IRS warns 10,000 cryptocurrency holders they may have broken tax laws

Contents

The IRS is trapping cryptocurrency holders
CONTENT

  • US tax authorities decided to get rid of cunning schemes for non-payment of taxes on cryptocurrencies

  • Now the column about cryptocurrencies is placed on the first page of the declaration

  • Not all European countries agree to tax cryptocurrencies for individuals

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The IRS is committed to finding all cryptocurrency traders and collecting taxes from them.

The IRS is trapping cryptocurrency holders

To do this, the department makes changes to tax returns.. 

The IRS has made significant adjustments to the tax form for reporting for 2020, writes The Wall Street Journal. Now the standard US tax form 1040 used for federal personal income tax returns has a cryptocurrency column among the first.

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Taxpayers have to answer a simple question: “Have you bought, sold, sent, exchanged or otherwise received a financial benefit in virtual currency during 2020?” You just need to choose one of the proposed answer options: yes or no.

To the most prominent place

It is worth noting that the column about cryptocurrencies was also present in the form for 2019, however, in the part to which not all taxpayers were required to answer, writes WSJ.

The IRS is trapping cryptocurrency holders

Now the clause on cryptocurrencies is placed right under the name and address of the taxpayer.

“This placement is unprecedented and will make it easier for the IRS to win cases against taxpayers who mark No instead of Yes,” said lawyer Ed Zollars of Kaplan Financial Education.. 

By changing the position on the issue of cryptocurrencies, the tax office significantly complicates the use of such a trick as ignorance of the rules for reporting declarations for cryptocurrencies..

The IRS is trapping cryptocurrency holders

Thus, the department plans to strengthen control over the virtual asset market..

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In the footsteps of the eastern neighbor

Tightening regulation of the crypto market is taking place not only abroad.

The IRS is trapping cryptocurrency holders

Previously, for example, BeInCrypto editors reported, that the Ministry of Finance of the Russian Federation has prepared new versions of bills on market regulation, proposing to plant for three years for non-declaration of crypto wallets with an annual turnover of over 1 million rubles.

How cryptocurrencies are taxed around the world can be found in a special material prepared earlier by the editors.

However, there are also those countries that impose a tax on digital assets. These include Germany, Malta, Switzerland and Belarus. However, some taxes still have to be paid. For example, in Portugal, despite the absence of taxation for individuals, businesses that accept digital currencies as payment for goods and services must pay VAT and income tax..

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