The Streamlined Foreign Offshore Procedure is an IRS program designed to help taxpayers who have foreign assets and income that they have not reported to come into compliance with their tax obligations. This program is intended for taxpayers who have not willfully failed to report their foreign assets and income. In this blog post, we will discuss everything you need to know about the Streamlined Foreign Offshore Procedure and Form 14653.
What Is the Streamlined Foreign Offshore Procedure?
The Streamlined Foreign Offshore Procedure is a part of the IRS Streamlined Filing Compliance Procedures program. The program is available to taxpayers who have foreign assets and income that they have not reported and who can certify that their failure to report was not willful. The program is designed to help taxpayers become compliant with their tax obligations and avoid penalties.
To be eligible for the Streamlined Foreign Offshore Procedure, a taxpayer must meet certain criteria, including:
- Being a U.S. citizen or resident
- Having lived outside of the United States for at least 330 days in one or more of the previous three years
- Not having filed a U.S. tax return for any of the previous three years
- Having foreign assets valued at less than $10,000 in each of the previous three years
What Is Form 14653?
Form 14653 is a certification form that is required as part of the Streamlined Foreign Offshore Procedure. This form is used by taxpayers who are U.S. citizens or residents who have lived outside of the United States for at least 330 days in one or more of the previous three years and who have not filed a U.S. tax return for any of the previous three years.
Form 14653 is used to certify that the taxpayer’s failure to report their foreign assets and income was not willful. The form requires the taxpayer to provide information about their foreign assets and income for each of the previous three years. The taxpayer must also certify that they have not previously been contacted by the IRS about their foreign assets and income.
How to Prepare for the Streamlined Foreign Offshore Procedure
To prepare for the Streamlined Foreign Offshore Procedure, taxpayers should take the following steps:
- Determine Eligibility: The first step is to determine if you are eligible for the Streamlined Foreign Offshore Procedure.
- Collect Relevant Documentation: Collect all the documentation related to your foreign assets and income for each of the previous three years.
- Complete Form 14653: Complete Form 14653, providing information about your foreign assets and income for each of the previous three years.
- File Your Streamlined Filing: File your streamlined filing, including Form 14653, and any other required forms and documentation.
Conclusion
The Streamlined Foreign Offshore Procedure can be a useful option for taxpayers who have foreign assets and income that they have not reported to come into compliance with their tax obligations. To prepare for the procedure, taxpayers should determine eligibility, collect relevant documentation, complete Form 14653, and file their streamlined filing. By following these steps, taxpayers can increase their chances of a successful filing and minimize their tax liability.