u/Firm_Impression5911

I am an accidental American, living in a country with a US tax treaty. As such, banks here are obligated to report my financial info to the IRS.

Having found out all too late that I should have always been filing US taxes, I am currently putting my SFOP together to get compliant.

However, I just got sent a due diligence form by my bank, asking questions like "are you liable for taxation in any other countries." This form is due very soon. I doubt I'll have the SFOP done in time.

Is there a chance the bank will alert the IRS to my tax non-compliance and create an investigation (possibly incurring insane FBAR penalties) before I can get the SFOP in?

U.S. citizen by birth, never lived there.

Now learning I should have been filing U.S. tax returns all along. Oops.

I make about 70k a year. My country of residence (Iceland) has a higher income tax than America.

Want to catch up and make things right.

However, I put a book I wrote up on Amazon kindle publishing with my TIN. It was a very complicated, confusing process, basically I thought they would charge me withholding tax and I wouldn't have to worry about it.

A very small amount of royalties have trickled in during that time, a grand total of about 700 USD from 2022-2025. I'm looking now and the withholding rate was actually zero all that time.

Presumably I'll owe some taxes plus interest on these royalties. No problem. My concern is that my use of my TIN on Amazon will disqualify me from SFOP and the non-willful part, or at least make them less likely to believe me when I say that I thought I was not liable for U.S. taxes.

Any advice would be appreciated.