Ans. The US taxpayers holding financial assets outside the US need to report those assets to the IRS. This reporting requirement in Form 8938 - Statement of Specified Foreign Financial Assets requires US taxpayers with specified foreign financial assets that exceed certain thresholds to file this form along with their federal income tax returns.
Examples of financial accounts include (list not exhaustive):
Savings, deposit, checking, and brokerage accounts held with a bank or broker;
Stock or securities issued by a foreign corporation;
A note, bond or debenture issued by a foreign person;
An interest rate swap, currency swap, basis swap, interest rate cap, interest rate floor,
commodity swap, equity swap, equity index swap, credit default swap or similar agreement with
a foreign counterparty;
An option or other derivative instrument with respect to any of these examples or with respect to
any currency or commodity that is entered into with a foreign counterparty or issuer;
A partnership interest in a foreign partnership;
An interest in a foreign retirement plan or deferred compensation plan;
An interest in a foreign estate;
Any interest in a foreign-issued insurance contract or annuity with a cash-surrender value.