Jeopardy! Answer: It has no filing fee, no associated tax, but if you don’t report your Bitcoin on it, you may lose half your account. Question: What is the Foreign Bank Account Report (FBAR)?
If you or your clients have been investing in cryptocurrencies, you might be surprised to hear that Bitcoin and other cryptocurrencies may be reportable on the FBAR. In fact, if you’ve heard elsewhere that cryptocurrencies don’t belong on the FBAR, you’re not alone. A quick search of the Internet shows national confusion on this question,1 and the Internal Revenue Service hasn’t offered guidance yet. The IRS has confirmed that income and gains from cryptocurrency transactions must be reported on income tax returns, but there’s no official position a...
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