The US Congress passed the Hiring Incentives in October 2010, to Restore Employment (HIRE) Act, which also created new tax reporting requirements for holders of foreign assets.

Though it appears that "Form 8938 is similar to the FBAR, however it applies to a wider range of foreign assets with a higher dollar threshold. Per the assets covered include all your foreign financial accounts and other financial assets you hold for investment, including foreign stocks, bonds, mutual funds, foreign hedge funds, private equity funds, foreign trusts and estates, and interests in privately held foreign entities.

According to the IRS, the threshold amounts vary according to your filing and residence status:

1. If you are unmarried, or married filing separately, you must file if the value of all your specified foreign financial assets exceeds $50,000 at the end of the year or $75,000 at any time during the year. If you live abroad, the thresholds are $200,000 and $300,000 respectively.

2. If you are married filing jointly, you must file if the value exceeds $100,000 at the end of the year or $150,000 at any time during the year. If you live abroad, the thresholds are $400,000 and $600,000 respectively.

"Furthermore, the penalties for failing to file Form 8938 are quite significant, but not quite as bad as those you face with an FBAR failure to file. The basic penalty is $10,000 per year but goes up to as much as $50,000 per year if you still don’t file the form after receiving an IRS notice.

In addition, a 40% accuracy related penalty and a 75% fraud penalty can also apply if you underpaid tax on income you should have reported."

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