Digital Assets and Offshore Account FBAR Issues for Investors

Journal of Taxation of Investments

Partners Ron Cima and Anthony Tu-Sekine published “Digital Assets and Offshore Account FBAR Issues for Investors” in the Journal of Taxation of Investments.

Article Abstract: The increasing public acceptance of bitcoins, other cryptocurrencies, and virtual assets has presented challenges to the IRS with regard to how they should be reported for tax and Bank Secrecy Act purposes. With the IRS expressing concern that some taxpayers are using virtual currencies to hide income or engage in other illegal activities, taxpayers who own digital assets should focus on when virtual assets, which are held in offshore accounts, should be reported to FinCEN on FBARs. The authors suggest a framework to assist with this inquiry until such time as the IRS or FinCEN issues formal guidance.

For a free copy of the article, please contact either Mr. Cima or Mr. Tu-Sekine. If you would like to purchase the article, or subscribe to the Journal of Taxation of Investments, please click here.