The IRS is very diligent when it comes to enforcing tax laws. It is particularly concerned that all earnings are reported, and that federal income taxes be paid on all earnings - even money earned outside of the United States. Failing to report international income can result in fines and penalties, as well as criminal charges.
The IRS has added four more foreign financial institutions to its list of "Foreign Financial Institutions or Facilitators." Those who had accounts at one or more of these institutions are required to pay an increased penalty of 50% if they wish to participate in the Offshore Voluntary Disclosure Program (OVDP). The list is expected to continue to grow as the U.S. government continues its ongoing investigations of offshore tax evasion.