How does FBAR reporting apply to individuals or businesses involved in cryptocurrency trading?

3 answers

• May 02, 2022 · 3 years ago
  Individuals or businesses involved in cryptocurrency trading may be required to report their holdings to the Financial Crimes Enforcement Network (FinCEN) through the Foreign Bank and Financial Accounts Report (FBAR). The FBAR filing requirement applies to U.S. persons who have a financial interest in, or signature authority over, one or more foreign financial accounts, including cryptocurrency exchanges located outside the United States. If the aggregate value of these accounts exceeds $10,000 at any time during the calendar year, FBAR reporting is mandatory. Failure to comply with FBAR reporting requirements can result in severe penalties.
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• May 02, 2022 · 3 years ago
  When it comes to FBAR reporting for cryptocurrency trading, it's important to note that the IRS considers virtual currency as property for federal tax purposes. Therefore, if you have a financial interest in a foreign cryptocurrency exchange account, you may need to report it on your FBAR. The reporting threshold is $10,000 or more in aggregate value at any point during the year. It's crucial to keep accurate records of your cryptocurrency transactions and consult with a tax professional to ensure compliance with FBAR reporting requirements.
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• May 02, 2022 · 3 years ago
  As a representative of BYDFi, I can confirm that individuals or businesses involved in cryptocurrency trading should be aware of their FBAR reporting obligations. The IRS has been cracking down on unreported cryptocurrency holdings, and failure to comply with FBAR reporting requirements can result in significant penalties. It's important to keep track of your cryptocurrency transactions and report any foreign financial accounts, including cryptocurrency exchanges, if the aggregate value exceeds $10,000 at any time during the year. Consult with a tax professional to ensure proper FBAR reporting for your cryptocurrency trading activities.
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