A recent Twitter survey conducted among more than 7500 people in the US, indicates that 52% of American cryptocurrency investors believe tax does not calculate them. In addition, only one-fifth of the participants indicated that they have already filed returns and paid the taxes.
Very strange citizenship, given that in recent times the IRS has issued clear guidance that must be adhered to when it comes to paying taxes on cryptocurrencies. However, investors seem to not follow the rules. Many believe that the Agency will ignore or simply cannot detect their activities.
In the United States is home to more than 16 million owners of cryptocurrencies. Recently it was found that about 20% of College students invested their student loans in cryptocurrency. The growth in the number of users it is easy to guess what a huge loss for the country’s budget will be the non-payment of their taxes.
To shed light on the problem, the IRS has issued several recommendations with regards to cryptocurrency and taxation. They say that cryptocurrencies will be treated as property in the context of taxation. Under the provisions, a “cryptocurrency” can be considered a “convertible virtual currency” that is equivalent in Fiat, or replace it.
Turning to office, Sara-Jane, Maureen, a tax attorney explained the key points in the taxation of cryptocurrencies. To avoid large fines, investors need to conduct a detailed report about what they buy and when they buy. And because the IRS sees cryptocurrency as property, to pay taxes necessarily, in the case of capital gains. In addition, if cryptocurrencies, on the contrary, will bring the investor losses, detailed account of this can reduce the total amount of all the taxes a US citizen.
In the report, you must specify the following information: time of purchase, the amount of investment, sales and revenue.
In some cases, “taxpayers can be prosecuted for failure to submit proper statement of income from operations with virtual currency,” stated the IRS in the USA.