What is the consequence for not filing Form 8938 after an IRS notice of failure to disclose?

The consequence of not filing Form 8938 after receiving an IRS notice of failure to disclose is a monetary fine. Form 8938 is used by certain individuals to report their specified foreign financial assets as part of their annual tax return requirements. When the IRS sends a notice regarding a failure to disclose, it indicates the importance of compliance with this requirement.

If an individual does not comply following the notice, they can be subject to significant penalties. The IRS imposes fines for each month the form is not filed, with a maximum penalty cap. This serves as an incentive for taxpayers to report their foreign financial assets accurately and to adhere to the compliance requirements established by the IRS. This penalty structure underscores the seriousness with which the IRS views the disclosure of foreign assets, which is part of broader efforts to combat tax evasion.

In summary, the correct answer highlights the specific financial repercussions, emphasizing the importance of timely and accurate reporting to avoid costly penalties.