International Cryptocurrency Tax Compliance Challenges: Information and Income Tax Reporting Obligations

Businesses and individuals want the opportunities and advantages of owning and exchanging cryptocurrency; however, the tax compliance burdens are problematic, primarily because specific guidance is lacking. What is clear are the numerous and substantial penalties charged in the U.S. for reporting and income tax noncompliance.

Adding to the confusion is the varying treatment and definitions of crypto outside the U.S. Some countries treat these assets like property, while others treat them as currency or a financial investment. In Taxing Virtual Currencies: An Overview Of Tax Treatments And Emerging Tax Policy Issues, the OECD divides crypto assets into three tiers: payment tokens (virtual currencies), security tokens (asset or financial), and utility (consumer) tokens and recognizes that "these categories may be interpreted differently across jurisdictions, which may result in a different classification of assets and different tax implications."

Selling, exchanging, or using crypto assets for purchases can generate tax filing and reporting obligations. If an individual or entity, resident or nonresident, has cryptocurrency income from a U.S. source, this income will be taxed by the U.S. If they have income from cryptocurrency outside the U.S., they may have tax obligations in the other country. International tax practitioners, individuals, and multinational entities need to understand their filing and tax obligations in the U.S. and abroad.

Listen as our panel of international cryptocurrency experts explains the U.S. and other countries' filing and reporting requirements for holding and utilizing crypto assets to avoid penalties and sanctions.

1. What is cryptocurrency?
2. FBAR and Form 8938 reporting requirements
3. Individual income tax reporting
   • Form 1040
   • Form 1040 NR
   • Gifts of cryptocurrency
4. Noncompliance
   • Penalties and sanctions
   • Remedies
5. Crypto reporting requirements outside the U.S.
   • OECD and DAC 8
   • Specific countries
6. 2025 Treasury Green Book
7. Best practices

The panel will review these and other critical issues:

• What actions generate taxable cryptocurrency income in the U.S.?
• How are crypto assets taxed in specific countries outside the U.S.?
• Are individuals and entities required to disclose cryptocurrency on Form 8938 or the FBAR?
• What options are available to correct prior period noncompliance?

Learning Objectives

After completing this course, you will be able to:

• Understand the evolution of cryptocurrency
• Identify various cryptocurrency tax compliance challenges.
• Determine what actions generate taxable cryptocurrency income in the U.S.
• Ascertain whether individuals and entities are required to disclose cryptocurrency to the IRS and FinCEN
• Recognize virtual currency reporting requirements outside of the U.S.

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of international taxation including residency determination, foreign entity classifications, application of treaty benefits, as well as GILTI, Subpart F, and the related Section 250 deductions.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).