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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   
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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Original Submission

• This has been true since the 1900s if not before. This has been true since the 1900s if not before. (Score: 0) by Anonymous Coward on Monday July 29 2019, @04:16AM (1 child)

  by Anonymous Coward on Monday July 29 2019, @04:16AM (#872520)

  It all started with the Whiskey Tax, which George Washington actually marched a conscripted army against protestors of (some of whom may or may not have inflicted violence on tax men coming to collect.)

  It only took 4-8 years for the unfair taxation without (equal) representation to overcome America's promises to its destitute farmers, while making its city slicker 'factory' distillers taxes subsidized on the backs of the little people. And America today is the same way, only with debt and losses used to reduce the tax burden or 'offshore' tax debt to places more favorable to the wealthy.

  America, meet the United Kingdom, you're not as different as the laws you once fought against, nor the values you claimed to be fighting for.

  Parent

• Re:This has been true since the 1900s if not befor (Score: 2) by Runaway1956 on Monday July 29 2019, @05:58AM

  by Runaway1956 (2926) on Monday July 29 2019, @05:58AM (#872541) Journal

  https://www.history.com/topics/early-us/whiskey-rebellion [history.com]

  Bolding by me:

  The Whiskey Rebellion was a 1794 uprising of farmers and distillers in western Pennsylvania in protest of a whiskey tax enacted by the federal government. Following years of aggression with tax collectors, the region finally exploded in a confrontation that had President Washington respond by sending troops to quell what some feared could become a full-blown revolution. Opposition to the whiskey tax and the rebellion itself built support for the Republicans, which overtook Washington’s Federalist Party for power in 1802.

  There was talk of revolution and secession. Troops weren't deployed to collect taxes, they were deployed to put down an insurrection. Those Pennsylvania hillbillies were some real badasses, back in the day.

  Parent