Residents report their worldwide income and file various forms regarding their foreign asset ownership and income. The tax calculation in the earlier chapters describes how a resident would calculate their tax for the year.
Here we emphasize the importance of the informational returns that disclose various data about your holdings. Almost nothing can be left out from the tax forms, whether or not such an asset generates income. Harsh penalties are applied for missing an information form, and the statute of limitations (a period during which the tax authorities are allowed to audit the return) for the year does not start running until such forms are eventually filed. Foreign entities, bank accounts, brokerage accounts, loans to foreign persons, certain crypto holdings in foreign cash gateways, and online gambling accounts that enable conversion into cash need to be reported on various forms on the tax return.
Here are the most popular ones:
Form 8938, Statement of Specified Foreign Financial Assets – lists all the foreign cash, loans, and certain entities holdings.