Hi, I have filed US taxes every year since 2004 but foreign interest income was not reported in my return. Interest is only income nothing else. Principal was transferred from US only. Also FBAR were not filed.

I wanted to clean this up by paying back taxes etc. While doing research I see 2 options:

1. Streamline program – 3 years amendment and 5% penalty on max balance

2. File 1040 amendment for last 3 years (quiet disclosures)

Streamline program looks good to me but 5% penalty is deal breaker as big amount was transferred 3 years back to make a flat purchase but it did not happen. Beyond 5 years..there was not much balance in my account. Hence I am inclined towards quiet disclosure but want to understand risks associated with it. Talking with CPA / Attorney did not help much so want to know from this forum. If u were in similar situation .what u did and experience with it.

Also if u decide to go with QD, filing last 3 years are enough or I should amend for more years say 5 years. Please let me know as well.