Ian Bryzek, CPA
Foreign currency conversions for tax records
When converting foreign amounts, record the rate source, date, and original currency figures.
A U.S. return workpaper that shows only dollars cannot be audited back to the foreign statement. Keep both.
Consistent conversion notes matter more than informal round numbers.
What to keep with the file
Consistent conversion notes matter more than informal round numbers.
What to do next
Never overwrite foreign-currency originals with dollar-only figures.
What to gather
- Original foreign-currency statements
- Conversion rate source and date
- Dollar workpapers
- List of accounts using each rate convention
- Reviewer initials on conversion choices
Who usually handles what
- Ian can organize the tax reporting question and the supporting records.
- The executor, trustee, or account custodian supplies records and confirms who has authority to act.
A practical next step
Never overwrite foreign-currency originals with dollar-only figures.
Related guides
This is general tax information, not tax or legal advice. Outcomes depend on the documents, ownership, timing, and law that apply to the particular facts.