The IRS and Canadian Revenue Agency are teaming up. In fact, the later just sent the former identifying data on 1.6 million Canadian accounts. FACTA: The Who, What, When, Where, Why WHO: An acronym for the Foreign Account Tax Compliance Act, FACTA is a U.S. law that, among other things, requires foreign nations to disclose […]
Did you just learn about FBAR filing requirements? Are you worried that you should have filed one and scared about what will happen if you don’t?
Several weeks ago, we discussed the IRS’ amnesty program for a slim sector of ex-pats and so-called “accidental Americans.” Now, EU representatives sent Treasury Secretary Steve Mnuchin a letter urging the United States to make further accommodations for people stuck in cross-border tax limbo. What are “Accidental Americans”? Analysts estimate that about 500,000 “accidental Americans” […]
People often ask: Do Bitcoin and other digital tokens qualify as foreign assets under U.S. law? Answer: Not inherently. Cryptocurrency holders who use overseas wallets and exchanges may be subject to reporting requirements and should familiarize themselves with two laws: FACTA and FBAR. Cryptocurrency as a Foreign Asset: Categorizing Tokens for Tax Purposes For the […]
Cryptocurrency and FBAR: What are the rules? Must you declare token holdings on FBAR filings? Let’s explore the issue. IRS Declares Cryptocurrency A Property In 2014, the IRS issued Notice 2014-14, which categorized cryptocurrency as property. Then, at the end of 2017, the IRS subpoenaed account information from Coinbase, a popular token wallet and exchange. […]
On May 14, 2018, the cryptocurrency trading platform Bitfinex declared that users must disclose certain information for tax reporting purposes. The exchange, which is based in the British Virgin Islands (“BVI”), announced that jurisdictional regulations require it to hand over certain financial information to the BVI government. In turn, BVI officials “may” exchange that information […]