Can I get FBAR late fees waived?

imcdn · Post by **imcdn** » Tue Sep 06, 2011 8:19 pm

About me: Born in USA. Grew up in Canada. Took advantage of citizenship to be work at a ski resort in the US for 09/10 winter season. Filed taxes for 2009 for USA on time even though my income was below the amount at which I'd be required to file (didn't know that at the time). Screwed up 2009 taxes pretty bad using turbo tax - didn't know what I was doing. [i]Did not report interest earned[/i] - about $500 in interest for 2009 - but even with that interest income, my total 2009 income was only about $5000. [i]Haven't yet filed 2010 taxes[/i], but am required to file due to ~$1k self-employment income - don't owe any taxes for that year. [i]Also need to file for 2008[/i] - was just over the income threshold for that year, but owe no taxes due to tuition credits or foreign income exclusion - take your pick. Before 2008 I didn't make the $9k or whatever threshold income it is where you're required to file. Overall I will owe no taxes for any year.

I found out about the existence of FBARs last week. Max amount of money I've ever had is around $30k. Don't want to do OVDI but I need to stay "above board" - I don't like the idea of OVDI where it goes straight to criminal investigations, I'm no criminal. I also don't know the risk of quiet disclosure.. and I don't like the idea of it hanging over my head that they could come after me. I want to know what my chances are if I write a letter to the Treasury Department explaining why I never filed FBARs, haven't done all my tax filings (I would complete them obviously), and didn't report interest on the one tax filing I did complete. Will they fine me $60,000? Can I get the fee waived? Is there an "inbetween" option?

imcdn · Post by **imcdn** » Tue Sep 06, 2011 9:10 pm

Or if anyone could point me in the direction of other posts where people state that they wrote a request to have the FBAR late filing fee waived, and what the result was...

CdnAmerican · Post by **CdnAmerican** » Sat Sep 10, 2011 3:16 pm

Hi imcdn, I had likewise learned abaout FBARs late. What i've seen on this board is that the general recommendatio is to backfile the FBAR (ideally 6 years), add a letter stating that you didn't know about the FBAR requirement, and then hope that you don't hear back from them. I haven't seen anyone who has done that but has gotten fined for backfiling the FBAR, as long as the citizen sends them before being asked to do so.

I hope that's good advice; that's what I did just a few weeks ago. the FBAR penalties are scary but I haven't yet heard of anyone who has been punished for a late disclosure.

Good luck!