Here are a few resources to help you begin to understand this issue:
- IRS delinquent FBAR submission procedure: The IRS offers a new “delinquent FBAR submission procedure”, which is available if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs, and you have not previously been contacted regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted. Read this article.
- IRS announces new Streamlined Filing Compliance Procedures: The Internal Revenue Service has recently updated the certification forms required to be filed by taxpayers seeking to avail themselves of the Streamlined Filing Compliance Procedures. The streamlined program was significantly expanded by the IRS in June 2014 in order to provide a meaningful way for non-willful taxpayers to remedy past non-compliance with respect to non-U.S. bank accounts and income associated with those accounts. Read this article.
- Warning Letter for FBAR Violations: The IRS uses a warning letter in lieu of asserting penalties for failure to file an FBAR to bring the individual into compliance. Read this article.