Crypto Tax Payers Get Temporary Relief From IRS

As a result of the COVID-19 outbreak, Americans will be given an extra 90 days to pay their taxes without interest and penalties. This move will likely impact crypto investors, many of whom will owe as a result of trade activity in 2019.  TAX RELIEF AMID CORONAVIRUS OUTBREAK The payment extension permits individuals to defer payments and interest on up to $1 million until July 15th. Businesses can defer up to $10 million. This unprecedented […]

IRS Crypto Prosecutions Set to ‘Skyrocket’, Says US Tax Law Firm

The US Internal Revenue Service (IRS) is expected to ramp up its cryptocurrency-related enforcement actions, a tax law office warns. US Revenue Agency Looking to Crack Down on Crypto Tax Evasion The IRS has not been explicit on how would it treat taxes related to cryptocurrency transactions. On the other hand, the agency has made it clear that it intends to criminally investigate those who are knowingly ignoring to report such activities. US-based tax lawRead More

2019 IRS Crypto Tax Guidance is Subject to Change, GAO Warns

The IRS’ guidelines on crypto tax reporting remain unclear, and may not be binding, per the analysis of the Government Accountability Office (GAO). Crypto Tax Reporting Guidelines Change Without Warning Reporting on ownership and gains from crypto assets remains unclear, as the IRS has not codified all of its opinions into Internal Revenue Bulletins. The guidelines on taxing digital assets from 2019, however, is not an official document, opening up problems of interpretation, reported Forbes.Read More

IRS Removes Crypto Tax Reporting for Fortnite and Other Game Tokens

The U.S. Internal Revenue Service (IRS) has updated its webpage, removing parts of its crypto tax disclosure guideline which classified game tokens as cryptocurrencies. This includes the online gaming sensation, Fortnite. Fortnite Token Owners Don’t Have to Pay Crypto Tax According to BloombergTax, game token owners won’t have to answer the crypto-specific question on Form 1040. This development comes after the IRS pulled confusing language from its definition of virtual currency. As recently as WednesdayRead More

Crypto Group Asks IRS to Make Small Payments Tax-Free

The Wall Street Blockchain Alliance is the latest to ask the U.S. Internal Revenue Service (IRS) to consider a ‘de minimis’ exemption for crypto tax payments below a specific value. IRS Should Reduce Crypto Tax Burden According to Law360, the Wall Street Blockchain Alliance has written a letter to the IRS calling for tax exemptions for crypto transactions below a certain threshold. As part of the letter, chairman of the group, Ron Quaranta advised theRead More The post appeared first on Bitcoinist.com.

Crypto Tax in 2020: A Comprehensive Guide

Paying crypto taxes is becoming increasingly difficult in 2020, as government tax authorities around the world continue to change their minds on how digital assets should be handled. To make things easier, we’ve put together a comprehensive guide to bring you up to speed on the latest changes. Crypto-assets have entered the mainstream in the past few years, attracting the attention of tax authorities in leading economies. Following a boom in trading and prices, theRead More The post appeared first on Bitcoinist.com.

Beware of the IRS, H&S Warns its Crypto Customers

U.S. tax preparation company H&R Block is advising its customers not to consider evading the Inland Revenue Service (IRS) by not reporting their cryptocurrency transactions  Don’t Worry About Accuracy, Just Report Crypto Taxes According to Yahoo Finance, H&R Block has told its crypto-owning customers to heed the IRS’ call for crypto tax compliance. In new guidelines shared by the company, the U.S. tax preparation firm encouraged its customers to try and take the initiative concerningRead More The post appeared first on Bitcoinist.com.

IRS to Limit Probe into Coinbase User, US Court Advises

The U.S. Internal Revenue Service (IRS) could be made to restrict its crypto tax probe of Coinbase user William Zietzke to cover only 2016. IRS Should Restrict Zietzke Crypto Tax Probe to 2016 According to Law360, U.S. Magistrate Judge Sallie Kim says the IRS should reduce the scope of its document request to Coinbase concerning one of its users — Zietzke. Delivering the court’s recommendation, Judge Kim stated: The court finds that the requests forRead More The post appeared first on Bitcoinist.com.

IRS Targets Crypto Trading and Gig Economy for 2020 Tax Season

The U.S. Internal Revenue Service (IRS) is directly focusing on crypto trading for the 2020 Tax Day with a checkbox on the tax form enquiring after people’s involvement in virtual currency activities. IRS Includes Crypto Trading Question in Tax Form The IRS has updated its Form 1040 — which covers additional income, to include a new checkbox for crypto trading. The newly added question reads: At any time during 2019, did you receive, sell, send,Read More The post appeared first on Bitcoinist.com.

IRS Says Charity Crypto Donations Must be Declared

Recently, the US government’s revenue service, the IRS made a few changes to its set of FAQs on crypto assets. Charity organizations that are generally exempted from tax collections have to report virtual currency based donations on Form 990, the agency said on December 26.  Apart from the aforementioned amendment, there’s something else. In certain situations, non-profit organizations are also required to accept a receipt for crypto donations, the IRS clarified. Accepting Crypto Donations? ReportRead More The post appeared first on Bitcoinist.com.

Korean Government to Tax Crypto Capital Gains from 2020

south korea crypto tax

The Korean government is preparing legal tools to tax capital gains from the sale of crypto assets. Specialized legislation to target digital asset deals is expected to arrive from the tax season for 2020. Korean Authorities Hope to Tax Crypto Capital Gains Until recently, Korea was one of the most active markets for crypto speculation. But there was no direct framework to tax capital gains from the sale of digital assets, reported The Korea Times.

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Brazil IRS Creates Penalty Code For Dishonest Crypto Taxpayers

Brazil IRS creates special code for dishonest crypto taxpayers

The IRS in Brazil has turned the spotlight on crypto deals and transfers, creating a special penalty code to fine for misreporting. Brazil Requires Monthly Filings for Crypto Activity Failing to file a monthly report of crypto asset movements triggers “Revenue code 5720 – Default for Default / Incorrect / Delay in Reporting on Transactions Performed with Crypto”, reported community portal OBN. Brazil introduced crypto regulation this August, and the IRS claims it has received

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Bitcoin And Crypto Compliance From A US Tax Perspective

IRS bitcoin tax rules

One of the things which causes undue consternation for many holders of Bitcoin and cryptocurrency is its taxable status. While some naysayers still consider the whole industry a tax avoidance scheme, most users just want to make sure they comply with the rules. Fortunately, many jurisdictions, including the US, have fairly clearly defined regulation, in this area at least. So how can you ensure that your cryptocurrency ownership is all above board with the IRS? According to

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US Court Allows IRS to View Bitstamp Customer Information

Us court allows IRS snooping

US federal judge allowed the IRS to demand information about users’ assets from Bitstamp crypto exchange, although the agency was also ordered to reduce the number of requests. The IRS’s involvement with the cryptocurrency industry continues to increase. This, in turn, has irked quite some crypto users. One resident of Washington even sent a request to the Washington County District Court, asking for a court order that would stop the IRS from receiving information about Bitstamp

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3 Ways US Congress May Approach Bitcoin Taxation

United States Congress on Bitcoin

With the U.S. Internal Revenue Service looking to enforce more stringent Bitcoin tax compliance, several stakeholders say Congress should step in to clarify the way virtual currencies should be treated for tax purposes. The following are three possible ways lawmakers could approach bitcoin taxation. ‘De Minimis’ Bitcoin Taxation Exemption Using bitcoin and cryptos for microtransactions could cause tax headaches since the IRS classifies virtual currencies as properties. To this end, some commentators say bitcoin taxation

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Crypto Tax: De Minimis Exception Could Complicate Things for IRS

crypto tax IRS

A provision for de minimis exception in crypto taxes could lead coin holders to manipulate the system while burdening IRS further. The US Internal Revenue Service recently published guidance regarding the tax treatment of digital currencies. The document was long-awaited due to the fact that it contains instructions on how to calculate taxes on crypto transactions. However, many have also noticed that it requires US citizens to report every sale, exchange, and transaction of cryptocurrencies

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IRS Voices Concerns Over Crypto Kiosks and ATMs

IRS Investigates Crypto ATMs and Kiosks

The IRS has announced that it is investigating crypto kiosks and ATMs with concerns regarding tax evasions, as well as the possibility of money laundering, controlled substance purchase, and similar crimes. Crypto ATMs and kiosks have become an increasingly popular method of purchasing cryptocurrencies, as well as withdrawing funds among the United States-based crypto users. However, according to a recent Bloomberg interview, the IRS has raised concerns over potential tax evasion issues that might arise

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IRS Refunds Tax-Paying Crypto Users

IRS Refunds Crypto Tax Users

The Internal Revenue Service (IRS) has sent refunds to crypto users who had correctly reported their taxes with proof of trades and transactions. The matter of cryptocurrency-related taxes has been a major question within the US for a few years now. While the country continues to operate without any crypto regulations — or a hint that such regulations would arrive shortly — those willing to cooperate with the IRS might see some considerable benefits in

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IRS Playing Fair With Transparent Crypto Tax Filings

IRS crypto tax

Contrary to its portrayed draconian stance on crypto taxes, the US Internal Revenue Service is playing fair. Exercising transparency in reporting numbers is the key, and may save crypto traders thousands in tax bills. IRS Appreciates Detailed Crypto Transaction and Trading History A detailed history of crypto transactions and sales may significantly reduce the outstanding tax bill and clear users from unwanted scrutiny reported Bloomberg. As a routine, the IRS sends out letters to warn

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Gemini Exchange Adds Automated Customer Tax Reporting

winklevoss gemini exchange

US-based crypto exchange Gemini wants to help its users comply with the tax requirements in a convenient manner. The company hired Sovos to modernize its tax information reporting. The Solution Will Automate Gemini’s Tax Filings The exchange platform managed by Taylor and Cameron Winklevoss will use Sovos’ technology to automate its 1099 forms and filings. The solution is expected to reduce potential human errors and ensure automatic regulatory updates. The latter is quite important in

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