The cryptocurrency industry should be going strong, but that doesn’t mean it hasn’t had its share of problems. Nor did it mean individuals are a fan of virtual currencies. The government certainly isn’t, and crypto investors have discovered that the costly way the past 8 weeks.
Here’s instead, what we know.
IRS has Words for Crypto Investors
At a sluggish start last month, the government began mailing even more than 10,000 crypto investors informing (well, that it was more of a reminder) that they may owe taxes on various cryptocurrency transactions.
This week, word is out that crypto investors are experiencing further letters from your IRS; these letters are warning them that their federal taxes you should not match the details brought forward by cryptocurrency exchanges. One upside would certainly IRS witnesses that it’s the crypto exchanges that will have made errors, not the taxpayers.
Still, these letters, which crypto investors have been receiving the past few weeks, is one other indication how the government is emphasizing crypto tax compliance, and they maintain their belief that cryptocurrencies are a “significant threat” to tax collection, as explained the IRS’s top criminal chief.
Interestingly, you will see the letters around the IRS’s website. They state the examples below: “We received information with a third party (just like employers or loan creditors) that doesn’t match the results you reported on the tax return.” The letters add: “this discrepancy can cause an increase or lessing of your tax, or will not change it the least bit.”
What This All Means
Most people know cryptocurrencies use their share of problems and illegal activity. They are volatile, but they also can also bring great fortune to those who invest correctly. Same is true of penny stocks. But when things like this happen, one must question the legality of virtual currencies. Now, however, Possibly we will see further action being used in terms of legality, aided by the IRS announcing they’ll soon declare criminal tax evasion cases.
Do you have got any ideas on the IRS sending letters to crypto investors? Inform us your thoughts during the comments below.