Cryptocurrency investors may soon have more clarity on how the IRS will tax their holdings now that the agency has said it is making that a priority. Continue reading IRS Claims to Prioritize Tax Rules for Crypto Investors but Lacks Urgency
Bitcoin has a remarkable way of teaching people very rapidly about the law of unintended consequences. A great example is when the Chinese government began inspecting regulated exchanges in February 2017. Continue reading Taxing All Bitcoin Buying Will Backfire for the IRS
The US Internal Revenue Service (IRS) released a memo March 23, reminding US citizens of the need to report their digital currency earnings on their income tax returns. Continue reading IRS Warns Taxpayers To Include Crypto On Income Tax Returns
Coinbase has added new tax features for its customers. The new features are aimed at simplifying the often complex process of paying tax and come with a reminder that gains made from digital currencies are taxable in the US. Under IRS guidance virtual currencies are treated as property, meaning that investors must pay taxes adjusted to the fair market value of the asset at the time of each transaction. It’s a process that Coinbase has tried to make easier in the past, providing a complete report of all transactions from which investors can work out their profit and loss. Continue reading Coinbase Introduces New Tax Calculator
Coinbase recently notified approximately 13,000 of its customers that it was turning their information over to the United States. Coinbase has told those affected that it would be providing their taxpayer ID (social security number), name, birth date, address and transaction records from 2013-2015 to the Internal Revenue Service (IRS), by March 16, 2018. So what should you do if you received one of these letters? Coinbase advises recipients to contact a tax attorney. Sounds good, but also pretty boring. If you’re feeling up to it, you might also consider first, panicking, and then employing one of a number of “creative” approaches designed to make the problem go away entirely. It’s also important to remember that IRS employees are people too. Now, that doesn’t mean you have to love them or want them to succeed in collecting the most taxes they can. But it should mean that you think of how to approach them strategically, given that they are human and can be expected to have certain normal human responses.