What report must taxpayers file if they have foreign assets exceeding $10,000?

When taxpayers have foreign financial accounts with an aggregate value exceeding $10,000 at any time during the calendar year, they are required to file the FBAR, which stands for Foreign Bank Account Reporting. This filing is specifically intended to provide the U.S. Department of the Treasury with information about these foreign accounts, ensuring compliance with U.S. tax laws and preventing tax evasion.

The FBAR is not merely an informational requirement but a crucial part of U.S. compliance pertaining to foreign assets. It is different from the FATCA Report, which is filed under the Foreign Account Tax Compliance Act; while both serve related purposes, the FBAR specifically focuses on reporting foreign bank and financial accounts.

On the other hand, Form 1040 is the individual income tax return used to report a taxpayer's annual income, and Schedule C is utilized for reporting income or loss from a business operated as a sole proprietor. Neither of these forms is intended for the specific purpose of reporting foreign bank accounts, which is why the FBAR is the correct choice in this context.