US: Lawyers request voluntary disclosure regime for cryptocurrency assets

American Bar Association has written to the US Internal Revenue Service, asking it clarify whether assets held as cryptocurrencies such as Bitcoin are subject to the Foreign Bank Account Reports (FBAR) and Form 8938 reporting rules. IRS Notice 2014-21 asserted that cryptocurrencies were ‘property’ rather than currencies for federal income tax purposes but did not address their FBAR and Forms 8938 status. US cryptocurrency investors made USD92 billion of taxable gains during 2017 alone, resulting in about USD25 billion of cryptocurrency-related tax liabilities, and the ABA is asking the IRS to offer an offshore voluntary compliance initiative focused on virtual currency and equivalent assets.

Source: Step