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USA Celsius Account Holders - Don't forget to file the FBAR

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@travelwritemoney
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If the crypto bull run is turning out to be a blessing that sends your Celsius.network balance above $10,000 for the first time, then you may not be aware of the Foreign Bank Account Report (FBAR) requirement, FinCEN Form 114. Of course, this only applies to US citizens and resident aliens.

The key information here is that Celsius is based out of the UK, which makes it a foreign account to the Internal Revenue Service (IRS) and the Financial Crime Enforcement Network (FinCEN). If at any point, the aggregate of your foreign accounts reaches or goes above $10,000 for the year, you must report it via Form 114.

Here at TWM we have not filed the form, yet. However, our 2020 taxes will require it thanks to the crypto bull run. Here are a few details I have gathered about the filing:

  • You need to report ALL of your foreign accounts, not just the one that achieved the $10K balance.
  • If no single account reached $10K, yet they total $10K+ in aggregate, you still need to file.
  • You need to find the high water mark for your accounts. That is, you need to figure out what the highest balances your accounts achieved. You can use the Treasury's official exchange rates to calculate your numbers.
  • The requirement applies whether you live in the USA or you live abroad.

In this case, we are only mentioning Celsius. However, the same applies to accounts with Crypto.com, Binance and some of the Fintech services such as Revolut and TransferWise.

There are many more types of accounts that fall under FBAR, such as whole life insurance policies in other countries. It is important that if you now are required to file FBAR, you should find out more about it or let your tax accountant know. Failure to report can result in $10K fines PER ACCOUNT. And, if you get caught doing shenanigans, you can be fined up to $100K PER ACCOUNT.

You worked hard for your crypto. And you hoddled through crazy ups and downs. Don't lose all of it because you couldn't be bothered to file a simple report. Be smart.

Posted Using LeoFinance Beta