Coming clean to the IRS: what is the best way?

 

US citizen living in the UK....I've just realized that I've made a few mistakes over the past few years concerning my reporting to the IRS:  I was never reporting my workplace pension on my FBAR or via Form 8938.  In addition, I never reported the mutual funds I owned inside of the pension as PFICs, which it seems like I also have to do, even though this topic is controversial?

I am virtually certain that this did not result in my not paying the IRS a single dollar it was owed, but regardless, I am still delinquent in my reporting.  It would be next to impossible to prove that what I did was done with the intention of evading or avoiding taxes, which is their primary objective.

What do you think is the best way to handle all of this?  Just submit amended forms, along with a letter?  OVDP?  Streamlined procedures?

Thank you.

I don't know.  The IRS no longer has a presence in the Embassy and their phone contact numbers are "not toll free" so it is hard to get questions answered.

I just had a "notice" from them saying they wanted more information on my last return.  Think it's because I stupidly messed up the figure for the standard deduction!  Won't be a big deal I'm sure but if I can't satisfy them in 20 days there may be penalties.  Ridiculously annoying.

If it's just FBARs, I would submit amended forms and a letter of explanation. The FBAR in and of itself does not attract a tax liability, and is not part of your tax return. You may or may not have needed to file Form 8938 with your 1040.

In my opinion, you will only need to file amended 1040s and schedules if you under reported income or need to add the 8938. I'm not a tax advisor or professional, so that's just an opinion.