I received the following in a detailed email from my CPA. As always, get your own tax advice, but I did want to put out some information excerpted from my CPA’s email:
As part of the Hiring Incentives to Restore Employment Act enacted in 2010, U.S. citizens and resident aliens living in the U.S. and holding specified foreign financial assets with an aggregate value exceeding either $50,000.00 ($100,000 if filing Married Filing Joint, (“MFS”)) on the last day of the taxable year, or $75,000.00 ($150,000 if filing MFJ) at any time during the taxable year, must report certain information about these assets on Form 8938.
Failing to file Form 8938 when required could result in a $10,000 penalty, with an additional penalty up to $50,000 for continued failure to file after IRS notification, the IRS noted. A 40 percent penalty on any understatement of tax attributable to non-disclosed assets can also be imposed.
Just keep that in mind if you have decided to open up an account at SureTrader after Timothy Sykes recommended them.
[Edit 4/16/2012: This page on the IRS website indicates a significantly lower, $10,000 threshold for reporting foreign accounts on a different form, Form TDF 90-22.1]