# OVDI and soft disclousure



## FilingLate (Mar 18, 2014)

Guys my attorney is telling me you no longer can do soft disclosure even if you have 100$ in interest earned in your bank account.
She said that the penalties are so hefty that they can wipe out your entire bank account.
She said it was a possibility last year but no longer here.

Is she right?


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## Nononymous (Jul 12, 2011)

Talk to another lawyer. OVDI for $100 is crackhead advice.


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## BBCWatcher (Dec 28, 2012)

There's something called the streamlined program. Have you looked into that?


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## DavidMcKeegan (Aug 27, 2012)

Sounds like a scare tactic to me.


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## Nononymous (Jul 12, 2011)

BBCWatcher said:


> There's something called the streamlined program. Have you looked into that?


OP is a US resident, so does not qualify.


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## FilingLate (Mar 18, 2014)

BBCWatcher said:


> There's something called the streamlined program. Have you looked into that?


BBC dunno if this would work for me as i am a resident of US (visa) and Canadian Citizen. This process seems to work with non US resident?
Maybe i am wrong but can you please let me know
Thanks


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## jbr439 (Nov 17, 2013)

FilingLate said:


> BBC dunno if this would work for me as i am a resident of US (visa) and Canadian Citizen. This process seems to work with non US resident?
> Maybe i am wrong but can you please let me know
> Thanks


Streamlined is definitely for expats only.


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## BBCWatcher (Dec 28, 2012)

OK, you can file an amended return (1040X). Did you look into that?


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## FilingLate (Mar 18, 2014)

BBCwatcher i called another accountant and she said because the interest you earned is a few hundred $ she does not think i should be filing the OVDI. She said that it will be amended return (but doesn't amended return and QD is the same?)

I was thinking that i should file this year Tax with 8891, NR4 form and Fbar and then wait get all the information and file the previous Fbars

However I was looking at serbinski forum and someone over their mentioned that i should not file just this year FBAR but should file all of them at the same time otherwise IRS can fine me heavily
ANy thoughts


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## Nononymous (Jul 12, 2011)

You found a sane accountant, that helps.

Yes, amended return and quiet disclosure are basically the same thing. You are taking a small risk. When the alternative is an idiotic amnesty program with huge mandatory fines, the small risk looks like the better option. But it's your money, and your decision.

Not sure that the order of filing FBARs really matters. The US government could already fine you heavily for all the late FBARs. But will it? Probably not, but who knows? (By the way, FBARs are Treasury, they have nothing to do with the IRS.)

Seems to me that a reasonable plan would be: 

1. file a correct US return for this year, with additional interest income

2. file amended returns for all previous years, and pay whatever small amount of tax might be due because of the unreported interest income (no reason to wait before doing these)

3. file this year's FBAR and all previous years' FBARs (also no reason to wait before doing the old ones)

No idea whether it would be a good or bad thing to send a cover letter explaining the situation. Probably best not to - if they want clarification, they'll ask. 

Is there an ironclad guarantee that you won't be hit with massive fines? No. Is this likely to happen? Probably not. But what the hell do we know, offering random internet advice.


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## FilingLate (Mar 18, 2014)

So nonomous my follow up questions is
If i filed OVDI (lets say) how much fines are we talking about?
if i took a chance and filed amended tax return how much fines are we talking about?
Any idea


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## Nononymous (Jul 12, 2011)

I have no idea. You can read the rules though.


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## Bevdeforges (Nov 16, 2007)

The fines on the amended returns are generally based on a percentage of the tax found to be due.

The potential fines on the FBARs depends on what you've been failing to report and whether or not it affects your overall tax picture.
Cheers,
Bev


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