Questions about unfiled forms T1135 and VDP
I did not file taxes in 2021, 2022, and 2023. I did not have income but I did have 100k+ cost basis in US stocks. So I had to file form T1135 those years. Now I may be on the hook for 7500 in penalties if I file those years.
Is the proper procedure to file these years now, mark "No" on the foreign property 100k question, and then file a VDP telling them I made a mistake?
Will I be asked to pay the penalties right away while they process the VDP? I don't have 7500 to pay them right now. I would greatly appreciate any guidance