Four reporting regimes for foreign virtual currency holdings.

The Four Foreign Crypto Reporting Regimes

FBARFinCEN 114FATCAForm 8938PFICForm 8621TreatyCountry-Specific

Foreign crypto reporting.
Regime Trigger2
FBAR $10K+ aggregate foreign accounts
Form 8938 $50K+ (single) / $100K+ (MFJ) thresholds
Form 8621 PFIC interest
Treaty Reporting Country-specific

Quick Reference

Jump to: FBAR, FATCA, PFIC, or treaty.

1. FBAR — FinCEN Form 114

Foreign financial accounts > $10K aggregate.

If this is you: Accounts on Binance (non-U.S.), Bitstamp, or other foreign exchanges. Aggregate value > $10K at any point in year. Conservative approach: file FBAR. FinCEN framework evolving.

FBAR Compliance Strategy

  1. Identify all foreign exchange accounts.
  2. Aggregate high-water balance across year.
  3. Determine reporting threshold.
  4. File FinCEN Form 114 by April 15 (auto-extension to Oct 15).
  5. Preserve documentation.

2. FATCA — Form 8938

Specified foreign financial assets above reporting thresholds.

If this is you: Specified foreign financial assets above $50K single / $100K MFJ (end-of-year) or higher aggregate thresholds. Attached to Form 1040. Crypto-specific guidance still developing.

3. PFIC — Form 8621

Foreign crypto fund interests may be PFICs.

If this is you: Interests in foreign crypto investment vehicles, ETFs, or funds. Potential PFIC classification. Severe default tax regime; elections available to mitigate.

4. Treaty / Country-Specific

Bilateral treaties may affect reporting and source rules.

If this is you: Dual-residency, expatriate, or non-U.S. person transacting in U.S. Source rules, treaty relief, coordination. Country-specific analysis required.

Foreign crypto question? Book consultation.

Foreign Crypto Reporting Lookup

Foreign crypto docs.
Form Purpose
FinCEN Form 114 (FBAR) Foreign account report
Form 8938 FATCA specified foreign assets
Form 8621 PFIC reporting
Form 5471 Foreign corporation
Form 3520 / 3520-A Foreign trust
Streamlined procedures Delinquent filer relief

Foreign Crypto Statute

  • 6-year income tax statute for foreign asset omissions >$5K.
  • FBAR statute: 6 years from due date.
  • Form 8938 non-filing: 3-year statute doesn’t start.

Foreign Crypto Patterns

Foreign crypto outcomes. Source: Brotman Law practice.
Situation Outcome
Conservative FBAR filed Low audit risk
Non-filed foreign exchange > $10K FBAR penalty exposure
PFIC without election Punitive tax
Streamlined filer Mitigated penalties

Foreign Crypto Audit Escalation

Examination

FBAR and 8938 compliance review.

Penalty Assessment

Willfulness determination for FBAR.

Appeals / Court

Challenge to penalty amounts.

First 48 Hours

  1. Identify all foreign crypto holdings.
  2. Calculate aggregate high-water balance.
  3. Determine reporting thresholds.
  4. Evaluate delinquent filing options.
  5. Engage international tax counsel.

★Brotman Law handles foreign crypto reporting and disclosures. Based in San Diego.

The ROI Question

FBAR willful penalties can reach 50% of account balance. Proactive compliance dwarfs any enforcement exposure.

Cryptocurrency Tax Issue You’re Not Sure How to Handle?

The IRS treats virtual currency as property — which means every transaction is potentially taxable, exchanges report to the IRS, and audit exposure is real. Whether you have unreported gains, missed cost basis, or a notice related to digital assets, the analysis starts with understanding exactly what you have and when.

Discuss My Crypto Tax Situation →    Or call: (619) 378-3138

When to Engage

  • Foreign exchange holdings.
  • Delinquent FBAR or 8938.
  • PFIC concerns.
  • Dual-residency or expatriate.

Foreign crypto question?

15-min consultation free.

Get a Candid Assessment — Free →