Get the Latest from CoinDesk
The draft was shared in an email to tax software companies, which the agency also shared with journalists. The document provided answers to long-standing questions, addressing such issues as crypto received as a result of a hard fork, buying goods and services with virtual currencies, calculating the fair value of crypto holdings and other matters. The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.
CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
The IRS asked its software partners to send comments on the new form in the next 30 days. Read more about IRS News. Disclosure Read More The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Year in Review Markets Daily. Adam B.
Levine Bradley Keoun Dec 17,
IRS Tax Form
And since Coinbase brags that it has 13 million users, a lot of other people could soon expect letters. So what happens next? And the IRS is looking at tax returns from to As I already reported, the IRS sent out three different letters. A taxpayer could amend his tax returns going back to and pay what he owes to get off the naughty list. And since bitcoin and other cryptocurrencies have been very volatile, taxpayers may also have had capital losses to report. For those still on the naughty list, the IRS could also charge penalties gitcoin interest of whaf to 25 percent unless a deal is negotiated with the taxpayer.
Jeff Francis Jan 23, What actions could the IRS take to combat this? They can garnish wages, levy fines, put liens on personal property, and even send you to jail for failing to pay the appropriate taxes. The op-ed was written by Richard Holden and Anup Malani. Holden is a professor of economics at the University of South Wales while Malani is a law professor at the University of Chicago. A pretty significant amount of money goes untaxed each year in the US due to the underground economy that is currently cash-based. What the Internal Revenue Service fears is that Bitcoin and other cryptocurrencies could become much more mainstream and used on a daily basis. Currently, it is somewhat of a hassle for people to exclusively use cash as one has to withdraw it, carry it on their person, and payments have to be made face-to-face. Cryptocurrency is much more flexible and easy, allowing for guaranteed payments to be sent or received anywhere in the world.