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from the if-you-can't-beat-it,-tax-it-to-death dept.
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.
(Score: 2) by Hartree on Monday July 29 2019, @04:21AM
Welcome to the reality of living in almost any country with a legal system. Very nearly just by existing you are in violation of some law and can be prosecuted for it if it's convenient.
And as to those countries without an effective legal system, there's not even the fig leaf of law and due process to keep those in power from taking whatever they want.