I do not understand the purpose of form 90-22.1 (foreign accounts).

It says to report foreign accounts if their aggregate value is >$10,000 .( I have a GC, so I have to report my worldwide income ). But, in Schedule B for form 1040, one just mentions " yes, I do have a foreign bank account in a given country". (it does not ask how much interest was made, so it does not include it in the taxable interests)

However, it does not say how much tax one would have to pay.
Does that mean one does not pay taxes on foreign interest ( but then, why bother the paperwork ? ?! (just kidding)). Or does that mean that one receives a bill later ?

For example:
let's say one has two accounts: 5,000 + 10,000 =15,000 > 10,000 => has to file the form.
this persons fillsout the form and sends it to Detroit, MI ( see instructions).
And then, what happens ?

Thanks for your inputs.

AtlantaTaxExpert

Cateyes:

The form is used to help the IRS track worldwide income. If you check off the Yes by the Foreign bank account question, it informs the IRS to look via other means for your account information in those foreign bank accounts.