(1) What the IRS can’t know unless you tell them can’t hurt you.
A common mistake in dealing with government bureaucracies is fastidiousness. This is more likely to happen if you engage a tax compliance condor than if you prepare your own taxes.
For example, the IRS requires that a US taxpayer in Canada report TFSA (tax free savings accounts) and RRSP (Registered Retirement Savings Accounts)–which have been excluded from FATCA reporting requirements in the IGA negotiated with the government of Canada. There is therefore no way that the IRS can know about these accounts, and I would not report them unless one has already declared them to the IRS.
If you engage a condor (a cross border accountant or lawyer), she will likely require a fastidious obedience to the most up-to-date IRS bulletins and Internal Revenue Manuel rulings, etc. You may have to argue with them in order to not report something. I recognize that this may create a war.
About: Petros is the pen-name of the founding administrator of the Isaac Brock Society. He has started this series of Petros Principles as a means of communicating the guiding principles which he believes have helped him and others deal with the United States’ world-wide tax invasion.