The IRS has been on a crusade to retrieve money that's been illegally stashed in overseas accounts. So even if you have money in a perfectly legal account abroad, you need to report it or you could be in big trouble.
Failing to disclose assets exceeding $10,000 that are held in offshore accounts could result in penalties, including a fine of up to $100,000 or 50% of the account balance, whichever amount is greater.
"There are some very wealthy people who intentionally disregard the rules, but then there are those people who disregard the rules without realizing it," said Connolly. "It's better to be safe than sorry (and report everything)."
