Form 14654 | Important Info Expats Need To Know
Under the streamlined filing compliance procedures, either the “Streamlined Foreign Offshore Procedures” (for U.S. Taxpayers Residing in the United States) and the “Streamlined Domestic Offshore Procedures” (for U.S. Taxpayers Residing in the United States), taxpayers must certify that their conduct relating to the failure to file FBARs (FinCen Form 114) and disclosing foreign accounts was not willful on Form 14654 or Form 14653.
Form 14654 and Form 14653 – Certification Of Non-Willful Conduct
Taxpayers using either the Streamlined Foreign Offshore Procedures or the Streamlined Domestic Offshore Procedures, will be required to certify that the failure to report all income, pay all tax and submit all required information returns, including FBARs (FinCEN Form 114, previously Form TD F 90-22,1) was due to non-willful conduct on the following forms specific to the relevant streamlined procedure:
- Form 14653 – Certification by U.S. Persons Residing Outside of the United States for Streamlined Foreign Offshore Procedures
- Form 14654 – Certification by U.S. Persons Residing in the United States for Streamlined Domestic Offshore Procedures
Both forms (Form 14654 and Form 14653) require that you provide specific reasons, also known as a statement of facts, for your failure to report all income, pay all tax, and submit all required information returns, including FBARs. If you relied on a professional advisor, you must 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, you will need to provide the individual reasons for each spouse separately in the statement of facts.
For both streamlined procedures, you must submit an original signed statement (Form 14653 or Form 14654) and attach copies of the statement to each tax return and information return being submitted through the streamlined procedure. You should not attach copies of the statement to FBARs. Failure to submit this statement, or submission of an incomplete or otherwise deficient statement, will result in returns being processed in the normal course without the benefit of the favorable terms of these procedures.
The best advice that we have for taxpayers is that very careful drafting and persuasive explanation of a taxpayer’s particular circumstances are recommended for a clear demonstration of non-willfulness. Thus, we recommend that you work with a professional firm that is well-versed in the nuances and requirements to drat an effective statement of non-willfulness on the Form 14654 or Form 14653. We have the resources to provide you the option of having the statement prepared by a tax professional or with legal representation based on your requirements and preferences.
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Tax Samaritan is a team of Enrolled Agents with over 25 years of experience focusing on US tax preparation and representation. We maintain this tax blog where all articles are written by Enrolled Agents. Our main objective is to educate US taxpayers on their tax responsibilities and the selection of a tax professional. Our articles are also designed to help taxpayers looking to self prepare, providing specific tips and pitfalls to avoid.
When looking for a tax professional, choose carefully. We recommend that you hire a credentialed tax professional such as Tax Samaritan that is an Enrolled Agent (America’s Tax Experts). If you are a US taxpayer overseas, we further recommend that you seek a professional who is experienced in expat tax preparation, like Tax Samaritan (most tax professionals have limited to no experience with the unique tax issues of expat taxpayers).
Randall Brody is an enrolled agent, licensed by the US Department of the Treasury to represent taxpayers before the IRS for audits, collections and appeals. To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits and adhere to a stringent code of ethics.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.
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Randall is the Founder of Tax Samaritan, a boutique firm specializing in the preparation of taxes and the resolution of tax problems for Americans living abroad, as well as the other unique tax issues that apply to taxpayers. Here, they help taxpayers save money on their tax returns.