26 U.S.C. § 6038D — Information with respect to foreign financial assets

(a) An individual holding an interest in a specified foreign financial asset during a taxable year^* must attach the information in (c) for each asset to the subtitle A tax return if the combined value exceeds $50,000 or a higher amount the Secretary^* prescribes. (b) A specified foreign financial asset is: (1) a financial account maintained by a foreign financial institution; and (2) outside such an account, (A) stock^* or a security issued by a non-United States person^*, (B) an investment instrument or contract whose issuer or counterparty is a non-United States person, or (C) an interest in a foreign entity under section 1473. (c) For an account, report the institution's name, address, and account number. For stock or a security, report the issuer's name and address and information identifying its class or issue. For another instrument, contract, or interest, identify it and give every issuer's and counterparty's name and address. For every asset, report its maximum yearly value. (d)(1) Failure to disclose requires a $10,000 penalty. (2) If it continues more than 90 days after notice, the penalty increases by $10,000 for each 30-day period or fraction after that period, up to $50,000. (e) If the Secretary finds an interest in one or more assets but the individual gives insufficient information to show their combined value, that value is treated as above the threshold for these penalties. (f) Regulations or other guidance may apply this section to a domestic entity formed or used to hold these assets as if it were an individual. (g) No penalty applies when reasonable cause and no willful neglect are shown. A foreign country's civil or criminal penalty for disclosure is not reasonable cause. (h) Regulations or guidance must carry out this section and may exempt asset classes, including duplicative disclosures, nonresident aliens, and bona fide residents of a United States possession.