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IRVINE, Calif., Jan. 13, 2021 /PRNewswire/ Previously, FinCen s and thus the Internal Revenue Service s (IRS) policy was to not consider foreign financial accounts that hold virtual currency as subject to foreign bank and financial account reporting (FBAR). After publicly reinforcing this unofficial policy more than once, FinCen recently signaled its intent to reverse its former policy on virtual currency. FinCen recently announced that it intends to propose amendments to the Bank Secrecy Act to include virtual currency as a type of reportable account under 31 CFR 1010.350.
On December 31, 2020, the U.S. Treasury Department s Financial Crimes Enforcement Network (FinCEN) moved to amend the Bank Secrecy Act s (BSA) FBAR regulations to include virtual currency as a type of reportable account. However, this directly contradicts the memo dated January 20, 2020, from the Director of FinCEN to the Director of Tax Issues of the Government Acc