FBAR, Not FUBAR, But Still….

In the Army, FUBAR means F*&ked Up Beyond All Recognition.

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But FBAR to the Internal Revenue Service means Form 114, Report of Foreign Bank and Financial Accounts. And if you own cryptocurrency held on a foreign digital exchange, you may have wondered if you needed to file this form with your 1040.

The good news according to FINCEN is that the IRS views cryptocurrency as an asset not a currency/money.

However, the Treasury Department says Stay Tuned, because if the digital asset is a “stable coin,” that view may change.  So, some tax advisors (I’m not one) suggest that you file the Form 114.

In addition, if you hold more than $50,000 of foreign financial assets, under the Foreign Account Tax Compliance Act, you are likely required to file Form 8938, Statement of Specified Foreign Financial Assets.

Don’t forget that there also may be income tax consequences on your cryptocurrency trading.

 

Thanks to Frost & Associates: https://www.districtofcolumbiataxattorney.com/Articles/Are-Virtual-Currencies-Held-in-Foreign-Exchanges-FBAR-Reportable.shtml?utm_medium=email&utm_source=September+2019&utm_campaign=Newsletter&utm_content=43726DutyMorning&utm_term=ema9New

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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