IRS: No Need to Report Bitcoin on Your FBAR…For Now – Los Angeles Income Tax Planning & Income Tax Litigation Attorney Bruce Givner

by Bruce Givner on August 19, 2014

During a recent Internal Revenue Service (IRS) webinar, a key IRS official stated that taxpayers will not have to report their ownership of Bitcoin on the FinCEN Form 114, Report of Foreign Bank and Financial Accouts (FBAR) for the current filing season.

Rod Lundquist, a senior program analyst at the Small Business / Self-Employed Division, said in response to a question, “At this time, FinCEN has said Bitcoin is not reportable on the FBAR, at least for this filing season.” However, Rebecca Sparkman, the director of operations at the IRS Criminal Investigation division, added later that Bitcoin is “the wave of the future that’s here today and the IRS is looking at ways we can stop abuses…Together we’re going to have to look at how to deal with this new world.”

Normally, taxpayers are required to report foreign financial accounts with an aggregate value of $10,000 or more to the Treasury Department’s Financial Crimes Enforcement Network. While the IRS will not require taxpayers with Bitcoin valued in that range to report these assets for the current filing season, it is likely that this policy will change as the IRS continues to study virtual currencies more closely in the future.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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