Form 14653: How U.S. Expats Can Catch Up on Back Taxes

Some IRS forms make your heart sink. This one might make it skip a beat—in a good way.

Form 14653 isn’t just paperwork. It’s a strategic reset button for U.S. expats who’ve fallen behind on their taxes. No penalties, no drawn-out negotiations—just a shot at getting compliant under the Streamlined Foreign Offshore Procedures, as long as your mistakes were non-willful.

It’s not a loophole, and it’s not a free pass. But for taxpayers abroad who genuinely didn’t know they had to report foreign income or accounts, Form 14653 can erase years of stress with one clean, well-documented explanation.

Here’s what you need to know.

What are the Streamlined Foreign Offshore Procedures (SFOP)?

Let’s say you’ve been living abroad, paying taxes locally, and not giving the Internal Revenue Service (IRS) a second thought. Sounds reasonable. Except—surprise—you were supposed to be filing U.S. tax returns the whole time. And possibly FBARs. And maybe Form 8938. And… yeah. It adds up.

The Streamlined Foreign Offshore Procedures (SFOP) are how the IRS makes it possible to clean up your record without slapping you with massive penalties.

But don’t mistake it for a casual favor. This is still the IRS. You’ll need to:

• File three years of back tax returns.
• File six years of foreign bank account reports (FBARs).
• Submit Form 14653 with a signed narrative statement explaining why you didn’t file—and why it wasn’t willful.
• Certify that you’re now compliant and up to date with your obligations.

The program is built for U.S. persons abroad—that includes U.S. citizens, green card holders, and accidental Americans—who didn’t know they were supposed to file and weren’t deliberately avoiding it.

Unlike its cousin, the Streamlined Domestic Offshore Procedures, SFOP actually waives penalties. (A rare moment of IRS leniency. Cherish it.)

Who should file Form 14653?

Not all tax mistakes are treated equally—and thankfully, the IRS knows it.

Form 14653 is specifically for U.S. taxpayers abroad who failed to report foreign accounts or file tax returns because they didn’t realize they had to. It’s designed for non-willful conduct—meaning you weren’t trying to dodge your responsibilities, you just didn’t know they existed.

Here’s who qualifies:

• You’re a U.S. citizen, green card holder, or legal resident living outside the U.S. full-time.
• You’ve missed one or more years of required tax filings or FBARs.
• Your mistake was unintentional, and you’re willing to certify that in writing.

This isn’t about perfection—it’s about honesty. If your oversight was genuine, Form 14653 helps you explain what happened and avoid the steep penalties reserved for willful non-compliance.

The eligibility criteria for Form 14653

Before you get too excited about penalty-free amnesty, let’s make sure you’re actually eligible. The IRS has three major boxes you’ll need to check before submitting Form 14653 under the Streamlined Foreign Offshore Procedures.

1. You must be a non-resident: That means you’ve lived outside the U.S. for at least 330 full days in one of the last three tax years—or you pass the Substantial Presence Test, which looks at how many days you’ve spent inside the U.S. over a rolling three-year period. (Too many trips home can disqualify you.)

2. Your conduct must be “non-willful”: In IRS-speak, that means your failure to file was due to negligence, inadvertence, or mistake—not intentional avoidance. If you knew about the rules and chose to ignore them? This program isn’t for you.

3. You must be ready to certify both: Form 14653 includes a narrative section where you’ll explain your circumstances and affirm—under penalty of perjury—that your non-compliance was non-willful.

This isn’t just box-ticking. The IRS expects your story to make sense and align with your filing history. Vague answers won’t cut it.

What do you need to file under the SFOP?

The Streamlined Foreign Offshore Procedures sound simple—but the paperwork isn’t exactly light. If you’re filing Form 14653, here’s what you’ll need to submit to the IRS as part of your streamlined package:

• Three years of delinquent U.S. income tax returns: That includes Form 1040 plus any required information returns like Form 8938 (FATCA), Form 5471 (foreign corporations), or Form 3520 (foreign trusts), depending on your situation.
• Six years of delinquent FBARs (FinCEN Form 114): If you had over $10,000 in aggregate across foreign financial accounts during any of those six years, you need to file (or fix) your Report of Foreign Bank and Financial Accounts. And yes, even if those accounts didn’t earn income.
• Form 14653: This is your sworn statement certifying that your non-compliance was non-willful. You’ll explain what went wrong, why you didn’t file on time, and how you’re fixing it now.

Common assets that trigger reporting:

• Foreign bank accounts
• Foreign mutual funds and brokerage accounts
• Foreign retirement accounts (RRSPs, SIPPs, etc.)
• Certain life insurance policies with cash value
• Ownership in foreign partnerships, trusts, or corporations

How to complete Form 14653

Form 14653 may look simple at first glance, but don’t be fooled. While much of it is administrative, the heart of the form lies in your narrative—the statement of facts that explains why you failed to file on time.

But first, here’s what else you’ll need to complete:

• Basic identifying information: Name, address, Social Security Number, and U.S. taxpayer status
• Tax years: List the years you’re covering under the Streamlined Foreign Offshore Procedures
• Residency attestation: Confirm that you met the non-residency requirement for each year
• Non-willfulness declaration: Sign under penalty of perjury that your mistakes were due to misunderstanding, not evasion

Then comes the most important part:

Writing your Statement of Facts

This is your chance to explain, in your own words, why you didn’t file. The IRS wants specifics—vague apologies won’t cut it. Focus on:

• What happened: What caused your failure to file? (e.g., you didn’t know about FBAR or FATCA).
• When it happened: Be clear on the timeline and affected years.
• Why it was non-willful: Explain that your actions were due to oversight, confusion, or bad advice—not an attempt to hide income.
• What you’ve done to fix it: Show that you’re now in full compliance and understand your obligations.

You’ll also need to include your Social Security Number and sign the form to certify the truth of your statement under penalties of perjury.

How to file Form 14653

Unlike most modern tax forms, Form 14653 still takes the old-school route: paper filing only. That means you’ll be printing, compiling, and mailing a physical packet to the IRS—no e-filing allowed.

Here’s what to include in your submission:

• Form 14653 with your signed statement of facts
• Three years of amended or delinquent U.S. tax returns (using Form 1040 and any required information returns)
• Six years of delinquent FBARs filed electronically via FinCEN’s BSA E-Filing system
• Any required attachments for Forms 8938, 3520, 5471, or others, depending on your foreign financial assets

Everything—except your FBARs—goes in a single envelope to the IRS’s special Streamlined Filing Compliance address. Double-check that you’re using the correct mailing address for foreign-based filers (you can find it at IRS.gov).

The process isn’t quick, but it is powerful. File it right, and you’ll be eligible for penalty-free compliance under the Streamlined Foreign Offshore Procedures—no more delinquent tax stress hanging over your head.

What happens after you file?

Once your Form 14653 packet lands at the IRS, the waiting game begins. There’s no formal acknowledgment, no shiny confirmation email—just old-fashioned government silence while they process your submission.

Here’s what to expect:

• Processing can take several months, often between 6 to 12, depending on IRS backlog and the complexity of your case.
• Your statement of facts is reviewed for consistency, clarity, and credibility—so vague explanations or missing details can raise red flags.

If everything checks out, you likely won’t hear a word. That’s normal. No news is good news.

If the IRS has questions—or suspects willfulness—they may follow up for clarification or additional documentation. But for most non-willful expats who file correctly, it’s a one-and-done process.

Can Form 14653 help reduce penalties?

Yes—and that’s the whole point.

Form 14653 is your gateway to the Streamlined Foreign Offshore Procedures, which offer a rare lifeline to U.S. taxpayers abroad who failed to file due to non-willful reasons. If accepted, the streamlined program lets you catch up on tax returns and FBARs without facing the usual penalties for failure to file.

This is not an amnesty program in the traditional sense—it’s a voluntary compliance path for U.S. persons residing abroad who can prove they weren’t willfully ignoring the rules. You’ll still need to pay any back taxes and interest owed, but:

• No failure-to-file penalties
• No failure-to-pay penalties
• No FBAR penalties

For many permanent residents and dual citizens abroad, this form has helped clear up years of delinquent filings with zero penalties. But to qualify, your narrative must clearly explain the specific reasons behind your non-compliance—and it has to ring true.

If you’re behind, the clock’s ticking. But Form 14653 may be your best shot at a clean slate.

Should you use a tax preparer or CPA?

If you’re even thinking about using Form 14653, the answer is probably yes.

The Streamlined Filing Compliance Procedures involve multiple tax years, foreign financial accounts, and a narrative statement that must be accurate, honest, and compliant with IRS standards. One missing form—and your entire submission could be rejected. That’s where a qualified CPA or expat tax preparer comes in.

A seasoned professional can help with:

• Preparing delinquent tax returns and FBARs
• Ensuring you meet the non-willfulness standard
• Writing a clear, compelling statement of facts
• Meeting every due date and IRS requirement without last-minute panic

And if your case is especially complex—say, it involves a foreign business, significant inheritance, or past IRS correspondence—you may also want to consult a tax attorney. Especially if there’s any risk of being seen as willfully non-compliant, legal counsel is a smart move.

The bottom line: this isn’t the time to wing it. Catching up with the IRS is possible, but it’s best done with backup.

Catching up on U.S. taxes the right way

If you’ve fallen behind on your U.S. tax obligations, you’re not alone—and you’re not out of options. The IRS offers a clear, penalty-free path back into compliance for expats who qualify. The key is to act before the IRS comes calling.

With the right support, catching up doesn’t have to be overwhelming. It just has to be done right.

Bright!Tax helps U.S. expats navigate Form 14653 and the entire streamlined process—accurately, confidently, and without the panic. Reach out today and let’s get you back on track.

Frequently Asked Questions (FAQs)