I know that tax preparation fees are tax deductible in US federal taxes, but I'm not sure if the failure of FBAR and reporting international passive interest income (followed by a subsequent willingness to correct those mistakes) qualifies you to make the same deductions. If the answer is yes, do I have to forgo the standard deduction? Is there a limit to how much I can deduct? Where do I enter the deduction?
FBAR is enforced by the IRS, and OVDP is administered by the IRS, and as part of the program your tax returns will be examined. So I'd personally say that the answer is yes - treat it as part of the tax preparation fees.
If you want to deduct tax preparation fees, you can do it as part of your itemized deductions, subject to the 2% AGI threshold, so yes - you have to itemize.
It is entered on Schedule A, line 22.