IRS reporting requirements-Bitcoin and Commodity trading-Foreign platform

Forum|Forum|5 years ago
March 31, 2021
1 reply
6 views

TP traded in bitcoin and commodities on a trading platform that is registered in London. The corresponding bank account linked to the trading account is also with a local UK based bank. The client has a transaction statement from the trading portal and based on I can calculate the capital gains / losses and enter these on form 8949/ Schedule D.

The total assets anytime during the year were less than $10K so it out of FACTA or FBAR reporting.

Considering the fact that it's a trading platform in a foreign country that will NOT report the activity to the IRS, are there any other reporting requirements / backup documentation required to be sent to IRS IRS along with his 1040 or separate from 1040?

ProConnect Tax

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Best answer by TylorValdez1

There is not,, yet the Internal Revenue Code and regulations require taxpayers to maintain records that are sufficient to establish the positions taken on tax returns. Clients should therefore maintain, for example, records documenting receipts, sales, exchanges, or other dispositions of virtual currency and the fair market value of the virtual currency.

T

TylorValdez1Answer

Level 6

There is not,, yet the Internal Revenue Code and regulations require taxpayers to maintain records that are sufficient to establish the positions taken on tax returns. Clients should therefore maintain, for example, records documenting receipts, sales, exchanges, or other dispositions of virtual currency and the fair market value of the virtual currency.

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