Form 14457 (2019) – Updated Voluntary Disclosure Preclearance Letter
Form 14457: IRS Voluntary Disclosure Practice submissions are now made on the Updated Form 14457 (Voluntary Disclosure Preclearance Letter to the IRS).
The IRS recently made good on its promise from back in November 2018 (IRS Voluntary Disclosure updated Memo) to provide an updated voluntary disclosure practice preclearance request and application form.
IRS Voluntary Disclosure Preclearance requests will now be made on form 14457.
What is a Form 14457 Preclearance Request?
If you are going to make a voluntary disclosure to the IRS to report undisclosed income, assets, accounts, or investments – the IRS now requires that you use the updated form 14457 to make the request.
Let’s go through the form 14457 together:
Part I – General Instructions
Note: Use Part I of this form to make a preclearance request to determine whether you are eligible to use the voluntary disclosure practice.
Only submit Part 1 of this form for preclearance.
If you receive preclearance, proceed with submitting Part II to request preliminary acceptance. Submitting the information requested in Part I of this form does not guarantee acceptance. All answers and attachments must be in English.
Mailing Address: Internal Revenue Service
Attn.: Voluntary Disclosure Coordinator
2970 Market Street
Philadelphia, PA 19104
Who is Making the IRS Voluntary Disclosure Application?
First, the IRS want to know what kind of person is making the application:
What Type of Voluntary Disclosure Application to the IRS is being Made?
Next, the IRS wants to know what type of disclosures are being made
- Domestic issues
- Offshore issues
- Estate and gift issues
- Employment tax issues
- Virtual currency issues
- Other issues
Biographical Information About the Applicant
The IRS also wants to know information about your background, including:
- Your name
- Social security or other identifying number
- Date of birth
- Telephone number
- Street address
- ZIP Code
- Passport information
Tax Representative Information
The IRS wants information regarding your representative. This Information includes:
- Copier form 2848 (Power of attorney)
- Telephone number
- Fax Number
- Street address
- ZIP Code
Additional General Background Questions
List any entities (corporations, partnerships, etc.) for which you are making a disclosure, include EIN if applicable. Further identification information for these entities will be required in Part II of this application
Do you believe that the IRS has obtained information concerning your tax liability
Disclose if you, your spouse or any related entities are currently under audit or criminal investigation by the Internal Revenue Service or any other law enforcement authority and if any income is sourced from an illegal activity
More Specific Questions
Has the IRS notified you, your spouse or any related entities that it intends to commence an examination or criminal investigation
Are you, your spouse or any related entities under criminal investigation by the Internal Revenue Service
Are you, your spouse or any related entities under criminal investigation by any law enforcement authority
Do you, your spouse or any related entities have income sourced from an illegal Activity
Schedule of Financial Accounts
List ALL noncompliant financial accounts you owned or controlled or were the beneficial owner of, either directly or indirectly.
The listings must cover the entire disclosure period as outlined in the Updated Voluntary Disclosure Practice Memorandum dated November 20, 2018.
This includes opened and closed accounts which held unreported funds during the disclosure period.
This includes accounts held through entities you owned or controlled or were the beneficial owner of, either directly or indirectly. Note: The entities will be further identified in Part II of this application.
Disclose all account numbers held at each financial institution.
Organize the account numbers in order of who held the account. Jointly held accounts should be identified as such and only listed once.
Account holders must match the disclosing taxpayer(s) from Lines 4 and 5, or an entity on Line 7 that will be subsequently disclosed in more detail in Part II after pre-clearance is received
If an account is closed, mark it with a “(CL)” after the account number.
You Need an Attorney and Law Firm that is Highly-Experienced
Our team has made more than 1000 offshore Disclosures (OVDP, Traditional Voluntary Disclosure, Streamlined, and Reasonable Cause/Delinquency) — including complex issues involving FATCA, PFIC, CFC, Foreign Mutual Funds, and more.
The area of law is always changing, and due to recent updates in the law, including changes to various international tax agreements, regulations, statutes, and enforcement procedures — oftentimes even a “simpler” FBAR disclosure becomes an incredibly complicated process.
Golding & Golding is a full-service International Offshore Disclosure Law Firm and Tax Firm specializing exclusively in Offshore Disclosure matters, worldwide in 70-different countries.
We routinely represent clients in:
- Offshore Assets
- Offshore Investments
- Offshore Income
- Offshore Accounts
- Foreign Businesses
- Foreign Life Insurance
- Foreign Cryptocurrency
- Foreign Real Estate
- Foreign Gifts
- Foreign Inheritance
- International Tax Investigations
- Tax Treaty Analysis
- “Cross-Border” issues
5 Easy Ways to Vet Out IRS Offshore Disclosure Attorneys
Offshore disclosure is like a puzzle. And, you need all the pieces of the puzzle to complete the task at hand.
There is a reason why the top tax attorneys nationwide in IRS Offshore Disclosure generally will have five (5) main qualifications:
- Board Certified Tax Law Specialist (less than 1% of attorneys nationwide)
- Enrolled Agent or CPA status
- LL.M. (Masters in Tax)
- Litigation & Trial Experience
- A Firm that Specializes exclusively in IRS Offshore Disclosure
Hiring an Offshore Disclosure Lawyer – 5 Types of Lawyers to Avoid
- Tax Lawyers who risk your confidentiality with a “Kovel Letter“
- The “No Tax Preparation included” bloated flat-fee retainer
- Hiring Attorneys who are not dually-licensed in Tax and Law, and do not handle the tax portion of your submission
- Hiring an Attorney who is not a Board Certified Tax Law Specialist
- Hiring an Attorney with less than 15-20 years private practice experience, and no Trial or Litigation Experience
4 Types of IRS Voluntary Disclosure Programs
There are typically four types of IRS Voluntary Disclosure programs, and they include:
- Traditional (IRM) IRS Voluntary Disclosure Program
- Streamlined Domestic Offshore Procedures (SDOP)
- Streamlined Foreign Offshore Procedures (SFOP)
- Reasonable Cause (RC)
Contact Us Today; Let us Help You.
Sean holds a Master's in Tax Law from one of the top Tax LL.M. programs in the country at the University of Denver, and has also earned the prestigious Enrolled Agent credential. Mr. Golding is also a Board Certified Tax Law Specialist Attorney (A designation earned by Less than 1% of Attorneys nationwide.)