Many of the required disclosures are informational reports, with no impact on your tax situation. But some disclosures can have a tax impact. Either way, the IRS places a high priority on these informational reports. Why? Because the IRS has routinely found high error rates in the tax returns of US taxpayers with foreign assets and income. By forcing taxpayers to report on their foreign ownership, the IRS has a mechanism to identify where these same individuals may be under-reporting their taxable income.