Category Archives: Cryptocurrencies

Online Gambling and Cryptocurrency Addresses for 2021

Posted on February 19, 2021 by Russ

If you have one or more foreign financial accounts and you have $10,000 aggregate in those account(s) at any time during 2019, you must file the Report of Foreign Bank and Financial Accounts (the “FBAR”). This is Form 114 from … Continue reading →

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Clarity on Whether Cryptocurrency Must be Reported on the FBAR

Posted on January 7, 2021 by Russ

A vexing question has been whether or not foreign cryptocurrency exchanges must be reported on the FBAR. At a conference in 2019, a representative from FINCEN said no; however, the instructions on the FBAR imply they should be reported. At … Continue reading →

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No, You Weren’t Allowed to Do a Like-Kind Exchange for Cryptocurrency Before 2018

Posted on November 14, 2019 by Russ

A question that has come up is whether you could do a like-kind exchange for cryptocurrency prior to 2018. (The Tax Cuts and Jobs Act eliminated all like-kind exchanges for everything except real property beginning with the 2018 tax year.) … Continue reading →

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“[D]id you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”

Posted on October 23, 2019 by Russ

I haven’t posted that much this year for a few reasons. I’ve had some family issues (and that takes priority over just about everything), and this was a difficult tax season. Now that Tax Season is over, I’m going to … Continue reading →

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Should You Be Reporting Cryptocurrency Held in a Foreign Exchange on the FBAR and Form 8938?

Posted on August 5, 2019 by Russ

It’s been assumed that the answer to the question I posed as the title to this post is “Yes”, that you should be reporting cryptocurrency held in foreign cryptocurrency exchanges on the FBAR. However, the AICPA Virtual Currency Task Force … Continue reading →

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IRS Sending Letters Based on Coinbase Summons

Posted on July 26, 2019 by Russ

In 2017 the IRS won its fight with Coinbase, and received information from that cryptocurrency exchange on customers who traded cryptocurrency. Today, the IRS announced that they’re sending letters to individuals who may need to file or amend their returns … Continue reading →

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Online Gambling and Offshore Cryptocurrency Exchange Mailing Addresses for 2019

Posted on February 5, 2019 by Russ

This list has been superceded by the 2020 list. With the United States v. Hom decision, we must again file an FBAR for foreign online gambling sites. An FBAR (Form 114) is required if your aggregate balance exceeds $10,000 at … Continue reading →

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The Deep State and Cryptocurrency

Posted on May 17, 2018 by Russ

There have been plenty of articles about the “Deep State” vis-a-vis President Trump. I’m not going into that; if you’re interested, Google is your friend. Rather, I’m going to look at the Deep State and cryptocurrency. On May 1st the … Continue reading →

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Bozo Tax Tip #1: Ignore Cryptocurrency Sales!

Posted on April 13, 2018 by Russ

Last week (as I write this), I met with a new client. He purchased a lot of cryptocurrency in 2016 but didn’t sell any of it until around Thanksgiving of 2017 (he had one small sale). He asked me if … Continue reading →

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SEC Reportedly Launches Cryptocurrency Probe on ICOs

Posted on February 28, 2018 by Russ

The Wall Street Journal is reporting (pay link) that the Securities and Exchange Commission (SEC) has issued “scores of subpoenas and information requests” regarding digital tokens (aka Initial Coin Offerings, or ICOs). That regulators are starting to look into this … Continue reading →

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