FBAR? What Fbar?

I'm breathing out of a paper bag having just found out I (USC) was supposed to have been filing an FBAR and I could be potentially be facing huge fines. I've been trying to do some research but am feeling very overwhelmed.  I share a joint checking account with my UKC husband who is the primary on the account and we have over $10k in the account. How far back am I supposed have been filing? I've been here since 2007. To add insult to injury I haven't been filing US tax returns (stupid I know I just didn't think I had to). My returns should be pretty straight forward and I plan to file ASAP. But with this FBAR issue, am I in a lot of trouble? Should I seek professional tax help? Any advice you all could offer is appreciated.

Crikey - Am I the first person EVER to be scared about an FBAR.

Golly gosh; US jails are now full of millions of folks like me who failed to file tax returns and FBARs. Am I going to be sent there to join them soon?

Breathe - and get on with the streamlined program if you believe this has the power to cure your pain.

Step 1
Maintain use of the bag until breathing is normal.

Step 2
Once breathing is under control, find your favourite chair to relax in. Fix a drink of your choice; either a cuppa tea or something slightly stronger. Then relax.

Step 3
Once comfortable, think of the following: as Guya has pointed out, there are, or will be in the next year, possibly 1 million people who will share your OMG (Oh my God) moment. You are not alone.

First plan, don't think about an immediate resolution to the problem. You will be spending some time on this, and decisions shouldn't be taken immediately.

Step 4
You'll have to start somewhere, so possibly the first thing to do is have a look at your situation. Are there any other accounts in either your name, or joint? Have you had any other income, earned or unearned, in the last 5 years? Do you know if you are above the basic reporting levels for either filing a tax return or the FBAR for the last 6 years?

Step 5
Once you've settled down (and it may take a few days), you're going to have to do some reading. Google is your friend, and there's a lot of information out there. Not all of it is reliable, so don't jump on the first bit of information you come across. Look for articles on 'quiet disclosure' or the 'Streamlined program'. As Guya mentioned, there is an official IRS program for those in your situation. There are about 6 different ways of approaching this, starting with doing nothing (which is becoming a very difficult and financially unsafe choice). The most 'official' (the one the IRS would prefer you to use) is the streamlined program.

Step 6
Once you have an idea of what's involved, you'll have to make your first choice. Are you capable of handling this situation on your own? Many do, whichever method they choose to utilise. It's not insurmountable.

Or, if you're still feeling overwhelmed by the whole thing, perhaps it's best to enlist professional assistance. There are smaller firms in London who specialise in US/UK tax affairs who can help you. There will be a cost.

Step 7
If you were aware of your responsibilities and wilfully choose not to file, there is a programme available. If you were not aware of your responsibilities to file, then whatever you do, do not allow anyone to talk you into the OVDP program.

Come back to this site if you like when questions arise. Only Guya or one of the other professionals are qualified to make intelligent comments, but the rest of us may be able to assist you as to where to look for an answer to your questions.   

Thanks the OAP your reply was helpful. I knew I could count on the good people of this forum! I am more concerned about FBAR fines since I am also a check signatory for work- which I have to say I never even thought about having to declare since I have no financial interest. Crazy. But I will take your advice and continue to do research (which is what caused the panic). Thanks again!

As you may have discovered by now, the streamlined program concerns both your past tax omissions (the last 3 years) and your past FBAR omissions (last 6 years), and addresses both issues all under one wrapper. The FBAR issue can be benign if the interest, etc., was declared on a properly and timely filed 1040 (on Schedule B, or whatever). The problem arises when the interest, etc., wasn't declared; and if no 1040 was filed, then it wouldn't have been declared.

As for the check signatory at work, it again may be no problem. The authority to sign must be declared, but the real hurdle may be the companies willingness for you to disclose information to the IRS on the companies accounts. Read the section in Part IV of the FBAR to determine what must be disclosed.

Added: In all fairness, you should know there are risks associated with whichever solution you proceed with. There are definite risks if you decide to do nothing, but there are also risks associated with a quiet disclosure or the streamlined program. Be aware of the risk associated with your intended plan of action.