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Lawyers for FATCA Blockchain & Cryptocurrency Compliance

Experienced FATCA Compliance Team

Do you need help with FATCA filing and reporting? Are you worried that FinCEN may be investigating you for failing to file FATCA reports and disclosures? Are you concerned that your crypto transactions may be considered financial assets?

If any of these questions apply to you, it is important to get them resolved as soon as possible to avoid running afoul of reporting obligations.

The U.S. government considers it a priority that it requires foreign financial institutions to disclose account information on their U.S. account holders.

These are mandatory requirements. However, these requirements have been complicated by the increase in cryptocurrency transactions. It is very likely that these crypto transactions are considered assets. Make sure you are compliant.

At Oberheiden, P.C., our team of attorneys and consultants can provide you advice on whether your company faces any FATCA requirements as well as whether any of your cryptocurrency transactions could be deemed financial assets and therefore have to be reported.

We help our clients navigate the evolving crypto sphere and understand how various federal agencies are approaching cryptocurrencies.

Our team provides dedicated and detailed services to ensure that you are complaint with FATCA and are properly meeting your reporting obligations.

Do not wait. Put Oberheiden, P.C. on your side today to resolve these compliance issues.

Put our highly experienced team on your side

Dr. Nick Oberheiden
Dr. Nick Oberheiden

Founder

Attorney-at-Law

John W. Sellers
John W. Sellers

Former Senior Trial Attorney
U.S. Department of Justice

Local Counsel

Joanne Fine DeLena
Joanne Fine DeLena

Former Assistant U.S. Attorney

Local Counsel

Joe Brown
Joe Brown

Former U.S. Attorney & Former District Attorney

Local Trial & Defense Counsel

Amanda Marshall
Amanda Marshall

Former U.S. Attorney

Local Counsel

Aaron L. Wiley
Aaron L. Wiley

Former Federal Prosecutor

Local Counsel

Roger Bach
Roger Bach

Former Special Agent (OIG)

Michael Koslow
Michael Koslow

Former Supervisory Special Agent (FBI)

Chris Quick
Chris Quick

Former Special Agent (FBI & IRS-CI)

Kevin M. Sheridan
Kevin M. Sheridan

Former Special Agent (FBI)

Ray Yuen
Ray Yuen

Former Supervisory Special Agent (FBI)

Dennis A. Wichern
Dennis A. Wichern

Former Special Agent-in-Charge (DEA)

FATCA and Crypto Disclosure Requirements

FATCA stands for the Foreign Account Tax Compliance Act. FATCA basically requires a foreign financial institution to report the foreign assets of its U.S. account holders as well as to comply with various due diligence and compliance requirements.

Foreign financial institutions include non-U.S. banks, depository institutions, investment companies, specified insurance entities, and other non-financial entities.

FATCA facilitates financial reporting between the United States and over 100 other countries and hundreds of thousands of foreign financial institutions.

The purpose of FATCA is to promote financial transparency. Each year, countries lose billions of dollars due to unreported tax income in foreign countries. FATCA aims to fix this by requiring reporting to reduce tax evasion from offshore accounts.

FATCA very likely applies to cryptocurrencies. Cryptocurrencies may be deemed financial assets like any other currency and, therefore, are required to be disclosed by entities subject to FATCA.

For instance, an online exchange that is offering cryptocurrencies on a platform may be considered a financial institution for FATCA since it is basically engaging in activities that offer a currency or currencies to investors around the world.

Additionally, individuals who hold foreign cryptocurrencies in either a foreign exchange or foreign bank account would likely have reporting obligations to the IRS. FATCA is required for all U.S. citizens, including expatriates.

FATCA Form 8938

The IRS does not consider crypto transactions to be currency. Instead, it is treated as property. This means that crypto transactions are property—property is a type of asset.

Form 8938 requires individuals to report specified foreign financial assets if the total value of all the applicable foreign assets is more than the appropriate reporting threshold for the year.

Examples of foreign financial assets that need to be reported if the threshold is met include financial accounts at foreign banks, foreign hedge funds, foreign life insurance issued in a foreign country, foreign stock, and foreign partnership interests.

So where do cryptocurrencies fit in? They are not stock, security, partnership interests, or insurance. But they are an asset that many U.S: citizens hold at foreign institutions such as online foreign exchanges.

Thus, whether your cryptos is a specified foreign financial asset is not settled but likely considered a reportable asset—something that either the IRS or FinCEN—or both—could investigate if you fail to report.

The world of finance has evolved. So too has the definition of a foreign banking institution. For instance, if you hold cryptocurrencies in an offshore location with Binance, you can bet on your cryptocurrency being deemed a “foreign asset” held in a “foreign banking institution.” You will therefore have to report it on your Form 8938.

Online foreign exchanges allow individuals to trade and exchange cryptocurrencies at various prices, just like a traditional stock market with traditional stock. Other institutions that could implicate FATCA reporting requirements include crypto managed funds and crypto bank accounts.

Our FATCA Compliance Services Involving Blockchain and Cryptocurrency Issues

At Oberheiden, P.C., we are prepared to advise our clients on a wide range of FATCA reporting issues including the following:

  • Determining whether your business is a foreign financial institution subject to FATCA reporting;
  • Determining whether you or your business has any FATCA reporting obligations due to holding specified foreign financial assets;
  • Preparing and amending timely FATCA reports;
  • Recommending remedial action for failed FATCA reporting;
  • Providing defense services where federal government investigations are initiated;
  • Advising on the applicability of cryptocurrencies to FATCA reporting requirements;
  • Classifying your assets into reportable and non-reporting FATCA obligations;
  • Researching evolving legislation from the IRS and FinCEN regarding crypto reporting requirements; and
  • Helping our clients establish detailed and effective FATCA compliance programs.

If you need advice on one of the above issues or another FATCA-related issue regarding cryptocurrencies, do not hesitate to give our team a call today.

Need FATCA Compliance Advice?

It is never too late to get the information you need ton ensure that you are compliant with federal disclosure and reporting obligations. Do not wait for the IRS or FinCEN to investigate your business operations and crypto trading practices.

A federal investigation could wreak havoc on your business and your reputation. It is important to be prepared, especially in such a novel area of law as cryptocurrencies and blockchain technology.

Until the federal government definitively resolves these FATCA reporting issues for cryptocurrencies, it is best to get the advice of an experienced blockchain law firm regarding your compliance obligations.

At Oberheiden, P.C., our team can advise you on FATCA reporting and disclosure requirements, how to get and remain FATCA compliant, and how to monitor your business for changes in your legal, regulatory, and compliance environments.

Do not wait to get the FATCA compliance advice on cryptocurrency reporting today. Call or contact us today for a free consultation to resolve your uncertainty and become FATCA compliant.

Why Clients Trust Oberheiden P.C.

  • 1,000+ Cases Handled
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  • Experienced Trial Attorneys
  • Former Department of Justice Trial Attorneys
  • Former Federal Prosecutors, U.S. Attorney’s Office
  • Former Agents from FBI, OIG, DEA
  • Cases Handled in 48 States
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