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Form 14654 AR: What You Should Know

Form 14654- Form 5498, is filed the IRS will also issue a Form 14654 AR. The form is used to confirm compliance with the requirements of the Streamlined Domestic Offshore Disclosure process and to document that a U.S. taxpayer is filing electronically or will file electronically. In case of non-compliance, a U.S. taxpayer may be issued a Notice of Federal Tax Lien, notice of failure to pay estimated tax, U.S. tax lien, penalties and interest, and a demand for payment of arbitrages. (You can view all forms in the Treasury's website) Form 14654 will be issued based on the following information in your Form 14654 AR: Inventory Number Form 1338 or form 1338A Inventories and Other Depreciation Expense Inventories, Other Depreciation and Amortization Form 1340 or Form 1340A Inventories, Other Depreciation and Amortization Form 1040 or Form 1040A Inventories, Other Depreciation and Amortization  In most cases, unless you are a taxpayer reporting on behalf of an S corporation, you already can fill out Form 1340, “Inventories and Other Depreciation Expense — (S corporation)” or Form 1340A, “Inventories and Other Depreciation Expense — (partnership — domestic manufacturing)” in regard to your U.S. corporation for your filing and processing purposes. These forms allow the IRS to determine and collect overstated depreciation expense. They also provide an opportunity for the IRS to document the business activities used to substantiate income when determining U.S. withholding. These forms can also help you get your taxes more quickly by reducing the need for the taxpayer and tax office to submit tax forms. If you are filing under Form 1040, or Form 1040A, Form 1340 or Form 1340A, you need all seven items on those forms. As noted above in the section on Filing, the IRS will require you to file Form 2063 or if you are a U.S. person, Form 2401 to confirm your filing as a resident of this country. You need to be aware that these U.S. forms will allow you to file a U.S. tax return and for information reporting.

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