IRS Annual Average Exchange Rate
 

No sign yet of the above. I'm thinking of using the Treasury exchange rate as the GBP to USD benchmark for my return. It's never bee this late to my knowledge.

Re: IRS Annual Average Exchange Rate
 

I looked today as well without luck. The problem with the Treasury rate is it has always been higher than the IRS average, often by several cents. Over the last few years I have found that the average of my transactions with Wise has been within a quarter of a cent of the IRS average, so this year I'll use my figure if the IRS don't publish one. The only downside is I do 12 transactions a year with Wise, as opposed to 60 payments a year into my UK account. If you need an average rate someone on the usexpats reddit page has worked it out https://www.reddit.com/r/USExpatTaxe...xchange_rates/

Re: IRS Annual Average Exchange Rate
 

I saw it listed as $1.3192 on the Federal Reserve site (I don't have the link now), which is better than the FBAR rate.

Re: IRS Annual Average Exchange Rate
 

Here's the Federal Reserve rate: https://www.federalreserve.gov/releases/g5a/current/

That turns out to be almost identical to what I get when I use xe.com for each monthly payment I received, so I used xe.com, filed my taxes and moved on!

Re: IRS Annual Average Exchange Rate
 

The IRS yearly average for 2025 is now available here: https://www.irs.gov/individuals/inte...exchange-rates
1 GBP = 0.759 USD

Re: IRS Annual Average Exchange Rate
 

Thank you.

I was .75 of a cent under that but I do include the fee Wise charges in that figure, which I know the IRS doesn't allow. Which shows how good Wise's rates and fees are.

Re: IRS Annual Average Exchange Rate
 

I think you mean 1 USD = 0.759 GBP
Just had me very confused doing my taxes

Re: IRS Annual Average Exchange Rate
 

You are, of course, correct. My apologies for any confusion.

Re: IRS Annual Average Exchange Rate
 

My head is even fuzzier this year than last. Are these the correct reciprocals?

Treasury rate £1 = $1.3459
IRS annual average 2025 £1 = $1.3175

Re: IRS Annual Average Exchange Rate
 

I used the treasury rate but let my CPA know etc. Not sure on the best course of action but there you go.

Re: IRS Annual Average Exchange Rate
 

And I, after filing F-Bars seemingly forever...suddenly thinking...what am I doing...what is the intent of FinCen filing?..if one is doing USD to GBP or GBP to USD which should personally be doing and on what does it depend? and on fo what category of numbers figure should I apply it. This is embarrassing but URGENT

Re: IRS Annual Average Exchange Rate
 

For the FBAR filing (FinCen) you need to use the Treasury figure for the exchange rate on December 31st.

The IRS average rate is for IRS filing of regular income, for example if you receive a monthly UK pension you can use the average IRS rate rather than look up the exchange rate on the dates you received the pension payments.

Re: IRS Annual Average Exchange Rate
 

and for FBAR you apply it to the maximum value of each account (in the local currency) during the year.

Re: IRS Annual Average Exchange Rate
 

Well, the FBAR isn’t due till sometime in October, so not urgent. (Technically, due date is April 15 but there’s an automatic extension till Oct 15.) I usually do it sometime in the summer. It’s basically a rehash of 8938 data. No one answered my earlier question, but I winged it.

Re: IRS Annual Average Exchange Rate
 

Oh thanks Robin....always file in March so hadn't realised that...but do you have to request the "automatic" extension or do you just do nothing till submission before Oct due date?