Monday , March 30, 2020 |   21:34:32 IST
About Us Contact Us Newsletters
TP - Such companies having turnover ten times higher than that of assessee, can be adopted as comparables: ITAT (See 'Breaking News') TP - It is it case for remand for computing ALP of international transactions after applying Most Appropriate Method, considering that the assessee selected its AEs as tested parties, in contravention of settled principle that AE cannot be adopted as tested party : ITAT (See 'Breaking News') Finance Act 2020 (See 'Intl Misc') RBI goes for 75 basis point cut in repo rate & 100 basis point cut in CRR + permits all lending institutions to grant 3 months moratorium on EMIs for all loans + no impact on assets classification RBI liquidity injection goes up to 3.2% of GDP TP - Where transactions fall under Section 92BA(1) which stands repealed, imposition of penalty for failure to furnish report in Form 3CEB in terms of Section 92E, is not sustainable: ITAT (See 'Breaking News') TP - Where international transactions forming part of manufacturing activity segment is closely linked with distribution & after sales activity, they need to be benchmarked independent of each other & not together: ITAT (See 'Breaking News') COVID-19 Fall-out - Is PM losing time to 'Flatten The Curve' of mounting economic miseries! (See 'The Cob(Web)') I-T - Where technical services provided by swedish company for maintenance of existing GSS software to its Indian AE does not result in provision of any technical knowledge, amount received for such services is not taxable u/s 9(1)(vi) & (vii) or under Article 12(3) of India -Sweden DTAA as FTS - YES: ITAT (See 'Breking News') I-T - Payments made by Indian patent attorney to his foreign associates in respect of consultancy services is taxable in terms of FTS u/s 9(1)(vii) r/w/s 195: ITAT (See 'Breaking News') Finance Bill 2020 as passed by Lok Sabha (See 'Finance Act' in Intl Misc) TP - TPO is vested with power u/s 92CA to determine ALP of specified domestic transactions without collecting data available in public domain or collecting data from private domain by issuing notice u/s 133(6): ITAT (See 'Breaking News') I-T - Salary received by Indian resident for services rendered in Australia, are taxable in India, considering that such income is duly offered to tax in Australia: ITAT (See 'Breaking News') Income tax return filing for FY 2018-19 - FM announces extension of due date to June 30 & reduction in interest rate from 12% to 9% and also reduction in interest rate for delayed deposit of TDS from 18% to 9% FM announces extension of due date for linking Aadhaar & PAN to June 30 + Vivad Se Vishwas scheme to be valid till June 30 and waiver of 10% additional tax till June 30 granted + Due date extended till June 30 for all statutory compliance, approval order, notice, report & appeal etc under various laws such as Benami Act, Black Money Act, STT, CTT and Wealth Tax Act I-T - Payment received for IT support service rendered by assessee, can be treated as Fees for Technical Service, where no information concerning technical, industrial or commercial knowledge, is being imparted: ITAT (See 'Breaking News') TP - It is fit case for remand where TPO does not record reasons for rejecting CUP method for benchmarking international transactions, as favored by assessee: ITAT (See 'Breaking News')
Home >> News Brief

GAO & IRS differ on virtual currencies reporting under FATCA
By TII News Service
Feb 25, 2020 , Washington DC


UNITED States Government Accountability Office (GAO) has recommended that Internal Revenue Service (IRS) should clarify its guidance on taxation of virtual currencies (VCs) with regard to Foreign Account Tax Compliance Act (FATCA).

In its report titled 'Virtual currencies - Additional Information Reporting and Clarified Guidance Could Improve Tax Compliance', GAO says "The Commissioner of Internal Revenue should clarify the application of reporting requirements under FATCA to virtual currency". This is one of four recommendations in the Report dated 12th February 2020.

GAO has noted that two overlapping reporting requirements apply to taxpayers who have foreign financial assets that include VCs. These two requirements are the Report of Foreign Bank and Financial Accounts (FBAR) filings required under the Bank Secrecy Act and the separate reports required by FATCA. The federal agencies that administer these requirements have not clarified how taxpayers who hold virtual currency should interpret them.

According to the Report, "IRS disagreed with the recommendation to clarify the application of FATCA reporting requirements to virtual currency". IRS stated that U.S. exchanges and other U.S. businesses play a significant role in virtual currency transactions carried out by U.S. taxpayers, and therefore it is appropriate for IRS to focus on developing guidance for third-party reporting under section 6045 of the Internal Revenue Code. IRS also stated that guidance on FATCA may be appropriate in the future when the workings of foreign virtual currency exchanges become more transparent.

GAO also recommended that Financial Crimes Enforcement Network (FinCEN), in coordination with IRS as appropriate, should make a statement about the application of foreign account reporting requirements under the Bank Secrecy Act to virtual currency readily available to the public.

FinCEN agreed with GAO's recommendation to make a public statement about whether virtual currency must be reported on the FBAR. FinCEN's existing regulations do not require virtual currency held in an offshore account to be reported on the FBAR. Additionally, FinCEN stated that it will coordinate with IRS to determine the best approach to provide clarity to the public regarding the FBAR requirement.

According to IRS guidance, convertible virtual currencies-which have an equivalent value in real currency or act as a substitute for real currency-are to be treated as property for tax purposes. Among other things, this classification means that income, including gains, from virtual currency transactions is reportable on taxpayers' income tax returns. Therefore, a payment for goods or services made using virtual currency may be subject to tax to the same extent as any other payment made in property.

GAO also recommended that the Commissioner of Internal Revenue (CIR) should update the FAQs issued in 2019 to include a statement that the FAQs may serve as a source of general information but cannot be relied upon by taxpayers as authoritative since they are not binding on IRS.

In its 4th recommendation, GAO suggested that CIR should take steps to increase third-party reporting on taxable transactions involving virtual currency, which could include clarifying IRS's interpretation of existing third-party reporting requirements under the Internal Revenue Code and Treasury Regulations, or pursuing statutory or regulatory changes.

  • DTAA
  • Circulars (I-T Act, 1922)
  • Limited Treaties
  • Other Treaties
  • TIEAs
  • Notifications
  • Circulars
  • Relevant Portion of I-T Rules,1962
  • Instructions
  • Administrative Orders
  • DRP Panel
  • I-T Act, 1961
  • MLI
  • Relevant Portion of I-T Act,1922
  • GAAR
  • OECD Conventions
  • Draft Guidelines
  • DTC Bill
  • Committee Reports
  • Intl-Taxation
  • Finance Acts
  • Manual on EoI
  • UN Model
  • Miscellaneous
  • Cost Inflation Index
  • Union Budget
  • Information Security Guidelines
  • APA Annual Report
  • APA Rules
  • Miscellaneous
  • Relevant Sections of Act
  • Instructions
  • Circulars
  • Notifications
  • Draft Notifications
  • Forms
  • TP Rules
  • UN Manual on TP
  • Safe Harbour Rules
  • US Transfer Pricing
  • FEMA Act
  • Exchange Manual
  • Fema Notifications
  • Master Circulars
  • Press Notes
  • Rules
  • FDI Circulars
  • RBI Circulars
  • Reports
  • FDI Approved
  • RBI Other Notifications
  • FIPB Review
  • FEO Act
  • CBR Act
  • NBFC Report
  • Black Money Act
  • PMLA Instruction
  • PMLA Bill
  • FM Budget Speeches
  • Multimodal Transportation
  • Vienna Convention
  • EXIM Bank LoC
  • Manufacturing Policy
  • FTDR Act, 1992
  • White Paper on Black Money
  • Posting Policy
  • PMLA Cases
  • Transfer of Property
  • MCA Circular
  • Book Review
  • Limitation Act
  • Type of Visa
  • SSAs
  • EPFO
  • Acts
  • FAQs
  • Rules
  • Guidelines
  • Tourist Visa
  • Notifications
  • Arbitration
  • Model Text
  • Agreements
  • Relevant Portion of I-T Act
  • I-T Rules, 1962
  • Circulars
  • MISC
  • Notification
  • About Us
  • Contact Us
    A Taxindiaonline Website. Copyright © 2010-2020 | Privacy Policy | Pvt.Ltd. All rights reserved.