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Online Poker Players Beware: Digital Accounts Can Trigger an FBAR obligation
FBAR reporting obligations require a US taxpayer holding $10,000 or more in a foreign financial account, at any moment in time during the tax year, to file a Report of Foreign Bank and Financial Accounts (FBAR). Once this obligation is known, at least in some contexts, the FBAR reporting requirement seems fairly obvious. Funds held in a foreign bank or securities that exceed $10,000 would rather clearly trigger an FBAR filing requirement. However, services provided over the Internet and hybrid services that can be used for multiple purposes can sometimes obscure these distinctions.
Such was the case in United States v. Hom, where online poker accounts and an online payment service triggered an FBAR obligation. This matter – which was pursued without a tax lawyer on a pro se basis – further emphasizes the value of representation by an experienced tax lawyer for FBAR and other international tax issues.
What were the facts in Hom?