Close

Tax News

Cryptocurrency and FATCA

Share this article...

Cryptocurrency and FATCA

 

What are the FATCA Tax Reporting Requirements?

Under the Foreign Account Tax Compliance Act (FATCA), U.S. taxpayers who meet certain thresholds of money and assets in overseas or offshore bank and financial accounts are required to make a disclosure each year on Form 8938. For unmarried couples, the threshold is $50,000 or more on the last day of the tax year or more than $75,000 at any time during the tax year. For those who are married filing a joint return, the thresholds are $100,000 or more on the last day of the tax year or more than $150,000 at any time during the tax year. If you are married filing separate income tax returns, the thresholds are $50,000 or more on the last day of the tax year or more than $75,000 at any time during the tax year.

Must Cryptocurrency Be Reported Under FATCA Requirements?

FATCA applies to all foreign assets, so the question becomes whether a personal account on a foreign crypto exchange counts or in some other foreign financial or banking institution counts as a foreign asset. Tax experts and lawyers have made arguments both ways, but the IRS has given no clear answer or directions. While they have not officially said that crypto wallets or accounts on foreign exchanges count as foreign assets, they also have never said for certain that they do not count. As such, most attorneys and CPAs are likely to advise you to disclose this information on Form 8938 just to be safe and to prevent any potential headaches down the line.

If You Have Cryptocurrency Stored in Foreign Exchanges or Accounts, Call Our Knowledgeable Tax Attorneys Today

Because cryptocurrency is technically an internet currency with no real physical home, the rules regarding whether or not it counts as a foreign asset that must be reported are murky, and the IRS had not made things any less confusing by their silence on the issue.

PDF
Printable PDF

Have a Question About This Topic?

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the Terms of Use and Privacy Policy.

NEVER MISS A STORY.

Sign up for our newsletters and get our articles delivered right to your inbox.

 

Track Your Refund

 
Track Federal Refund Check Federal Amended Return Refund

Check your State Refund

Client Login

 

Refer a Friend

.