i. It is mandatory to disclose information to IRS relating to foreign bank accounts details, assets, and Mutual Fund transactions
ii. Form 114 [FBAR] is the form which is used to disclose the information relating to foreign bank accounts. Though it is an informational form only, penalty will be charged in case of failure to report
iii. Form 8621 – Sale transactions from Mutual Funds will be reported in this form and gain will be considered as other income in Form 1040.
iv. Form 8938 – Based on the threshold limit, it may be required to file this form. If all the information already got filed in Form 8621 then it is enough to specify the form filed details in this Form 8938
v. The penalties of non-reporting or not complying to above requirements is stiff, and includes both a monetary penalty and jail time