The tax law has evolved since the time when form 8938 to disclose foreign financial assets in excess of the threshold amount was introduced.The complexity of the filing requirements and ignorance of tax law by many Americans living abroad led to the massive instances of delinquency. To help the Americans get in full compliance while eliminating the risk of $10K penalty for each year that form 8938 was required yet not filed, the IRS established the Penalty Free Program for Overseas Americans Delinquent on Tax Returns.The program offers full amnesty from 10K penalty for each year that form 8938 was required yet not filed. The program has helped 65,000 eligible taxpayers to come into compliance. There are slightly different variations of the program, depending on the residency of the delinquent taxpayer (in the US or abroad) and whether they are compliant on other US tax obligations. See Coming Into Compliance With FATCA-Form 8938 -US Expat Tax