Targeted by IRS? What Cryptocurrency Owners ... - Bitcoin News

Tax information for Bitcoin and other crypto-currencies

Tax information for Bitcoin and other crypto-currencies.
[link]

A Deep Dive Into IRS Crypto Audits (Podcast & Highlights)

Hey all - the newest episode of The BitcoinTaxes Podcast is live. For anyone unfamiliar, it's a podcast where I interview experts in the crypto/blockchain/fintech spaces. In this episode I speak with a tax controversy lawyer about how to handle a CI agent showing up at your door about your crypto, and what to do to avoid getting to that point.
Full disclosure, I work for BitcoinTaxes and also host this podcast. I typically post my interviews to our own subreddit and one or two other subreddits (not trying to spam people). This subreddit's community seems to enjoy/engage with the episodes when I post them. If there's any issue with me posting here please let me know, otherwise I hope you guys enjoy this episode and gain some valuable knowledge. Feel free to hit me with any questions and I can relay them to Alex.
----
Links:
Podcast Page Link
Audio Only

Brief Summary:
This episode's guest is Alex Kugelman. Alex is a tax controversy lawyer with expertise in cryptocurrency and IRS audits. Alex is a frequent guest on this podcast - back in July 2019 he came on the show to discuss the IRS Educational Letters that were being sent out. Before that, in May, he shared some excellent information about IRS cryptocurrency audits. Today, he elaborates on these topics and goes in-depth about what could happen in a potential crypto audit.
Alex provides tips in the case of an IRS CI agent showing up at your door, revisits compliance post-2019 IRS FAQ update, and gives us his take on the effect of COVID-19 in taxes and crypto.

Some good quotes:
"In the past year, what I've seen, the single common element of all IRS criminal investigations relating to cryptocurrency is that there is evidence that there have been sales of cryptocurrency and it cannot be reconciled to the tax return." (07:10)
"I think it's very likely that exchanges are providing information to the government if it's requested, especially U S based exchanges that are trying to be in the good graces of regulators." (09:44)

EPISODE HIGHLIGHTS AND DISCUSSION

Don't Under-Estimate Over-Reporting (03:12)

Alex: I'm a big believer of over-reporting, which means give as much detail as you possibly can. I think a lot of people get into trouble. They go: “Oh, I reported my transactions”... and you look at the tax return and it's a single line that says “cryptocurrency” and the net number. You have to think through objectively. I've not seen an issue where the IRS has taken a really hard position on lost records as long as you're making reasonable assumptions and using fair market value data.

A CI Agent's M.O. (10:30)

Alex: CI's agents are fairly sophisticated. If they have some information, and they can see these different transfers to different exchanges or wallets - they can piece it together and there's nothing to stop them from going and getting that data at that point as well. That's why I think it's really important that people...try to do the most reasonable good faith effort because it's hard to make a criminal case out of an accounting error. It's much easier to make a criminal case when someone's sold hundreds of thousands of dollars of cryptocurrency and then transferred that fiat into a U S bank account.

Unmatched Trades and Missing Data (12:16)

Alex: The more transactions that you have...with missing information...could lead to more questions. The question becomes where or how did you obtain this cryptocurrency and why is it that you don't have records?
A very common example is Mt. Gox. The exchange goes down, the records go down. That's really common. If that's the story, I wouldn't be worried about it. But, if you were being paid in cryptocurrency for a couple of years, never reported it as income, and now you're selling it - that's more problematic. It could lead to issues down the line.

CI Agents Paying You A Visit (14:35)

Alex: A lot of times when a CI agent shows up it's meant to catch people off guard. If a CI agent is showing up at your door regarding cryptocurrency, it means they already have information that they believe there was a crime and that would lead to a conviction of a crime. So you're not going to explain that away in an hour long conversation in your living room. It's not going to happen. That's not the way it works.
There's always going to be two agents, because one is going to be a witness for this conversation. You just need to remember: decline the interview. There's nothing wrong with that. Get a card and: “my counsel will contact you”. That's it.
The other thing to keep in mind that's really important is that you don't want to start doing things that are new crimes. You don't want to go in and start destroying records or erasing emails. Taking those kinds of steps is only going to make it worse.

Coronavirus, Audits, and Amended Returns (31:05)

Alex: The IRS is, for the most part, shutdown. That means that they're not really issuing new audits right now. It also means that the forced collections, when you owe money to the IRS and they levy your bank account or issue liens - that’s not going on right now. So for clients or for taxpayers who owe the IRS money...if they are currently in an installment agreement with the IRS, then actually they can forego those monthly payments right now.
The IRS is already an underfunded agency, and it was affected by the government shutdown recently. There's really a big backlog to begin with. I mean it's hard to estimate how much this [virus] is going to affect the administration of tax compliance. I think it's a great time to amend a tax return or to get into compliance.
submitted by Sal-BitcoinTax to BitcoinMarkets [link] [comments]

The only thing holding Bitcoin back in the USA is how it gets taxed by the IRS. It hampers the velocity of Bitcoin transactions throughout the economy. If we ever want Bitcoin to hit escape velocity, these taxes must be reformed.

Bitcoin hasn’t hit that “of course we accept Bitcoin” level in the economy and it never will if it continues to be taxed in this way.
Capital gains taxes and the IRS demanding tax payment in USD are the achilles heel of Bitcoin.
But Bitcoin is a completely new thing. It should not be taxed like simple property or a collectible.
If you want to see an explosion of sustainable economic growth in the economy, then the taxation of Bitcoin must be reformed.
They can even charge the capital gains if I trade my Bitcoin for USD for all they want. But if I’m trying to buy my groceries or a house with bitcoin, then the capital gains tax need not apply.... or can be greatly reduced.
submitted by the420chronicler to Bitcoin [link] [comments]

A Deep Dive Into IRS Crypto Tax Audits (Podcast and Highlights)

Hey all - the newest episode of The BitcoinTaxes Podcast is live. For anyone unfamiliar, it's a podcast where I interview experts in the bitcoin/blockchain/fintech spaces. In this episode I speak with a tax controversy lawyer about how to handle a CI agent showing up at your door about your crypto, and what to do to avoid getting to that point.
Full disclosure, I work for BitcoinTaxes and also host this podcast. I typically post my interviews to our own subreddit and one or two other subreddits (not trying to spam people). I've not really posted past episodes to this subreddit, but I thought it would be a pretty interesting listen for bitcoin/crypto enthusiasts and traders. If there's any issue with me posting here please let me know, otherwise I hope you guys enjoy this episode and gain some valuable knowledge. Feel free to hit me with any questions and I can relay them to Alex.
----
Links:
Podcast Page Link
Audio Only (~35 mins)

Brief Summary:
This episode's guest is Alex Kugelman. Alex is a tax controversy lawyer with expertise in cryptocurrency and IRS audits. Alex is a frequent guest on this podcast - back in July 2019 he came on the show to discuss the IRS Educational Letters that were being sent out. Before that, in May, he shared some excellent information about IRS cryptocurrency audits. Today, he elaborates on these topics and goes in-depth about what could happen in a potential crypto audit.
Alex provides tips in the case of an IRS CI agent showing up at your door, revisits compliance post-2019 IRS FAQ update, and gives us his take on the effect of COVID-19 in taxes and crypto.

Some good quotes:
"In the past year, what I've seen, the single common element of all IRS criminal investigations relating to cryptocurrency is that there is evidence that there have been sales of cryptocurrency and it cannot be reconciled to the tax return." (07:10)
"I think it's very likely that exchanges are providing information to the government if it's requested, especially U S based exchanges that are trying to be in the good graces of regulators." (09:44)

EPISODE HIGHLIGHTS AND DISCUSSION

Don't Under-Estimate Over-Reporting (03:12)

Alex: I'm a big believer of over-reporting, which means give as much detail as you possibly can. I think a lot of people get into trouble. They go: “Oh, I reported my transactions”... and you look at the tax return and it's a single line that says “cryptocurrency” and the net number. You have to think through objectively. I've not seen an issue where the IRS has taken a really hard position on lost records as long as you're making reasonable assumptions and using fair market value data.

A CI Agent's M.O. (10:30)

Alex: CI's agents are fairly sophisticated. If they have some information, and they can see these different transfers to different exchanges or wallets - they can piece it together and there's nothing to stop them from going and getting that data at that point as well. That's why I think it's really important that people...try to do the most reasonable good faith effort because it's hard to make a criminal case out of an accounting error. It's much easier to make a criminal case when someone's sold hundreds of thousands of dollars of cryptocurrency and then transferred that fiat into a U S bank account.

Unmatched Trades and Missing Data (12:16)

Alex: The more transactions that you have...with missing information...could lead to more questions. The question becomes where or how did you obtain this cryptocurrency and why is it that you don't have records?
A very common example is Mt. Gox. The exchange goes down, the records go down. That's really common. If that's the story, I wouldn't be worried about it. But, if you were being paid in cryptocurrency for a couple of years, never reported it as income, and now you're selling it - that's more problematic. It could lead to issues down the line.

CI Agents Paying You A Visit (14:35)

Alex: A lot of times when a CI agent shows up it's meant to catch people off guard. If a CI agent is showing up at your door regarding cryptocurrency, it means they already have information that they believe there was a crime and that would lead to a conviction of a crime. So you're not going to explain that away in an hour long conversation in your living room. It's not going to happen. That's not the way it works.
There's always going to be two agents, because one is going to be a witness for this conversation. You just need to remember: decline the interview. There's nothing wrong with that. Get a card and: “my counsel will contact you”. That's it.
The other thing to keep in mind that's really important is that you don't want to start doing things that are new crimes. You don't want to go in and start destroying records or erasing emails. Taking those kinds of steps is only going to make it worse.

Coronavirus, Audits, and Amended Returns (31:05)

Alex: The IRS is, for the most part, shutdown. That means that they're not really issuing new audits right now. It also means that the forced collections, when you owe money to the IRS and they levy your bank account or issue liens - that’s not going on right now. So for clients or for taxpayers who owe the IRS money...if they are currently in an installment agreement with the IRS, then actually they can forego those monthly payments right now.
The IRS is already an underfunded agency, and it was affected by the government shutdown recently. There's really a big backlog to begin with. I mean it's hard to estimate how much this [virus] is going to affect the administration of tax compliance. I think it's a great time to amend a tax return or to get into compliance.
submitted by Sal-BitcoinTax to Bitcoin [link] [comments]

BitcoinTaxes Podcast: A Deep Dive Into IRS Crypto Audits

Hey all - newest episode of The BitcoinTaxes Podcast is live! Full disclosure, I work for BitcoinTaxes and also host this podcast.
Our guest today is Alex Kugelman. Alex is a tax controversy lawyer with expertise in cryptocurrency and IRS audits. Alex is a frequent guest on this podcast - back in July 2019 he came on the show to discuss the IRS Educational Letters that were being sent out. Before that, in May, he shared some excellent information about IRS cryptocurrency audits. Today, he elaborates on these topics and goes in-depth about what could happen in a potential crypto audit.
Alex provides tips in the case of an IRS CI agent showing up at your door, revisits compliance post-2019 IRS FAQ update, and gives us his take on the effect of COVID-19 in taxes and crypto.
Podcast Page Link
Audio Only
Some good quotes:
"In the past year, what I've seen, the single common element of all IRS criminal investigations relating to cryptocurrency is that there is evidence that there have been sales of cryptocurrency and it cannot be reconciled to the tax return." (07:10)
"I think it's very likely that exchanges are providing information to the government if it's requested, especially U S based exchanges that are trying to be in the good graces of regulators." (09:44)
EPISODE HIGHLIGHTS AND DISCUSSION

Don't Under-Estimate Over-Reporting (03:12)

Alex: I'm a big believer of over-reporting, which means give as much detail as you possibly can. I think a lot of people get into trouble. They go: “Oh, I reported my transactions”... and you look at the tax return and it's a single line that says “cryptocurrency” and the net number. You have to think through objectively. I've not seen an issue where the IRS has taken a really hard position on lost records as long as you're making reasonable assumptions and using fair market value data.

A CI Agent's M.O. (10:30)

Alex: CI's agents are fairly sophisticated. If they have some information, and they can see these different transfers to different exchanges or wallets - they can piece it together and there's nothing to stop them from going and getting that data at that point as well. That's why I think it's really important that people...try to do the most reasonable good faith effort because it's hard to make a criminal case out of an accounting error. It's much easier to make a criminal case when someone's sold hundreds of thousands of dollars of cryptocurrency and then transferred that fiat into a U S bank account.

Unmatched Trades and Missing Data (12:16)

Alex: The more transactions that you have...with missing information...could lead to more questions. The question becomes where or how did you obtain this cryptocurrency and why is it that you don't have records?
A very common example is Mt. Gox. The exchange goes down, the records go down. That's really common. If that's the story, I wouldn't be worried about it. But, if you were being paid in cryptocurrency for a couple of years, never reported it as income, and now you're selling it - that's more problematic. It could lead to issues down the line.

CI Agents Paying You A Visit (14:35)

Alex: A lot of times when a CI agent shows up it's meant to catch people off guard. If a CI agent is showing up at your door regarding cryptocurrency, it means they already have information that they believe there was a crime and that would lead to a conviction of a crime. So you're not going to explain that away in an hour long conversation in your living room. It's not going to happen. That's not the way it works.
There's always going to be two agents, because one is going to be a witness for this conversation. You just need to remember: decline the interview. There's nothing wrong with that. Get a card and: “my counsel will contact you”. That's it.
The other thing to keep in mind that's really important is that you don't want to start doing things that are new crimes. You don't want to go in and start destroying records or erasing emails. Taking those kinds of steps is only going to make it worse.

Coronavirus, Audits, and Amended Returns (31:05)

Alex: The IRS is, for the most part, shutdown. That means that they're not really issuing new audits right now. It also means that the forced collections, when you owe money to the IRS and they levy your bank account or issue liens - that’s not going on right now. So for clients or for taxpayers who owe the IRS money...if they are currently in an installment agreement with the IRS, then actually they can forego those monthly payments right now.
The IRS is already an underfunded agency, and it was affected by the government shutdown recently. There's really a big backlog to begin with. I mean it's hard to estimate how much this [virus] is going to affect the administration of tax compliance. I think it's a great time to amend a tax return or to get into compliance.
submitted by Sal-BitcoinTax to bitcointaxes [link] [comments]

1040 Bitcoin Tax Question - IRS clarifies who has to answer

1040 Bitcoin Tax Question - IRS clarifies who has to answer submitted by stratguy56 to Bitcoin [link] [comments]

Bitcoin and the IRS/Taxes

I was wondering... I keep purchasing bits of bitcoin here and there ($20-$100 chunks) during the dips and I have it invested in my Celsius Network account. If I hypothetically pulled everything out with profit at the end of the year (Which I won't, just curious for the question at hand), How does the IRS know how much to tax? Do I need to keep receipts of every deposit/purchase of bitcoin so that the IRS can tally the difference between my investment and my net profit? Will Celsius provide a form for me with all of that information? Any help would be greatly appreciated. I just don't want the IRS to think that every thing I pull out is profit when a majority of it is investment money I put into it. Also I don't plan on pulling ANY out any time soon, this is just a hypothetical question. Thank you.
submitted by RaKemyst to BitcoinBeginners [link] [comments]

Crypto Regulation News: SEC expands accredited investor definition, lowering the barrier to private markets; IRS memo — cryptocurrency earned from a microtasking job is taxable income; ‘Crypto Valley’ residents can now pay taxes in Bitcoin; Brazil’s central bank examines the benefits of a CBDC

Crypto Regulation News: SEC expands accredited investor definition, lowering the barrier to private markets; IRS memo — cryptocurrency earned from a microtasking job is taxable income; ‘Crypto Valley’ residents can now pay taxes in Bitcoin; Brazil’s central bank examines the benefits of a CBDC submitted by sasha_sh to Bitcoin [link] [comments]

1040 Bitcoin Tax Question - IRS clarifies who has to answer (x-post from /r/Bitcoin)

1040 Bitcoin Tax Question - IRS clarifies who has to answer (x-post from /Bitcoin) submitted by ASICmachine to CryptoCurrencyClassic [link] [comments]

Crypto Regulation News: SEC expands accredited investor definition, lowering the barrier to private markets; IRS memo — cryptocurrency earned from a microtasking job is taxable income; ‘Crypto Valley’ residents can now pay taxes in Bitcoin; Brazil’s central bank examines the benefits of a CBDC

Crypto Regulation News: SEC expands accredited investor definition, lowering the barrier to private markets; IRS memo — cryptocurrency earned from a microtasking job is taxable income; ‘Crypto Valley’ residents can now pay taxes in Bitcoin; Brazil’s central bank examines the benefits of a CBDC submitted by sasha_sh to Crypto_Currency_News [link] [comments]

Crypto Regulation News: SEC expands accredited investor definition, lowering the barrier to private markets; IRS memo — cryptocurrency earned from a microtasking job is taxable income; ‘Crypto Valley’ residents can now pay taxes in Bitcoin; Brazil’s central bank examines the benefits of a CBDC

Crypto Regulation News: SEC expands accredited investor definition, lowering the barrier to private markets; IRS memo — cryptocurrency earned from a microtasking job is taxable income; ‘Crypto Valley’ residents can now pay taxes in Bitcoin; Brazil’s central bank examines the benefits of a CBDC submitted by sasha_sh to CryptoCurrencies [link] [comments]

Crypto Regulation News: SEC expands accredited investor definition, lowering the barrier to private markets; IRS memo — cryptocurrency earned from a microtasking job is taxable income; ‘Crypto Valley’ residents can now pay taxes in Bitcoin; Brazil’s central bank examines the benefits of a CBDC

Crypto Regulation News: SEC expands accredited investor definition, lowering the barrier to private markets; IRS memo — cryptocurrency earned from a microtasking job is taxable income; ‘Crypto Valley’ residents can now pay taxes in Bitcoin; Brazil’s central bank examines the benefits of a CBDC submitted by sasha_sh to Paradigm_fund [link] [comments]

Crypto Regulation News: SEC expands accredited investor definition, lowering the barrier to private markets; IRS memo — cryptocurrency earned from a microtasking job is taxable income; ‘Crypto Valley’ residents can now pay taxes in Bitcoin; Brazil’s central bank examines the benefits of a CBDC

Crypto Regulation News: SEC expands accredited investor definition, lowering the barrier to private markets; IRS memo — cryptocurrency earned from a microtasking job is taxable income; ‘Crypto Valley’ residents can now pay taxes in Bitcoin; Brazil’s central bank examines the benefits of a CBDC submitted by cryptoallbot to cryptoall [link] [comments]

Crypto Regulation News: SEC expands accredited investor definition, lowering the barrier to private markets; IRS memo — cryptocurrency earned from a microtasking job is taxable income; ‘Crypto Valley’ residents can now pay taxes in Bitcoin; Brazil’s central bank examines the benefits of a CBDC

submitted by sasha_sh to Crypto_General [link] [comments]

Understanding the IRS letters 6173, 6174, and 6174-A (Podcast & Summary)

Hey all - Last week I interviewed Alex Kugelman, a tax controversy lawyer with expertise in cryptocurrency and IRS audits, about the recent IRS letters referenced as 6173, 6174 and 6174-A. Alex explained what each of the letters means, the difference between them, and how they will potentially affect everyone who received one.
The letters intend to help taxpayers understand their tax and filing obligations and how to correct past errors. The recipients of these letters have been collected from various compliance measures, including the collection of records from Coinbase after their summons from the IRS in 2018 for 13,000 customer records.
Full disclosure, I work for Bitcoin.Tax! Hope this helps clarify the letters for people who have either received them, or heard/read about them.
Link to podcast audio (43mins)
Link to podcast page
Link to IRS info
Highlights from the episode:
The Three Types of IRS Notices (01:15):
“There’s basically three different letters: 6173, 6174, and 6174-A that were sent out to Coinbase account holders for the years 2013 through 2015 as a result of that summons that the IRS sent to Coinbase. Essentially, Coinbase and the IRS agreed on a certain threshold. That means about 13,000 or so account holders information, including name, social security number and trading data, was provided to the IRS. If you go on the IRS website or call the IRS hotline regarding these letters, these are in fact those people that are being affected.”
The Difference Between Each Letter (02:15):
“The basic thrust is that the IRS has information that the recipient had some cryptocurrency account and may not have fully reported gains or losses from the activity. So essentially the 6174, 6174-A, and 6173 are essentially predicated on that. The 6174 is what’s been termed, or people have described as, a ‘soft notice' – just putting people on notice of what the tax reporting obligations are. The 6174-A is a little bit more direct. The 6173 from my perspective is the letter to be taken more seriously by recipient because it requires a response. It has a response date, from what I can tell, of one month from the date of the letter.”
The Goal of the IRS Letters (08:50):
“I would imagine probably two goals of these letters. One is for the group of people who actually received the letters. For each of them to address any outstanding issues – voluntary compliance to get as many people in compliance to all tax reporting obligations. The second, which I think has been really effective, is to spread this news to a wider audience – this was all over the Internet. That’s exactly how the IRS motivates people to comply with tax laws: get the word out and get people thinking ‘right now I have to really take this issue seriously’.”
What the Letters Mean for Crypto Users (10:45):
“For people who just purchased and held onto crypto, what you want to do is just keep good data, good records, but you really don’t have anything to do. However, if you did receive the 6173, then you would respond. You could respond that you don’t have any taxable gains or losses or tax reporting for those years, but pretty much get your records together and just kind of hunker down. ”
“For people who had net losses…I’ve gotten this question a couple of times: the taxpayer made a bunch of trades, ultimately came out on the short end of the stick and had losses and didn’t report anything because they don’t have any additional tax owed. Subjectively that might be true, but objectively that’s a major problem. If the data provided by the exchange shows a certain number of taxable events or sales it’s not clear from that data that there’s going to be a basis that exceeds what the sales price is. For people that are in that boat, I would highly recommend that they amend returns so you’re actually showing each of the transactions and how you arrive at that figure.”
“I think at this point, especially if you got the letter…you’re now part of a pool of certain taxpayers that has a lot of scrutiny.”
submitted by Sal-BitcoinTax to BitcoinMarkets [link] [comments]

The only thing holding Bitcoin back in the USA is how it gets taxed by the IRS. It hampers the velocity of Bitcoin transactions throughout the economy. If we ever want Bitcoin to hit escape velocity, these taxes must be reformed. (x-post from /r/Bitcoin)

submitted by ASICmachine to CryptoCurrencyClassic [link] [comments]

Over 150 Million Americans Must Report Crypto Taxes With IRS Update (x-post from /r/Bitcoin)

Over 150 Million Americans Must Report Crypto Taxes With IRS Update (x-post from /Bitcoin) submitted by ASICmachine to CryptoCurrencyClassic [link] [comments]

The IRS is sending another wave of bitcoin tax letters (August 2020)

The IRS is sending another wave of bitcoin tax letters (August 2020) submitted by chanfest22 to Bitcoin [link] [comments]

IRS Tells Couple With $7 Million in Bitcoin to Liquidate Crypto Assets and Pay off Tax Debt

IRS Tells Couple With $7 Million in Bitcoin to Liquidate Crypto Assets and Pay off Tax Debt submitted by swiftestcat to btc [link] [comments]

A couple questions about Coinbase, exchanges/wallets, and taxes/IRS etc? Any explanations or insight I would be gracious (x-post from /r/Bitcoin)

submitted by ASICmachine to CryptoCurrencyClassic [link] [comments]

Current IRS treatment of Bitcoin is like charging an obscene property/capital gain tax on owners of Tesla cars and stock, taking out the smart features of the car, and limiting the Tesla’s velocity and 0-60 time.

Instead Tesla gets subsidized. IRS tax laws make it risky to plan your life with Bitcoin, when it should be encouraged in a supposedly “free” country.
Our country’s politicians keep promising the people a better life, but it never comes to be.
Bitcoin comes along and solves a whole host of problems, and governments view it as a threat and call it a “fraud”.
But Tesla gets subsidized to go explore the solar system.
But we won’t give people the tools they need on Earth to live peacefully with one another??
Makes no sense.
submitted by the420chronicler to Bitcoin [link] [comments]

The IRS Sets a Trap for Cryptocurrency Tax Cheats (x-post from /r/Bitcoin)

The IRS Sets a Trap for Cryptocurrency Tax Cheats (x-post from /Bitcoin) submitted by ASICmachine to CryptoCurrencyClassic [link] [comments]

IRS Tells Couple With $7 Million in Bitcoin to Liquidate Crypto Assets and Pay off Tax Debt

IRS Tells Couple With $7 Million in Bitcoin to Liquidate Crypto Assets and Pay off Tax Debt submitted by swiftestcat to GoldandBlack [link] [comments]

BREAKING: IRS To Update Cryptocurrency Tax Guidance If You Own Bitcoin, Here's How Much You Owe In Taxes ... Bitcoin & The Tax Man ☠ How The IRS Catches Tax Cheats Will Coinbase Report My Bitcoin Tax Gains To The IRS? CRYPTO TAXES 2020 - Cryptocurrency Taxes for Bitcoin and ...

There's a lot of confusion around how bitcoin is taxed, but there needn't be: Crypto assets like bitcoin enjoy remarkably favorable tax treatment from the IRS. IRS Guidelines about Bitcoin Taxes. by admin April 27, 2020; US Taxation of Bitcoin. Despite being around for over a decade, Bitcoin and other virtual currencies are not very commonplace yet. People who don’t know anything about them, are unsure whether Bitcoin is an alternate currency or an investment asset. And even people who own Bitcoin might not be fully aware of various repercussions ... Bitcoin can be digitally traded between users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or virtual currencies. Tax Consequences The sale or other exchange of virtual currencies, or the use of virtual currencies to pay for goods or services, or holding virtual currencies as an investment, generally has tax consequences that could result in tax liability. The U.S. Internal Revenue Service (IRS) has started sending out new letters to cryptocurrency owners suspected of owing crypto-related taxes. A tax expert has shared with news.Bitcoin.com what ... The IRS is in the process of sending letters to U.S. citizens who own virtual currency and potentially failed to pay the necessary taxes.

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BREAKING: IRS To Update Cryptocurrency Tax Guidance

Almost no one seems to pay, but whether you've used bitcoin as an investment or as a currency you owe taxes on it. » Subscribe to CNBC: http://cnb.cx/Subscri... Here is a tool that I use to help taxes become easier to keep track of: Please support my channel by using my affiliate link here: www.BitcoinTaxTool.com The IRS has tracked bitcoin tax evaders since 2015 and they have now begun sending letters to virtual currency owners advising them to pay back taxes and file amended returns. Apparently ... SUPPORT THE SHOW: Visit LEDN to check out getting a bitcoin-backed loan https://platform.ledn.io/join/0a00cca3dd61dea5909c95cd41f41685 Get Wasabi wallet and ... Crypto & Bitcoin Taxes Explained - Everything You Need To Know CryptoTrader.Tax - Duration: 11:57. ... 🔵 The New IRS Crypto Tax Ruling in Layman’s Terms – The Good, The Bad & How The IRS ...

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