Hi,

I am a US citizen who lives outside the US. My wife and I have been saving our money in a foreign checking account (extremely low interest) in her name for 4 years. I have filed US Federal income taxes every year since I moved away.

Recently we opened a bank account with my name on it and put all of our money in it. The amount is many times higher than the IRS $10k threshold. It is my understanding that I must include a TDF 90-22 this year along with my Federal tax filing. Could I be penalized for having not filed TDF 90-22 previously given that although the account didn`t have my name on it until this year, it has been saved income?

Form TD F 90-22.1 Report of Foreign Bank and Financial Accounts is not filed with your tax return. It is filed separately.

If your wife is also citizen or resident of U.S. she is required to file Form TD F 90-22.1. She is also required to report the interest income on her tax return or on joint tax return.
Sorry I do not have answer to your question.

If you had financial interest in that account, you were required to file the form.
Even if the account wasn't in your name but the money was yours and your wife was acting on your behalf. See here for the definition of financial interest:
http://www.irs.gov/businesses/small/article/0, id=159757,00.html#definition3

You can e-file the form here:
http://bsaefiling.fincen.treas.gov/main.html

file the Form TD F 90-22.1 for both you and your wife for all of the years you had the foreign accounts, going back as far as 2005. Put a cover letter on each filing stating:

1) that you were unaware of the requirement.

2) that you reported the interest on these accounts, clearly indicating there was NO INTENT to hide assets.

3) that you will file the Form TD F 90-22.1 annually in future years.

4) that you request a waiver of all penalties.

Submission of these forms late will probably be accepted by the IRS at face value with NO assessment of penalties. While this is NOT guaranteed, this is the most likely result of your late submission.