What are the reporting requirements for cryptocurrency under Fincen 114 and 8938?

3 answers

• Dec 17, 2021 · 3 years ago
  Sure! The reporting requirements for cryptocurrency under Fincen 114 and 8938 are important to understand for anyone involved in the crypto space. Fincen 114, also known as the FBAR (Foreign Bank and Financial Accounts Report), requires U.S. taxpayers to report their foreign financial accounts, including cryptocurrency exchanges, if the total value of these accounts exceeds $10,000 at any time during the calendar year. On the other hand, Form 8938, also known as the Statement of Specified Foreign Financial Assets, requires taxpayers to report their specified foreign financial assets, including cryptocurrency, if the total value exceeds certain thresholds. It's crucial to comply with these reporting requirements to avoid penalties and ensure compliance with the law.
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• Dec 17, 2021 · 3 years ago
  Reporting requirements for cryptocurrency under Fincen 114 and 8938 can be a bit confusing, but let me break it down for you. Fincen 114, or FBAR, applies to U.S. taxpayers who have foreign financial accounts, including cryptocurrency exchanges. If the total value of these accounts exceeds $10,000 at any point during the year, you need to report them. Form 8938, on the other hand, is for reporting specified foreign financial assets, including cryptocurrency, if their total value exceeds certain thresholds. It's important to stay on top of these requirements to avoid any legal issues or penalties. If you have any doubts, consult a tax professional to ensure compliance.
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• Dec 17, 2021 · 3 years ago
  As an expert in the field, I can tell you that the reporting requirements for cryptocurrency under Fincen 114 and 8938 are crucial. Fincen 114, or FBAR, mandates that U.S. taxpayers report their foreign financial accounts, which includes cryptocurrency exchanges, if the total value exceeds $10,000 at any time during the year. Form 8938, on the other hand, requires reporting of specified foreign financial assets, including cryptocurrency, if their total value exceeds certain thresholds. It's important to note that these requirements apply to U.S. taxpayers, so if you're not a U.S. citizen or resident, you may have different reporting obligations. Always consult with a tax professional to ensure compliance with the law.
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