How complicated is a non-willful claim on IRS Streamlined application form 14654?  Lets just say the IRS isn’t going to take your word for it, slap you on the wrist with a 5% penalty and send you on your way.  In fact, the Streamlined Domestic Offshore Procedures form 14654 requests a substantial biographical and financial background statement from the taxpayer (and their spouse if appropriate) under penalty of perjury.

The IRS Streamlined form asks the taxpayer to “Provide specific reasons for your failure to report all income, pay all tax, and submit all required information returns,
including FBARs.”  You must provide the entire background from every angle, providing information that is both favorable and unfavorable to you as a taxpayer.  This information can be used against you by the IRS in any subsequent audit or worse, litigation.  Your response to the IRS must include comprehensive and detailed information about many facets of your personal, educational and financial history including but not limited to:

  • Your personal background
  • Your financial background
  • Every relevant fact and detail regarding your failure to fully, accurately and transparently disclose all offshore income, pay all tax and submit all required returns and informational forms including FBARs for each year you have failed to do so
  • Explain the source of funds used for any and every offshore investment, account or asset
  • Did you inherit money, or did you open the account while residing in a foreign country?
  • What was your business reason for opening every separate account?  How was it used?
  • Explain all “contacts” with each account including deposits, withdrawals, and all investment/management related decisions and reasoning
  • Provide a “complete story” about each foreign financial account/asset
  • Provide full Name and contact information and describe each separate relationship and advice provided by any accounting, tax, legal or financial adviser on whom you relied for information
  • Married taxpayers submitting a joint certifications must call out areas where they had separate decisions or motivations for any of the above questions

How complicated is a non-willful claim on IRS Streamlined application form 14654?  As complicated and extensive an interview as you can imagine, and all information can and will be used against you in not only the determination of willful vs non-willful, but in any subsequent audit or criminal tax evasion litigation.  You need the experienced and expert international tax attorneys at Allen Barron to guide you through these decisions, and to help you with all submittals required.  We invite you to contact us for a free consultation at 866-631-3470.



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