialize in helping US expats get back into compliance with their US taxes. Our low fees and 4.9/5 rating on independent review platforms attests to our commitment to excellence and client satisfaction. Contact us today, and let our experts simplify your tax management process, providing peace of mind and significant savings!





Article by Lewis Grunfeld, CPA

Lewis Grunfeld, CPA, is a renowned expert in international and U.S. expat taxation, with expertise spanning over ten years. He has successfully helped thousands of expats around the world navigate complex international U.S. tax regulations, and achieve significant tax savings. His work is driven by a strongly rooted passion for assisting the expat community through a wide range of tax situations, ensuring tailored solutions for each unique situation.

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