The Form 14457 Preclearance Letter Requirements 

The Form 14457 Preclearance Letter Requirements

Form 14457: IRS Foreign Account Voluntary Disclosure Practice

When a US Person has undisclosed foreign accounts, assets, investments, and or income they may be a prime candidate for the IRS new voluntary disclosure program. The new version of the international tax program took effect when the Offshore Voluntary Disclosure Program (aka OVDP) was closed in September 2018. That did not mean that the IRS stopped accepting offshore voluntary disclosure cases. Rather, the traditional voluntary disclosure program –– which has been on the books for many years –– was revised to reflect the updated disclosure requirements. Under the prior version of the program, there was no formalized pre-clearance letter, but under the new version of the program, taxpayers submit a pre-clearance letter on IRS Form 14457 (IRS form 14457 was used as part of the OVDP program, but not as a pre-clearance letter). Let’s review the requirements of form 14457:

Form 14457 Part I – Preclearance Request (Mail or FAX Part I Only to Above)

Person submitting disclosure (check box that applies)

      • Individual(s)

      • Corporation

      • Trust

      • Executor

      • Partnership

Disclosure special features (check all that apply)

      • Domestic Issues

      • Estate & Gift Issues

      • Virtual Currency Issues

      • Offshore Issues

      • Employment Tax Issues

      • Other Issues (briefly describe)

Disclosure period (years)

Taxpayer name

      • Identification number (SSN/ITIN/EIN)

      • Date of birth

      • Telephone number

      • Number, street, and room or suite number

      • City or town

      • State or province

      • ZIP/Foreign postal code

      • Country

      • Occupation

      • Passport information (list all passport numbers and countries)

Representative’s name (attach Form 2848, if applicable)

      • Telephone number

      • FAX number

      • Number, street, and room or suite number

      • City or town

      • State or province

      • ZIP/Foreign postal code

      • Country

Schedule of entities

      • List ALL entities (corporations, partnerships, etc.) for which you are in any was related to the noncompliance during the disclosure period.

      • List ALL entities you owned or controlled or were the beneficial owner of, either directly or indirectly.

      • The listings must cover the entire disclosure period as outlined in the Updated Voluntary Disclosure Practice Memorandum dated November 20, 2018.

      • Click “Add Entity” button below for additional entities.

Do you believe that the IRS has obtained information concerning your tax liability?

Disclose if you, your spouse or any related entities are currently under audit or criminal investigation by the Internal Revenue Service or any other law enforcement authority and if any income is sourced from an illegal activity

      • Has the IRS notified you, your spouse or any related entities that it intends to commence an examination or criminal investigation

      • Are you, your spouse or any related entities under criminal investigation by the Internal Revenue Service

      • Are you, your spouse or any related entities under criminal investigation by any law enforcement authority

      • Do you, your spouse or any related entities have income sourced from an illegal Activity

Schedule of financial accounts

      • List ALL domestic and foreign noncompliant financial accounts you owned or controlled or were the beneficial owner of, either directly or indirectly.

      • The listings must cover the entire disclosure period as outlined in the Updated Voluntary Disclosure Practice Memorandum dated November 20, 2018.

      • This includes opened and closed accounts which held unreported funds during the disclosure period.

      • This includes accounts held through entities you owned or controlled or were the beneficial owner of, either directly or indirectly. Note: The entities will be further identified in Part II of this application. Account holders must match the disclosing taxpayer(s) from lines 4 and 5, or an entity named on line 7.

For Each Financial Account on Form 14457

  • Click “Add Financial Account” button below for additional financial institutions.

      • Financial institution name (complete bank legal name, including all suffixes (e.g., Inc., A.G., S.A., etc.), DBAs and pseudonyms)

      • Telephone number

      • Number, street, and room or suite number

      • City or town State or province

      • ZIP/Foreign

      • postal code

      • Country

      • Account Number

      • Date Opened

      • Date Closed

      • Account Holder(s)

Golding & Golding: About Our International Tax Law Firm

Golding & Golding specializes exclusively in international tax, and specifically IRS offshore disclosure and Form 8938.

Contact our firm today for assistance with getting compliant.

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