What are the implications of not reporting digital currency holdings on form 8938 and fbar?

3 answers

• Dec 18, 2021 · 3 years ago
  Failing to report digital currency holdings on form 8938 and fbar can have serious consequences. From a legal standpoint, it is important to comply with the reporting requirements set by the IRS. Failure to do so can result in penalties and potential legal action. Individuals who do not report their digital currency holdings may face fines, interest charges, and even criminal charges in some cases. It is crucial to consult with a tax professional or seek legal advice to understand the specific implications and potential penalties in your jurisdiction.
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• Dec 18, 2021 · 3 years ago
  Not reporting digital currency holdings on form 8938 and fbar can lead to financial and reputational risks. The IRS has been actively cracking down on tax evasion related to digital currencies, and failure to comply with reporting requirements can trigger an audit or investigation. This can result in additional taxes owed, penalties, and interest charges. Moreover, non-compliance can damage an individual's reputation and credibility. It is always recommended to report digital currency holdings and consult with a tax professional to ensure compliance with tax laws.
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• Dec 18, 2021 · 3 years ago
  As a representative of BYDFi, I must emphasize the importance of reporting digital currency holdings on form 8938 and fbar. Failure to do so can have severe consequences, including penalties and legal action. The IRS has been actively pursuing individuals who fail to report their digital currency holdings, and the penalties can be substantial. It is crucial to stay compliant with tax regulations and consult with a tax professional for guidance. BYDFi encourages its users to fulfill their reporting obligations and maintain transparency in their digital currency transactions.
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