I am Australian citizen with us residency (1995). I have a PSS Superannuation from my time with Australian govt. I resigned from there Nov, 1991. I put no contributions etc since resignation.. just earning interest from what is in there. Currently at 137K Australian $. I also have Australian inheritance in a commonwealth Saving Bank account. I am executor of the will. 50% of money is mine, other 50 is divided to my 2 children (16 and 18). We (my wife -US citizen) file joint US tax form every year.

We declared Commonwealth Bank account in schedule E, amount, interest, Australian tax paid (10% by bank) etc and paid whatever US taxes. Just found out about FBAR!! HELP. Seen multiple US attorneys.. charging about 10K to help. They say I will face 27-30% penalty from IRS on Superannuation amount (40K) as not reported in FBAR. If I go OVPD..if I opt out, pay 20K extra in attorney fees. However, they say Super is a grey area. I have no access to this money ( I believe I can now take the $ as i just turned 55). Based on their scenario, after penalty taxes , conversion rate, IRS penalty and attorney fees.. I have no Super left. I need help on this