Asking for my sister:
Husband opened a foreing account a few years prior to the marriage and never reported the account on FBAR or FATCA, but was required to.
The husband and wife have filed joint tax returns during these years, but the account is solely owned by the husband, and is a separate property as defined in the prenuptial agreement. Wife doesn't have signature authority nor financial interest over the account.
Wife also has no prior knowledge of this foreign account.
The husband is considering entering the streamlined program.
Is the wife subject to penalty under the law of FBAR or FATCA?
1. From our understanding, since FBAR is filed by individual so only the husband is subject to penalty, and the wife is not. But we are not 100% sure
2. How about FATCA (form 8938)? Since they filed joint returns that the wife signed, is the wife subject to FATCA penalty because of this? If yes what are the ways the wife can protect herself? And how much penalty amount for the wife? Does innocent spouse apply here?
Thanks a lot.