IRS guns are aimed at taxpayers who conceal income earned in offshore accounts.
Check “yes” on Schedule B of Form 1040 if you have an offshore account and enter the name of the country in which the account is held.
File Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, by June 30 each year with the U.S. Treasury (the address is on the form) if the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year. There are no filing extensions for this form.
Use a voluntary initiative program to make disclosures about accounts in prior years if you have not already done so; the program will reduce the penalties you face.