Tax Analysts provides news, analysis, and commentary on tax-related topics including financial products and banking. A financial product is a tradable asset that is evidence of ownership in an asset or gives parties a contractual right or obligation to receive or pay. The tax code has special provisions for the taxation of banking institutions, including section 475, which requires banking institutions to mark to market all securities held in their trade and business.

In 2013, the Justice Department announced opportunities for banks to avoid prosecution through payment of fines, disclosure of account holders, and compliance with FATCA. In 2010 Congress enacted FATCA to increase reporting of foreign financial assets. With the help of financial institutions, the U.S. hopes to track financial assets across the world.

In addition to initiatives such as the Swiss bank program and FATCA, Tax Analysts provides coverage of the tax implications of financial institutions’ activities, including the taxation of financial instruments and trader or broker activities. Most financial institutions, such as banks, are taxed on a marked-to-market basis under section 475, which requires mark to market tax accounting for dealers in securities. Section 475 also provides a mark to market election for dealers in commodities and traders in securities or commodities.

Tax Analysts also provides coverage on virtual currency taxation. The IRS in 2014 released a FAQ saying that virtual currencies, such as Bitcoin, are considered property, not currency, for federal income tax purposes.

Individuals holding accounts in offshore financial institutions are required to report those accounts with  foreign bank account reports under the Bank Secrecy Act. Taxpayers who fail to report foreign accounts are subject to civil FBAR penalties.

Tax Notes Federal and Tax Notes Today Federal subscribers have free access to James M. Peaslee and David Z. Nirenberg, Federal Income Taxation of Securitization Transactions and Related Topics (Fifth Edition). The book is intended to serve as a practitioner’s handbook, addressing a range of topics that are important in a financially oriented tax practice, including the treatment of debt instruments and related financial products and some financial institutions. Chapter 4, Part F.3, discusses the definition of a financial business (which is relevant in applying the publicly traded partnership rules and for other purposes). Chapter 11 discusses special tax rules for debt held by banks and section 475 (mark-to-market rules for securities dealers). Chapter 13 discusses when an offshore issuer is engaged in a loan origination or derivatives business (not just investing or trading). Chapter 16 discusses when state law property interests are aggregated or separated for tax purposes, and covers many different types of financial products.