U.S. expats must report crypto gains, trades, and foreign-held assets. Expatriate Tax Returns helps clients stay compliant with IRS digital asset rules.
(PRUnderground) July 3rd, 2025
As the Internal Revenue Service (IRS) increases enforcement efforts on digital asset reporting, U.S. citizens living abroad are being reminded that cryptocurrency transactions and holdings are fully subject to U.S. tax law. Expatriate Tax Returns, a leader in expat tax compliance, is advising clients to proactively report crypto activity to avoid penalties or audits.
Whether trading Bitcoin, receiving payments in digital tokens, or staking assets on foreign platforms, U.S. expatriates must report all crypto-related income and gains on their annual tax return. The IRS classifies cryptocurrency as property, meaning standard capital gains rules apply to most transactions.
Common Reportable Crypto Transactions Include:
- Selling cryptocurrency for fiat currency
- Exchanging one crypto asset for another
- Using crypto for goods and services
- Earning crypto from mining, staking, or freelance work
“These activities aren’t exempt just because you’re abroad,” said Diane Siriani Owner and CEO of Expatriate Tax Returns. “Expats need to treat digital income with the same attention they give to foreign wages or bank accounts.”
International Account Reporting Obligations
For expats holding crypto on foreign exchanges, the rules can get even more complicated. If the total value of these accounts exceeds $10,000 at any point in the year, they may be required to file an FBAR (FinCEN Form 114). Additionally, under FATCA (Foreign Account Tax Compliance Act), some expats may need to report holdings on Form 8938.
Accurate Recordkeeping Is Key
To remain in compliance, expats should maintain detailed records, including:
- Dates of crypto acquisition and sale
- Fair market value in USD at the time of each transaction
- Purpose of the transaction (e.g., purchase, trade, payment)
Professional Help Available
With regulatory focus on digital assets increasing globally, the stakes are high for expats who’ve entered the crypto space. Expatriate Tax Returns offers tailored support to help clients report cryptocurrency holdings and stay compliant with both IRS and international reporting standards.
For personalized tax guidance related to crypto or digital assets, visit www.expatriatetaxreturns.com or call (561) 715-0630.
About Expatriate Tax Returns
The firm, proudly woman-owned by Diane Siriani, a CPA, along with her team of experienced tax accountants, has been at the forefront of the profession for over 30 years, utilizing the best industry technologies to serve clients effectively and efficiently. Thanks to the flexibility offered by the internet, we have been able to service US citizens located anywhere in the world…quickly, efficiently and professionally.
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Original Press Release.
