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 legont on Monday July 29 2019, @04:35AM (1 child)
IRS treats crypto as a commodity. Similar to gold, boys, didn't you want it?
This means that you have to report each transaction as a buy/sell commodity. Specifically, when you buy a pizza using a bitcoin, you have to report when and where you got the bitcoin you used and for how much (if you mined it, what were your expenses; documented, mind you), then how much it would be if you converted the bitcoin to dollars when you bought pizza.
Can't do it? Welcome to the jail.
Don't like it? Use anonymous gold coins.
"Wealth is the relentless enemy of understanding" - John Kenneth Galbraith.
(Score: 0) by Anonymous Coward on Monday July 29 2019, @02:17PM
Gold is worse because it gets punishment-taxed at 28%.
Can you even still buy gold without having to document your identity?