Many people find U.S. tax rules confusing, especially if they live outside the United States. If you have foreign income or foreign bank accounts, you might hear about Form 14653. This form sounds complicated, but we are here to explain it in a simple way.
Don’t navigate complex foreign income reporting alone. Our experienced New York tax attorneys can help you understand and properly file Form 14653, ensuring compliance while minimizing your tax burden. Contact us today for a confidential consultation.
Why Does the IRS Have Form 14653?
Form 14653 is used by U.S. taxpayers who live outside the United States and did not report all their income, pay all their taxes, or file certain forms on time. This can include FBARs (Foreign Bank Account Reports) and other information forms about foreign accounts. The form is part of a program called Streamlined Foreign Offshore Procedures. This program helps people fix their tax mistakes without huge penalties if they did not break the law on purpose (non-willful conduct).
In other words, if you live abroad and forgot to tell the IRS about some income or a foreign bank account, you might use Form 14653 to come clean and avoid big fines.
What Is the Streamlined Foreign Offshore Procedures Program?
The Streamlined Foreign Offshore Procedures (sometimes shortened to SFOP) is a special way to become tax-compliant if you live outside the U.S. and did not mean to skip reporting your income or foreign bank accounts. If you meet all the conditions:
- You can file old tax returns for the last three years.
- You can also file FBARs (FinCEN Form 114) for the last six years.
- You might not have to pay some of the usual penalties for late filing.
But remember: you must show you made an honest mistake and were not trying to hide money on purpose. That is why the IRS asks you to complete Form 14653—so you can explain how your mistakes happened without willfulness or intentional wrongdoing.
How Do You Know If You Need Form 14653?
If you are a U.S. taxpayer living outside the United States and you did not report foreign income or file your FBARs on time, you might need to look into Form 14653.
You must also meet some other rules, such as:
- You have to show that you really live outside the U.S. (often meaning you spent at least 330 days in another country during one of the last three tax years).
- You must prove that your mistakes with taxes were non-willful. “Non-willful” means you did not do it on purpose, or it was an accident or misunderstanding of the rules.
If you are unsure about your situation, it might be wise to talk to a New York tax lawyer who understands the Streamlined Foreign Offshore Procedures. A lawyer can help you figure out if you really need this form and if you qualify for the program.
What Happens If You Do Not Use Form 14653?
If you live abroad and do nothing to fix your mistakes, the IRS might charge bigger penalties if they later find out you did not report your foreign accounts or income. Sometimes these penalties can be very large. In certain cases, ignoring the rules for a long time can even lead to criminal investigations. The Streamlined program, and Form 14653, offer a second chance to fix things before they get too serious.
How Does Form 14653 Help You?
By filing Form 14653 under the Streamlined Foreign Offshore Procedures, you are telling the IRS:
- You are a U.S. person living outside the country.
- You made mistakes on your taxes and foreign account reports, but you did not do it on purpose.
- You want to come into compliance now by filing missing or corrected returns.
If the IRS accepts your submission, you usually avoid some harsh penalties that might apply if the IRS finds out about your errors another way. This can save you a lot of money and stress.
What Do You Need to File With Form 14653?
Below is a quick look at what you usually need when filing Form 14653:
- Three Years of Tax Returns: These can be amended (changed) returns if you already filed but did not report everything.
- Six Years of FBARs (FinCEN Form 114): These reports tell the government about your foreign bank accounts if their total value goes over a certain amount.
- Non-Willful Statement: A short explanation on Form 14653 describing why you missed your taxes or forms, showing you did not do it on purpose.
- All Late Taxes and Interest: You must pay any unpaid taxes and the interest that has built up.
If you forget to include everything, the IRS might reject your streamlined submission or ask for more information.
What Is in the “Non-Willful Statement”?
When you fill out Form 14653, you will see a section where you must explain, under penalty of perjury, that your failure to report was not on purpose. This is often called a non-willful statement. You should include details like:
- How you missed reporting or paying taxes (maybe you did not know you had to file).
- Whether you relied on bad advice from someone else.
- Any special life events (like moving overseas, job changes, or family issues) that caused confusion.
Be honest and clear. The IRS wants to see that you did not mean to break the rules.
Do Both Spouses Need to File Form 14653?
If you file a joint tax return and both you and your spouse meet the residency rules, you can usually file one submission that includes both of you. But sometimes couples have different reasons for missing their tax duties. In that case, you may need to give separate non-willful explanations, or even file separate forms. It is best to check with a tax professional if your situation is more complicated.
How Long Does It Take the IRS to Process This Form?
The IRS may take weeks or even months to process your paperwork. They may contact you if something is missing or if they have questions. While your case is under review, keep copies of all documents and be ready to answer IRS letters. If the IRS needs more information, give them what they ask for quickly so they can finish reviewing your submission.
What If You Made a Willful Mistake?
The Streamlined Foreign Offshore Procedures only apply to non-willful mistakes. If the IRS thinks you acted on purpose (willfully) to hide income or bank accounts, you might face bigger penalties or even criminal charges. That is why it is important to be truthful when filling out Form 14653. If you suspect your mistakes might be considered willful, talk to a New York tax lawyer right away for guidance.
Can a New York Tax Lawyer Help You With Form 14653?
Yes, absolutely! Filing Form 14653 can be confusing, and you want to avoid errors. A New York tax lawyer can:
- Explain all the rules about living abroad and paying U.S. taxes.
- Check whether you really qualify for the Streamlined Foreign Offshore Procedures.
- Help you write a strong non-willful statement that clearly explains your situation.
- Make sure you include all the right forms, returns, and payments.
By getting professional help, you reduce the risk of having your application rejected or facing bigger problems down the road.
Why Choose Thorgood Law Firm in New York?
At Thorgood Law Firm in New York, we have more than 25 years of experience helping taxpayers solve their IRS and state tax issues. If you:
- Live outside the U.S. but hold American citizenship or a green card
- Have unfiled foreign income or FBAR forms
- Worried about penalties for not reporting your foreign bank accounts
We can guide you through the Streamlined Foreign Offshore Procedures and help you fill out Form 14653. Our attorneys understand international tax questions, and we know how to talk with the IRS so your rights are protected.
We focus on giving you personalized advice. We do not just hand you a plan and walk away—we work with you every step of the way, from gathering documents to sending the final forms. That means you get a solution that fits your life.
Ready to Handle Your Foreign Tax Situation? Contact Our New York Tax Lawyers at Thorgood Law Firm
If you think you need Form 14653 or if you are just not sure how to fix your foreign tax issues, reach out to us. Call Thorgood Law Firm at 212-490-0704 or contact us online. Let an experienced New York tax lawyer from our team help you get your taxes in order so you can have peace of mind.
Do not wait. Act now and take the first step toward fixing your tax concerns!
