The IRS announced in January the reopening of this program. For the new program, the penalty framework requires individuals to pay a penalty of 27.5 percent of the highest aggregate balance in foreign bank accounts/entities or value of foreign assets during the eight full tax years prior to the disclosure.
Assuming that the highest aggregate balance (foreign currency) was in
2008, must the exchange rate of that particular year be used in order to convert to U.S. Dollars and pay the penalty, or can a more recent one be used?