Tax Loss Write offs with Foreign Brokers

I'm having a lot of trouble finding info on filing taxes when trading forex with an international broker (outside the US). Most info seems to come from just 1 source, Greentradertax; problem is they don't do taxes or offer much advice for foreign accounts / brokers.
When I started trading a year ago I thought most people used broker accounts outside the US... Guess I was wrong.

Anyway I had a large loss in 2017 and I'm wondering if it's worth it to write them off on taxes under sec 988. Has anyone here written a large forex loss off based on their non US broker account? Was the ensuing audit a simple verification of documents and fund transfers or did you need expensive lawyers? From my simpleton understanding one shouldn't need lawyers unless there is fraud or evasion, but these terms I imagine are subject to irs interpretation considering there's always a plethora of overly complex laws we don't even know exist. Also wondering what form to write off signal provider fees, since they would probably be different than where stock commissions are lined. Anyone know good accountants who do foreign brokers?

The location of the broker doesn't matter. The question you need to answer is whether you qualify for trader tax status. If not, you report the losses as other income on your 1040. Line 21 or something like that. There is an article on the greentrader web site about it. I reported a small loss this year and I do have an offshore broker. Haven't heard back from the IRS though.

I am a little bit hesitant to write about your case because the subject don't apply to the most US small retail traders.
Since around 2010-2011, not many REPUTABLE foreign brokers accept US retail customers. Said REPUTABLE.

- TRADER TAX STATUS:
Will be a totally different subject. Whether you treat them as ordinary income/loss or capital gain/loss will
be depended upon many aspects. Volume, amount, frequency, what kind of assets, how you structure your trading business,
your other incomes, where you have your accounts, how you deposit and receive the payment, etc, etc,etc.
There are many experts and references you can find.

- MY MAIN CONCERN for FX traders and Coinbase traders having foreign accounts outside of USA:
FATCA reporting with IRS Tax return F8938 (Single $50k, Couple $100k)
FBAR reporting with FinCen F114/BSA E-filing (over $10k)

OECD countries started CRS reporting and will be fully implemented by the end of this year.
I maybe wrong but USA is not currently reporting or receiving and expected to join.

Since bitcoin went up pretty much last year, we will hear many horror stories regarding tax reporting or audits later this year.
The main problem for the traders will be your IRS auditor or your so called experts don't know much either
because these are pretty new and rare and still evolving subjects for the most of them.

If you find a problem, be sure to file 1040X asap.
Most importantly, keep a good, detailed records of all of your trading or money transactions in file.
IRS usually start with the total volume or deposit amount. You have to be able to explain in details to avoid big headaches.
I expect a lot of laws will be evolved and implemented by around 2020 (Especially if Trump becomes 2nd term president in 2020).

Best Pip Wishes!

Im not going to do anything more complicated than I have to. Im not filing Trader Status, or 1256 contracts election. Just ordinary 988 summary reporting.

I guess I'm worried that,

1. Since foreign brokers dont report to the IRS, the IRS wont take my account statements seriously since these statements will be coming only from me, of which they have no reason to believe I didn't forge them.

2. That they might try to give foreign-forex casino treatment rather than forex treatment since it's outside US forex regulation.

3. They might try to treat these accounts similiar to banks on their "Bad Banks" list.

3. Some people are saying not to send receipts / documents / records to the IRS with my taxes. I don't understand this, wouldn't that be the best way to prove my case without looking too suspicious right off the top, considering I don't have anything to hide?