The IRS has no official currency exchange rates. However, according to the IRS website, they generally accept “any posted exchange rate that is used consistently.” When valuing a foreign currency with multiple posted exchange rates, the IRS advises that you use whichever rate applies to your specific circumstances.
For example, if you’re reporting a single transaction from one day, such as the sale of a business, use the recorded exchange rate for that date. If you’re reporting income that you received evenly throughout the year, on the other hand, you’ll probably want to use the yearly average currency exchange rate for that tax year.
In this table, you can see a list of yearly average currency exchange rates for the previous five years.
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