Originally Posted by AtlantaTaxExpert
The 25% penalty can be and normally IS waived under the Voluntary Disclosure Program, unless the IRS has reason. To believe you were hiding income. That does not seem to apply in your case.
Under the IRS's formal OVDI, there is NO
indication that the penalty will be waived if there was any income on an unreported account (no de minimis sum). Its only waived if there was NO ($0) income, or if all the income was disclosed. Based on the IRS's last VD initiative, it will be a very mechanical process and 'indianinusa' will be fined 12.5% of account balance if he joins the OVDI.
Its very likely IRS will not assert any penalty in this case if indianinusa just quietly files delinquent FBARs (if last year is the only FBAR to be filed, then there is no problem) and amends returns. But that is NOT the IRS's formal VD initiative.