IRS Form 8938, the "Statement of Specified Foreign Financial Assets," is used by U.S. taxpayers to report certain foreign assets under FATCA. For those living or traveling abroad, singles or separate filers report assets over $200,000 at year-end or $300,000 anytime, while joint filers report over $400,000 at year-end or $600,000 anytime. Penalties include a $10,000 initial fine, up to $50,000 for continued failure, a 40% underpayment penalty, and potential criminal charges.

IRS Form 8938, the "Statement of Specified Foreign Financial Assets," is used by U.S. taxpayers to report foreign financial assets under FATCA. For U.S. residents, singles or separate filers must report if assets exceed $50,000 at year-end or $75,000 anytime. Joint filers must report if assets exceed $100,000 at year-end or $150,000 anytime. Penalties for non-compliance include a $10,000 initial fine, up to $50,000 for continued failure, and potential criminal charges.

Digital nomads and American expatriates with foreign financial accounts must be aware of FATCA's reporting requirements. U.S. taxpayers living abroad, must report foreign financial assets using Form 8938 (Statement of Specified Foreign Financial Assets) if the total value exceeds certain thresholds. Additionally, the FBAR (FinCEN Form 114) must be filed if the aggregate value of a US Taxpayer's foreign accounts exceed $10,000 at any time during the year.

The Inflation Reduction Act (IRA) is set to bring about transformative changes in IRS operations and audit practices starting in 2025. This comprehensive legislation, aimed at curbing inflation, reducing the federal deficit, and fostering economic stability, includes significant provisions for enhancing the capabilities of the Internal Revenue Service (IRS). Businesses can expect a substantial increase in IRS audits and more rigorous enforcement of tax compliance in the coming years.