Tax Notes | Foreign Cryptocurrency: U.S. FBAR and FATCA Reporting Requirements

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Tax Notes

Foreign Cryptocurrency: U.S. FBAR and FATCA
Reporting Requirements

By Evgenia Belyavskaya, EA, Partner
 

While U.S. individuals and businesses have long dealt with Foreign Bank and Financial Account Reporting (FBAR) and Foreign Account Tax Compliance Act (FATCA) reporting requirements relating to foreign bank accounts and certain foreign assets, one area that still may be confusing to many is the treatment of cryptocurrency. Given cryptocurrency’s novel status, how does it fit into these rules? Does it need to be reported? Could the current rules be in for a change?
 

Cryptocurrency has been excluded from FBAR requirements to date. However, with the recent proposed regulations, FinCEN (Financial Crimes Enforcement Network) is looking to include foreign cryptocurrency accounts in FBAR reporting. An example of such holdings may include Bitcoin, Ripple or Ethereum that are held in the accounts outside of the United States.
 

Read on for more information about how the changing standards could affect your reporting.

Contact Us

Our International Tax Group at PKF O’Connor Davies is available to assist with U.S. tax compliance of cryptocurrency foreign assets or any other delinquent U.S. tax filings related to foreign digital currency holdings. For further assistance, please reach out to your PKF O’Connor Davies client service team or Evgenia Belyavskaya at [email protected].

Our Firm provides the information in this e-newsletter for general guidance only, and it does not constitute the provision of legal advice, tax advice, accounting services, or professional consulting of any kind.

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