So I am interested in some foreign investments in foreign markets. I would also like to have a small contingent of money stored in an offshore account that is "off the grid" and sort of tucked away. I would want this contingent of money in a currency other than dollars (yet to be determined) in case of some sort of financial crisis with the dollar.

I have a few questions: First, I am assuming I would have to report the investments to the IRS to be in compliance. That is assumed. I want everything legal. Im not interested in a $600,000 tax for a few thousand stored overseas.

Heres my next question: If I were to have a separate savings overseas, with cash just sitting in that account, would I have to report it to the IRS? By all means I have NO INTENTION of doing anything legally, but at the same time I am skeptical of government and what I have seen the IRS do with peoples bank accounts. I want something safe where they can't touch. I know about the option of having something hard currency like gold tucked away. Thats already in the works. Im looking at this option, so please only give answers that are relevant to my question, and PM me other ideas or suggestions.

Again, I don't want to do anything ILLEGAL. I FULLY INTEND TO COMPLY WITH US LAWS. Im not trying to have "offshore non taxed accounts". This has nothing to do with tax savings, but financial security for a domestic crisis or dollar failure.

Ok so I just answered part of my question: I have to report all accounts. Question: Can the IRS freeze these accounts or seize funds for any reason?

The other question you need to ask is ....can the foreign govt take your assets just because, or because you are a foreigner, or when there is change/coup in the govt ?

Excellent point.

I have a foreign bank account with a small balance for convenience when I'm visiting. I report it every year when I file taxes and have never had a problem.    

You have two issues here which I don't think you realize.

Your faith in the FDIC

Your Faith in the US dollar.

They are not necessarily mutually exclusive.

Care to explain?

You said you want the money to be deposited in another currency in case the dollar goes tits up, you also said that you don't want to hold foreign currency in a doestic bank.

So, that's two separate issues, purchasing power of the U.S. Dollar and the credit worthiness of banks on U.S. soil.

What currency you wanted to buy? Have you looked at exchange rates? Trying to do some amatuer arbitraging?

I was thinking of Swiss Francs. Low inflation, stable currency, nation isn't in debt, growing economy.

Just a few notes to keep in mind:
*Any income generated worldwide by an American citizen is taxable in the U.S.
*Many countries have their own income tax.  You will have to pay income tax in these countries.  Several countries have tax treaties to prevent double taxation (you get a credit on your U.S. tax bill for amount paid to a foreign government), several do not.  Which country you choose matters.
*Most foreign banks in "friendly countries" will not do business with American citizens because of IRS regulations and reporting requirements.  It's just not worth their time.  They will work with anyone worldwide, but as soon as they find out that you are American be prepared to be rejected.

The law of one price is going to hurt your idea, also do you plan on living in Switzerland and only spending your money there? If not, you will still have exchange risk.

LOP is great economic theory, but in reality there are arbitrage opportunities that arise as a result of the short-term irrationality of buyers and sellers in the marketplace.  The real question is can you take advantage of those opportunities net of transaction costs and can you get to the opportunity before someone else can.  

OP, why do you want to invest directly in foreign markets?
Do you feel like your ability to invest being based in the US is restricting you from investment opportunities that you would not otherwise be able to take advantage of but for not being able to invest locally in foreign markets?

that was my whole point, the retail investor doesn't have the channels to do that. You as a trader can.