If you have worked overseas or are an immigrant or otherwise a reside of the US, you may be unwittingly in violation of this law, and at risk of penalties so ex

If you have worked overseas or are an immigrant or otherwise a reside of the US, you may be unwittingly in violation of this law, and at risk of penalties so extreme that it defies belief. In some countries your employer is required to open and contribute to a retirement fund similar to a 401(k). In Canada, it's called an RRSP, in Australia, Superannuation. If you have such an account, it's considered a foreign account and subject to FBAR - nevermind that you can no longer contribute to it, or benefit from it until you are at retirement age. In some cases, the law in the foreign country prevents you from closing or withdrawing from this type of account until you are at retirement age. If you forget to report one of these accounts, or had no idea that you were supposed to report it, you face a $100,000 fine, seizure of the account, and jail time. If you cooperate with the IRS you might "only" lose the account. This law was designed to target off-shore tax shelters, but the way it was written, the definition of "account" is vague, and the threshold levels so low that it affects millions of people. There is simply no justification for a law this broad and sweeping which such harsh penalties - it's an example of legislative overreach if I ever saw one.