FAQs - Currency Exchange

When completing the FBAR, the exchange rates posted by the U.S. treasury for the given tax year should be used for converting foreign currency to U.S. dollars. The Treasury Reporting Rates of Exchange can be found here.

All income and expenses on your tax return must be reported in U.S. dollars. In general, you can use the exchange rate on the day a payment or expense was received or paid, or an average annual exchange rate. To use the average annual exchange rate, your income and expenses need to be earned or paid evenly throughout the year. The IRS average annual exchange rates for most currencies are posted here:

https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates