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IRS Reminds 10,000 Taxpayers That Cryptocurrency is Subject to Taxes

posted by Fnord666 on Sunday July 28 2019, @09:56PM   Printer-friendly
from the if-you-can't-beat-it,-tax-it-to-death dept.

upstart writes:

Submitted via IRC for AnonymousLuser

IRS reminds 10,000 taxpayers that cryptocurrency is subject to taxes

By the end of August, an estimated 10,000 taxpayers will receive letters from the IRS warning them that they may owe back taxes on unreported cryptocurrency earnings. While it might not be immediately obvious, you must include cryptocurrency earnings when you file federal taxes. As with tax evasion for traditional currency, anyone convicted of evading crypto taxes could face up to five years in prison and a fine of up to $250,000.

In a press release, IRS Commissioner Chuck Rettig said:

"Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties. The IRS is expanding our efforts involving virtual currency, including increased use of data analytics. We are focused on enforcing the law and helping taxpayers fully understand and meet their obligations."

[...] While cryptocurrency may have once felt cutting edge, getting a letter from the IRS stating that you owe back taxes makes it automatically less cool.

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  • (Score: 2) by EvilSS on Sunday July 28 2019, @11:41PM (2 children)

    by EvilSS (1456) Subscriber Badge on Sunday July 28 2019, @11:41PM (#872448)
    Not if you use a public exchange. These are coming to people who hit the $20,000 mark with Coinbase. Under a court order, they are required to report accounts that trade $20,000 or more in crypto.
    Starting Score:    1  point
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  • (Score: 0) by Anonymous Coward on Monday July 29 2019, @12:35AM (1 child)

    by Anonymous Coward on Monday July 29 2019, @12:35AM (#872466)

    Well fuck me. I had converted $19,996 and then decided to convert another $5 to donate to an ophanage on New Years Eve.

    • (Score: 0, Funny) by Anonymous Coward on Monday July 29 2019, @03:19AM

      by Anonymous Coward on Monday July 29 2019, @03:19AM (#872505)

      > Well fuck me.

      Trump spotted--yet another claim of a charitable donation that was never made.