Many IQD investors have been told that when they experience a profit on their exotic currency investments there will be no taxes. One of the reasons for this misinformation is because when you exchange currency at an international airport all that is required is your passport. No taxes are applied. However, if you want to exchange $5,000 or $10,000 the entire process would be different...The moment you step away from the window the transaction is reported to the Department of Treasury, aka the IRS...
The United States has agreements with most countries and as part of these agreements United States citizens financial transactions over certain amounts are reported. When you file your taxes and the transactions are not found on your tax return then you would trigger a paper audit and a CP2000 would be mailed to you. From there, you know the drill. : Sandy Ingram
