If you’re looking to correct errors on your tax returns—such as unreported foreign income you accidentally overlooked—IRS streamlined filing procedures allow you to correct the non-compliance without significant penalties. Whether you choose the Streamlined Foreign Offshore or Streamlined Domestic Offshore program depends on your situation; however, there’s one step you must take whichever program you use, and that’s formally certifying you acted non-willfully.

The issue? IRS non-willful certification is actually more complex than it seems, and mistakes are a common reason for the IRS to reject taxpayers’ streamlined filings and treat them as ordinary delinquent or amended returns. So how do you complete the IRS non-willful certification and what are some common pitfalls to avoid? While it’s best to contact Gordon Law for advice tailored to your specific tax return situation, here’s a look at the principles behind successfully drafting the IRS non-willful certification and reducing your chances of an unsuccessful filing.

What Is Streamlined Filing Non-Willful Certification?

IRS non-willful certification is a written statement declaring that you failed to declare foreign assets, or pay certain taxes, but you did so accidentally rather than intentionally or with reckless disregard. In other words, you did not intentionally overlook key IRS tax obligations, or have reason to know of these obligations, and you didn’t intend to evade paying taxes due on foreign assets or income.

• You will complete IRS Form 14653 (Streamlined Foreign Offshore) or Form 14654 (Streamlined Domestic Offshore) depending on the procedure you use.
• Non-willful certification is only for true negligent or innocent oversights. If you suspected you owed more tax than declared, or you acted willfully, you need to use the IRS Voluntary Disclosure Program
• If the IRS decides you acted willfully rather than non-willfully, they will reject your amended returns and possibly take civil or criminal corrective action.

But how do you know if you acted negligently—what separates non-willful from willful actions under IRS rules? Let’s take a closer look.

Non-Willful Certification Examples

The IRS considers filing errors non-willful if they were based on:

• An honest mistake
• Negligence
• Misunderstanding of applicable laws

Here are some examples of what might be considered non-willful conduct:

• Ignorance of the rules around foreign pension declarations, thinking only active bank accounts should be disclosed.
• S. citizens abroad who paid taxes abroad and did not know they still had domestic filing obligations.
• Reliance on a tax professional’s poor advice with no way of knowing it was inaccurate when the advice was sought in good faith and the taxpayer provided complete and accurate information.
• Inheriting funds from abroad without knowing to declare them for tax purposes.
• A spouse who truly did not know they were listed as an owner of a joint account.

These are just some examples of what might fall under IRS non-willful conduct. If you’re unsure whether your situation qualifies, contact the Gordon Law team for advice.

What Is the Purpose of Streamlined Filing Non-Willful Certification?

It’s simple: correct tax non-compliance for underreported foreign income without facing significant IRS penalties. You’ll still pay a financial penalty if you use SDOP—no penalties apply to SFOP—but it’s far less than you could end up paying if e.g. the IRS imposes penalties for each amended return, late returns, etc. so it’s always preferable to making a quiet disclosure and hoping to avoid detection.

What Happens if I Get My Non-Willful Certification Wrong?

If you make a mistake filing your IRS non-willful certification, or if the IRS rejects it, they will treat your returns as ordinary amended returns. There is no opportunity to resubmit your returns with an amended IRS form through the Streamlined Offshore Procedures. You won’t benefit from the streamlined filing procedure protections and so you could face:

• Substantial financial penalties
• IRS audit or enhanced scrutiny
• Possible criminal or civil charges (if the IRS determines you acted willfully rather than non-willfully and rejects your entire application on this basis)

Given how severe the consequences can be, it’s critical to take every step you can to submit a clear, concise, and compliant IRS non-willful certification.

What Are the Most Common Streamlined Filing Non-Willful Certification Mistakes?

There are many ways that taxpayers can accidentally file a non-compliant Form 14654 or Form 14653. However, there are some errors which we encounter most often.

• Wrong Form: It might sound obvious, but completing the wrong form (i.e. completing Form 14654 when you should file Form 14653) is a sure way to have the IRS reject your streamlined offshore filing.
• Missing Information: Failing to file all the required documentation––such as information returns and other supplementary documents, not just amended tax returns––could result in a failed filing.
• Incomplete Certification: You must include a copy of your non-willful statement with each return and each information return you’re submitting. But it’s a common mistake for taxpayers to only submit one copy of the form to cover their whole submission.
• No Signature: Every IRS non-willful certification should be properly signed. Missing signatures can invalidate the form resulting in a failed application.
• Lack of Details: The IRS expects taxpayers to explain how they misunderstood the law or otherwise acted negligently or accidentally. Vague or non-specific language does not give the IRS enough clarity to accept your position.
• Continued Concealment: We’ll cover the types of language you may wish to avoid below, but essentially, any phrases which imply you acted deliberately, or that you’re still attempting to conceal information, is an IRS red flag.
• Inaccurate Figures: Failing to calculate the 5% penalty properly (applicable to SDOP filers only), not accounting for all relevant foreign assets, or any other financial miscalculation will likely result in a rejected filing.
• Using the Wrong Tax Years: Taxpayers who don’t file all the relevant returns e.g. FBARs for the last six years, or who file returns for the wrong years, could be rejected from the amnesty protections.

If you’re worried about whether you’re ticking the right IRS non-willful certification compliance boxes, or you have tax debt concerns, the Gordon Law tax lawyers are happy to assist.

How Do I Draft an IRS Non-Willful Certification Form Correctly?

There’s no reason to write an essay to support your non-willful conduct. After all, the goal is simply to be concise but to provide enough detail to satisfy the IRS that you acted non-willfully. And sometimes, less can be more––there’s less chance of accidentally implicating willful conduct if you keep the statement succinct. But although every statement will be slightly different, it’s wise to think of your statement as a narrative which should flow logically and clearly. So, every IRS non-willful certification statement should include, at a minimum, the following:

• Non-willful declaration
• A description of the source of funds and your relationship with it
• Your mistaken belief
• Why this belief seemed reasonable
• How you uncovered your error
• The immediate corrective actions you took to remedy the error

Let’s break down more specifically how to cover these elements in your streamlined filing non-willful certification.

Non-Willful Declaration

It’s always best to start with confirmation of your name and a declaration that your filing errors were non-willful. So, all you need to do here is name yourself and include a declaration such as, “I [X], confirm and certify that my failure to report foreign FBARs/foreign income was non-willful.”

Source of Funds

Next, confirm the asset, when you obtained it, and your level of interest in it. Be specific: you need to state the asset(s) you’re filing the amended tax return to declare or else the IRS may reject your filing. You may make statements such as:

• You inherited a French savings account from an uncle in 2022.
• You worked in Germany and paid income tax abroad on your earnings.
• You have a small savings account in the UK.
• You received earnings from an Italian mutual fund in 2024.

Mistaken Belief

Once you’ve confirmed the asset and your level of ownership, you need to explain why you believed you had no IRS reporting obligations. This part is critical to confirming non-willfulness. It’s important to be specific rather than vague––the IRS needs a clear statement that you acted under an innocent belief, or ignorance, rather than choosing to ignore your disclosure obligations. Here are some examples:

• You already paid tax on foreign earnings at the source. A foreign tax treaty meant you believed you had no further reporting or disclosure requirements (although this is can be scrutinized by IRS).
• You had no knowledge that you paid tax on a foreign inheritance or that you were required to disclose these funds.
• Despite asking a tax professional for clarity, you were told you had no need to file an FBAR for an asset.

It’s worth emphasizing that you acted innocently e.g. “I did not act deliberately in failing to disclose this foreign income.”

Reasonableness

The IRS must be satisfied that, in the circumstances, it is reasonable that you behaved the way you did. For example, you might highlight your professional background or level of education to persuade the IRS that it’s reasonable you acted in a certain way. Ways you might phrase this include:

• “I am a student with little experience filing tax returns.”
• “I relied solely on the advice of my tax professional as I have no financial background.”
• “I am a healthcare worker with limited financial experience.”
• “As an artist living abroad, I have little experience with U.S. tax return procedures.”

The goal is to highlight your lack of expertise to compare this against how complex and nuanced IRS foreign tax return rules can be.

Discovery

Your next step is to state how you discovered the error. Be as specific as possible but avoid saying anything which could imply that you delayed in correcting your mistake or that you ignored potential warning signs. For example, you might make statements along the following lines:

• When you moved back to the U.S. on [X], you learned that you should’ve reported the missed income.
• A different tax professional advised you that you should have reported [asset income] to the IRS.
• You discovered on [X] that you should have declared [income] or filed a certain FBAR.

If you’re concerned that your actions may be deemed willful, or that your mistake could be seen as recklessly willful rather than just negligent, contact us to discuss if the IRS VDP is more appropriate for your situation.

Corrective Action

Finally, you need to explicitly and succinctly state what action you took to correct the non-compliance––and when. The IRS wants to see that you acted as quickly as possible to disclose the income and meet your obligations. How you phrase this will vary significantly depending on the action(s) you took, but some examples include:

• Upon discovering you had IRS reporting obligations for a foreign account, you immediately initiated the streamlined procedure.
• The moment a different tax professional explained your obligations, you instructed them to help you file the amended returns and/or missing information returns.
• When you discovered that your foreign investments were not reported to the IRS correctly, despite being reported abroad, you immediately filed under SFOP to correct the non-compliance.

Ultimately, there’s no template for how to write a streamlined filing non-willful certification. But by covering the above elements, you’re maximizing your chances of a successful filing.

How Do I Submit the Non-Willful Certification Form?

You can’t submit Form 14654 or Form 14653 online. Instead, you should submit the form, together with all relevant amended tax returns, FBARS, and information returns, by mail to the following address, with some nuances depending on whether you’re a domestic or offshore filer:

Streamlined Domestic Offshore Program

Internal Revenue Service

3651 South I-H 35 Stop 6063 AUSC

Attn: Streamlined Domestic Offshore

Austin, TX 78741

Streamlined Foreign Offshore Program

Internal Revenue Service

3651 South I-H 35 Stop 6063 AUSC

Attn: Streamlined Foreign Offshore

Austin, TX 78741

If you don’t submit the form to the right address, there’s a risk it will be missed and you won’t benefit from the protections of the amnesty programs.

What Are Some Other Tips for Completing IRS Non-Willful Certification Forms?

We’ve covered the specifics of what to include in your IRS non-willful certification, but here are some other points to bear in mind to reduce the risk of the IRS rejecting your form.

Be Clear

Use clear, declaratory statements rather than vague language which could be easily misunderstood or misinterpreted. At best, the IRS may find such language confusing, resulting in further investigations, but it could also be viewed as an attempt to conceal willful actions. So, rather than saying things such as “someone told me” or “I can’t remember” stay focused on what you do know.

Do Not Be Accusatory

Although it might be tempting to blame factors such as confusing IRS rules for non-compliance, it’s never a good idea to focus on these details in your statement. So, avoid saying things such as:

• “The rules are hard to understand”
• “It is difficult to find the information on your website”
• “The form was unclear”

Instead, for your streamlined filing non-willful certification, focus on what actions you’re taking now to remedy the situation.

Avoid Emotional Language

Emotional language––such as implying you were stressed, or under a lot of pressure––could lead the IRS to believe you did in fact know about your filing obligations and chose to overlook them due to your life circumstances. This implies willful rather than non-willful actions which could result in serious consequences or accusations of tax crimes.

Avoid Inconsistencies

You’ll also want to avoid saying anything which could contradict what’s actually included in your filing. For example, saying you didn’t know you had a certain foreign account but you have it as part of your tax return implies that you attempted to conceal the income the first time around.

Use the Correct Form

It sounds obvious, but don’t get caught out by using the wrong SDOP or SFOP non-willful certification form! Always use 14654 if you reside in the U.S. and Form 14653 if you’re using the offshore procedure. Otherwise, the IRS could refuse to offer you the amnesty protections even though you’ve submitted an otherwise compliant non-willful certification.

Be Prepared

There’s a chance the IRS will ask for more details or financial information to investigate your return and confirm there’s no chance you acted intentionally. So, to expedite any IRS queries and ensure the process goes smoothly, gather paperwork in advance that you may need, including:

• Foreign pay slips
• Bank statements
• Records of foreign taxes already paid
• Proof of non-residency status e.g. driving license for another country, proof of employment abroad
• Foreign pension records
• Trust documents

The more information you have ready, the easier it will be to answer IRS queries.

Can Gordon Law Help Me Draft a Streamlined Filing Non-Willful Certification?

Absolutely. In fact, whether you’re seeking amnesty through SDOP or SFOP, our attorneys can support you through the entire process.

• Amnesty Program Selection: Not only will we ensure you use the correct form for your streamlined filing procedure, but we’ll help you choose the correct program to use based on your specific situation.
• Certification Compliance: From including sufficient information to using accurate financial data, we’ll assist in ensuring your non-willful certification meets IRS standards to reduce the likelihood of a rejected filing.
• IRS Negotiations: If you find yourself answering IRS questions or even facing an IRS negotiation, we can conduct negotiations on your behalf, offer advice, and help you make informed decisions for how to progress your application.
• Tax Planning: To reduce the chances of future amnesty applications or amended filings, we can assess your entire financial situation and provide a range of tax planning services to help you comply with any tax obligation with confidence.

Don’t feel pressured into handling complexities such as non-willful certification alone. Instead, turn to our experienced team for the guidance and support you deserve, or consider our dedicated account services so you stay ahead of future IRS tax returns.

Got IRS Streamlined Filing Non-Willful Certification Questions? Contact Gordon Law!

Streamlined filing non-willful certification can be tough to get right but the consequences of even minor errors can be severe. That’s why if you’re considering using an IRS amnesty program such as SDOP or SFOP you should contact Gordon Law first. Our experienced team will not only guide you through how to complete the non-willful certification form, but we’ll help you through the entire streamlined filing process—and offer tax planning support to help you avoid future non-compliance. So before you hit “send” on your non-willful certification to the IRS, contact Gordon Law online or by phone to learn more about our tax services.