IRS To View Bitcoin Exchange Records, “Taxman” Is Coming “For Crypto”

2021-5-6 17:41

Judgement day could be coming for early crypto investors who thought that the government had no chance in tracing Bitcoin and other blockchain transactions.

According to a Senior Washington Correspondent for CNBC, the “taxman” is coming “for crypto” and the IRS has been authorized to serve a request to review a swath of records across a variety of top crypto exchanges. Here’s everything you need to know about the developing and potentially dangerous situation.

Bought Bitcoin? You Could Owe The Taxman

When Bitcoin began a little more than ten years ago, it was trading at just pennies to the dollar and very few at that time would envision it to be worth $50,000 per coin.

The earliest users traded 10,000 BTC for two pizzas, just to provide an example of the mindset at the time. Even the US government and other nations paid very little attention to the top cryptocurrency, until recently.

Related Reading | Bought NFTs? There’s A Tax For That, And Other Ways The IRS Is Eyeing Crypto 

At more than a trillion market cap, Bitcoin is now a force to be reckoned with, and the total crypto market at more than $2 trillion and climbing represents a massive amount of capital growth in under ten years.

Fortunes have been made and lost, then made again, and for all that, the “taxman” wants their cut.

A trillion was added during this time period and the IRS wants a piece | Source: CRYPTOCAP-TOTAL on TradingView.com An IRS Reckoning Is Coming To Crypto

They say there are only two things in life that are guaranteed: death and taxes. Unless you are lucky enough to reside in a tax haven, taxes are something that cannot be avoided. Try it, and you could face fines, penalties, or imprisonment.

Crypto investors or those that rode the Bitcoin rocket ship into wealth, but haven’t put aside anything for capital gains, or worse yet – haven’t reported anything at all – could be in some serious trouble soon. That’s because according to Senior Washington Correspondent for CNBC Eamon Javers, the “taxman” is coming “for crypto.”

The speculation is the result of a new revelation from the US Department of Justice, that claims that the IRS will serve a John Doe summons to crypto exchange Kraken, “seeking information about U.S. taxpayers who conducted at least $20,000 of transactions in cryptocurrency from 2016 to 2020.”

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

“There is no excuse for taxpayers continuing to fail to report the income earned and taxes due from virtual currency transactions,” said IRS Commissioner Chuck Rettig. “This John Doe summons is part of our effort to uncover those who are trying to skirt reporting and avoid paying their fair share.”

The document also clears Kraken itself of any wrongdoing. Considering the platform’s location, the company’s hands are tied and will be forced to turn over the requested records.

A similar summons was issued recently to Poloniex, requesting records related to the same subset of users, but from Massachusetts where parent company at the time, Circle, is located. The request related to Kraken is specifically targeting California residents due to its location.

Regardless of location, given how much money has been made in crypto and how little taxes have been paid on it all, the US government could come aggressively looking for their portion. Be prepared.

Featured image from Pixabay, Charts from TradingView.com

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Emerald Crypto (EMD) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 4.67 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0095806 (-100%)

crypto coming records irs bitcoin taxman according

crypto coming → Результатов: 126


4 In 10 People Want To Use Crypto Payments Next Year, Mastercard Survey Finds

According to a survey conducted by credit card giant Mastercard, four out of ten people expect to use cryptocurrencies for payments in the coming year. 93% Will Consider Using Emerging Payment Methods Between February 26 and March 10, Mastercard conducted an online survey and interviews with 15,569 consumers in 18 countries across four regions around […]

2021-5-5 15:23


How’s the Crypto Market Coming Along in Q2 2021?

The first month of the second quarter of 2021 is coming to an end. The crypto market is dominated by a positive mood, but it is far from the first month of the year. During the first half of April, the main cryptocurrency was in the range of $54,000 to $63,000, there was no strong … Continued The post How’s the Crypto Market Coming Along in Q2 2021? appeared first on BeInCrypto.

2021-4-27 16:53


Grayscale заплатит TIME биткоином за серию видеороликов о криптоиндустрии

Журнал TIME выпустит серию видеороликов о биткоин-индустрии в рамках партнерства с управляющим активами Grayscale. Об этом сообщил CEO компании Майкл Зонненшайн. Thrilled @Grayscale is partnering w/ @TIME on a new video series coming this summer explaining the #crypto space.

2021-4-13 09:57


Total Crypto Market Value Blows Past $2 Trillion & Surpasses the Value of the US Banking System

The cryptocurrency market has reached a new milestone; all cryptos' total value now surpasses the value of the US banking system. More than $1 trillion of it belongs to Bitcoin only. An ‘imperfect’ attempt to measure the current CeFi system's size versus the coming DeFi system, Jim Bianco, President of Bianco Research LLC, which specializes […] The post Total Crypto Market Value Blows Past Trillion & Surpasses the Value of the US Banking System first appeared on BitcoinExchangeGuide.

2021-4-6 17:08


Фото:

Cardano (ADA) intensifies efforts against scams with launch of new task force

Cardano (ADA) has rolled out a task force to fight fraudulent activities and scams. The launch is coming after a recent report of an increased spate of fraud within the crypto industry. Cardano founder Charles Hoskinson said he has been frustrated by the high levels of scams within the industry and thinks his company can […] The post Cardano (ADA) intensifies efforts against scams with launch of new task force appeared first on Invezz.

2021-3-31 12:11


Фото:

Crypto user offers to buy Elon Musk’s NFT tweet for $100,000

The crypto industry constantly sees new trends coming and going. Two years ago, IEOs were the most popular thing around, while last year, the DeFi sector became a trend. These days, in March 2021, it appears that it is time for NFTs to rise, and so far, they have already caused some interesting reactions from […] The post Crypto user offers to buy Elon Musk’s NFT tweet for $100,000 appeared first on Invezz.

2021-3-17 14:55


Фото:

Jack Dorsey’s Square Buys Into Tidal: Is Bitcoin Coming To The Streaming Service?

It is no secret that Twitter and Square CEO Jack Dorsey is a big supporter of Bitcoin and the blockchain industry. He has participated in the Lightning challenge, has publicly endorsed crypto, and CashApp has been allowing Bitcoin transactions long before many companies like PayPal and Mastercard hopped on board. In the latest move that […]

2021-3-7 21:44