Mark Mason
Well-known member
Tax Day in the U.S. Causes Confusion within the Crypto Space
Tax day within the U.S., when all United States’ citizens must postmark their taxes to their government, is today, April 17, and little guidance has left many cryptocurrency users in the dark and confused.
The U.S. tax system forces individuals to calculate the amount that they owe to the government based off of guidance and rules from the Internal Revenue Service (IRS). The last guidance issued about cryptocurrencies was in 2014, which classified cryptocurrencies as property. One crypto business entrepreneur has said that “[t]he big unknown is, who owns what, when and in what jurisdiction” and “[t]hat’s really hard to determine.” David Klasing, an accountant and tax lawyer that specializes in digital currencies said that a lot of “tax preparers are put off by the industry’s lack of records, as well as its association with criminal activity”. Other tax accountants simply don’t know how to file crypto taxes or how to file it correctly. Turbo Tax and H&R Block, tax filling assistants, have listed numerous pages of help guides for cryptocurrency tax accounting.
The IRS last said in 2014 that tax filers should pay crypto taxes based on “factual scenarios that most closely resemble their circumstances.” The IRS recently said in March that if taxpayers do not “properly report” their cryptocurrency usage then there could be financial penalties and even criminal prosecution. The IRS’s classification of crypto as property creates a taxable event every time cryptocurrency is purchased and sold, including using crypto as currency to buy or sell goods/services. The large price increases that cryptocurrencies experienced over the past year created sizable taxable scenarios for many users.
Read more: https://www.dashforcenews.com/tax-day-in-the-u-s-causes-confusion-within-the-crypto-space/
Tax day within the U.S., when all United States’ citizens must postmark their taxes to their government, is today, April 17, and little guidance has left many cryptocurrency users in the dark and confused.
The U.S. tax system forces individuals to calculate the amount that they owe to the government based off of guidance and rules from the Internal Revenue Service (IRS). The last guidance issued about cryptocurrencies was in 2014, which classified cryptocurrencies as property. One crypto business entrepreneur has said that “[t]he big unknown is, who owns what, when and in what jurisdiction” and “[t]hat’s really hard to determine.” David Klasing, an accountant and tax lawyer that specializes in digital currencies said that a lot of “tax preparers are put off by the industry’s lack of records, as well as its association with criminal activity”. Other tax accountants simply don’t know how to file crypto taxes or how to file it correctly. Turbo Tax and H&R Block, tax filling assistants, have listed numerous pages of help guides for cryptocurrency tax accounting.
The IRS last said in 2014 that tax filers should pay crypto taxes based on “factual scenarios that most closely resemble their circumstances.” The IRS recently said in March that if taxpayers do not “properly report” their cryptocurrency usage then there could be financial penalties and even criminal prosecution. The IRS’s classification of crypto as property creates a taxable event every time cryptocurrency is purchased and sold, including using crypto as currency to buy or sell goods/services. The large price increases that cryptocurrencies experienced over the past year created sizable taxable scenarios for many users.
Read more: https://www.dashforcenews.com/tax-day-in-the-u-s-causes-confusion-within-the-crypto-space/
