I have new clients (Taxpayer and Spouse) and they informed me that they have not filed the FBAR for a CD that has a USD value over $10,000 since 2015. They also informed me that they each have a Superannuation Fund over $10,000 USD and have not reported this as well.
I am currently in the process of following Streamlined Domestic Offshore Procedures (SDOP) but my client is telling me that I do not include the Super in the 5% penalty calculation. They forwarded me a comment from another CPA that says, "As you may recall, the Australia-USA has a tax treaty and I exempt it through proper disclosure statements on the tax returns and streamlined submission documents. I've been processing Super's through this process for several years and they been accepted."
Do you agree with the CPA that the Super does not get included in the penalty calculation? Has anyone else exempted it with "proper disclosure statements". If yes, what is the disclosure statement?
I am currently in the process of following Streamlined Domestic Offshore Procedures (SDOP) but my client is telling me that I do not include the Super in the 5% penalty calculation. They forwarded me a comment from another CPA that says, "As you may recall, the Australia-USA has a tax treaty and I exempt it through proper disclosure statements on the tax returns and streamlined submission documents. I've been processing Super's through this process for several years and they been accepted."
Do you agree with the CPA that the Super does not get included in the penalty calculation? Has anyone else exempted it with "proper disclosure statements". If yes, what is the disclosure statement?