Q&A: How do you pay taxes on a foreign forex account?

Question by : How do you pay taxes on a foreign forex account?
I have a forex account but the brokerage is in another country. Do I pay taxes or what? And if I do how do I go about doing that?

Best answer:

Answer by the tax lady
US citizens and resident aliens pay tax on worldwide icnome, so of course you do.

Unless this is classified as a 1256 contract, you report it on line 21, other income. 1256 goes to form 6781.

And, if the account had more than $ 10,000 in it at *any* time during 2009, don’t forget to file form TDF 90-22.1

Know better? Leave your own answer in the comments!

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