Tax Office Letter from Foreign Broker. What You Must Do (PIT-38)

Key takeaway

If you received a letter regarding income from a foreign broker account, the matter should be handled urgently. In practice, this usually means filing PIT-38 returns for all non-time-barred years, not just the year mentioned in the letter.

In 2026, this typically covers years 2020 to 2025. First, financial data is reported periodically and the tax office may already have information for multiple years or from multiple brokers. Second, correct capital gains reporting often requires including prior-year losses and carry-forward costs, especially for crypto.

What the letter usually means

Letters of this kind are usually issued as part of preliminary verification activities, not a formal tax audit or tax proceeding. At this stage, the authority is checking discrepancies between the data it already holds and the tax returns filed in Poland. In practice, the letter usually refers to one tax year and one specific broker, for example eToro, DEGIRO or Interactive Brokers.

That limited scope should not be misunderstood. The fact that the letter refers to one year does not mean that the issue is limited to one year. In most cases, the authority is pointing to one fragment of the available data. A proper response requires looking at the broader tax position and establishing whether the account existed in earlier years and whether other capital income sources should also have been reported in Poland.

Where the tax office gets the data (CRS)

The primary source is automatic exchange of financial account information, especially under the CRS, or Common Reporting Standard. Financial institutions report account data to their local tax authorities, which is then shared with the country of tax residence. For Polish tax residents, this information is transmitted to the Polish National Revenue Administration.

From a practical tax perspective, this means the authority does not need to discover the account on its own or carry out extensive evidentiary steps before sending a letter. The data is reported systematically. In practice, this often concerns accounts held with brokers commonly used by Polish investors, including eToro, DEGIRO, Interactive Brokers, Trading 212 and Revolut Trading.

It is also important to distinguish reportable financial data from tax-calculated data. Information exchanged under CRS does not show the correct taxable result under Polish law. It shows enough for the authority to identify the account holder, the existence of the account and certain financial values connected with that account.

Why the amount in the letter is often overstated

This is one of the most common concerns. The amount stated in the letter is often much higher than the taxpayer’s actual profit and in some cases may even exceed the current value of the brokerage account. That does not mean the authority has already established tax due at that level. It reflects the nature of the data available at the preliminary verification stage.

Data exchanged under CRS is informational, not computational. It may include certain proceeds, transaction values or other financial indicators, but it does not include the elements necessary to determine taxable income correctly under Polish rules. The authority does not see the full acquisition costs, does not directly see prior-year tax losses and does not see the full context needed to classify each taxable event correctly.

As a result, the figure shown in the letter should not be read as a ready-made tax assessment. It is a signal that the authority holds a set of financial data and expects it to be reconciled properly under Polish tax law.

Does the authority see other years and other brokers

In most cases, yes. The fact that the letter refers to one tax year and one account does not mean the authority has information only within that narrow scope. Financial account information is exchanged periodically. If the account was maintained for several years, there is a high probability that data for those additional years is also available to the tax administration.

The same applies where the taxpayer used more than one broker. Data is reported independently by each financial institution. From a practical perspective, the absence of a letter concerning other years or other accounts should not be treated as evidence that the authority lacks information about them.

For that reason, a response limited only to the year mentioned in the letter is often insufficient. If the account existed earlier and generated taxable events in prior years, the issue usually requires the entire non-time-barred period to be addressed.

Why, in practice, all non-time-barred years usually need to be filed

In 2026, this typically means years 2020 to 2025. The reason is not only the possibility of further review by the tax authority. Equally important is the fact that the correct tax result for capital income often depends on data from prior years. This applies in particular to prior-year tax losses and to carry-forward acquisition costs in crypto reporting.

If a taxpayer used a foreign broker over several years, received dividends, closed positions in financial instruments or acquired and disposed of cryptocurrency, each year containing such taxable events should be reviewed and, as a rule, reported in Poland. This is not about mechanically filing extra returns. It is about producing one coherent tax position covering the full investment period.

The exception is straightforward. If the year mentioned in the letter was genuinely the only year in which the account existed and the only year in which taxable events occurred, then the review may be limited to that single year. In practice, however, this is uncommon where the account had been open for several years.

What to do after receiving such a letter

The matter should be handled urgently. In practice, the safest approach is to identify all non-time-barred years in which taxable capital income events occurred and to file Polish PIT-38 returns for all such years, regardless of whether they relate to the broker named in the letter, another broker or another source of capital income.

For years not yet covered by the letter, a voluntary disclosure may sometimes be considered. Its effectiveness depends on whether the authority already had knowledge of the irregularity in relation to a specific year and a specific filing obligation. A letter concerning one year does not automatically determine the position for all other years, but it also does not justify assuming that voluntary disclosure will remain effective in every case.

From a practical point of view, the key step is usually the prompt filing of missing returns or corrections together with payment of outstanding tax and statutory interest. In current practice, regularising matters in this way will often close the issue at the tax level. In our experience, in cases involving omitted or incorrect reporting of foreign brokerage accounts, the authorities are usually focused on obtaining correct returns and the tax due rather than pursuing punitive fiscal-penal measures. That assessment, however, always depends on the specific facts.

What should be avoided is a fragmented response based only on the wording of the letter, without reconstructing the full filing position. A reply limited to one year, where the account also existed earlier and generated other taxable events, usually does not resolve the issue and may lead to further questions.

Can you file only the year mentioned in the letter

As a rule, only if that was genuinely the only year in which the brokerage account existed and the only year in which taxable events arose that had to be reported in Poland. If the account already existed in earlier years and the taxpayer received dividends, closed positions or acquired cryptocurrency in those years, each such year should be reviewed for Polish filing obligations.

This also applies where the taxpayer did not receive an obvious cash profit or assumed that no filing obligation arose because no funds were withdrawn from the account. In many cases, that assumption is incorrect. A proper response therefore requires identifying the full sequence of taxable events, not simply answering one letter in isolation.

Common mistakes in foreign broker tax reporting

One of the most common mistakes is copying the result shown by the broker platform directly into a tax return. Data from platforms such as eToro, IBKR or DEGIRO is not prepared for Polish tax reporting.

Another recurring issue is the failure to convert transactions into PLN using the correct National Bank of Poland exchange rates. That alone can create a substantial difference between the platform result and the taxable result.

Dividends are also frequently omitted or reported incorrectly, especially where withholding tax abroad and Polish reporting obligations are not properly addressed.

In crypto cases, prior-year acquisition costs are often ignored even though they may need to be carried forward and recognised in later years. These errors are precisely why a simple explanation letter is rarely enough once the tax office has already raised the issue.

Will there be penalties

In practice, if you respond by filing the correct PIT-38 returns and paying the outstanding tax together with statutory interest, the matter is usually resolved at the tax level.

Based on practical experience, in such cases the authorities are typically not interested in pursuing fiscal-penal proceedings. This is not a formal guarantee and always depends on the facts, but timely filing and payment usually close the case.

Summary

A tax office letter concerning a foreign brokerage account is usually the result of data received through automatic exchange of financial information. The scope of the letter is often narrower than the actual tax issue because the authority points to one year and one broker, while the correct response may require filing all non-time-barred years and all relevant capital income sources.

In practice, the issue is not resolved by a brief written explanation. The correct response is usually to file complete and accurate PIT-38 returns for the relevant years and pay the resulting tax and interest where due.

Quick FAQ

Need help with overdue PIT-38 filings?

If you received such a letter or want to regularise past years, see our PIT-38 service and our full FAQ on Polish capital gains tax.