Bloomberg Bureau of National Affairs (BNA) reported that taxpayers face no reporting requirements when filling out their Form 114 for 2014. Taxpayers that hold more than $10,000 in a foreign bank are required to a file this form with FinCEN.
The US Internal Revenue Service (IRS) declared during a 4th June webinar that US taxpayers are not required to report Bitcoin on Financial Crimes Enforcement Network (FinCEN) Form 114. The 114 form is a document also known as the Report of Foreign Bank and Financial Account (FBAR), for this year’s tax season.
The move is another guidance the IRS offer to US taxpayers on the subject of Bitcoin. This new policy comes months after the IRS and the FED ruled that Bitcoin “isn’t a danger to society and could even be an instigator for change”.
Rod Lundquist, IRS official, acknowledged that this policy can change as the IRS clarifies its policies on digital currencies. He added that the agency continues to review its policies regarding Bitcoin and that the FBAR guidance in particular may be adjusted in the future.