The IRS Streamlined Filing Compliance Procedures assist various groups, including accidental Americans, digital nomads, and American expatriates, in rectifying unintentional failures to report foreign financial assets. Under this streamlined procedure, U.S. residents face a 5% penalty on the highest foreign asset balance, while non-residents typically incur no penalties. This process offers reduced penalties, a simplified disclosure pathway, and an opportunity for compliance.

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.