What is the average exchange rate for the Forint to the Dollar for the tax year 2010?
The IRS has NO official exchange rate. In past years we have given an average based on the Dept. of State rates posted on their web page. Taxpayers have always been required by Internal Revenue regulations 1.905-3 and 1.988 to translate foreign income into dollars on the date of payment. As a practical matter, a wage earner can use a yearly average with no problem. A self-employed individual usually benefits by converting at the date of payment. The IRS accepts any posted exchange rate that is used consistently. The U.S. Federal Reserve provides an exchange rate which amounts to a yearly average of HUF 208.25328. For Example, if you earned HUF 3,000,000, this amount would be divided by 208.25328 to give you the converted dollar amount of $14,405.535.
