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Don’t Overlook the FBAR Requirement When Filing Cryptocurrency Taxes

With tax season upon us, cryptocurrency enthusiasts have a lot to take into account. For one thing, it seems there are some details which most people may not be aware of. Failing to comply with these requirements can lead to a jail sentence, though, so it’s important to keep these things in mind at all times.

It’s Cryptocurrency Tax Season

Filing taxes is always a bit of a difficult task when it comes to cryptocurrencies. It is quite difficult to fill out everything unless one uses specialized software for this specific purpose. Thankfully, there are quite a few tools available to help out in this regard, although that is only the first step to take when it comes to filing taxes.

It seems there is a lot of confusion regarding owning cryptocurrency which is stored offshore. A lot of American cryptocurrency users rely on non-US exchanges for either Bitcoin or altcoins. Any money held abroad must be disclosed to the IRS and the US Treasury. Anyone failing to do so will face a hefty fine and a potential jail sentence as well.

Unfortunately, this poses a big problem for cryptocurrency users. Since users who purchased cryptocurrency for the first time last year may not even be aware of this requirement, it is very possible they will face a lot of repercussions due to this “hidden rule”. As soon as you store over $10,000 worth of cryptocurrency abroad in any form, it must be disclosed in one’s Report of Foreign Bank and Financial Accounts (FBAR).

Additionally, these foreign holdings need to be disclosed on Form 8938, which is how people typically file their taxes with the IRS. Although this sounds like a rather trivial matter, a lot of people tend to forget these things, mainly because they aren’t aware of them. With the IRS defining cryptocurrencies as property, holders will need to pay taxes at their capital gains rate. This also applies to foreign trading platforms, which poses a lot of new questions.

The biggest question is how this affects US citizens who buy cryptocurrency on foreign exchanges. Right now, tax professionals are divided on this front, as it is possible that there is an FBAR requirement. Even so, it does not appear to be mandatory, and it is something the US government will need to address sooner rather than later. No one can expect taxpayers to be in the loop on all things related to tax filings and cryptocurrencies.

It will be quite interesting to see how all of this plays out for US taxpayers. After all, if that is indeed an official requirement, the IRS direly failed to communicate this vital piece of information. A foreign exchange can be considered a reportable foreign account for FBAR. Now is a good time to talk with your accountant or tax man and see if they can help you file such a document before tax day. It’s not worth risking a jail sentence over; that much is evident.

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XRP Price is Slow to Respond to Coinone’s Remittance News

Even though there is still a lot of uneasy momentum in the cryptocurrency and digital asset industry, things will get very interesting by the look of things. The XRP price is on the rise once again, at least where its Bitcoin value is concerned. Noting any gains in US Dollar value remains an ongoing struggle. The XRP Price Battle for Control As is the case for any digital or crypto asset on the market today, finding any market stability will be an ongoing struggle. All of these markets are volatile by default, but the year 2018 has shown there are a lot more price changes taking place behind the scenes first and foremost. This has caused a fair bit of panic and a lot of uneasiness across all markets alike. As such, anything can happen moving forward. In the case of the XRP price, things are looking a bit interesting. Although there hasn’t been a solid breakout above $0.3 in the past few weeks, but the value hasn’t stayed below that level for long either. As such, one has to wonder how things will evolve moving forward. Today shows there is a slight increase in the XRP/BTC ratio, but a 1.2% decline in XRP/USD. Offsetting that loss shouldn’t be too complicated, but it may take some time to do so. When looking at social media, there is a big development taking place which is worth paying attention to. Coinone is offering a new service in South Korea which combines the power of XRP in the remittance industry. There have been high hopes for this digital asset when it comes to global money transfers, although this service will primarily focus on South Korea first and foremost. Coinone Transfer Offers South Korea’s First Blockchain-Powered Remittance Service | Ripple https://t.co/gVJZmorOWJ — 北尾吉孝 (@yoshitaka_kitao) December 11, 2018 The sentiment regarding XRP is only intensified even further when it comes to sending money around the globe. More specifically, a recent article on The Guardian claims how moving money through banks is both too slow and too expensive. Consumers are better off trying to take a suitcase of cash with them at all times. XRP Can vastly improve on this situation, especially with multiple companies tapping into this asset for this exact purpose. This is why #xrp will be the standard #XRPTheStandard https://t.co/cO0Zi39Wtt — Alex (@alex1701a) December 11, 2018 Melle Zegel is bringing up some nostalgic sentiment by reminding people how the XRP price soared in three weeks during the final month of 2017. Although this was only a year ago, the situation today looks very different indeed. Although there is a very good chance all markets will bounce back at some point, it is increasingly difficult to predict when that will happen exactly. How sweet was the 3 weeks #XRP bull run starting exactly a year ago, last 11 months have been the opposite. Still #0doubt for #xrpthestandard pic.twitter.com/NS2ambOyoA — Melle Zegel (@melzeg) December 11, 2018 Based on the real-world momentum involving XRP, one would expect the market to rebound fairly soon. However, all markets are primarily dominated by speculators and traders, which do not necessarily pay much attention to anything that doesn’t help them take advantage of the asset in question. Stability at $0.3 is a good thing for the XRP price in general, even though it may not be all that easy to come by at times. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post XRP Price is Slow to Respond to Coinone’s Remittance News appeared first on NullTX.

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