# (Another) question on US tax compliance issues



## KeithCAN1 (Mar 26, 2013)

Bev and others - Thanks for all the great advice here. I'm in a similar situation as many. Moved from the US when a young adult and lived here in Canada for many many years. Back then, I was told by someone that all I needed to file my income from my job. Information was hard to get back them (internet was not so developed) so that is all I did. I have some small time accountant back in the US referred to me by a friend file my T4 from my employer. Stupid me, I never checked again what I had to do. I focused just on Canadian taxes. Well after many many years I started to gain some wealth and now I have several assets (few savings accounts, pensions, RRSP, TSFA, etc). Never declared. Hence my panic when I FINALLY learned about how taxes really work. I am way behind in FBARs, FATCA and delinquent returns. While in Canada, the streamlined process doesn't work for me since it applies to people who never filed in the past 3 years. I did. Also because I have made some investment income, chances are I have some back taxes to pay. 

I've read about people just going ahead and filing amendments (1040x) and past FBARs/FACTAs for 6 years. It sounds like those people were pretty "clean" less assets and owed no tax. I'm tempted to go the OVDP path since I've read enough scare material and I think I fall into the "higher risk" category just because of the number of assets. 

Any advice is very welcome!

Thanks


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## Bevdeforges (Nov 16, 2007)

You're hardly the first overseas taxpayer to have gotten bad advice from tax accountants who should have known better (or at least looked it up). 

Without knowing more about your specific situation, it would be difficult to advise on the OVDP stuff, but first of all, file those amended returns asap. Unless you've been willfully neglecting to file the FBARs and FATCA forms, I'd just go ahead and back file those for 6 years and see what happens. Include a note explaining that you got bad tax advice years ago and have only just recently become aware of the requirements. 

They are after the big time tax cheats, and while you may have to pay some interest on any taxes you owe in prior years, they may just accept your back filings and be done with it. Depends on lots of things, but even the IRS has limited resources these days and they do tend to focus their efforts on big time fraudulent tax payers (of which there are plenty out there). 

If they do come back asking for penalties, you can always try the Taxpayer Advocate.
Cheers,
Bev


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## KeithCAN1 (Mar 26, 2013)

Thanks Bev for the reply. 
I think I will file those 1040x, FBAR and FATCA fourms (or find an accountant that can do it). I'm hoping I can prove to the IRS that I meant no harm at all. I'll state that I did not receive any input or advice from my accountant and I noticed that he even didn't use some of the best forms for me to reduce my taxes (I think I may have paid more taxes in some of my old returns than I needed to).

I'm just hoping when they add everything up, that I'm not considered to have too much assets. I mean I don't have crazy millions but I have just enough that I have to file a FATCA forum (at least for the past 2 years).

Thanks a bunch Bev.


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