Fairplay, it seems to be working now. Perhaps because I am stressed I missed it. Mea culpa, mate. This has been a big learning curve for me, and I've learned a ton from this forum over the last couple of day. I'm tired because this is all I have been doing, and appreciate your follow up. Cheers.

I'm glad it's working now for you. .... I'm sure we'll hear from you again if you're still having problems?

Apologies. I suffered a panic attack. I do appreciate all the help, really.

It may help to assist that as dually US and UK qualified accountants we have successfully prepared many, many SDOP filings in very similar circumstances. A few key points:

1. The 5% penalty is calculated based only on the 31 December values. This is not the same values as reported on an FBAR and Form 8938. The penalty calculations can often be complex, but this depends on the nature of UK assets
2. All existing UK pension plans will need to be disclosed
3. All existing ISAs will need to be disclosed. If there are PFICs in the ISAs, there are special rules for calculating PFIC tax if any PFICs were acquired before moving to the US
4. The previous tax preparer was negligent if they knew you had moved to the US but failed to ask about UK assets and mention foreign reporting. This will help the non-wilful argument
5. Non-wilfulness is a far lower standard than reasonable cause (these 2 concepts are frequently seen as the same thing, which they are not). The circumstances described are typical, and extremely low risk

Thank you.
What if there is a total of one pound's worth of interest on a defunct savings account over the last three tax years?
What if there is approx.100 pounds' worth of interest from 6 year's ago (total asset obviously reportable on FBAR)? Is this period exempt from 8938 since only the last three years' need to be filed?
It would seem to be madness to have to change income tax filings on this amount.

I suffer from multiple illness and conditions that have been flared up due to all this news - this is crazy

The broad outline described in the question in common. There are insufficient details to know how to approach the IRS. These are issues to discuss with a dually US and UK qualified accountant.

del

It is only possible to amend the prior 3 years tax returns. Therefore all you can do is correct the prior 3 years. Since there is no statute of limitations on Form 8938 until it is actually filed (and then it is 3 years after that date) that leaves that issue out there indefinitely. The only way I know to resolve that is to use the SDOP program with the 5% penalty.

Unfortunately, it does not matter how much tax was unpaid on foreign accounts, it was either fully paid or not paid regardless of the amount, and if there is any unpaid tax then the SDOP program is the only way you are going to get 100% assurance that this matter has been resolved. There are other ways to handle this situation but they all involve some risk. You are clearly someone who needs resolution of this issue and the penalty is the price you pay for being able to sleep at night, and from that aspect it is priceless. Yes, it’s unfair and somewhat harsh but it is what it is and nothing is going to change that so best to focus on moving forward.

You need to contact a CPA. Google CPA and the name of your town, I live in a town with a population of less than 20,000 and doing so identified numerous CPAs in close proximity. If you find none, Google again on the nearest city, or in fact any city since it can all be done remotely. Don’t focus on FBAR or FATCA in your search, just focus on CPA. There are thousands of CPAs out there. An international tax preparer can certainly help you but will cost a lot more than a domestic CPA. If you are unable to make international phone calls, create a list of candidates so that you can start calling as soon as you get back. Ask them if they have experience in FBARs and Form 8938, if not ask if they can recommend anyone and move onto the next on your list. You will find someone with this methodology. Your situation is not at all uncommon. It is extremely unlikely that a few weeks between now and your return will make any difference whatsoever to the outcome.

Thank you, Glasgow Girl.
Is the SDOP taken from the year end aggregate over the last 3 years or 6 years?

They will identify the highest aggregate amount for each of the years that there is delinquent reporting, up to a maximum of the prior 6 years, and calculate the penalty as 5% of the aggregate balance of the single year with the largest value. In your case at least 6 years are delinquent and therefore they will go back 6 years. So for example if highest balances in the prior 6 years were $100,000, $150,000, $98,000, $120,000, $125,000, $115,000 then they will select $150,000 as the basis for the penalty, take 5% of that and the penalty will be $7,500.

However, if you really only have one pound of undeclared interest in the prior 3 years then you should look at your previous tax returns and determine if there is any way you can adjust either your income or (more likely) deductions or find a tax credit (foreign tax credit being the most likely) such that when you add a couple of dollars of foreign income your tax bill does not increase. If you paid tax in a foreign country you may well have a tax credit that will achieve this. If you can do this you would be eligible for the no penalty program. A CPA can look through the details and advise.

Either way, you need someone knowledgable to look at your specific situation. You should do what you can online can to gather details of potential CPAs. Likely you can make initial contact online or via email with some of them and at least get started. With minimal undeclared interest and unpaid tax you are very unlikely to be a person of interest to the IRS therefore as I said earlier waiting a few weeks to get the ball rolling is extremely unlikely to change the outcome.

Just FYI, it is easy to make cheap calls even if you are out of the country. You can use an app and make calls on your phone with that. Skype was the one that everyone used but that has gone now, We use Yolla at the moment - it is cheap and simple to use.

The SDOP penalty is calculated based the highest value of the 31 December valuations for the last 6 years that are overdue, but there can be exceptions for some kinds of financial assets. You'll want to make sure your selected accountant has done several dozen of these and is familiar with UK investments and pension plans. The penalty calculations are often decently complex and not intuitive,

I remember this fear well. Speak with a reputable CPA who can help you navigate.

Once you are compliant you will feel a lot better.

That made me feel better. I appreciate the sentiments.