@oboero2 , Is your rental / income property owned directly by you OR is it through some kind of entity ( LLC, Partnership, corp etc. etc. ) ?
If the latter and not a self-standing entity then it may be Dis-regarded entity, in which case , yes you would need to file form 8858.
If on the other hand you are the owner of the income property , then if you use the services of an agent or a management company , the incomes and expenses are reported on Schedule-E. You do not need the form 8858. Please share more info on the exact nature of your foreign income asset --please .
I don't know of any specific penalty for not filing a form when required to other than that for " failure to file a return"
