Those that end up owing the IRS huge sums for capital gains when selling an investment apartment outside the US often revert to this thought process.

Those that end up owing the IRS huge sums for capital gains when selling an investment apartment outside the US often revert to this thought process.

1) Do they REALLY know that I sold a property abroad?

OK, they do know my foreign bank balances due to FATCA laws.....but will the transaction REALLY be automatically flagged?

2) So I won't file an FBAR report or FATCA form 8938......I hope they won't charge penalties for either non willful or willful evasion. (Penalty amounts of $16k or $100k or half the max bank balance of the year)

3) I can't honestly file my tax return while omitting all these things.....so maybe I'll just delay, and delay, and delay and put my head in the sand. Then delay some more. 

4) Oh no, I have a trip to the US coming up. Will I be arrested at the airport? [quickly call accountant], whew, he said they probably won't, we'll see what to do when I get back [sweating buckets while waiting in passport control line in JFK, nervously looking to see where the detention room is and making a worst case plan for the family if detained].

5) If I file and tell them about the gain, maybe they won't accept any CNC (currently not collectible status) or PPIA (Partial payment installment agreement)?? The accountant fees aren't easy either.....

6) Receives notice from IRS....Oh No, I'm being extradited!!! Whew, it's only a notice to file my delinquent tax return, nothing about jail or tax debt.

7) I have to finally get things in order once and for all...[call accountant].