OVDI vs quiet disclosure

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jraf
Posts: 3
Joined: Fri Jun 17, 2011 11:29 pm

OVDI vs quiet disclosure

Post by jraf »

Seeking opinions and thoughts since having learned about the OVDI recently and losing sleep all the while.

US citizen resident in Canada since 1977. I last filed US returns in 1996. I have never owed US taxes.

I have reviewed all information since 2003 and determined that I have no tax liabilities for any year except 2010 when I will have a reportable taxable capital gain.

Would I be better off simply backfiling the 6 years of returns and the delinquent FBAR's or should I sign up for the OVDI process? I know only I can make this decision, but opinions are still valuable.

If I do OVDI, I will clearly pay a 5% penalty on the maximun aggregate highest balance. 3 of my accounts are locked-in rrsp's of which 2 were split in 2010 in a divorce settlement with my former spouse, so in effect I will be nicked 5% of a value that peaked in 2007/08 on securities I no longer possess.

Any and all opinions are welcome.
tsanaha
Posts: 268
Joined: Sun May 29, 2011 6:51 am

Post by tsanaha »

if you owe no tax from 2003-2009, you may just file delinquent FBAR for these years..

As for 2010, you still have time to file (by the end of this month), and then you should file amend tax if you already filed the 2010 return, if not, you can just do this year right (i am not sure what is your deadline for us return oversea).

Do QD or not really depends on if you owe tax or not..
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