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If you are an US citizen or US resident for tax
purposes - you will report all your worldwide income - regardless if that income is earned in the US or abroad.
In additional you should report a foreign account by
(1) completing boxes 7a and 7b on Form 1040 Schedule B - http://www.irs.gov/pub/irs-pdf/f1040sb.pdf .
(2) you are a subject of FBAR reporting if a foreign account value is above $10,000. The form to use is TD F 90-22.1 - this form is mailed separately. There is no tax associated with these reporting.
(3) you need to file form 8938 - if your amount is more than $50,000 www.irs.gov/pub/irs-pdf/f8938.pdf - that form is attached to your tax return.
The Foreign Account Tax Compliance Act (FATCA) is an important development in U.S. efforts to improve tax compliance involving foreign financial assets and offshore accounts.
Reporting is required if you have an interest in specified foreign financial assets. A specified foreign financial asset is:
-- Any financial account maintained by a foreign financial institution, except as indicated above
--Other foreign financial assets held for investment that are not in an account maintained by a US or foreign financial institution, namely:
- Stock or securities issued by someone other than a U.S. person
- Any interest in a foreign entity, and
- Any financial instrument or contract that has as an issuer or counter party that is other than a U.S. person.
Financial interest: you are the owner of record or holder of legal title; the owner of record or holder of legal title is your agent or representative; you have a sufficient interest in the entity that is the owner of record or holder of legal title.
Signature authority: you have authority to control the disposition of the assets in the account by direct communication with the financial institution maintaining the account.
If you a custodial for the minor - you need to file the form for the minor as a holder of legal title and for yourself - because you have authority to control.
See for reference
Let me know if you need any help or clarification.