International tax compliance involves mandatory reporting of foreign bank accounts (FBAR), foreign assets (FATCA), foreign trusts (Form 3520), and foreign income to the IRS — and penalties for non-compliance are severe, starting at $10,000 per violation for FBAR and potentially reaching 50% of account value for willful violations. Multiple IRS programs exist to come into compliance, including the Streamlined Filing Compliance Procedures for non-willful violators. Neil Jesani Tax Resolution's international tax team, including former IRS agents from the Large Business and International division, helps clients navigate disclosure options while minimizing penalty exposure and eliminating compliance risk. Key Takeaways The United States taxes its citizens and residents on worldwide income , regardless of where it is earned or where accounts are held FBAR filing requirements apply to anyone with foreign financial accounts exceeding $10,000 in aggregate at any point during the year FATCA reporting on Form 8938 adds another layer of disclosure requirements for specified foreign financial assets Penalties for non-compliance can be devastating: up to $100,000 or 50% of account balance per violation for willful FBAR violations The IRS Streamlined Filing Compliance Procedures offer a path to come into compliance without tax exposure for non-willful taxpayers Working with an experienced international tax defense team is essential to navigating these complex obligations Understanding US Tax Obligations on Worldwide Income International tax compliance is a critical area of tax law that affects millions of US taxpayers. Whether you are a US citizen living abroad, an immigrant with financial connections to your home country, a business owner with international operations, or an investor with foreign holdings, understanding your US tax obligations on worldwide income is the foundation of compliance. The consequences of non-compliance have never been more severe, and the IRS has never been better equipped to detect violations. The United States is...