Form 14653 Streamlined Certification
Form 14653 IRS Streamlined Certification Overview: For Non-Willful US Taxpayers with undisclosed offshore accounts, assets, investments and/or income — and who qualify foreign residents — the Internal Revenue Service offers the Streamlined Foreign Offshore Procedures to assist nonresident (foreign) Taxpayers with safely getting into IRS offshore compliance. Unlike some of the other offshore disclosure programs, the Streamlined Foreign Offshore Procedures (SFOP) do not require the payment of any Title 26 Miscellaneous Offshore Penalty. But, as part of this submission process — the foreign resident taxpayer must submit a Form 14653 — otherwise referred to as a Certification by US Person Residing Outside of the United States for Streamlined Foreign Offshore Procedures. Here are four (4) simple Form 14653 tips to assist you with going forward:
Foreign Resident Form 14653 Requirement
In order to qualify for SFOP and submission of a Form 14653, the Taxpayer must qualify as a foreign resident in one of the three (3) tax years within the compliance period. If the Taxpayer does not qualify under the strict interpretation of a foreign resident for form 14653 — then they do not qualify for the Streamlined Foreign Offshore Procedures — but may qualify for the Streamlined Domestic Offshore Procedures.
Substantial Presence vs Permanent Resident/US Citizen
In order to qualify as a foreign resident, there are different rules in place depending on whether the taxpayer is a resident only because they met the Substantial Presence Test — as opposed to qualifying as either a Permanent Resident or U.S. Citizen. There are some important nuances to be aware of depending on what the Taxpayer’s current status as well — as opposed to their status for the submission period.
FEIE (Exclusion) and FTC (Cerdits)
When completing the top portion of the form that refers to the tax liability due for each of the past three years, it is important to note that it should take into consideration whether the Taxpayer qualifies for Foreign Earned Income Exclusion and/or Foreign Tax Credits — as well as estimated interest for the time periods in which taxes were due and outstanding.
Form 14653 Narrative Should be Concise and Accurate
When a Taxpayer approaches us after their 14653 was rejected after being submitted by another Attorney or Tax Professional, it is oftentimes because the submission statement was poorly written. It is most important to focus on the information relevant to show the noncompliance was non-willful.
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Golding & Golding specializes exclusively in international tax, and specifically IRS offshore disclosure.
Contact our firm for assistance with getting compliant.