In today’s globalized financial landscape, U.S. taxpayers are increasingly engaged with foreign financial institutions—whether through direct ownership, joint accounts with relatives, or even through the rental income deposited in foreign banks. Compliance with the reporting requirements for foreign financial assets and accounts is not optional. Taxpayers must abide by the rigorous requirements set forth by FinCEN for the FBAR (FinCEN Form 114) and by the IRS for Form 8938 under the Foreign Account Tax Compliance Act (FATCA).