Foreign Savings Accounts-------Treasury Form 90-22-1

You should report the income on US tax forms in US dollars. To convert the income from NZD to USD you have the option of using an average exchange rate for 2007, which the IRS can provide to you. Or, you can use the exchange rates that were in effect on the individual days that you received interest payments into the account, and calculate each payment's conversion separately.

What is the website for the average exchange rate?

For daily exchange rates I use , and "Typical cash rate: +4%".

For anyone who's interested, I found . At the bottom are several links, and one of them is the one I mention below.

But the government website does not look correct because they use the interbank rate. Consider an example. The treasury department website at

However, the website oanda.com says the conversion on 12/31 is

But any person who moves money around would probably get the typical cash rate, which is the interbank rate plus 4%, in which case the exchange rate would be 7.12888.

Do they publish any guidance on which exchange rate to use?

snip

Many of the tax returns I prepare for clients involve foreign earnings which must be translated to dollars. For several years, I have used the rates published by the Federal Reserve --

Since this is a rate published for use by government agencies to use in official accounting documents, it should satisfy your needs.

Lanny K. Williams, CPA Nawarat, Williams & Co., Ltd. Income Tax Services for Expatriate Americans

--www.federalreserve.gov/release/G5a/Current/which is posted annually.

Your URL

He left out an s. Try this one:

--www.federalreserve.gov/release/G5a/Current/which is posted annually.

The FRB spot exchange rates for NZ are at:

at:

Website =

Website =

Detail = Typical Cash Rate (Interbank rate + 4%) Answer = 0.8062080

It never makes sense to use the interbank rate as only banks get that favorable exchange rate.