IRS Form 14653: A complete guide for US expats and offshore filers
For Americans living overseas, IRS Form 14653 is the required certification for the Streamlined Foreign Offshore Procedures that lets you catch up on missed filings without facing harsh penalties. The form includes a narrative statement explaining why your past filing gaps were non-willful, making it central to a successful submission.
In this article:
- What Form 14653 certifies and why it matters for expats
- The IRS definition of non-willful conduct with real examples
- Step-by-step eligibility requirements and residency tests
- How to craft your narrative statement and avoid common mistakes
- Filing procedures, timelines, and what happens after submission
This article is brought to you by Taxes for Expats – a top-rated tax service guiding US expats through streamlined filing procedures and regular US tax filings. Whether you need help preparing your filing package or crafting a strong narrative on Form 14653, we can help. Learn more about our services or contact us to get started.
What does Form 14653 mean for US expats
Form IRS 14653 is the certification document for the Streamlined Foreign Offshore Procedures (SFOP). Eligible expats use it to certify non-residency and non-willful conduct while catching up on filings. The current version is the March 2025 revision.
The form certifies SFOP eligibility, confirms six FBARs are filed, and attests that the past lapse was non-willful – all signed under penalties of perjury. It's required for the foreign track and tied to penalty relief when you qualify. The Form 14653 instructions emphasize attaching copies to each return, and a clear narrative is essential.
Form 14653 vs Form 14654
IRS streamlined form 14653 is for the foreign procedures (SFOP) – used by expats who meet the residency test and face no penalties.
Form 14654 is for the domestic procedures (SDOP) – used by US residents who don't meet the residency test and must pay a 5% penalty on the highest aggregate balance of foreign financial assets.
Choose the wrong form, and you'll either face unnecessary penalties or have your submission rejected.
The IRS benchmark of non-willful conduct
The IRS defines non-willful as a failure caused by negligence, inadvertence, or mistake – or a good-faith misunderstanding of the law. Under Streamlined Foreign Offshore Procedures, you must certify that your lapse meets this definition. Form 14653 is where you make that certification, signed under penalties of perjury.
Non-willful vs willful: what's the difference?
Non-willful conduct includes:
- Relying on incorrect professional advice
- Believing foreign payroll or local tax payment covered US reporting
- Promptly correcting after receiving a FATCA bank notice
- Genuinely not knowing about US filing obligations while living abroad
Willful conduct includes:
- Intentional violation of a known legal duty
- Reckless disregard for reporting requirements
- Hiding foreign accounts after learning of filing obligations
- Failing to correct after a clear IRS notice
The distinction matters because penalties differ drastically. For non-willful FBAR violations, the maximum penalty is $16,536 per violation (assessed on or after January 17, 2025, adjusted for inflation). For willful violations, the maximum penalty jumps to $165,353 per violation or 50% of the account balance at the time of the violation – whichever is greater.
Red flags that suggest willfulness:
- Prior IRS contact about foreign accounts
- Large, unexplained transfers offshore
- Using nominee accounts or shell companies
- Lying to a bank or the IRS
If your facts suggest willfulness, the Streamlined Foreign Offshore Procedures aren't appropriate. You may need to consider the IRS Voluntary Disclosure Practice (VDP) or consult counsel about other options.
| Topic | Non-willful signals | Willful / red flags | What it can mean (next step) |
|---|---|---|---|
| Intent | Didn’t know / honest mistake; good-faith misunderstanding | Knew or suspected duty; chose not to / reckless disregard | Non-willful SFOP may fit; red flags get advice |
| Prior history | First-time compliance; no prior warnings | Filed before then stopped; inconsistent reporting | Inconsistency needs a clear timeline |
| Account behavior | Normal local banking; no concealment | Nominees/shells; “hold mail”; secrecy features | Higher scrutiny; document ownership/purpose |
| FATCA interactions | Completed onboarding normally | Refused W-9/SSN; moved funds after FATCA prompts | Major credibility issue; consider representation |
| Preparer conduct | Asked/ disclosed accounts; relied on advice | Hid info; ignored explicit advice | Reliance must be documented |
| Assets complexity | Simple income; fewer accounts | Multiple jurisdictions; large/complex structures | Add exhibits (summary, timeline) |
| When you learned | Fixed promptly; paid tax/interest | Delayed; moved/closed accounts; kept omitting | Delay after knowledge looks bad |
| Narrative quality | Specific dates; consistent with returns/FBARs | Vague; defensive; contradictions | Consistency is key for certification |
| Non-willful FBAR penalties | Inflation-adjusted max $16,536 (assessed on/after Jan 17, 2025) ; generally per report after Bittner | - | SFOP generally offers FBAR penalty relief if eligible |
| Willful FBAR penalties | - | Inflation-adjusted max $165,353 (assessed on/after Jan 17, 2025) | High-stakes; do not “force” SFOP |
| Best-fit path | SFOP if eligible + truthful non-willful cert | Consider alternatives (often disclosure/rep) | Match path to facts |
Eligibility essentials & requirements
To use the Streamlined Foreign Offshore Procedures, you must meet both the residency test and all other conditions listed below, as outlined by the IRS.
Eligibility checklist
You may be eligible if you:
- Are a US citizen or resident required to file U.S. tax returns
- Live outside the U.S. and meet the non-residency test (330 full days outside the U.S. in at least 1 of the last 3 years, plus no U.S. abode)
- Failed to file or reported incorrectly due to non-willful conduct (negligence, mistake, or good-faith misunderstanding)
- Will file (or amend) the most recent 3 tax years whose due date (or extended due date) has passed
- Will file 6 years of delinquent FBARs (if you had reportable foreign accounts)
You're NOT eligible if:
- The IRS has already started a civil examination (audit) of your returns for any year you'd include in the streamlined submission
- You're under criminal investigation by the IRS
Do you meet the residency test?
The residency test determines whether you use Form 14653 (foreign procedures) or Form 14654 (domestic procedures). It's designed to show that you truly live abroad and are not maintaining a regular abode in the United States.
For US citizens and green card holders:
In any one of the most recent three tax years whose due date has passed, you had no US abode and spent at least 330 full days outside the United States.
If you're not a US citizen or green card holder:
In any one of those three years, you did not meet the substantial presence test.
Joint filers:
Both spouses must meet the applicable test. You may use any one qualifying year among the last three with a passed due date.
Common confusion: Abode vs dwelling
The IRS looks at your abode, not just where you own property. An abode is your principal place of residence – where your life is centered. You can own a house in the US but still have no US abode if you live abroad full-time. The IRS considers factors like where your family lives, where you work, and where you spend most of your time.
Wendy Christiansen, CPA, Tax Supervisor at Taxes for Expats, has a quick rule of thumb, which she emphasized in the Streamlined Procedure webinar, that matches this requirement:
“To use the foreign offshore procedure, in at least one of the three years you file, you must have been outside of the US for 330 days.”
What other conditions must you meet?
Your conduct must be non-willful to use SFOP. You are ineligible if the IRS has already started a civil exam or a criminal investigation.
What does "IRS has started an exam" mean:
If you've received an IRS letter notifying you of an audit or examination for any of the years you plan to include in your streamlined submission, you cannot use SFOP. If you're unsure whether a letter you received qualifies, seek professional advice immediately.
What to submit:
Include Form 14653 with a clear statement of facts, and submit three tax years plus six FBAR years with tax and interest paid in full.
Need help with an IRS letter? See IRS Representation.
Essential prep before filing Form 14653
Have these ready before you assemble your SFOP package. Gathering everything in advance keeps your submission clean and complete.
- Amended tax returns (Form 1040X). Prepare three years of delinquent or amended returns with all required information returns. Write Streamlined Foreign Offshore in red at the top of each return to ensure correct routing.
- FBAR (FinCEN Form 114). E-file six years of FBARs via FinCEN’s BSA E-Filing system, choosing Other and noting the program as instructed. The annual FBAR due date is April 15 with an automatic extension to October 15.
- Other supporting documents. Include your signed non-willful statement, payment proof, travel logs, and any treaty deferral or Section 965 materials if they apply.
- Foreign earned income exclusion (FEIE) cap. If your returns will claim the foreign earned income exclusion, note the 2026 cap is $132,900 (the 2025 cap was $130,000). Keep records showing you meet the physical presence or bona fide residence test.
Where people get stuck
Many expats overlook required information returns, such as:
- Form 8938 (Statement of Specified Foreign Financial Assets) – required if you exceed the filing threshold
- Form 5471 (Information Return of US Persons With Respect To Certain Foreign Corporations) – required if you own or control a foreign corporation
- Form 3520 (Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts) – required for large foreign gifts or trust transactions
Missing any of these can delay or derail your submission. Double-check the requirements for your situation before filing.
How to complete the Form 14653 with confidence
Your narrative statement is the heart of Form 14653. It explains why your filing lapse was non-willful and demonstrates your eligibility for penalty relief. A clear, fact-based statement is what separates a smooth SFOP submission from one that triggers IRS questions.
A strong narrative follows this framework:
- Background – Where you lived, when you moved abroad, your work situation
- What you believed – Why you thought you didn't need to file (reliance on advice, misunderstanding, lack of awareness)
- Trigger event – How and when you discovered your filing obligation (bank notice, tax preparer conversation, planned move)
- Corrective actions – What you did immediately after learning (hired a preparer, gathered documents, filed FBARs)
- Statement of non-willfulness – Clear affirmation that your failure was not intentional
Crafting your Narrative Statement of Facts
Your statement must explain non-willful conduct with specific dates, how you learned of the issue, and what you did to fix it (including confirming all FBARs are filed). Tie facts to eligibility – for example, note at least 330 full days abroad in a relevant year or why you met the non-residency test. Keep it concise, consistent across returns and FBARs, and attach supporting documents where helpful.
| Weak | Good |
|---|---|
| "I didn't know I had to file." | "I moved to Germany in 2018 for work and believed my employer's payroll tax withholding satisfied all my tax obligations." |
| "I made a mistake." | "I relied on advice from a local accountant who incorrectly told me that US citizens with no US income don't file US returns." |
| "I fixed it when I found out." | "On June 12, 2025, my bank sent a FATCA notice. I immediately contacted a US expat tax preparer and began gathering six years of account statements." |
The common mistakes most US expats make
Before you mail – checklist
- Using the current form – Confirm you have Form 14653 (Rev. 3-2025), not an outdated version
- Red ink marking – Write "Streamlined Foreign Offshore" in red at the top of each return and information return
- Correct mailing address – Mail to the IRS Austin address listed for SFOP, not your local IRS office
- Three tax years – Confirm you're filing the most recent 3 years whose due date has passed
- Six FBARs – E-file 6 years of FBARs through FinCEN's BSA E-Filing system by April 15 (automatic extension to October 15)
- Right procedure – Use the foreign track (Form 14653) if you meet the residency test; the domestic track (Form 14654) carries a 5% penalty
- Strong narrative – Avoid thin, generic statements. Provide specific dates, sources of confusion, and corrective actions
- Section 965 compliance – If you owned a foreign corporation, include Section 965 transition tax calculations where applicable
- Form 14653 signed – Confirm the certification is signed under penalties of perjury
- Payment included – Include checks or money orders for all tax and interest due, listed by year
- FBAR confirmations saved – Keep proof of e-filing for all six years
The best way to avoid these mistakes in your streamlined filings is to work with a professional tax expert:
“We work with you to make sure that your narrative provides your correct situation and the details you want to include.” – Wendy Christiansen, CPA, Tax Supervisor at Taxes for Expats
How to file the IRS Form 14653
This section covers the practical steps: how to assemble your package, where to send it, and how long it takes..
Step 1. Confirm you’re using the right procedure.
For expats, use the Streamlined Foreign Offshore Procedures with Form 14653. You'll file 3 years of delinquent or amended returns and 6 years of FBARs, paying any tax plus interest.
Step 2. Prepare the certification package.
Complete and sign the certification statement on Form 14653, then attach copies to each return and information return in your submission. Don't attach it to FBARs. Follow the Form 14653 instructions to ensure every element is present.
Step 3. Mark, compile, and pay.
Write "Streamlined Foreign Offshore" in red at the top of each delinquent or amended return, and each information return. Include payment for all taxes and statutory interest listed by year.
Step 4. Submit by the correct method.
Mail the paper package to the IRS. Electronic submissions aren't accepted for this package. File FBARs separately by e-filing through FinCEN's BSA E-Filing system. The annual FBAR due date is April 15 with an automatic extension to October 15.
Step 5. Know the timeline and how to track.
Paper returns can take weeks; amended returns generally take 8 to 12 weeks, sometimes up to 16 weeks. The IRS "Where's My Amended Return?" tool won't display status for returns with a foreign address or those handled by special units. Check the IRS processing-status page for current backlogs.
| Item | Filed how? | Where / how | Notes |
|---|---|---|---|
| Form 14653 (Certification) | MAIL (paper) | Include in your streamlined submission package to the IRS (Austin “Streamlined Foreign Offshore” address per IRS instructions). | Must be signed (penalties of perjury). Use the current revision. |
| Tax return(s): Form 1040 (late-filed) or Form 1040X (amended) | MAIL (paper) | Same IRS streamlined submission address (Austin). | Include the most recent 3 tax years whose due date (or extended due date) has passed. |
| Account behavior | Normal local banking; no concealment | Nominees/shells; “hold mail”; secrecy features | Higher scrutiny; document ownership/purpose |
| Attached schedules + supporting forms (e.g., 1116 / 2555 / 8938 / etc.) | MAIL (paper) | Attach to each year’s return in the mailed package. | Include any required information returns that apply to your facts. |
| Payment for tax due / interest (if applicable) | MAIL (if paying by check with the package) | Include payment per IRS streamlined instructions (with the mailed submission). | If you pay another way (e.g., online), keep confirmation for your records. |
| FBAR (FinCEN Form 114) for delinquent years | E-FILE | File electronically through FinCEN’s BSA E-Filing System. | IRS streamlined instructions require e-filing delinquent FBARs; select the streamlined explanation option as directed (often “Other” + “Streamlined Filing Compliance Procedures”). |
If you want guidance tailored to your situation, a short consultation can help you confirm eligibility, identify the correct filing years, and avoid common submission errors.
Inside the review process after you file 14653
Your streamlined filing doesn't move through a special fast lane. It goes into the regular IRS system and follows the same steps as any other return. Here's what happens next.
- IRS review process – Streamlined filings are processed like standard returns, with no receipt notice or closing agreement. They may be audited. Amended certifications are reviewed by the IRS Large Business & International (LB&I) division, which handles complex international compliance cases.
- Possible outcomes – The IRS may accept your submission, request more details, or open an examination. For expats using SFOP, there is no miscellaneous offshore penalty. The domestic streamlined procedure (SDOP) applies a 5% Title 26 penalty on the highest aggregate balance of covered foreign assets.
- Penalty relief – When you qualify and follow the rules, the IRS will not impose failure-to-file, failure-to-pay, accuracy-related, information return, or FBAR penalties for the years covered. A clear, fact-based, non-willful statement and proof of six years of FBAR filings are essential to securing this protection.
However, if your submission is rejected or you don't qualify for streamlined relief, standard FBAR penalties may apply. Updated penalty amounts (2025 assessments):
- Non-willful FBAR violations: up to $16,536 per violation
- Willful FBAR violations: up to $165,353 per violation or 50% of the account balance, whichever is greater
These amounts are adjusted annually for inflation. The penalty framework follows the Supreme Court's decision in Bittner v. United States, which clarified that non-willful penalties apply per report, not per account.
Rather than facing substantial offshore penalties, eligible taxpayers can use streamlined filing to correct past mistakes and minimize their exposure.
What a rejection looks like
If the IRS determines you don't qualify for SFOP, you may receive a letter explaining why. Common reasons include:
- Conduct appears willful
- Missing required forms or documentation
- Residency test not met
What to do next - your options if rejected
- Provide additional documentation to support non-willful conduct
- Request an appeal through the IRS Office of Appeals
- Consider alternative compliance routes (such as delinquent filing procedures or voluntary disclosure)
- Work with an IRS representation specialist
OBBA and how it affects IRS Form 14653
The One Big Beautiful Bill Act (OBBA) updated several tax provisions, but the purpose of Form 14653 remains unchanged. For 2026 filings, the form follows the latest March 2025 revision. IRS guidance on OBBA is ongoing through December 2025, clarifying deductions and reporting requirements for working Americans and seniors. Filers should rely on these IRS pages rather than older Federal Register references to ensure compliance.
Expert help with Form 14653 starts here
Form 14653 is the heartbeat of a streamlined filing. It's where you prove your eligibility and explain your story to the IRS. Each statement you make carries weight, so clarity and precision matter.
When past filings were missed unintentionally, the Streamlined Foreign Offshore Procedures remain one of the most effective solutions. With Taxes for Expats, you don't just get forms filled – you get a tailored streamlined filing service crafted by specialists who know how to make Form 14653 work in your favor.
FAQ: IRS Form 14653 instructions
Not required, but a qualified expat preparer reduces errors in streamlined filing and helps keep your package airtight.
Yes, as long as you include proof of those FBAR filings with your SFOP package.
The IRS can examine or deny relief. If SFOP is disallowed, standard penalties may apply, and you can pursue appeals or other routes.
A brief timeline explaining your move abroad, misunderstanding of filing duties, and immediate correction once discovered. Example: I believed my foreign employer handled US filings, learned otherwise on June 12, 2025, and immediately corrected all years.
Form 14653 is for the foreign streamlined procedure (SFOP) with no penalty. Form 14654 is for the domestic streamlined procedure (SDOP) with a 5% penalty. Use 14653 if you meet the 330-day residency test.
Yes. If you filed incomplete or incorrect returns, you can amend using Form 1040-X and submit through SFOP as long as the IRS hasn't started an exam.
File the most recent three tax years whose due date (or extended due date) has passed, plus six years of FBARs.
A dwelling is just a place you own or rent. An abode is your main home where your personal and economic ties are strongest. You can own US property and still have no US abode if your life is centered abroad.
