No Taxes: IRS States no FBAR Reporting

The Internal Revenue Service has said that taxpayers need not report bitcoin holdings on FinCEN Form 114 (Report of Foreign Bank and Financial Accounts - also known as FBAR) this tax season. The news comes from Rod Lunquist, who's a senior program analyst for the Small Business/Self-Employed Division at the Service, but added that the exception might end in the future as the authority monitors developments in the space. "At this time, FinCEN has said Bitcoin is not reportable on the FBAR, at least for this filing season," said Lundquist during a webinar, as first reported by Bloomberg BNA.....

What crypto owners should know if crypto accounts fall within the new Foreign Bank and Financial Accounts regulations. The United States Department of Treasury is again sharpening its sword upon crypto. In January 2021, the Department of Treasury’s Financial Crimes Enforcement Network issued Notice 2020-2. The Notice states that FinCEN intends to amend its regulations concerning the reporting of foreign financial accounts to include digital currency as a type of reportable account. In simple terms, this means FinCEN may soon require crypto users to file annual Reports of Foreign Bank and....

Some respite from the IRS following its controversial guidance on digital currencies: for this tax season, at least, holdings need not be declared on US FBAR forms. FBAR, also known as FinCEN Form 114 (Report of Foreign Bank and Financial Accounts), are mandatory correspondence for those who hold more than US$10,000 in foreign bank accounts, which must be declared for tax purposes. While the IRS has recently moved to attempt an initial form of control over cryptocurrency earnings, it would seem that it is holding off on a full onslaught. The news was broken to in a webinar on Wednesday....

The US Internal Revenue Service (IRS) declared during a 4th June webinar that US taxpayers are not required to report bitcoin on Financial Crimes Enforcement Network (FinCEN) Form 114, a document also known as the Report of Foreign Bank and Financial Account (FBAR), for this year's tax season. According to Bloomberg Bureau of National Affairs (BNA), a senior IRS program analyst remarked that taxpayers face no reporting requirements when filling out their Form 114 for 2014. Taxpayers that hold more than $10,000 in a foreign bank are required to a file this form with FinCEN. The move is the....

Editor’s note: The original introduction to this article has been replaced with one written by tax accountant Daniel Winters, which corrects some factual inaccuracies in the original. While the IRS rules have not changed since last year, it’s important to understand how to handle the taxes on Bitcoin transactions since Bitcoin income is not tax free. Accurately reporting taxes for Bitcoin can be tricky since the IRS treats Bitcoin as property, NOT currency. Since Bitcoin is property, you need to calculate gains or losses. The number of Bitcoin users has grown significantly since 2015, and....