Key takeaways:

• New Form 8938, which must be attached to the annual tax return of certain individuals who hold interests in specified foreign financial assets, may require disclosure of many ordinary and innocuous compensation arrangements -- even for individuals employed in the United States.
• Individuals who fail to report foreign financial assets as required may be subject to adverse tax consequences, including the imposition of fines and the tolling of the statute of limitations for the tax year to which the information relates.