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  • Authorities find new ways to trace unpaid cryptocurrency tax
  • It is a requirement to file a tax return on crypto investments
  • The IRS are on the hunt for crypto tax evaders

The IRS, or the Internal Revenue Service, the financial conduct branch of the United States government are alleged to have discovered a new way to catch cryptocurrency tax evaders. It is of course the law to file cryptocurrency tax returns in the United States, as well as in many other countries across the world, including the United Kingdom. Tax should be paid on the profits generated from cryptocurrency investment, in the same way a self employed person or sole trader may file their own tax return too. 

According to reports, the IRS are now working with other similar authorities from other international regions, including the UK, Australia, the Netherlands and Canada in order to share their wider experience on cryptocurrency tax and cryptocurrency tax evasion. The aim of this is to make all parties better at detecting criminals, in order to increase the level of tax that is eventually paid on cryptocurrency investments.

We should remember that just last month, the IRS issued new guidelines that refer to cryptocurrency taxation, so really this proves just how intent on catching these criminals the IRS really are:

“Last month the IRS saw amendments to one of the IRS’s taxation reporting documents. Form 1040 now asks if at anytime during 2019 did you receive, sell, send, exchanged or otherwise acquire any financial interest in any virtual currency. The US tax authority also issued further guidance on how it expects cryptocurrency users to report their tax. The previous lack of clarity led to great confusion and likely contributed to the overall lack of tax reporting that now concerns the IRS.”

With this in mind and with the revelation that the IRS are now working closely with other authorities in the UK, Australia, Canada and the Netherlands, we can conclude that through sharing data and experience, criminals and tax evaders within the cryptocurrency markets are going to find it much harder to hide. If you’re unsure about what tax you owe on your investments, you should contact your own national financial service, such as the IRS in the United States or even the Financial Conduct Authority in the UK to ensure that you are up to date with payments to make sure you’re not accidentally breaking the law.

Robert Johnson , 2019-11-11 16:00:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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