Ah, I see. It's the word "specified" in the expression "specified foreign financial asset" which is causing me confusion. Say that RRSP foreign financial assets= $20,000, and non-RRSP foreign financial assets= $55,000. Is RRSP considered "one" specified foreign financial asset (since it's tax differed), and non-RRSP considered a "second" specified foreign financial asset (which is taxable)? That's how I assumed the meaning of "specified" (i.e there are 2 groups of financial assets, one taxable, and another tax differed, each with separate threshold), so only non-RRSPs were reported in 8938 as it was that portion >=$50,000. Was I correct or incorrect?
If incorrect, I see there is a way to (hopefully) get a reasonable cause exception through a "disclosure". Does "disclosure" mean to write a letter to IRS and put into along with my income tax returns explaining my incorrect assumption? Also, would it be effective I write the letter myself, or need a tax professional to write on my behalf? (All FBARs have been filed correctly with all RRSP and non-RRSP accounts)
