40% accuracy related penalty Section 6662(a) and (j)‏ anyone ?

Income tax penalty related to foreign asset noncompliance where the base is the income, not the amount in the account. 
 Keep in mind, however, that that penalty applies only to years 2011 and forward. So earlier years are not subject to that penalty.
You may have to pay an accuracy-related penalty if you underpay your tax if, among others:
1. You showed negligence or disregard of the rules or regulations.
2. You substantially understated your income tax.
3. You claimed tax benefits for a transaction that lacks economic substance.
The penalty is 40 % of any portion of the underpayment that is attributable to an undisclosed noneconomic substance transaction or an undisclosed foreign financial asset transaction.- but it is were just deposits directly held in a foreign bank, obviously intended as an economic transaction, that penalty should not apply. Further the 20% and 40% accuracy penalty are not cumulative.

In 2010, Congress included within the accuracy related penalty provisions a penalty for “any undisclosed foreign financial asset understatement. I discussed above contemporaneous enactment of a requirement that individuals disclose their foreign financial assets on their tax returns, and this requirement somewhat overlaps the information requirement for the FBARs (which are not tax return forms and are not required by the Internal Revenue Code). There is now a separate Code penalty just for failure to provide the information, but if there is an understatement with respect to “any transaction involving an undisclosed foreign financial asset,” an accuracy related penalty of 40% applies. This penalty applies not only to the new required Form 8938 for return disclosure for foreign financial assets, but also to certain other information disclosures for foreign activities. The effective date for this provision is for taxable years beginning after the date of enactment (taxable year 2011 for most individuals).
The footnote for last paragraph is: "§ 512(b) of the HIRE Act (FATCA provisions)." Generally penalties are not made retroactive to years earlier than the legislation enacting the penalty. (By contrast, the 6-year statute of limitations for failure to report income related to foreign assets (Section 6501(e)(1)(A)(ii)) did have a retroactive date to cover all open years at the time of enactment. But, so the notion is, that is just a statute of limitations and not a penalty.