Serbinski Accounting Firms

'You're are implying that there is an IRS requirement for US Canadian non-residents to report undistributed income earned in an Canadian company '

He's not implying it, he's saying it and he's 100% correct. A Controlled Foreign Corporation has very special rules under US tax laws about disbursing ...

The statute of limitations on 1990 has long, long ago passed.

I gather you have such an account ? I wouldn't give up hope just yet, because IRS agents contradict each other a lot.

You can certainly try to use MTM. The IRS may be happy enough to get your old tax return that they might not care about the interest charge for previous years unless we're talking about really large sums.

If there are distributions or sales, then you are required to file form 8621. You cannot mark to market unless you first bought the PFIC within the period in question (i.e if you bought a particular PFIC 10 years back and you're backfiling 4 years of returns you cannot do MTM). You CAN do MTM if you ...

I'm a little confused. If there are distributions and dispositions, then you are required to file form 8621. That IRS notice basically says that you if are not required to file form 8621 (i.e. you have no distributions or sales), then you don't have to file it simply for reporting purposes.

I'm not even sure you need to amend 1040 if the only change is to Schedule B question. Probably safer to do so, though.

Once you meet the 'substantial presence' test, then you are a US person irrespective of immigration status (with some exceptions for foreign students in their first 5 years, diplomats etc.)

I am in violent agreement with that. All I was saying was that all QDs likely go to a CI person first, who does a quick check to verify that they are not investigating this case or have some other reason to be interested (say, really large sums of tax due, accounts in multiple tax havens etc ...

I didn't say that QD triggered a criminal investigation (any more than VD does). What I said was that QDs (at least those involving foreign accounts) are likely sent to a CI agent for vetting in any case (just as VDs are). Since the original poster seemed to be concerned about being branded a ...

You don't sound like a good candidate for OVDI. And $15K for your paperwork seems extortionate. You would probably qualify for the 5% penalty, but even that might be too much for you. I don't think you would need professional help with your paperwork (and certainly not 15K worth).

If it makes you ...

The IRS internal replies from the regular FBAR email address are sometimes unclear or contradict the FAQ or even each other at times (or maybe the person did not understand the question clearly).

But, the IRS has said in its OVDI FAQ that its not just tax due that is an issue, its also unreported ...

Technically, the accuracy penalty needs to be compounded separately if you filed an extended return any year, since the accuracy penalty is only from the extended due date, whereas tax due is compounded from the due date.

Also, the %age changes quarterly, not yearly. Plus, its compounded daily ...

And FBARs have to be filed even if there is no ($0) of income .. also a few other informational returns.

If your lawyer is relying on the 'laziness' of IRS agents, then it seems to me that it would be better to do quiet disclosure, since there is at least some sort of discretion, where as once submitted to OVDI, there is no discretion and a formalized process to track entries.

My understanding is ...