US citizen with mexican bank account?

If a US citizen has an investment account in Mexico that pays interest do you have to report this to the IRS, if not what happens? But if you have dual citizenship and pay taxes in Mexico does this affect?

A US citizen is required to disclose all interests in foreign-based investments, including bank accounts and real estate. You must declare all your income to the IRS, whereever it originates. If you are required to pay taxes locally on the income, then you can usually offset that against the tax you owe in the US.

Failure to disclose is a serious offense, and you can expect heavy fines or even jailtime if large amounts are involved.

1) Yes.
2) If you are arrested for tax evasion in the United States of America then you could go to prison for decades.
3) You need to pay taxes to Mexico AND to the United States of America.

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