TN 196 (08-23)

SI 00830.105 Payments in Foreign Currency

A. Introduction

Occasionally, an individual reports receiving income tendered to them in a monetary unit other than U.S. dollars. This is usually in the form of a check or a direct deposit to a bank, received either by the individual or by someone on behalf of the individual.

B. Policy

1. Amount of income

The U.S. dollar value of a payment made in foreign currency, less expenses, is income.

2. When count

We count foreign currency payments when received unless the individual alleges and can establish that the payment was received too late in the month for conversion prior to the following month.

C. Procedure

1. Verify receipt and amount

Use a check or documents in the individual's possession to verify receipt of a foreign payment and the amount in foreign currency. If the payment is made directly to a bank, the bank may provide a statement of the amount received.

2. Evidence not available

If the evidence is not readily available, or if translation of the documents would require a delay beyond the receipt of the next payment, then:

  • adjudicate the case based on the individual's statement either signed or recorded on the Report of Contact page (if there is no reason to doubt the allegation); and

  • ask the individual to present their next check before cashing it.

3. Conversion to U.S. dollars

Verify the exchange rate for conversion of the foreign currency into U.S. dollars using:

  • A receipt for the individual's last exchange; or

  • A telephone call to a local bank or currency exchange.

4. Changes in exchange rate

Presume that an established exchange rate remains constant until the next FO redetermination, at which time verify the rate again. If at this point, the exchange rate has changed, presume the change occurs effective in the month of verification and that it remains constant until the next redetermination.

EXCEPTION: If the individual reports that the exchange rate has changed, verify the change and adjust the income charged to reflect the new rate. This includes reports that deal with a retroactive period (e.g., if the individual reports in December that the rate changed 2 months ago, verify the change and input it as of October).

D. References

NOTE: To access the U.S. Treasury Currency Exchange Rates Converter, please follow these instructions: Copy the title, "U.S. Treasury Currency Exchange Rates Converter", next paste the title in Google search, and press enter. From the search results, select the Treasury Department's Currency Exchange Rates Converter Tool.

U.S. Treasury Currency Exchange Rates Converter

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SI 00830.105 - Payments in Foreign Currency - 08/08/2023
Batch run: 08/08/2023