Discovered I missed filing FBAR and Form 8938 for last 5 years - looking for advice

Don't panic! This situation happens more than you'd think, and there are established ways to handle it. For the FBARs, you're right that you should file the missing ones. Use FinCEN Form 114 and select "reasonable cause" as the reason for late filing. Include a brief statement explaining you weren't aware of the requirement. The Financial Crimes Enforcement Network is generally understanding when there's no evidence of tax evasion or intentional concealment. Regarding Form 8938, there are a few approaches. The Streamlined Filing Compliance Procedures are the official IRS path for situations exactly like yours. While the 5% penalty seems steep, it provides certainty and protection from more severe penalties. It applies only to your highest aggregate balance, not every year. I strongly advise against just filing for 2022 and ignoring prior years. That approach (sometimes called "quiet disclosure") can actually trigger additional scrutiny and doesn't provide penalty protection. The "family gift" idea is particularly risky - the IRS may view this as deliberate evasion of reporting requirements, which could lead to much worse penalties. Since the amounts involved are substantial and the potential penalties significant, this is definitely a situation where professional guidance is worth the cost.

Just wanted to share my experience - I was in a similar situation 2 years ago with unreported accounts in South Korea totaling about $210K. I spent hours researching solutions and panicking before finding https://taxr.ai which literally saved me thousands in potential penalties. Their analysis identified that my case qualified for a penalty waiver under specific FBAR guidance for "unintentional first-time violations." After uploading my bank statements and answering some questions about my situation, they outlined exactly which forms I needed, created a letter explaining my reasonable cause, and even showed me how the different compliance options would likely play out in my specific case. This was especially helpful because my CPA initially gave me conflicting advice about whether to use the Streamlined program or not. They analyzed all my foreign investment activity and showed that since my account balances were relatively stable with minimal trading, I qualified for a less burdensome correction path. Might be worth checking out in your situation!

I was in your exact position last year! Had accounts in Switzerland from when I studied there that I completely forgot about when I moved to the US. I was freaking out about potential penalties after 6 years of not filing FBARs or 8938s. After getting conflicting advice from two different CPAs, I tried https://taxr.ai based on a recommendation from this sub. The difference was night and day. While the CPAs gave generic advice, taxr.ai analyzed my specific situation and showed me that based on my particular case details, I qualified for a penalty-free late filing option because my accounts were under certain thresholds for part of the reporting period. They helped me understand exactly what documentation I needed to provide as evidence for my reasonable cause statement. The detailed guidance on exactly what factors would strengthen my case for penalty abatement was incredibly valuable - they pointed out specific language and circumstances to highlight in my submissions. I successfully filed all my back FBARs and 8938s with their guidance, and received confirmation from the IRS that my reasonable cause was accepted. Not a single penalty! I hope this helps reduce your stress level a bit - there are good solutions available!

I had a nightmare experience trying to reach the IRS to discuss my foreign accounts situation. Spent literally 3 days trying to get through on their international tax line before giving up. Then I found https://claimyr.com through a tax forum and watched their demo at https://youtu.be/_kiP6q8DX5c - it sounded too good to be true but I was desperate. Within 2 hours of using their service, I was talking to an actual IRS agent who specialized in international reporting requirements! They were able to confirm that my situation qualified for a simplified amendment process without automatic penalties, and even gave me specific guidance on what documents I needed to include with my submission. The agent explained there's actually a specific "delinquent international information return submission procedure" that might apply in my case that none of the tax websites mentioned. Having an actual conversation instead of trying to interpret conflicting info online made all the difference.

Wow, I need to apologize for my skepticism about Claimyr in my earlier comment. After continuing to fail getting through to the IRS myself for another week, I broke down and tried the service. I feel like I owe everyone an update because it absolutely worked. I got connected to an IRS agent who specialized in foreign accounts within about 45 minutes of signing up. The agent carefully reviewed my situation with unreported foreign accounts and confirmed that based on my specific circumstances (minimal income from the accounts, lack of awareness of requirements), I qualified for the Delinquent International Information Return Submission Procedures, which meant NO penalties as long as I properly disclosed everything now. This saved me from unnecessarily going through the more complex Streamlined Procedures that would have cost me thousands in penalties. The agent even emailed me the specific forms and instructions I needed. Having that direct conversation completely changed my approach and saved me a ton of money and stress.

I'm a bit confused by the conflicting advice here. If someone has genuinely missed filing these forms for years but there's no tax due (since minimal income was generated), which is the correct approach? 1. Streamlined Filing Compliance Procedures with 5% penalty 2. Just file delinquent FBARs with reasonable cause statement 3. File both current and back forms with explanation 4. Something else entirely? I've read so many different things and even tax professionals seem to give contradictory advice.

Has anyone tried just amending the most recent year's return to include the 8938 and filing the current year's FBAR on time, without going back to fix previous years? My accountant suggested this "go forward" approach but I'm nervous about it.

I went through something very similar about 18 months ago with accounts in the UK from before I moved to the US. The stress and confusion you're feeling is completely understandable - the maze of different compliance procedures and conflicting advice online can be overwhelming. Here's what I learned from my experience: The most important first step is determining whether you properly reported and paid tax on all the income from these accounts on your US tax returns. If you did (even if you didn't file the information forms), you're in a much better position than if you failed to report taxable income. From your post, it sounds like you may have been reporting the minimal capital gains income on your tax returns but just didn't know about the separate FBAR and 8938 filing requirements. If that's the case, you'd likely qualify for the delinquent filing procedures rather than needing the more expensive Streamlined program. The "family gift" suggestion is definitely something to avoid - that kind of restructuring specifically to avoid reporting requirements could be seen as willful evasion and make your situation much worse. Given the amounts involved ($180K), I'd strongly recommend getting a consultation with a tax professional who specializes in international compliance before making any decisions. The potential penalties are significant enough that professional guidance is worth the investment to make sure you choose the right path forward. You're taking the right steps by addressing this proactively rather than ignoring it. That alone puts you in a much better position with the IRS.

I completely understand the panic you're feeling - I discovered my own FBAR obligations about 3 years ago when I had been living in the US for 6 years with unreported accounts in Australia. The fear of those potential penalties is genuinely overwhelming at first. The good news is that situations like yours are more common than you might think, and the IRS has established procedures specifically for people who genuinely didn't know about these requirements. Based on what you've described, you're likely a good candidate for the penalty-free resolution paths that others have mentioned. A few key points that helped me navigate my situation: 1. The fact that you're discovering and addressing this proactively (rather than after an IRS inquiry) works strongly in your favor 2. The minimal income generation from your accounts supports a "non-willful" classification 3. Having legally earned and paid taxes on this money in the EU demonstrates you weren't trying to hide assets I ended up qualifying for the Delinquent FBAR Submission Procedures since I had been properly reporting the small amount of income on my tax returns. No penalties were assessed, and the entire process was much less scary than I had anticipated. Don't let anyone pressure you into hasty decisions like the "family gift" idea - that could create much bigger problems. Take time to understand your options properly, and consider getting professional guidance given the amounts involved. You're going to get through this!

I went through this exact situation about 2 years ago with accounts in Canada totaling around $150K that I'd completely forgotten to report. The panic you're feeling is so relatable - I remember lying awake at night calculating worst-case penalty scenarios! Here's what I learned that might help ease your stress: The IRS genuinely distinguishes between people who were trying to hide money versus those who simply didn't know about the reporting requirements. Your situation has several factors that work in your favor: 1. You've been filing tax returns consistently and reporting the minimal income from these accounts 2. The accounts were established before you moved to the US and contain legally earned, previously taxed money 3. You're discovering and addressing this proactively rather than after IRS contact I ended up using the Delinquent FBAR Submission Procedures since I had been properly reporting the account income on my tax returns (just missed the separate FBAR filing requirement). The process was much smoother than expected - I filed all 6 years of missing FBARs with a reasonable cause statement explaining my genuine ignorance of the requirement. The key was being completely transparent and providing clear documentation that this was an oversight rather than intentional evasion. I received acknowledgment letters for all filings and never faced any penalties. Please avoid the "family gift" suggestion - that kind of restructuring specifically to avoid reporting could be viewed as willful evasion and make everything much worse. You're on the right track by addressing this head-on. Given the amounts involved, definitely worth getting a consultation with an international tax specialist to ensure you choose the best compliance path. You're going to get through this! The fact that you're handling it proactively puts you in a much better position than you might realize.