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FATCA Blockchain and Cryptocurrency Compliance Lawyers

Blockchain attorney Dr. Nick Oberheiden

Attorney Nick Oberheiden
FATCA Blockchain and Cryptocurrency Compliance Team Lead
Blockchain attorney Alina Veneziano

Attorney Alina Veneziano
FATCA Blockchain and Cryptocurrency Compliance Team Lead

Hire Experienced FATCA Compliance Lawyers

If you need assistance on FATCA filing and reporting, or you are concerned about federal agency investigations on your FATCA reports and disclosures, don’t worry. We offer these and more assistance, including help on cryptocurrency transactions that qualify as financial assets.

The above issues must be resolved quickly before they attract serious enforcement actions. The United States government requires foreign financial entities to disclose information pertaining to their American account holders.

However, cryptocurrency transactions have complicated these requirements. Since cryptocurrency transactions are likely to be treated as asset transactions, the importance of compliance can’t be overlooked.

Blockchain Lawyer has consultants and attorneys whose expertise is offering advice on FATCA-related requirements. The team can also advise on other cryptocurrency transactions that qualify as financial assets and require reporting.

We guide clients through complex and ever-changing cryptocurrency “terrain," including how different federal agencies treat cryptocurrencies. Let our team ensure you are FATCA compliant and meet every other reporting obligation. Retain us and resolve all your compliance issues.

Cryptocurrency Disclosure Requirements as Per FATCA

FATCA (Foreign Accounts Tax Compliance Act) requires foreign entities to report all their foreign assets belonging to U.S. account holders. The act also requires such entities to comply with a variety of compliance and due diligence requirements.

The act affects foreign entities such as foreign depository institutions, non-US banks, specified insurance entities, and investment companies, among other non-financial entities. FATCA offers guidelines on financial reporting between America and 100+ countries hosting thousands of foreign entities.

FATCA promotes financial transparency. Countries lose billions yearly to underreported and unreported taxes in foreign countries. The act attempts to fix this issue by facilitating reporting that reduces tax evasion originating from offshore accounts.

The act covers cryptocurrencies that qualify as financial assets (like typical currency). FATCA compels the disclosure of cryptocurrency assets by entities that abide by the law. A typical example would be a cryptocurrency exchange. What’s more, individuals holding cryptocurrencies in foreign bank accounts or foreign exchanges would also have reporting obligations. FATCA applies to every US citizen, including expatriates.

Form 8938

The IRS treats crypto as property (an asset), and US taxpayers are required to report foreign financial assets on Form 8938 if the value of the assets in question surpasses the yearly threshold for reporting.

Foreign financial assets subject to reporting requirements if the yearly threshold is met include financial accounts held in foreign banks, foreign life insurance (issued in foreign countries), foreign hedge funds, foreign partnership interests, etc.

Cryptocurrencies are assets. As a result, they must be treated as such and reported whether held locally or via foreign institutions like online cryptocurrency exchanges. Failure to report will attract federal agency investigations (FinCEN or IRS, or both).

Global finance is a complex subject. It is possible to hold cryptocurrencies today in offshore institutions like crypto exchanges. Such holdings are considered foreign assets held in foreign banking institutions attracting reporting obligations in Form 8938.

Holdings in cryptocurrency exchanges aside, cryptocurrency bank accounts and cryptocurrency-managed funds also attract FATCA reporting obligations.

Our FATCA Compliance Services

At Blockchain Lawyer, we offer FATCA compliance services on crypto and blockchain issues. Some of the specific FATCA reporting challenges we tackle include:

  • Establishing if a foreign business or entity qualifies as a foreign financial entity that has FATCA reporting obligations
  • Establishing if an individual or their business has FATCA reporting obligations because of holding cryptocurrency or other foreign financial assets.
  • Timely drafting and amending FATCA reports
  • Advisory on ideal remedial actions for failures on FATCA reporting
  • FATCA compliance defense when federal agencies launch investigations
  • Advisory on FATCA reporting requirements applicable to cryptocurrency holdings and transactions
  • Advisory on classifying assets into reportable/non-reportable assets as per FATCA
  • Advisory services on evolving FinCEN, IRS, and other agencies take on cryptocurrency reporting requirements
  • Establishing FATCA compliance programs.

Individuals or entities requiring our services on any FATCA issues above and more can Contact us today.

FATCA Compliance Help

Compliance on crypto, blockchain, and related issues should be viewed as a proactive, ongoing process. You or your company can never be late in complying with FATCA or other important regulations on federal disclosure and reporting.

Don’t wait for FinCEN or the IRS to start investigating you/your business for cryptocurrency or blockchain-related wrongdoing. A federal agency investigation on FATCA compliance or other crypto-related issues (tax compliance, securities regulations, etc.) can result in serious problems ranging from hefty fines to lengthy jail terms. It could also destroy your reputation and that of your business.

Being prepared is your best defense. Blockchain technology and cryptos attract unmatched federal scrutiny. Federal agencies can subpoena crypto exchanges to get information on your foreign crypto holdings and dealings. Underreporting crypto dealings can also trigger automatic IRS tax return audits.

Before FATCA reporting matters for cryptos are resolved definitively, the best defence is to talk to the most experienced blockchain lawyer you can find on FATCA compliance.

Luckily, Blockchain Lawyer has a dedicated team of attorneys and consultants ready to offer FATCA compliance advice on reporting, disclosure, overall compliance, and monitoring business changes in relation to the changing regulatory landscape.

Talk to us. Claim a free FATCA compliance consultation to know where you or your business stand, the probable risks, and what you can do.